Strong Cash Flow Generation
Quarterly Cash Dividend of
THIRD QUARTER 2024 FINANCIAL SUMMARY
In 3Q2024,
Underscoring its ongoing commitment to disciplined financial management,
Each dollar invested in capital expenditures yielded
Quarterly average oil and gas production in 3Q2024 was 33,215 boepd,2 down 4% compared to 3Q2023 mainly due to the divestment of the Chilean business in 1Q2024, suspended operations at the Manati gas field in
GeoPark’s acquisition of four unconventional hydrocarbon blocks in Vaca Muerta,
Looking ahead,
Supplementary information is available at the following link: https://ir.geo-park.com/3Q24-SupplementaryRelease
THIRD QUARTER 2024 HIGHLIGHTS
Oil and Gas Production and Operations
- 3Q2024 consolidated average oil and gas production of 33,215 boepd4
-
Production decreased 7% in
Colombia compared to 2Q2024, due to continued blockades affecting operations in the Llanos 34 and the CPO-5 Blocks, and suspended production at the Manati gas field -
Production in the Mata Mora Norte Block in Vaca Muerta averaged 12,621 boepd gross in 3Q2024, peaking at a record of 15,418 boepd gross during
August 2024 -
9 rigs in operation at the end of 3Q2024 (5 drilling rigs and 4 workover rigs), including one drilling rig in
Argentina
Revenue, Adjusted EBITDA and Net Profit
-
Revenue of
$159.5 million , a decrease of 16% from 2Q2024, reflecting lower realized oil prices and lower deliveries -
Adjusted EBITDA of
$99.8 million (63% Adjusted EBITDA margin) -
Operating profit of
$54.7 million (34% operating profit margin) -
Net profit of
$25.1 million
Cost and Capital Efficiency
-
Capital expenditures of
$45.9 million - 3Q2024 Adjusted EBITDA to capital expenditures ratio of 2.2x
- ROACE of 34%5
Balance Sheet Reflects Financial Quality
-
Cash in hand of
$123.4 million , reflecting strong cash-flow generation -
Net leverage remained healthy (0.8x), with no principal debt maturities until
January 2027 -
Current cash position of
$140 million (October 31, 2024 )
Commitment to Shareholder Return
-
Quarterly cash dividend of
$0.147 per share payable onDecember 6, 2024 , to shareholders of record at the close of business onNovember 21, 2024 -
GeoPark expects to return more than$73 million to shareholders in full-year 2024 through dividends and buybacks, a potential 18% capital return yield,6 significantly exceeding 2023 payout
| _________________________ |
|
1 For reconciliations, see “Reconciliation of Adjusted EBITDA to Profit Before Income Tax” table below. |
|
2 Reported in the 3Q2024 Operational Update and not including production from Vaca Muerta. |
|
3 The Vaca Muerta acquisition is not yet consolidated in our Financial Statements. |
|
4 Not including production from Vaca Muerta. |
|
5 ROACE is defined as last twelve-month operating profit divided by average total assets minus current liabilities. |
|
6 Based on GeoPark’s market capitalization as of |
CONSOLIDATED OPERATING PERFORMANCE
Key performance indicators:
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Key Indicators |
|
3Q2024 |
|
|
2Q2024 |
|
|
3Q2023 |
|
|
9M2024 |
|
|
9M2023 |
|
|
Oil productiona (bopd) |
|
33,091 |
|
|
35,504 |
|
|
32,510 |
|
|
34,279 |
|
|
33,323 |
|
|
Gas production (mcfpd) |
|
747 |
|
|
