GeoPark Reports Second Quarter 2022 Results

Bogotá, Colombia -(BUSINESS WIRE)– GeoPark 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 June 30, 2022 (“Second Quarter” or “2Q2022”). A conference call to discuss 2Q2022 financial results will be held on August 11, 2022 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 June 30, 2022, available on the Company’s website.

SECOND QUARTER 2022 HIGHLIGHTS

Profitable Production Growth

• Consolidated oil and gas production up 14% to 38,940 boepd (up 2% vs 1Q2022)¹
• Production in Colombia up 16% to 34,253 boepd (up 2% vs 1Q2022)
• CPO-5 block (GeoPark non-operated, 30% WI) gross production up 77% to 20,300 boepd (up 34% vs 1Q2022)
• Tigana and Jacana fields in the Llanos 34 block (GeoPark operated, 45% WI) and Indico field in the CPO-5 block, rank among the top 10 oil-producing fields in Colombia²
• On track to reach 2022 full-year guidance of 38,500-40,500 boepd

Record Revenue, Adjusted EBITDA, Cash Flow and Net Income

• Revenue up 88% to $311.2 million
• Adjusted EBITDA up 140% to $144.8 million (including $36.6 million of realized cash hedge losses)
• Operating Profit of $143.4 million
• Cash flow from operations up 190% to $123.2 million
• Net profit of $67.9 million (or $1.13 earnings per share)

Improved Capital and Cost Efficiencies

• Capital expenditures of $32.4 million
• Every $1 dollar invested in capital expenditures yielded 4.5x in Adjusted EBITDA (3.7x in 1H2022)
• G&A costs reduced by 15% to $10.8 million

Fast, Immediate and Aggressive Actions to Minimize Emissions

• Main fields in Llanos 34 block interconnected to Colombia’s national power grid are fully operational (Tua and Jacana in May 2022, and Tigana in July 2022)
• The interconnection of Llanos 34 to Colombia’s national power grid (~70% hydroelectric³) is a decisive catalyst to reduce carbon emissions and improve overall operational reliability
• Solar photovoltaic plant in the Llanos 34 block to be fully operational in 3Q2022

2022 Work Program: Strong Cash Flow Generation

• Self-funded 2022 capital expenditures program of $200-220 million targets the drilling of 50-55 gross wells, including 18-22 gross exploration/appraisal wells
• Using a $90-100 per bbl Brent⁴, GeoPark expects to generate a free cash flow of $250-280⁵ million, equivalent to a 35-40% free cash flow yield⁶
• Free cash flow funding incremental capital projects, significant debt reduction, increased shareholder returns and other corporate purposes

Reducing Debt and Strengthening the Balance Sheet

• Cash in hand of $122.5 million ($114.1 million as of March 31, 2022)
• Net leverage of 1.0x (1.5x in March 2022 and 2.5x in June 2021)
• Reduced gross debt by $103⁷ million since January 1, 2022 (or $208 million since April 2021), with additional deleveraging expected in 2022 at current market conditions

Returning More Value To Shareholders

• Board approved a 50% increase in cash dividends to $7.5 million ($0.127 per share) per quarter, payable on September 8, 2022, representing an annualized dividend of $30 million, a 4%⁸ dividend yield or 11% of net income in 2Q2022
• Acquired 1.18 million shares, or 2% of total shares outstanding for $15.1 million since January 1, 2022 ($3.0 million in 1Q2022 and $12.1 million from April 1, 2022 to date)

Strengthened Corporate Governance

• Shareholders re-elected five existing Directors and elected four new Directors at the AGM held on July 15, 2022
• World-class, well-known oil and gas finders and developers, Brian Maxted and Carlos Macellari join the Board as Independent Directors. Two experienced Executive Directors, Andrés Ocampo and Marcela Vaca also joining, adding significant expertise to GeoPark’s Board of Directors
• GeoPark’s Board is 66.7% independent

Upcoming Catalysts

• Drilling 10-12 gross wells in 3Q2022, targeting development, appraisal, and exploration projects in the Llanos and Putumayo basins in Colombia and in the Oriente basin in Ecuador
• Exploration drilling includes 2-3 wells in Llanos basin, 1-2 wells in the Putumayo basin and 1 well in the Oriente basin in Ecuador

In the CPO-5 block:

• Initiating production tests in the Cante Flamenco exploration well (located 4 kilometers west of the Urraca 1 exploration well), where preliminary logging information indicated hydrocarbons in the Mirador formation
• After Cante Flamenco, the drilling rig is expected to move to drill 1-2 development wells in the Indico field to further accelerate production growth
• A second drilling rig is expected to start spudding wells in the southeastern part of the block in late August/early September 2022

Andrés Ocampo, Chief Executive Officer of GeoPark, said: “[GeoPark ended the second quarter and first half of the year firing on all cylinders: exploration success, production growth, cost discipline, growing Adjusted EBITDA, strong net profits, significant debt reduction and returning more value to shareholders with a bigger dividend and accelerated share buybacks. I am proud of the GeoPark team for producing these results and I am looking forward to the multiple catalysts in the second half of the year. We are kicking off the capital allocation process for 2023, selecting the best value-adding projects based on strategic, technical, economic and environmental and social criteria. Our rich inventory of projects provides us with an abundant and exciting opportunity set, giving us plenty of running room in the short, medium and long-term.”]