FOR IMMEDIATE DISTRIBUTION

GEOPARK REPORTS THIRD QUARTER 2020 RESULTS

LOW BREAKEVEN PRODUCTION DRIVING POWERFUL CASH FLOW GENERATION EXTRAORDINARY & QUARTERLY CASH DIVIDEND AND SHARE BUYBACK PROGRAM RE-ENGAGED WORK PROGRAM AND INITIATED DRILLING ON THE CPO-5 BLOCK

Bogota, Colombia - November 4, 2020 - GeoPark Limited ("GeoPark" or the "Company") (NYSE: GPRK), a leading independent Latin American oil and gas explorer, operator and consolidator with operations and growth platforms in Colombia, Peru, Argentina, Brazil, Chile and Ecuador reports its consolidated financial results for the three-month period ended September 30, 2020 ("Third Quarter" or "3Q2020"). A conference call to discuss 3Q2020 financial results and the work program and investment guidelines for 2021 will be held on November 5, 2020 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, 2020 and 2019, available on the Company's website.

THIRD QUARTER 2020 HIGHLIGHTS

Expanded Production and Restarted Work Program

  • Consolidated oil and gas production of 38,845 boepd in 3Q2020, up 5% compared to 2Q2020
  • Resumed drilling with three wells put on production in the Llanos 34 block (GeoPark operated, 45% WI)
  • Reopened temporarily shut-in production and producing 40,000 boepd by the end of 3Q2020
  • Currently drilling the Indico 2 appraisal well in the CPO-5 block (GeoPark non-operated, 30% WI)

Implemented Decisive Cost and Investment Reduction Plan

  • Cost and investment reductions totaled over $290 million across regional platform
  • Further improving GeoPark's cost efficiencies with ongoing cost-cutting initiatives at all levels
  • Production and operating costs reduced by 32% to $28.4 million
  • Operating costs per boe1 reduced by 22% to $6.3 per boe
  • G&A/G&G costs reduced by 30% to $13.1 million

Generated Substantial Free Cash Flow

  • Revenue of $98.1 million
  • Adjusted EBITDA of $56.1 million (or $15.9 per boe), 2x Adjusted EBITDA in 2Q2020
  • Operating Profit of $28.5 million / Net Loss of $4.3 million
  • Capital expenditures reduced by 56% to $9.8 million
  • Full-year2020 work program of $65-75 million targeting 40,000-42,000 boepd annual average production and operating netbacks of $245-270 million assuming Brent of $35-40 per bbl2

Built Strong Financial Position and Risk Management

  • $163.7 million cash ($157.5 million in 2Q2020 and after interest payments of $23.5 million in 3Q2020)
  • $75 million oil prepayment facility, with $50 million committed and no amounts drawn
  • $132.9 million in uncommitted credit lines
  • Long-termfinancial debt maturity profile with no principal payments until September 2024
  • Continuously adding new hedges for the next 15 months
  1. Operating costs per boe represent the figures used in Adjusted EBTIDA calculation, as if IFRS 16 had not been adopted.
  2. Brent price assumption from November to December 2020, using a Brent to Vasconia differential averaging $4 per bbl.

Increased SPEED/ESG+ Response and Actions

  • Protocols, preventive measures and crisis response plans in place across six-country regional platform
  • Field teams sharply reduced to a minimum with back-up teams and contingencies in place to keep people working safely and production flowing
  • GeoPark closely engaged with local communities implementing a significant range of measures to fight Covid-19 with efforts coordinated at local, regional and federal levels
  • Appointment of Sylvia Escovar and Somit Varma as new independent members of GeoPark's Board of Directors (filling vacancies)
  • Released GeoPark's Environmental, Social and Governance ("ESG") report for 2019, available on the Company's website

Returning Value to Shareholders by Cash Dividends and Share Buyback Program

  • 2020 Extraordinary Cash Dividend of $0.0206 per share ($1.25 million) payable on December 9, 2020
  • 2020 Quarterly Dividend of $0.0206 per share ($1.25 million) payable on December 9, 2020
  • Resuming discretionary share buyback program for up to 10% of total outstanding shares

James F. Park, Chief Executive Officer of GeoPark, said: "Thanks to and admiration for the GeoPark team for again performing through this monster storm. Because of its quick, decisive and significant moves, GeoPark today is in a position to re-engage our work program, grow production, build and set into motion an attractive work program for 2021 and begin returning cash to its shareholders in the fourth quarter. And, beyond just surviving the collapse and accommodating to the new environment, our team transformed GeoPark - from a cost, capability, and organizational perspective - into a better and stronger company ready to capture the immense opportunity ahead."

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CONSOLIDATED OPERATING PERFORMANCE

Key performance indicators:

Key Indicators

3Q2020

2Q2020

3Q2019

9M2020

9M2019

Oil productiona (bopd)

32,875

32,504

33,693

35,404

34,102

Gas production (mcfpd)

35,814

26,448

35,555

30,509

32,148

Average net production (boepd)

38,845

36,912

39,619

40,490

39,460

Brent oil price ($ per bbl)

43.3

33.1

62.1

42.5

64.7

Combined realized price ($ per boe)

27.9

17.8

44.2

27.3

46.4

Oil ($ per bbl)

31.7

18.6

49.3

29.8

51.3

Gas ($ per mcf)

2.5

2.8

4.4

3.0

4.6

Sale of crude oil ($ million)

89.3

49.0

138.2

262.2

434.6

Sale of gas ($ million)

8.8

6.6

13.0

24.9

36.2

Revenue ($ million)

98.1

55.7

151.2

287.0

470.9

Commodity risk management contracts ($ million)

2.7

-9.1

4.4

25.6

-16.0

Production & operating costsb ($ million)

-28.4

-20.7

-41.7

-90.2

-126.7

G&G, G&AC and selling expenses ($ million)

-14.4

-15.9

-21.1

-49.4

-63.7

Adjusted EBITDA ($ million)

56.1

27.8

86.7

161.6

277.7

Adjusted EBITDA ($ per boe)

15.9

8.9

25.3

15.3

27.4

Operating Netback ($ per boe)

19.2

13.0

31.4

19.2

33.0

Net Profit (loss) ($ million)

-4.3

-19.9

6.8

-113.7

57.9

Capital expenditures ($ million)

9.8

5.8

22.1

49.3

88.2

Amerisur acquisitiond ($ million)

-

-

-

272.3

-

Cash and cash equivalents ($ million)

163.7

157.5

81.6

163.7

81.6

Short-term financial debt ($ million)

4.8

19.9

10.6

4.8

10.6

Long-term financial debt ($ million)

767.4

763.5

424.4

767.4

424.4

Net debt ($ million)

608.4

625.9

353.4

608.4

353.4

  1. Includes royalties paid in kind in Colombia for approximately 1,284, 1,286 and 1,419 bopd in 3Q2020, 2Q2020 and 3Q2019 respectively. No royalties were paid in kind in Chile, Brazil or Argentina.
  2. Production and operating costs include operating costs and royalties paid in cash.
  3. G&A and G&G expenses include non-cash,share-based payments for $1.8 million, $2.0 million and $0.3 million in 3Q2020, 2Q2020 and 3Q2019, respectively. These expenses are excluded from the Adjusted EBITDA calculation.
  4. Amerisur acquisition is shown net of cash acquired.

Production: Overall oil and gas production decreased by 2% to 38,845 boepd in 3Q2020 from 39,619 boepd in 3Q2019, due to reopened shut-in production and limited drilling and maintenance activities during the quarter, partially offset by the addition of production from the recent Amerisur Resources Plc ("Amerisur") acquisition in Colombia. Oil represented 85% of total reported production in 3Q2020 and 3Q2019.

For further details, please refer to the 3Q2020 Operational Update published on October 14, 2020.

Reference and Realized Oil Prices: Brent crude oil prices averaged $43.3 per bbl during 3Q2020, $18.6 per bbl lower than 3Q2019 levels. Consolidated realized oil sales price averaged $31.7 per bbl in 3Q2020, $17.6 per bbl lower than the $49.3 per bbl in 3Q2019, reflecting a higher local marker differential in Colombia that was partially offset by lower commercial and transportation discounts.

