GeoPark Reports Results for the Fourth Quarter and Full Year Ended December 31 2015 - GeoPark
Go Back

SUCCESSFULLY NAVIGATING A STABLE GROWTH PATH FORWARD

GeoPark Limited (“GeoPark” or the “Company”) (NYSE: “GPRK”), a leading Latin American oil and gas explorer, operator and consolidator with operations and growth platforms in Colombia, Chile, Brazil, Argentina, and Peru¹ reports its consolidated financial results for the three-month period ended December 31, 2015 (“Fourth Quarter” or “4Q2015”) and its audited annual results for 2015.

A conference call to discuss 4Q2015 results will be held on March 11, 2016 at 10 am Eastern Standard Time.

All figures are expressed in US Dollars and growth comparisons refer to the same period of the prior year, except when specified.

FOURTH QUARTER AND FULL YEAR 2015 HIGHLIGHTS

Operational:

  • Record oil and gas production in 4Q2015:

o Consolidated production up 15% to 23,062 boepd (up 20% compared to 3Q2015)

o Oil production up 19% to 17,123 bopd (up 16% compared to 3Q2015)

o Gas production up 6% to 35.6 mmcfpd (up 31% compared to 3Q2015)

o Average 2015 consolidated production of 20,367 boepd

o Colombian Llanos 34 Block (GeoPark operated with 45% WI) gross average production up 59% to 32,000 bopd (up 21% compared to 3Q2015)

  • Record oil and gas reserves in 2015:

o Total net proven developed producing reserves² (“PDP”) up 25% to 17.3 mmboe with a PDP reserve replacement index (“RRI”) of 150%

o Total net proven reserves2 (“P1”) increased by 19% to 52.3 mmboe and, including Peru, to 71.1 mmboe with a RRI of 211% and a P1 reserve life index (“RLI”) of 9.6 years

o Total net proven and probable reserves2 (“2P”) up 3% to 95.1 mmboe and, including Peru, to 125.3 mmboe with a RRI of 141% and a 2P RLI of 16.9 years

  • Total certified P1 and 2P reserves net present value after tax (“NPV10”) of $891 million and $1.65 billion, respectively
  • Total audited exploration resources of 0.8-1.5 billion boe in proven hydrocarbon basins
  1. 1  Transaction executed with Petroperu on October 1, 2014 with final closing subject to Peru Government approval
  2. 2  Refers to PRMS reserves certified by D&M and including our pending transaction in Peru, unless otherwise specified

Financial:

  • Strong cash availability and liquidity position with up to $230 million in available funds, consisting of $82.7 million of cash (at the end of 4Q2015), up to $100 million from an offtake prepayment agreement with Trafigura and approximately $37 million in uncommitted credit lines
  • Reduced revenues, Adjusted EBITDA and earnings from a 47% decline in realized oil and gas prices and an increase in non-cash impairments:

o Consolidated revenues down 44% to $45.4 million / Full year 2015 revenues of $209.7 million

o Adjusted EBITDA down 61% to $10.6 million / Full year 2015 Adjusted EBITDA of $73.8 million

o Net loss of $201.5 million / Full year 2015 net loss of $284.6 million (impacted by $179.7 million of impairments and write-offs that represent non-cash accounting adjustments)

  • Effective and ongoing cost savings and capital investment reductions:

o Capital expenditures of $6.6 million / Full year 2015 capital expenditures of $48.8 million representing a 79% reduction from 2014

o Production and Operating Costs reduction in 4Q2015 of 33% / Full Year reduction of 34%

o Administrative Expenses (G&A) reduction in 4Q2015 of 7% / Full Year reduction of 18%

o Cash Costs per boe reduction in 4Q2015 of 38% / Full Year reduction of 38%

Strategic/New Business:

  • Entered into offtake and up to $100 million prepayment agreement with Trafigura to improve crude oil sale prices and netbacks, reduce transportation costs and operational risks, and strengthen GeoPark’s balance sheet
  • As part of long term effort to build an upstream platform in Mexico, GeoPark participated with its new strategic partner, Grupo Alfa, in the Mexican Bid Round 1.3 for onshore projects, with no blocks awarded

¹Transaction executed with Petroperu on October 1, 2014 with final closing subject to Peru Government approval
²Refers to PRMS reserves certified by D&M and including our pending transaction in Peru, unless otherwise specified

Read the full press release.