GeoPark Reports Third Quarter 2023 Results

EXPLORATION SUCCESSES OPEN MULTIPLE GROWTH FAIRWAYS,
DRILLING OPPORTUNITIES & NEW PLAYS
CONSISTENTLY STRONG FREE CASH FLOW

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 September 30, 2023 (“Third Quarter” or “3Q2023”). A conference call to discuss 3Q2023 financial results will be held on November 9, 2023, 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, 2023, available on the Company’s website.

THIRD QUARTER 2023 HIGHLIGHTS

Oil and Gas Production and Operations

3Q2023 consolidated average oil and gas production of 34,778 boepd, below its potential mainly due to temporarily shut-in production in the CPO-5 Block (GeoPark non-operated, 30% WI) in Colombia and in the Fell Block (GeoPark operated, 100% WI) in Chile
Full-year 2023 average production guidance is expected to be 36,000-37,000 boepd, lower than 38,000-40,000 boepd guidance previously announced mainly due to the delays in bringing back shut-in production
In late September 2023, the CPO-5 Block operator received approval from the regulator (ANH) to resume production in the Indico 6 and Indico 7 wells, which are currently producing approximately 8,000 bopd gross in aggregate
12 rigs currently in operation (7 drilling rigs and 5 workover rigs), including 4 drilling rigs on exploration and appraisal wells

2023 Exploration Campaign Successes Open New Appraisal and Development Fairways

Llanos 123 Block (GeoPark operated, 50% WI) – Llanos Basin in Colombia:

The Toritos 1 exploration well initiated testing in September and is currently producing 1,300 bopd
GeoPark is adding a new appraisal well, the Toritos Norte 1, to be spudded before year-end (subject to joint venture approval)
Based on these positive results, GeoPark will pursue multiple potential drilling opportunities to be tested in 2024[1] (subject to joint venture approval)

Perico Block (GeoPark non-operated, 50% WI) – Oriente Basin in Ecuador:

GeoPark is developing a complete structural and stratigraphic geological model for the U-sand formation after three successful wells, Yin-2, Perico Centro 1 and Perico Norte 4, currently producing more than 2,700 bopd
The most recent appraisal well, the Perico Norte 4, initiated testing activities in early November and is currently producing approximately 1,230 bopd of 29 degrees API with a 6% water cut
GeoPark is adding a new appraisal well, the Perico Norte 5, to be spudded before year-end (subject to joint venture approval)
Based on these positive results, GeoPark will pursue multiple potential drilling opportunities to be tested in 2024 (subject to joint venture approval)

CPO-5 Block – Llanos Basin in Colombia:

The Halcon 1 exploration well reached total depth in late October, and will test exploration potential in the northern part of the CPO-5 Block, close to the Llanos 34 Block
Preliminary logging information indicates hydrocarbon potential in the Guadalupe formation and production tests are expected to initiate in late November
The operator will spud the Perico 1 exploration well (adjacent to Halcon 1) before year-end to continue delineating the Guadalupe play in the northern part of the block

Llanos 87 Block (GeoPark operated, 50% WI) – Llanos Basin in Colombia:

The Zorzal Este 1 exploration well reached total depth in early November
Preliminary logging information indicates hydrocarbon potential in the Barco (Guadalupe) formation and production tests are expected to initiate in mid-November
GeoPark plans to add a new appraisal well, the Zorzal Este 2, to be spudded before year-end (subject to joint venture approval)
Based on these positive results, GeoPark will pursue multiple potential drilling opportunities to be tested in 2024 (subject to joint venture approval)

Llanos 34 Block (GeoPark operated, 45% WI) – Llanos Basin in Colombia:

The first three horizontal wells are currently producing approximately 4,600 bopd combined
The fourth horizontal development well initiated testing in early November 2023 and is currently producing approximately 3,450 bopd from the Mirador formation
The fourth horizontal well was drilled faster, to a longer lateral length, and at a lower cost compared to the first three horizontal wells

Revenue, Adjusted EBITDA and Net Profit

Revenue of $192.1 million
Adjusted EBITDA of $115.2 million (60% Adjusted EBITDA margin)
Operating profit of $80.5 million (42% operating profit margin)
Cash flow from operations of $92.6 million
Net profit of $24.8 million ($0.44 basic and diluted earnings per share)

Cost and Capital Efficiency as Key Differentiators

Capital expenditures of $44.1 million
3Q2023 Adjusted EBITDA to capital expenditures ratio of 2.6x
Last twelve-month return on capital employed (ROCE) of 42%[2]

Lower Financial Expenses and Strengthened Balance Sheet

Cash in hand of $106.3 million (up from $86.4 million as of June 30, 2023)
Financial expenses decreased to $12.5 million (from $14.1 million), after reducing gross debt by $275 million from April 2021 to December 2022
Net leverage of 0.8x and no principal debt maturities until 2027
$80 million committed credit facility in place, with no amounts drawn

Accelerated Shareholder Returns

Quarterly dividend of $0.134 per share, or $7.5 million in the aggregate, payable on December 11, 2023
Equivalent to an annualized dividend of approximately $30 million (or $0.535 per share), a 5% dividend yield[3])
Completed share buyback program after acquiring 2.2 million shares (or 4% of total shares outstanding) for $23.6 million since November 2022
Expected to return over $50 million in 2023 through dividends and buybacks, exceeding the 40-50% free cash flow target
Renewed discretionary share buyback program for up to 10% of shares outstanding until December 2024

Upcoming Activities

Drilling 10-12 gross wells in 4Q2023, targeting attractive conventional, short-cycle projects
Key projects include:
- CPO-5 Block: Testing the Halcon 1 exploration well and spudding the Perico 1 exploration well before year-end
- Llanos 123 Block: Currently drilling the Bisbita Centro 1 exploration well, expected to reach total depth in mid-November, and spudding the Toritos Norte 1 appraisal well before year-end (subject to joint venture approval)
- Llanos 87 Block: Testing the Zorzal Este 1 exploration well and spudding the Zorzal Este 2 appraisal well before year-end (subject to joint venture approval)
- Llanos 34 Block: Currently drilling one additional horizontal development well and spudding an additional horizontal well before year-end
- Perico Block: Spudding the Perico Norte 5 appraisal well before year-end (subject to joint venture approval)
- Llanos 86 and Llanos 104 Blocks (GeoPark operated, 50% WI): Preliminary activities underway targeting the acquisition of over 650 square kilometers of 3D seismic to expand the inventory of exploration prospects

Andrés Ocampo, Chief Executive Officer of GeoPark, said: “Our team and portfolio have again delivered with the opening up of multiple new exciting growth fairways for further development following our recent drilling successes. The 2024 self-funded and flexible work program, announced today, builds on these successes to pursue multiple potential drilling opportunities to be tested in 2024. We will continue delivering on our commitment to return value to shareholders while maintaining a strong balance sheet, reducing emissions, and strengthening our relationship with our neighbors.”

[1] Please refer to the 2024 Work Program and Shareholder Return Framework published on November 8^th, 2023.

[2] ROCE is defined as last twelve-month operating profit divided by average total assets minus current liabilities.

[3] Based on GeoPark’s average market capitalization from October 1 to October 31, 2023.

CONFERENCE CALL INFORMATION

Reporting Date and Conference Call for 3Q2023 Financial Results

In conjunction with the 3Q2023 results press release, GeoPark management will host a conference call on November 9, 2023, at 10:00 am (Eastern Standard Time).

To listen to the call, participants can access the webcast located in the Invest with Us section of the Company’s website at www.geo-park.com, or by clicking below:

https://events.q4inc.com/attendee/344411932

Interested parties may participate in the conference call by dialing the numbers provided below:

United States Participants: +1 (646) 904-5544

International Participants: +1 (833) 470-1428

Passcode: 865697

Please allow extra time prior to the call to visit the website and download any streaming media software that might be required to listen to the webcast.

An archive of the webcast replay will be made available in the Invest with Us section of the Company’s website at www.geo-park.com after the conclusion of the live call.

→ Read the full press release.

For further information, please contact:

INVESTORS:

Stacy Steimel
ssteimel@geo-park.com
Shareholder Value Director
T: +562 2242 9600

Miguel Bello
mbello@geo-park.com
Market Access Director
T: +562 2242 9600

Diego Gully
dgully@geo-park.com
Investor Relations Director
T: +5411 4312 9400

MEDIA:
Communications Department
communications@geo-park.com