GeoPark Reports First Quarter 2023 ResultsBogotá, ColombiaMay 3, 2023CONSISTENT FREE CASH FLOW FROM PROFITABLE BARRELS FUNDED A STRONGER BALANCE SHEET AND INCREASED SHAREHOLDER RETURNSGeoPark Limited (“GeoPark” or the “Company”) (NYSE: GPRK), a leading independent Latin American oil and gas explorer, operator and consolidator reports its consolidated financial results for the three-month period ended March 31, 2023 (“First Quarter” or “1Q2023”). A conference call to discuss 1Q2023 financial results will be held on May 4, 2023 at 10:00 am (Eastern Daylight Time).All figures are expressed in US Dollars and growth comparisons refer to the same period of the prior year, except when specified. Definitions and terms used herein are provided in the Glossary at the end of this document. This release does not contain all of the Company’s financial information and should be read in conjunction with GeoPark’s consolidated financial statements and the notes to those statements for the period ended March 31, 2023, available on the Company’s website.FIRST QUARTER 2023 HIGHLIGHTSOil and Gas Production Consolidated average oil and gas production of 36,578 boepd, below its production potential of approximately 39,500-40,500 boepd, as previously announced on March 8, 2023, mainly due to temporarily shut-in production and localized blockades in the CPO-5 block (GeoPark non-operated, 30% WI) in ColombiaRevenue, Adjusted EBITDA, Cash Flow & Net Profit Revenue of $182.5 millionAdjusted EBITDA of $114.9 million (a 63% adjusted EBITDA margin)Operating profit of $76.6 million (a 42% operating profit margin)Cash flow from operations of $91.9 millionNet profit of $26.3 million ($0.45 basic earnings per share)Cost and Capital Efficiency as Key DifferentiatorsDespite inflationary pressures, combined G&A and G&G decreased by 6% to $11.9 millionCapital expenditures of $45.0 million1Q2023 adjusted EBITDA to capital expenditures ratio of 2.5xLast twelve-month return on capital employed (ROCE) of 62%[1]Lower Interest Payments and a Strengthened Balance Sheet 1Q2023 interest payments decreased to $13.8 million (from $19.2 million), after reducing gross debt by $275 million from April 2021 to December 2022Net leverage of 0.7x and no principal debt maturities until 2027Cash in hand of $145.4 million ($128.8 million as of December 31, 2022)Delivering on Shareholder Returns Share buybacks increased by 142% to $7.5 million (acquired 0.6 million shares, over 1% of shares outstanding)Cash dividends increased by 55% to $7.5 million (representing an annualized dividend of approximately $30 million, or a 5% dividend yield[2])Quarterly cash dividend of $0.13 per share, or approximately $7.5 million, payable on May 31, 2023Enhanced ESG Performance Published the 2022 SPEED/ESG Report on April 26, 2023, available on the Company’s website2022 emissions intensity decreased by 34% to 12.1 kg CO2e/boe[3] (or a 40% decrease to 9.7 kg CO2e/boe in core Llanos 34 block) mainly due to the interconnection of the Llanos 34 block to Colombia’s national power grid and the start of operations of the solar plant among other initiativesOver 240,000 beneficiaries of the Company’s social and environmental programs in 2022Women hold 50% of GeoPark’s senior executive positionsPortfolio ManagementCommercial negotiations are ongoing with ENAP, the oil offtaker in Chile, in an effort to resume shut-in production of approximately 400 bopdImplemented a restructuring initiative in Chile in April 2023 to provide further cost reductions, in conjunction with a process to evaluate farm-out/divestment opportunities2023 Work Program: Revised Production and Capital Expenditures GuidanceFull-year 2023 production guidance has been revised down to 38,000-40,000 boepd mainly due to temporarily shut-in production in the CPO-5 block, and to a lesser extent, due to shut-in production in Chile and deferral of certain drilling activities in Ecuador2H2023 production is expected to average 39,000-42,000 boepd (excluding the potential production from the 2023 exploration drilling program)Capital expenditures have been revised down to $180-200 million (from $200-220 million)At $80-90[4] per bbl Brent, GeoPark expects to generate an Adjusted EBITDA of $490-560 million[5] and a free cash flow of $120-140 million[6]Targeting to return approximately 40-50% of free cash flow after taxes to shareholdersUpcoming Catalysts Drilling 10-12 gross wells in 2Q2023, targeting development and exploration projects in the Llanos basin in ColombiaExploration drilling includes 2-3 new gross wells in the Llanos basin (Llanos 123 and Llanos 124 blocks)Andrés Ocampo, Chief Executive Officer of GeoPark, said: “Despite the challenges faced during the first quarter, GeoPark has been able to deliver strong results, as well as to adapt quickly by reducing costs and streamlining capital expenditures to maximize and protect our cash flow generation, which allow us to continue strengthening our balance sheet and returning more value to our shareholders. For the remainder of 2023, we look forward to continue executing and delivering on our ambitious 2023 work program to grow our production base and drill low-cost and low-risk exploration targets with the main focus on our core Llanos basin.”[1] Return on average capital employed is defined as last twelve-month operating profit divided by average total assets minus current liabilities.[2] Based on GeoPark’s market capitalization as of May 2, 2023.[3] Scopes 1 and 2.[4] Brent assumption from May to December 2023.[5] Assuming a Brent to Vasconia differential averaging $4-5 per bbl from May to December 2023.[6] Free cash flow is used here as Adjusted EBITDA less capital expenditures, mandatory interest payments and cash taxes. 2023 cash taxes include GeoPark’s preliminary estimates of the full impact of the new tax reform in Colombia, irrespective of the timing of its cash impact, expected in 2023 or early 2024. The Company is unable to present a quantitative reconciliation of the 2023 Adjusted EBITDA which is a forward-looking non-GAAP measure, because the Company cannot reliably predict certain of its necessary components, such as write-off of unsuccessful exploration efforts or impairment loss on non-financial assets, etc. Since free cash flow is calculated based on Adjusted EBITDA, for similar reasons, the Company does not provide a quantitative reconciliation of the 2023 free cash flow forecast. → Read the full press release. For further information, please contact:INVESTORS:Stacy Steimel ssteimel@geo-park.com Shareholder Value Director T: +562 2242 9600Miguel Bello mbello@geo-park.com Market Access Director T: +562 2242 9600Diego Gully dgully@geo-park.com Investor Relations Director T: +5411 4312 9400MEDIA:Communications Department communications@geo-park.com SHARE
