GeoPark Reports Second Quarter 2021 Results - GeoPark
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GeoPark Reports Second Quarter 2021 Results

August 4, 2021

PROFITABLE LOW-BREAKEVEN PRODUCTION
DEBT REDUCTION AND BALANCE SHEET STRENGTHENING POSITIONED TO ACCELERATE FREE CASH FLOW GROWTH IN 2H2021 INCREASING CAPITAL RETURNS TO SHAREHOLDERS

Bogota, 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, Ecuador, Chile, Brazil and Argentina reports its consolidated financial results for the three-month period ended June 30, 2021 (“Second Quarter” or “2Q2021”). A conference call to discuss 2Q2021 financial results will be held on August 5, 2021 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 June 30, 2021 available on the Company’s website.

SECOND QUARTER 2021 HIGHLIGHTS

Oil and Gas Production and Operations

  • Consolidated oil and gas production of 36,489 boepd, impacted by managed curtailments due to extensive protests and demonstrations that affected overall logistics throughout Colombia1
  • Production restored by the end of 2Q2021
  • Drilling and field operations normalized by the end of 2Q2021 and currently fully active with three operated drilling rigs and three workover rigs in Colombia

Strong Free Cash Flow from Profitable Barrels

  • Revenue of $165.6 million
  • Operating Profit of $19.2 million / Net Loss of $2.5 million
  • Operating Netback of $74.2 million / Adjusted EBITDA of $60.5 million (both including protective cashhedge losses of $35.7 million)
  • Capital expenditures of $34.4 million

Accelerating Production and Cash Flow

  • Full-year 2021 work program of $125-140 million, targeting 38,000-40,0002 boepd average production and operating netbacks of $340-390 million assuming Brent at $60-65 per bbl3
  • 2H2021 production expected to average 39,000-42,000 boepd (excluding the potential production from the 2H2021 exploration drilling program)
  • 2H2021 drilling program includes exploration prospects in the CPO-5 (GeoPark non-operated, 30% WI) and Llanos 94 (GeoPark non-operated, 50% WI) blocks

Successful Debt Reduction and Cost Savings

  • $85.0 million of cash & cash equivalents as of June 30, 2021
  • Strategic deleveraging executed in April 2021 resulted in significant debt reduction with extended maturities and lower cost of debt

→ Read the full press release.

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1Please refer to the Company’s releases on May 17, June 1, and July 1, 2021.
22021 production assumes full-year production from the Manati gas field in Brazil (currently under a divestiture process that is subject to certain conditions and regulatory approvals) and excludes potential production from the 2021 exploration drilling program.
3Brent price assumption from July to December 2021, assuming $3-4/bbl Vasconia-Brent differential.