623 |
|
|
13,610 |
|
|
2,884 |
|
|
15,898 |
|
|
Average net production (boepd) |
|
33,215 |
|
|
35,608 |
|
|
34,778 |
|
|
34,760 |
|
|
35,973 |
|
|
Brent oil price ($ per bbl) |
|
78.5 |
|
|
85.0 |
|
|
86.0 |
|
|
81.8 |
|
|
82.2 |
|
|
Combined realized price ($ per boe) |
|
65.1 |
|
|
72.0 |
|
|
68.3 |
|
|
67.5 |
|
|
62.9 |
|
|
⁻ Oil ($ per bbl) |
|
67.7 |
|
|
74.9 |
|
|
74.6 |
|
|
70.8 |
|
|
68.4 |
|
|
⁻ Gas ($ per mcf) |
|
6.8 |
|
|
8.9 |
|
|
4.4 |
|
|
5.8 |
|
|
4.7 |
|
|
Sale of crude oil ($ million) |
|
157.5 |
|
|
187.2 |
|
|
185.4 |
|
|
506.9 |
|
|
534.3 |
|
|
Sale of purchased crude oil ($ million) |
|
1.5 |
|
|
2.4 |
|
|
2.2 |
|
|
5.7 |
|
|
4.1 |
|
|
Sale of gas ($ million) |
|
0.5 |
|
|
0.6 |
|
|
5.3 |
|
|
4.6 |
|
|
19.1 |
|
|
Commodity risk management contracts ($ million) |
|
— |
|
|
— |
|
|
(0.7 |
) |
|
(0.1 |
) |
|
(0.7 |
) |
|
Revenue ($ million) |
|
159.5 |
|
|
190.2 |
|
|
192.1 |
|
|
517.1 |
|
|
556.9 |
|
|
Production & operating costsb ($ million) |
|
(39.8 |
) |
|
(41.4 |
) |
|
(58.2 |
) |
|
(119.8 |
) |
|
(171.4 |
) |
|
G&G, G&Ac ($ million) |
|
(15.7 |
) |
|
(16.0 |
) |
|
(14.1 |
) |
|
(44.4 |
) |
|
(39.9 |
) |
|
Selling expenses ($ million) |
|
(3.5 |
) |
|
(4.4 |
) |
|
(3.8 |
) |
|
(12.1 |
) |
|
(8.3 |
) |
|
Operating profit ($ million) |
|
54.7 |
|
|
90.3 |
|
|
80.5 |
|
|
229.0 |
|
|
226.6 |
|
|
Adjusted EBITDA ($ million) |
|
99.8 |
|
|
127.9 |
|
|
115.2 |
|
|
339.2 |
|
|
334.0 |
|
|
Adjusted EBITDA ($ per boe) |
|
40.7 |
|
|
48.4 |
|
|
41.0 |
|
|
44.3 |
|
|
37.7 |
|
|
Net profit ($ million) |
|
25.1 |
|
|
25.7 |
|
|
24.8 |
|
|
81.0 |
|
|
84.8 |
|
|
Capital expenditures ($ million) |
|
45.9 |
|
|
49.2 |
|
|
44.1 |
|
|
143.9 |
|
|
132.4 |
|
|
Cash and cash equivalents ($ million) |
|
123.4 |
|
|
66.0 |
|
|
106.3 |
|
|
123.4 |
|
|
106.3 |
|
|
Short-term financial debt ($ million) |
|
5.7 |
|
|
12.5 |
|
|
5.7 |
|
|
5.7 |
|
|
5.7 |
|
|
Long-term financial debt ($ million) |
|
491.1 |
|
|
490.2 |
|
|
487.6 |
|
|
491.1 |
|
|
487.6 |
|
|
Net debt ($ million) |
|
373.3 |
|
|
436.7 |
|
|
387.0 |
|
|
373.3 |
|
|
387.0 |
|
|
Dividends paid ($ per share) |
|
0.147 |
|
|
0.147 |
|
|
0.132 |
|
|
0.430 |
|
|
0.392 |
|
|
Shares repurchased (million shares) |
|
— |
|
|
4.369 |
|
|
0.500 |
|
|
4.369 |
|
|
2.224 |
|
|
Basic shares – at period end (million shares) |
|
51,193 |
|
|
51,163 |
|
|
56,118 |
|
|
51,193 |
|
|
56,118 |
|
|
Weighted average basic shares (million shares) |
|
51,178 |
|
|
52,246 |
|
|
56,513 |
|
|
52,911 |
|
|
57,155 |
|
| _________________________ | |
|
a) |
Includes royalties and other economic rights paid in kind in |
|
b) |
Production and operating costs include operating costs, royalties and economic rights paid in cash, share-based payments and purchased crude oil. |
|
c) |
G& |
All figures are expressed in US Dollars and growth comparisons refer to the same period of the prior year, except when otherwise specified. Definitions and terms used herein are provided in the Glossary at the end of this document. This press release and its supplementary information do not contain all the Company’s financial information and the Company’s consolidated financial statements and corresponding notes for the period are available on the Company’s website.
