GeoPark Reports Fourth Quarter and Full-Year 2024 Results

Full Year Adjusted EBITDA of $417 Million

Portfolio Transformation Well Underway

Record Shareholder Value Returns

Quarterly Cash Dividend of $0.147 Per Share

BOGOTA, Colombia--(BUSINESS WIRE)--March 05, 2025-- 

GeoPark Limited ("GeoPark" or the "Company") $(GPRK)$, a leading independent energy company with over 20 years of successful operations across Latin America, reports its consolidated financial results for the three-month period ended December 31, 2024 ("Fourth Quarter" or "4Q2024") and for the year ended December 31, 2024 ("Full Year" or "FY2024"). A conference call to discuss these financial results will be held on March 6, 2025, at 10:00 am (Eastern Standard Time).

FOURTH QUARTER AND FULL-YEAR 2024 FINANCIAL SUMMARY

GeoPark's 4Q2024 and FY2024 results reflect a challenging operational environment in our key assets, a lower Brent price, higher costs and one-off impacts on our performance. However, despite these challenges our financial results remained resilient, demonstrating our ability to adapt and sustain strong profitability. Operating profit remained solid, highlighting a robust cash generation capacity and disciplined financial management amidst the portfolio transformation that is underway.

GeoPark delivered $77.7 million in Adjusted EBITDA(1) in 4Q2024 compared to $117.8 million in 4Q2023, primarily due to lower average production (31,489 boepd vs. 38,315 boepd), lower realized prices ($59.6/bbl vs. $67.1/bbl), and one-off expenses of $3.2 million primarily related to organizational structure optimization and a retroactive overhead adjustment in Ecuador. FY2024 Adjusted EBITDA amounted to $416.9 million compared to $451.9 million in 2023, impacted by lower production (33,937 boepd vs. 36,563 boepd) and the one-off expenses explained above, partially offset by higher realized prices ($65.6/bbl vs. $64.0/bbl). Increased royalties and economic rights paid in kind had a neutral impact on Adjusted EBITDA, reducing revenue, and production and operating costs. Despite lower revenues, operating margin increased to 41% from 36% in 2023, highlighting GeoPark's strong financial discipline and operational efficiency.

Net profit in 4Q2024 was $15.3 million, compared to $26.3 million in 4Q2023, mainly impacted by the effect during the quarter of the 6% Colombian peso devaluation over deferred income tax calculation, and one-off expenses of $5.4 million associated to the offer to purchase certain Repsol assets in Colombia and the acquisition of assets in Vaca Muerta. FY2024 net profit reached $96.4 million compared to $111.1 million in 2023, primarily due to the same factors.

During 2024, GeoPark invested $191.3 million in organic capital expenditures to drill 36 wells(2) . Each dollar invested in capital expenditures yielded $2.2 in Adjusted EBITDA, and the return on average capital employed (ROACE) reached 34%. GeoPark's acquisition of four unconventional hydrocarbon blocks in Vaca Muerta, Argentina, became effective on July 1, 2024, delivering average production of 15,052 boepd gross (reaching a record of 16,060 boepd gross during November 2024) in 4Q2024, 19% higher than 3Q2024. These production volumes are not reflected in GeoPark's 2024 consolidated production numbers as the closing of the transaction is pending regulatory approvals. As of December 31, 2024, GeoPark had already made advanced payments associated with the Vaca Muerta transaction totaling $54.1 million, including $38.0 million towards the upfront consideration for the working interest in the Mata Mora and Confluencia Blocks and $16.1 million for the acquisition of midstream capacity. At closing, GeoPark will pay $152.0 million plus an interim period adjustment.(3)

Strategic capital allocation underpinned a probable reserves (2P) increase of 41% in 2024 versus 2023 on a pro-forma basis, supported by the addition of 74.6 mmboe from Vaca Muerta. At December 31, 2024, proven reserves (1P) of 102.0 mmboe and 2P reserves of 162.2 mmboe extended the 1P reserve life index $(RLI)$ by 54% to 8.2 years, and the 2P RLI by 44% to 13.1 years. After a pivotal year in 2024, GeoPark now has a strategically balanced and diversified portfolio that combines the high growth trajectory and potential of the Vaca Muerta blocks with the established, mature production flows from the Llanos 34 and CPO-5 blocks.

Underscoring its commitment and ability to continue rewarding shareholders by making the highest annual payout in the Company's history, GeoPark returned $73.7 million to shareholders in FY2024 through dividends and buybacks, which represents a 14% capital return yield(4) . The 2024 buyback program, implemented in the form of a Dutch Auction, allowed GeoPark to reduce its outstanding shares by 8% to 51.2 million.

At end-2024 GeoPark's cash balance was $276.8 million, including $124.8 million of organic cash proceeds and $152 million withdrawn under the offtake and prepayment agreement with Vitol to fund the closing payments associated to the Vaca Muerta transaction. Net leverage remained low at 0.9x, and debt profile remains resilient, with no significant maturities scheduled until 2030.

GeoPark started 2025 by completing an offering of $550 million senior notes due 2030 with an 8.75% coupon. The transaction enhances the Company's financial flexibility and mitigates refinancing risk by extending the Company's average debt maturity from 2.0 years to 4.6 years. Proceeds were partially used to repurchase $405.3 million of the 2027 Notes and repay obligations related to the Vaca Muerta acquisition, strengthening GeoPark's capital structure.

GeoPark remains focused on maximizing production and driving efficiencies at its Llanos 34 and CPO-5 blocks in Colombia, while advancing its appraisal and exploration campaign to unlock additional growth. In Vaca Muerta, efforts will be directed towards developing the Mata Mora Norte Block and continuing the exploration campaign in the Confluencia Sur Block. As part of its North Star strategy, GeoPark will also continue to evaluate value accretive inorganic opportunities that offer growth in big assets, big basins and big plays.

Andrés Ocampo, Chief Executive Officer of GeoPark, said: "Temporary production disruptions and decline in our core Llanos fields made 2024 a challenging year for GeoPark. Despite this, we extended our reserves life, made a game-changing acquisition in Vaca Muerta, held true to our commitments on efficiency, safety and sustainability, returned over $73 million to shareholders, and proactively enhanced our financial flexibility through refinancing senior notes and repaying debt. Our ongoing 2025 work program includes Vaca Muerta and provides a solid foundation for future growth and value enhancement."

Supplementary information is available at the following link:

https://ir.geo-park.com/4Q24-SupplementaryRelease

FOURTH QUARTER AND FULL-YEAR 2024 HIGHLIGHTS

Oil and Gas Production and Operations

   -- 4Q2024 consolidated average oil and gas production of 31,489 boepd5 or 
      38,417 boepd pro forma including Vaca Muerta 
 
   -- Annual average oil and gas production of 33,937 boepd5 or 37,101 boepd 
      pro forma including Vaca Muerta 
 
   -- 10 rigs in operation (4 drilling and 6 workover) at end-2024, including 
      one drilling rig in Vaca Muerta 
 
   -- 43 wells drilled in 2024 (including 7 wells in Vaca Muerta) 
 
   -- Zero recordable incidents in 4Q2024 in GeoPark-operated assets 

Revenue, Adjusted EBITDA and Net Profit

   -- Revenue of $143.7 million / Full-Year revenue of $660.8 million 
 
   -- Adjusted EBITDA of $77.7 million / Full-Year Adjusted EBITDA of $416.9 
      million 
 
   -- Operating profit of $44.6 million / Full-Year operating profit of $273.5 
      million 
 
   -- Net Profit of $15.3 million / Full-Year net profit of $96.4 million ($1.8 
      basic earnings per share) 

Cost and Capital Efficiency

   -- Capital expenditures of $47.4 million / Full-Year capital expenditures of 
      $191.3 million 
 
   -- 2024 Adjusted EBITDA to capital expenditures ratio of 2.2x 
 
   -- ROACE of 34%6 

Balance Sheet Reflects Financial Quality

   -- Cash in hand of $276.8 million at year-end, including $152.0 million 
      withdrawn under an offtake and prepayment agreement with Vitol, to be 
      used upon regulatory closing of the acquisition of assets in Vaca Muerta 
      in Argentina 
 
   -- Full-Year net leverage of 0.9x and no principal debt maturities until 
      January 2027 

Record Shareholder Value Return

   -- Returned $73.7 million to shareholders in FY2024 through $30.0 million in 
      dividends, representing a 6% dividend yield7, and $43.7 million in share 
      buybacks, retiring 4.4 million shares representing 8% of total shares 
      outstanding 
 
   -- Quarterly cash dividend of $0.147 per share, or approximately $7.5 
      million, payable on March 31, 2025, to the shareholders of record at the 
      close of business on March 19, 2025 

Effective SPEED Values System and Commitment to Sustainability

   -- Inclusion in the S&P Sustainability Yearbook for the first time, and 
      recognized as the Industry Mover (the company that registered the highest 
      annual increase in its score) in the Yearbook's Oil & Gas Upstream & 
      Integrated sector 
 
   -- 'AA' rating in the MSCI Index for the second consecutive year, 
      consolidating GeoPark's position as a global leader in sustainability 
 
   -- Became the first company in Colombia's oil and gas sector to calculate 
      its water footprint for all its operated blocks in the country 

OTHER NEWS

GeoPark Appoints New Chief Exploration and Development Officer

GeoPark is pleased to announce the appointment of Rodrigo Dalle Fiore to the position of Chief Exploration and Development Officer. Rodrigo brings over 20 years of experience in Latin America's oil and gas industry, with a strong background in unconventional resources, strategic growth, and operational leadership. Since joining GeoPark in 2023, Rodrigo has played a key role in expanding the Company's footprint in Vaca Muerta. Prior to GeoPark, he held senior leadership positions at Ecopetrol, where he led new energy initiatives, E&P development, and international assets. He began his career at Pan American Energy, rising to Operations Manager of Cerro Dragón, one of Argentina's largest oil fields.

 
CONSOLIDATED OPERATING PERFORMANCE 
 Key performance indicators: 
 
Key Indicators         4Q2024   3Q2024   4Q2023   FY2024    FY2023 
--------------------   ------   ------   ------   -------  --------- 
Oil production(a) 
 (bopd)                31,354   33,091   35,842   33,544   33,958 
Gas production 
 (mcfpd)                  808      747   14,841    2,362   15,632 
Average net 
 production (boepd)    31,489   33,215   38,315   33,937   36,563 
---------------------  ------   ------   ------   ------   ------ 
Brent oil price ($ 
 per bbl)                74.0     78.5     82.9     79.8     82.2 
Combined realized 
 price ($ per boe)       59.6     65.1     67.1     65.6     64.0 
        Oil ($ per 
         bbl)            61.9     67.7     73.0     68.6     69.5 
        Gas ($ per 
         mcf)             7.1      6.8      4.4      5.9      4.6 
Sale of crude oil ($ 
 million)               141.8    157.5    192.6    648.7    726.9 
Sale of purchased 
 crude oil ($ 
 million)                 1.4      1.5      1.3      7.2      5.5 
Sale of gas ($ 
 million)                 0.5      0.5      5.9      5.1     25.0 
Commodity risk 
 management contracts 
 ($ million)               --       --     (0.2)    (0.1)    (0.8) 
Revenue ($ million)     143.7    159.5    199.7    660.8    756.6 
Production & 
 operating costs(b) 
 ($ million)            (44.3)   (39.8)   (60.9)  (164.0)  (232.3) 
G&G, G&A(c) ($ 
 million)               (17.7)   (15.7)   (15.3)   (62.1)   (55.2) 
Selling expenses ($ 
 million)                (2.9)    (3.5)    (4.8)   (14.9)   (13.1) 
Operating profit ($ 
 million)                44.6     54.7     44.3    273.5    270.9 
Adjusted EBITDA ($ 
 million)                77.7     99.8    117.8    416.9    451.9 
Adjusted EBITDA ($ 
 per boe)                32.2     40.7     39.6     41.4     38.2 
Net profit ($ 
 million)                15.3     25.1     26.3     96.4    111.1 
---------------------  ------   ------   ------   ------   ------ 
Capital expenditures 
 ($ million)             47.4     45.9     66.6    191.3    199.0 
---------------------  ------   ------   ------   ------   ------ 
Cash and cash 
 equivalents ($ 
 million)               276.8    123.4    133.0    276.8    133.0 
Short-term financial 
 debt ($ million)        22.3      5.7     12.5     22.3     12.5 
Long-term financial 
 debt ($ million)       492.0    491.1    488.5    492.0    488.5 
Net debt ($ million)    237.6    373.3    368.0    237.6    368.0 
---------------------  ------   ------   ------   ------   ------ 
Dividends paid ($ per 
 share)                 0.147    0.147    0.134    0.577    0.526 
Shares repurchased 
 (million shares)          --       --    0.850    4.369    3.074 
Basic shares -- at 
 period end (million 
 shares)               51,247   51,193   55,328   51,247   55,328 
Weighted average 
 basic shares 
 (million shares)      51,227   51,178   55,892   52,488   56,837 
---------------------  ------   ------   ------   ------   ------ 
 
 
a)    Includes royalties and other economic rights paid in kind in Colombia 
      for approximately 5,011 bopd, 6,073 bopd, and 4,923 bopd in 4Q2024, 
      3Q2024 and 4Q2023, respectively. No royalties were paid in kind in other 
      countries. Production in Ecuador is reported before the Government's 
      production share. 
b)    Production and operating costs include operating costs, royalties and 
      economic rights paid in cash, share-based payments and purchased crude 
      oil. 
c)    G&A and G&G expenses include non-cash, share-based payments for $1.3 
      million, $1.4 million, and $1.8 million in 4Q2024, 3Q2024 and 4Q2023, 
      respectively. These expenses are excluded from the Adjusted EBITDA 
      calculation. 
 

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 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 ended December 31, 2024, will be available on the Company's website and in the Company's annual report on Form 20-F.

 
RECONCILIATION OF ADJUSTED EBITDA TO PROFIT BEFORE INCOME TAX 
 
FY2024 (In 
millions of $)     Colombia   Ecuador   Brazil  Chile    Other(a)     Total 
                   --------  ---------  ------  ------  ----------  --------- 
Adjusted EBITDA      419.3    14.7       (3.7)   (0.1)   (13.3)      416.9 
Depreciation        (121.1)   (8.3)      (1.2)     --     (0.0)     (130.7) 
Write-offs            (6.9)   (7.7)      (0.2)     --       --       (14.8) 
Share based 
 payment              (1.3)   (0.0)      (0.0)     --     (4.9)       (6.3) 
Lease Accounting 
 - IFRS 16             6.8     0.0        0.9      --       --         7.8 
Others                 1.4     0.1       (3.0)    0.0      2.0         0.6 
-----------------  -------   -----      -----   -----   ------      ------ 
OPERATING PROFIT 
 (LOSS)              298.2    (1.1)      (7.2)   (0.1)   (16.2)      273.5 
-----------------  -------   -----      -----   -----   ------      ------ 
Financial costs, 
 net                                                                 (43.5) 
Foreign exchange 
 charges, net                                                         12.2 
-----------------  --------  ---------  ------  ------  ----------  ------ 
PROFIT BEFORE 
 INCOME TAX                                                          242.2 
 
FY2023 (In 
millions of $)     Colombia   Ecuador   Brazil  Chile    Other(a)     Total 
                   --------  ---------  ------  ------  ----------  --------- 
Adjusted EBITDA      446.8     5.2        6.4     5.0    (11.5)      451.9 
Depreciation        (101.7)   (7.1)      (2.3)   (9.8)    (0.0)     (120.9) 
Write-offs           (29.6)     --         --      --       --       (29.6) 
Impairment              --      --         --   (13.3)      --       (13.3) 
Share based 
 payment              (1.4)   (0.0)      (0.0)   (0.1)    (5.8)       (7.3) 
Lease Accounting 
 - IFRS 16             8.4     0.0        0.9     0.9       --        10.3 
Others                (1.1)    0.0       (0.4)   (4.5)   (14.1)      (20.1) 
-----------------  -------   -----      -----   -----   ------      ------ 
OPERATING PROFIT 
 (LOSS)              321.5    (1.9)       4.5   (21.9)   (31.3)      270.9 
-----------------  -------   -----      -----   -----   ------      ------ 
Financial costs, 
 net                                                                 (39.6) 
Foreign exchange 
 charges, net                                                        (16.8) 
-----------------  --------  ---------  ------  ------  ----------  ------ 
PROFIT BEFORE 
 INCOME TAX                                                          214.5 
 
 
a)  Includes Argentina and Corporate business. 
 

CONFERENCE CALL INFORMATION

GeoPark management will host a conference call on Thursday, March 6, 2025, at 10:00 am (Eastern Standard Time) to discuss the 4Q2024 financial results.

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/423174919

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: 595176

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 
 

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