GeoPark Reports Third Quarter 2019 Results - GeoPark
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Bogotá, Colombia – GeoPark Limited (“GeoPark” or the “Company”) (NYSE: GPRK), a leading independent Latin American oil and gas explorer, operator and consolidator with operations and growth platforms in Colombia, Peru, Argentina, Brazil, Chile and Ecuador reports its consolidated financial results for the three-month period ended September 30, 2019 (“Third Quarter” or “3Q2019”). A conference call to discuss 3Q2019 financial results and the work program and investment guidelines for 2020 will be held on November 7, 2019 at 10:00 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. 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 September 30, 2019 and 2018, available on the Company’s website.


Consistently Growing Oil and Gas Production
• Consolidated oil and gas production up 6% to 39,619 boepd – adjusting for divested blocks, consolidated production increased by 9% (3% higher compared to 2Q2019)
• Oil production increased by 8% to 33,693 bopd
• Colombian oil production increased by 8% to 31,394 bopd (12% increase adjusting for divested blocks)
• Chilean production increased by 28% to 3,358 boepd

Consistently Successful Exploration and Development Drilling
In Colombia, in the Llanos 34 block (GeoPark operated, 45% WI)
• New Guaco discovery, the fourteenth oil field discovered by GeoPark in the block, and along the most western fault trend potentially opening up a new opportunity
• Five new development and appraisal wells were tested and put on production in the block
In Brazil on the REC-T-128 block (GeoPark operated, 70% WI)
• Newly discovered Praia dos Castelhanos oil field initiated long-term testing

Consistently Reducing Operating and Capital Costs
• Lower transportation costs in Colombia improved Adjusted EBITDA by $2.0 per bbl
• Consolidated operating costs reduced by 4% to $8.1 per boe
• Colombian operating costs reduced by 10% to $5.6 per boe

Consistently Improving Cashflow and Financial Returns
• Revenue of $151.2 million, just 9% lower despite 18% drop in Brent oil prices
• Adjusted EBITDA of $86.7 million or $25.3 per boe
• Net Profit of $6.8 million / 9M2019 net profit of $57.9 million
• Every $1 invested in Capital Expenditures yielded $3.9 in Adjusted EBITDA
• Return on capital employed of 41% in the last twelve months

Consistently Strengthening Balance Sheet
• Last twelve months Adjusted EBITDA of $363.4 million
• Net debt to Adjusted EBITDA ratio of 1.0x
• Cash and Cash Equivalents of $81.6 million

Consistently Expanding Acreage Platform, Partnerships and Project Fairway
• Jointly with Ecopetrol/Hocol, acquired three low-cost, low-risk high potential exploration blocks in the Llanos basin, surrounding the prolific Llanos 34 block, adding 86-155 mmbbl of gross unrisked exploration resources
• Acquired four new, attractive, low-risk, low-cost blocks in Brazil, strengthening GeoPark’s existing portfolio in the Reconcavo and Potiguar basins and adjacent to existing producing fields

Consistently Returning Value to Shareholders
• New quarterly dividend announced of $0.0413 per share
• Accelerated share buyback program, having acquired 4,448,000 shares (7% of total outstanding shares) for $72.6 million since December 2018, while executing self-funded, growth work programs

James F. Park, Chief Executive Officer of GeoPark, said: “Many thanks to the GeoPark team for delivering and continuing to fight to improve every element of our business. Again, during this period, we realized short-term results while making long-term investments for the future – always operating within and funded by our own cashflow. We believe this relentless and disciplined drive to become better in every way is a powerful intangible asset that differentiates GeoPark and positions us to become the leading Latin American independent. We are excited by the big new high potential acreage we acquired surrounding the rich Llanos 34 block – and honored to be partnering with and operating for the national oil company of Colombia in its home basin. We now have 5 drilling rigs operating across our asset platform – and are encouraged about completing 2019 with even better results and extending our growth track-record to a hard-earned 17th year. From our shareholders’ perspective, GeoPark has been returning value to shareholders by its leading share price performance (up more than 330% since 2017) and an ambitious share buyback program during the year – which has now been expanded to include our first quarterly cash dividend.”

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