In Colombia, the local marker differential to Brent averaged $3.0 per bbl in 3Q2020, compared to $6.5 per bbl in 2Q2020 and $1.7 per bbl in 3Q2019. Commercial and transportation discounts improved by $2.1 per bbl and averaged $9.0 per bbl in 3Q2020, compared to $11.1 per bbl in 3Q2019, resulting from further improvements achieved for production in the Llanos 34 block plus the addition of the Platanillo (GeoPark

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operated, 100% WI) and CPO-5 blocks as part of the Amerisur acquisition, both of which have lower commercial and transportation discounts.

The tables below provide a breakdown of reference and net realized oil prices in Colombia, Chile and Argentina in 3Q2020 and 3Q2019:

3Q2020 - Realized Oil Prices

Colombia

Chile

Argentina

($ per bbl)

Brent oil price (*)

43.3

42.7

43.3

Local marker differential

(3.0)

-

-

Commercial and transportation discounts

(9.0)

(7.7)

-

Other

-

-

(2.8)

Realized oil price

31.3

35.0

40.5

Weight on oil sales mix

94%

1%

5%

3Q2019 - Realized Oil Prices

Colombia

Chile

Argentina

($ per bbl)

Brent oil price (*)

62.1

62.0

62.1

Local marker differential

(1.7)

-

-

Commercial and transportation discounts

(11.1)

(7.7)

-

Other

-

-

(13.2)

Realized oil price

49.3

54.3

48.9

Weight on oil sales mix

94%

1%

5%

  1. Specified Brent oil price differs in each country as sales in Colombia are priced with reference to ICE Brent whereas sales in Chile are priced with reference to Dated Brent. In Argentina, local prices are dissociated from international oil prices and differences between international benchmarks and realized prices are included in "Other".

Revenue: Consolidated revenue decreased by 35% to $98.1 million in 3Q2020, compared to $151.2 million in 3Q2019 reflecting lower oil and gas prices.

Sales of crude oil: Consolidated oil revenue decreased by 35% to $89.3 million in 3Q2020, driven by a 36% decrease in realized oil prices and flat deliveries. Oil revenue was 91% of total revenue in 3Q2020 and 3Q2019.

  • Colombia: In 3Q2020, oil revenue decreased by 36% to $82.8 million reflecting lower realized oil prices and a 1% increase in oil deliveries. Realized prices decreased by 36% to $31.3 per bbl due to lower Brent oil prices and a higher Vasconia differential, partially compensated by lower commercial and transportation discounts. Oil deliveries increased by 1% to 29,962 bopd, reflecting the recent acquisition of Amerisur that was partially offset by temporary shut-ins and limited drilling and maintenance activity. Colombian earn- out payments decreased by 42% to $3.4 million in 3Q2020, compared to $6.0 million in 3Q2019, in line with lower oil revenue in the Llanos 34 block.
  • Chile: In 3Q2020, oil revenue decreased by 49% to $1.2 million, due to lower oil prices and volumes sold. Realized oil prices decreased by 36% to $35.0 per bbl, in line with lower Brent prices. Oil deliveries decreased by 21% to 361 bopd due to limited maintenance works and no drilling activity, combined with the natural decline of the fields.
  • Argentina: In 3Q2020, oil revenue decreased by 21% to $5.3 million due to lower oil prices and to a lesser extent, lower deliveries. Realized oil prices decreased by 17% to $40.5 per bbl due to the dissociation of local oil prices from international oil prices whereas oil deliveries decreased by 4% to 1,424 bopd due to limited maintenance works and no drilling activity, combined with the natural decline of the fields.

Sales of gas: Consolidated gas revenue decreased by 32% to $8.8 million in 3Q2020 compared to $13.0 million in 3Q2019 reflecting 43% lower gas prices, partially offset by a 19% increase in volumes delivered. Gas revenue was 9% of total revenue in both 3Q2020 and 3Q2019.

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Geopark Limited published this content on 04 November 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 05 November 2020 00:26:02 UTC