GeoPark Limited, 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 and for the year ended December 31, 2020.

FOURTH QUARTER AND FULL-YEAR 2020 HIGHLIGHTS

Profitable Production Growth

• Annual average production of 40,192 boepd in 2020, extending 18-year track record
• Consolidated oil and gas production of 39,304 boepd
• CPO-5 block (GeoPark non-operated, 30% WI) produced 10,310 bopd gross, 55% higher than 3Q2020 

Free Cash Flow Generation

• Revenue of $106.7 million / Full-year Revenue of $393.7 million
• Cash flow from operations of $77.1 million / Full-year Cash flow from operations of $168.7 million
• Adjusted EBITDA of $56.0 million / Full-year Adjusted EBITDA of $217.5 million
• Full-year non-cash accounting impairments in Chile, Peru, Argentina and Brazil of $133.9 million and write-offs of $52.7 million for an operating loss of $110.7 million / Full-year Net loss of $233.0 million
• Capital expenditures of $26.1 million / Full-year 2020 work program of $75.3 million

Cost and Capital Efficiencies

• Cost and investment reductions of over $290 million(1) across regional platform
• Full-year Production and operating costs reduced by 26% to $125.1 million
• Full-Year G&G, G&A and selling expenses reduced by 24% to $71.1 million

Strong Risk-Managed Balance Sheet

• $201.9 million of Cash & cash equivalents as of Dec. 31, 2020 ($111.2 million as of Dec. 31, 2019)
• $75 million oil prepayment facility, with $50 million committed and no amounts drawn
• $125.6 million in uncommitted credit lines
• Long-term financial debt maturity profile with no bond principal payments until September 2024
• Continuously adding new hedges for the next 12 months 

(1) Compared to GeoPark’s original work program and budget plans as of the beginning of 2020. 

Fully Funded Growth in 2021 Work Program

• Expanding full-year 2021 work program to $130-150 million (from prior $100-120 million), targeting 41,000-43,000 boepd average production and operating netbacks of $330-370 million assuming Brent at $50-55 per bbl
• Flexible work program, quickly adaptable to any oil price scenario

Returning Value to Shareholders

• Quarterly cash dividend of $0.0205 per share ($1.25 million) to be paid on April 13, 2021, to the shareholders of record at the close of business on March 31, 2021
• Resumed cash dividends, having paid $4.9 million in full-year 2020 (quarterly and extraordinary)
• Resumed discretionary share buyback program, having acquired 119,289 shares for $1.2 million since November 6, 2020, totaling $4.0 million in full-year 2020

Decisive Actions on SPEED/ESG+

• Exceeded all Health and Safety goals in 2020
• Obtained Bureau Veritas certification on biosecurity protocols to mitigate and manage the impact of Covid19 in GeoPark Colombia in June and again in December 2020
• Signed contract to connect the Llanos 34 block (GeoPark operated, 45% WI) to the national electricity grid, which has 68% installed hydroelectric capacity. The electrification of Llanos 34 is expected to be operational in 2022, and will help reduce carbon emissions and the cost of energy
• Connected the Tigana field (Llanos 34 block) to the ODCA pipeline in December 2020, further reducing truck traffic by an estimated 205 trucks per day, contributing to further reduce operational risk, costs and carbon emissions

Big Expansion Fairway

• Certified 2P reserves of 175 mmboe with a net present value (after tax) of $2.5 billion
• 199% 2P reserve replacement in Colombia (including acquisitions)
• Net debt-adjusted 2P NPV10 after tax of $31.3 per share ($25.5 per share corresponding to Colombia)
• Exploration inventory of 380-780 mmbbl potential recoverable resources in Colombia

James F. Park, Chief Executive Officer of GeoPark, said: 
“After such a historically-complex year and the exceptional efforts by our team to prevail through and succeed during 2020 – we must again express our gratitude and admiration to the GeoPark women and men that made this all possible and continued us along our 18-year growth trajectory. We kept our teams safe and healthy, we operated in the field without interruption for 365 days, we grew production, we found more oil and gas, we beat down each and every cost, we funded all our work and obligations with our own cashflow, we acquired and integrated a new company, we completely restructured our asset portfolio and organization, we strengthened our balance sheet and almost doubled our cash, we provided aid and support to our neighboring communities, we moved to reduce our carbon footprint and social and environmental impacts, and we reinstated our shareholder value initiatives with share buybacks and cash dividends. Bottom-line: GeoPark is a better and stronger Company today and well-positioned for the promising opportunities ahead. 2021 is already well underway with three drilling rigs at work, seismic being run to identify new prospects on our high-potential acreage, and our team fully engaged in getting every molecule of hydrocarbons safely, cleanly and profitably out of the ground and to market.”

REVISED 2021 WORK PROGRAM

Resulting from a sustained increase in oil prices since early November 2020, GeoPark is expanding its 2021 work program and investment plan to $130-150 million (from $100-120 million), maintaining full flexibility to expand or adjust depending on prevailing oil prices.

The revised 2021 work program reflects an average production of 41,000-43,000 boepd (excluding potential production from the 2021 exploration drilling program), which includes drilling of 37-42 gross wells, with approximately 60-65% to be allocated to development activities and 35-40% to exploration activities.

Using a $50-55/bbl Brent assumption, GeoPark can execute a risk-balanced work program to continue growing its business by producing, developing and exploring its portfolio of assets, fully funded within cashflow, maintaining a strong balance sheet and returning value to its shareholders.

Production

Annual average 2020 production of 40,192 boepd compared to 40,046 boepd in 2019. Oil and gas production in 4Q2020 decreased by 6% to 39,304 boepd from 41,786 boepd in 4Q2019, due to limited drilling and maintenance activities in Colombia, Chile and Argentina and lower gas demand in Brazil, partially offset by the addition of production from the Amerisur acquisition in Colombia. Oil represented 85% of total reported production in 4Q2020 and 4Q2019. 

KeyFacts Energy: GeoPark Colombia country profile   l   GeoPark Argentina country profile   l   GeoPark Brazil country profile