RECONCILIATION OF ADJUSTED EBITDA TO PROFIT BEFORE INCOME TAX
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
9M2024 (In millions of $) |
|
|
|
|
|
|
|
|
|
Other(a) |
|
Total |
||||||
|
Adjusted EBITDA |
|
338.6 |
|
|
11.7 |
|
|
(2.4 |
) |
|
(0.1 |
) |
|
(8.5 |
) |
|
339.2 |
|
|
Depreciation |
|
(89.3 |
) |
|
(5.6 |
) |
|
(1.1 |
) |
|
— |
|
|
(0.0 |
) |
|
(96.0 |
) |
|
Write-off of unsuccessful exploration efforts |
|
(6.9 |
) |
|
(7.7 |
) |
|
— |
|
|
— |
|
|
— |
|
|
(14.6 |
) |
|
Share based payment |
|
(1.0 |
) |
|
(0.0 |
) |
|
(0.0 |
) |
|
— |
|
|
(3.8 |
) |
|
(4.8 |
) |
|
Lease Accounting - IFRS 16 |
|
4.9 |
|
|
0.0 |
|
|
0.7 |
|
|
— |
|
|
— |
|
|
5.6 |
|
|
Others |
|
0.8 |
|
|
0.1 |
|
|
(1.1 |
) |
|
0.0 |
|
|
(0.2 |
) |
|
(0.3 |
) |
|
OPERATING PROFIT (LOSS) |
|
247.1 |
|
|
(1.6 |
) |
|
(3.9 |
) |
|
(0.1 |
) |
|
(12.5 |
) |
|
229.0 |
|
|
Financial costs, net |
|
|
|
|
|
|
|
|
|
|
|
(27.0 |
) |
|||||
|
Foreign exchange charges, net |
|
|
|
|
|
|
|
|
|
|
|
7.2 |
|
|||||
|
PROFIT BEFORE INCOME TAX |
|
|
|
|
|
|
|
|
|
|
|
209.2 |
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
9M2023 (In millions of $) |
|
|
|
|
|
|
|
|
|
Other(a) |
|
Total |
||||||
|
Adjusted EBITDA |
|
331.2 |
|
|
2.2 |
|
|
4.5 |
|
|
3.6 |
|
|
(7.4 |
) |
|
334.0 |
|
|
Depreciation |
|
(71.7 |
) |
|
(5.1 |
) |
|
(1.7 |
) |
|
(7.8 |
) |
|
(0.0 |
) |
|
(86.4 |
) |
|
Write-off of unsuccessful exploration efforts |
|
(21.5 |
) |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(21.5 |
) |
|
Share based payment |
|
(0.9 |
) |
|
(0.0 |
) |
|
(0.0 |
) |
|
(0.1 |
) |
|
(4.3 |
) |
|
(5.3 |
) |
|
Lease Accounting - IFRS 16 |
|
6.1 |
|
|
0.0 |
|
|
0.7 |
|
|
0.7 |
|
|
— |
|
|
7.6 |
|
|
Others |
|
2.2 |
|
|
(0.5 |
) |
|
(0.2 |
) |
|
(2.2 |
) |
|
(1.1 |
) |
|
(1.9 |
) |
|
OPERATING PROFIT (LOSS) |
|
245.4 |
|
|
(3.4 |
) |
|
3.3 |
|
|
(5.9 |
) |
|
(12.8 |
) |
|
226.6 |
|
|
Financial costs, net |
|
|
|
|
|
|
|
|
|
|
|
(29.9 |
) |
|||||
|
Foreign exchange charges, net |
|
|
|
|
|
|
|
|
|
|
|
(16.9 |
) |
|||||
|
PROFIT BEFORE INCOME TAX |
|
|
|
|
|
|
|
|
|
|
|
179.7 |
|
|||||
| _________________________ | |
|
a) |
Includes |
CONFERENCE CALL INFORMATION
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/332625400
Interested parties may participate in the conference call by dialing the numbers provided below:
United States Participants: +1 404-975-4839
Global Dial-In Numbers:
https://www.netroadshow.com/conferencing/global-numbers?confId=68476
Passcode: 027838
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.
GLOSSARY
|
|
|
|
2027 Notes |
5.500% Senior Notes due 2027 |
|
|
|
|
Adjusted EBITDA |
Adjusted EBITDA is defined as profit for the period before net finance costs, income tax, depreciation, amortization, the effect of IFRS 16, certain non-cash items such as impairments and write-offs of unsuccessful efforts, accrual of share-based payments, unrealized results on commodity risk management contracts and other non-recurring events |
|
|
|
|
Adjusted EBITDA per boe |
Adjusted EBITDA divided by total boe deliveries |
|
|
|
|
Operating Netback per boe |
Revenue, less production and operating costs (net of depreciation charges and accrual of stock options and stock awards, the effect of IFRS 16), selling expenses, and realized results on commodity risk management contracts, divided by total boe deliveries. Operating Netback is equivalent to Adjusted EBITDA net of cash expenses included in Administrative, Geological and Geophysical and Other operating costs |
|
|
|
|
Bbl |
Barrel |
|
|
|
|
Boe |
Barrels of oil equivalent |
|
|
|
|
Boepd |
Barrels of oil equivalent per day |
|
|
|
|
Bopd |
Barrels of oil per day |
|
|
|
|
G&A |
Administrative Expenses |
|
|
|
|
G&G |
Geological & Geophysical Expenses |
|
|
|
|
Mcfpd |
Thousand cubic feet per day |
|
|
|
|
Net Debt |
Current and non-current borrowings less cash and cash equivalents |
|
|
|
|
WI |
Working interest |
NOTICE
Additional information about
Rounding amounts and percentages: Certain amounts and percentages included in this press release and its supplementary information have been rounded for ease of presentation. Percentage figures included in this press release and its supplementary information have not in all cases been calculated on the basis of such rounded figures, but on the basis of such amounts prior to rounding. In addition, certain other amounts that appear in this press release and its supplementary information may not sum due to rounding.
This press release and its supplementary information contain certain oil and gas metrics, including information per share, operating netback, reserve life index and others, which do not have standardized meanings or standard methods of calculation and therefore such measures may not be comparable to similar measures used by other companies. Such metrics have been included herein to provide readers with additional measures to evaluate the Company’s performance; however, such measures are not reliable indicators of the future performance of the Company and future performance may not compare to the performance in previous periods.
CAUTIONARY STATEMENTS RELEVANT TO FORWARD-LOOKING INFORMATION
This press release and its supplementary information contain statements that constitute forward-looking statements. Many of the forward-looking statements contained in this press release can be identified by the use of forward-looking words such as ‘‘anticipate,’’ ‘‘believe,’’ ‘‘could,’’ ‘‘expect,’’ ‘‘should,’’ ‘‘plan,’’ ‘‘intend,’’ ‘‘will,’’ ‘‘estimate’’ and ‘‘potential,’’ among others.
Forward-looking statements that appear in a number of places in this press release include, but are not limited to, statements regarding the intent, belief or current expectations, regarding various matters, including production, timing for closing of the acquisition transaction, Work Program and Investment Guidelines, strategic initiatives, growth and capital allocation. Forward-looking statements are based on management’s beliefs and assumptions, and on information currently available to the management. Such statements are subject to risks and uncertainties, and actual results may differ materially from those expressed or implied in the forward-looking statements due to various factors.
Forward-looking statements speak only as of the date they are made, and the Company does not undertake any obligation to update them in light of new information or future developments or to release publicly any revisions to these statements in order to reflect later events or circumstances, or to reflect the occurrence of unanticipated events. For a discussion of the risks facing the Company which could affect whether these forward-looking statements are realized, see filings with the
Oil and gas production figures included in this press release and its supplementary information are stated before the effect of royalties paid in kind, consumption and losses. Annual production per day is obtained by dividing total production by 365 days.
Non-GAAP Measures: The Company believes Adjusted EBITDA, free cash flow and operating netback per boe, which are each non-GAAP measures, are useful because they allow the Company to more effectively evaluate its operating performance and compare the results of its operations from period to period without regard to its financing methods or capital structure. The Company’s calculation of Adjusted EBITDA, free cash flow, and operating netback per boe may not be comparable to other similarly titled measures of other companies.
Adjusted EBITDA: The Company defines Adjusted EBITDA as profit for the period before net finance costs, income tax, depreciation, amortization and certain non-cash items such as impairments and write-offs of unsuccessful exploration and evaluation assets, accrual of stock options and stock awards, unrealized results on commodity risk management contracts and other non-recurring events. Adjusted EBITDA is not a measure of profit or cash flow as determined by IFRS. The Company excludes the items listed above from profit for the period in arriving at Adjusted EBITDA because these amounts can vary substantially from company to company within our industry depending upon accounting methods and book values of assets, capital structures and the method by which the assets were acquired. Adjusted EBITDA should not be considered as an alternative to, or more meaningful than, profit for the period or cash flow from operating activities as determined in accordance with IFRS or as an indicator of our operating performance or liquidity. Certain items excluded from Adjusted EBITDA are significant components in understanding and assessing a company’s financial performance, such as a company’s cost of capital and tax structure and significant and/or recurring write-offs, as well as the historic costs of depreciable assets, none of which are components of Adjusted EBITDA. For a reconciliation of Adjusted EBITDA to the IFRS financial measure of profit, see the accompanying financial tables and the supplementary information.
Operating Netback per boe: Operating netback per boe should not be considered as an alternative to, or more meaningful than, profit for the period or cash flow from operating activities as determined in accordance with IFRS or as an indicator of the Company’s operating performance or liquidity. Certain items excluded from operating netback per boe are significant components in understanding and assessing a company’s financial performance, such as a company’s cost of capital and tax structure and significant and/or recurring write-offs, as well as the historic costs of depreciable assets, none of which are components of operating netback per boe. The Company’s calculation of operating netback per boe may not be comparable to other similarly titled measures of other companies.
View source version on businesswire.com: https://www.businesswire.com/news/home/20241106277775/en/
INVESTORS:
Shareholder Value and Capital Markets Director
mescobar@geo-park.com
Investor Relations Officer
mbello@geo-park.com
Investor Relations Leader
mvelez@geo-park.com
MEDIA:
communications@geo-park.com
Source:
