GeoPark Limited (GPRK) 7 Mar 242023 Q4 Earnings call transcript

Good morning, and welcome to the GeoPark Limited conference call following the results announcement for the fourth quarter ended December 31, 2023. [Operator Instructions] If you do not have a copy of the press release, it is available at the Invest with Us section on the company's corporate website at www.geopark.com. A replay of today's call may be accessed through this website in the Invest with Us section of the GeoPark corporate website.

Before we continue, please note that certain statements contained in the results press release and on this conference call are forward-looking statements rather than historical facts and are subject to risks and uncertainties that could cause actual results to differ materially from those described.

With respect to such forward-looking statements, the company seeks protections afforded by the Private Securities Litigation Reform Act of 1995. variety from including the time reports public a risk developments company's include and listed factors to releases. risks of competitive factors, and SEC These time in could identify those business. from in the represent the are principal to a differ but described intended statements intended are results to lists factors Those company's that not cause forward-looking complete actual materially of certain to list included the with figures financial the U.S. here in and stated prepared accordance All and in IFRS were dollars unless otherwise noted. standards. PRMS to correspond figures Reserves

On GeoPark Financial Executive Augusto Martin the from and Officer; Shareholder Director. Jaime James Zubillaga, Officer; Stacy Chief call Andrés Ocampo, Officer; Value Officer; today is Technical Chief Operating Caballero, Officer; Terrado, Exploration Steimel, Deckelman, Chief Chief Chief

Ocampo, begin. you And may to I'll now the Mr. call turn over Ocampo, Mr. Andrés

thank fourth Good XXXX you full year our call. for and joining conference quarter morning, and

We the on look joined for and continuing of results that many the have New we're over forward delivering XX-year more others York bondholders than celebrated recently thankful anniversary years. journey and and shareholders in this XX X,XXX the the Exchange listing to our and us next Stock have

average barrels to a production of our recover and had XX% than reserve oil build were replenish barrels capital wells day, in Indico-X GeoPark finish is campaign successful third from of per the day in average where to XXXX the XX,XXX CPO-X X,XXX added results annually boosted to increase higher production able exploration our the XP September of XP of we Thanks the XXXX to XX,XXX restoration drilling $XXX by the production per during quarter than and X strong from equivalent. equivalent expenditures of -- more which wells, fourth sheet. fourth an us the in allowed replacement new reserves gross to block gross in during and We balance resulting and a quarter quarter. in barrels healthier operational of invested a volumes, million XXX% XX oil drill ratio

GeoPark assets compared lower $XXX reflect in These lower XXXX, For administrative XX% results the million dollar XXXX, EBITDA, following year Every and returned our and further operating losses. down and adjusted quality. full costs illustrating capital ended the the lower efficiency. invested proving generated million with financial quality hedge cash prices $XXX on of and adjusted also production. asset X.Xx to position EBITDA consistent our year a significant base of our We

due target below share. have was per X Our we net long-term income to We of equivalent ended of our XXXX a with of no principal leverage until X.Xx maturities of $X and million, well approximately XXXX. adjusted EBITDA, X.Xx the $XXX net

dividends. a Our financial a returning performance and capital allowed return shareholders balance or our between XX% million buybacks continue cash to us to with $XX yield

ESG+ initial invest ESG our results to time. mainly as great also We intensity our MSCI single significant continue We by improvement in top B AA to governance. on placing we first leader the X upgraded our and the back bracket recognition, call us priorities and is in were over That rating, that XXXX. as SPEED initiatives as of a in in rating for with well carbon efforts a

participating that a embarked upgrade journey for the We Project, Carbon to and with Climate CDP, an second on B recently achieving Disclosure have also Change row in C. year the from

and will exercise make investors. a thorough continue in human strategy and operations to risk neighbors, proactive materiality our to exercise from a plans action double assessment Colombia. impact a a completed for us resulting employees, fine-tune this rights company for we and better better Internally, our sustainability partner The authorities

and potential proving CPO-X Jacana results, oil, Perico play had these this of with block. the well we're thesis which X of were our These last into of the of X excited CPO-X so year encouraging the part tested ahead, we block beginning our by Halcon results Looking and long-awaited Tigana, the end and of continuation at well and the team the both a encouraged northern oil year, wells the in far.

We operating going play and forward. new continue this expect to derisking

We in of year. are Llanos production oil Llanos the successful horizontal expected block, more tested also means developed which this wells the by being injectable to added. Norte-X we more XX in results discoveries our continue where our team. campaign play In wells are Ecuador water more having U-sand last Perico from with X acreage the encouraging in flooding drilling production as core being and new well, X out with at X come exploration project new as wells expanding of with the Same well

disciplined our that are GeoPark tender does the value which to the process, market buy currently intention of not up of current view unique following repurchase, opportunity offering net we our shares Auction announced own of a a allocation capital our $XX commence intrinsic part assets. As value shares why is our modified properly to GeoPark our million reflect of for Dutch to

health We to provides and long-term goals. our market while of that achieve financial current ample also great headroom continuing company the investment to the environment believe execute this

We underlying continue grow to assess our and other to business performance. opportunities improve

about on and and excited for Stock be shared the reporting on Our happy any energy, goal next throughout deliver questions. year, your of is and to answer to trust Exchange, now this and look support years our value prosperity. for ready simple: progress very we'll you more our forward the journey. more We and York XX during thank your New more We're

Auctus [Operator Instructions] And our first Stephane of question goes to Foucaud Advisors.

few. I've got a

few maybe X, share I terms color. provide was update of thinking about Ecuador based worthwhile Zorzal in at or touched We're could Este a So you was things flow wondering any results Halcon think and news whether some test I'm QX. I expecting more those. in some well whether I you something in operation. to around X on there's been [indiscernible] wondering First,

things also to it'd a have the are XX, you at production. I million, of simple quite think, what Then impairment Chile, view moment? in there important saw how Is that, for given $XX better was expected, performance Llanos $XX tracking not. at on curious the accounting be it's perhaps wonder it an horizontal than X then million. question. is I of maybe maybe the And that I account well

exploration. also in was of million don't any there $X write-off results Also, think a And negative QX. I for there was exploration

So what that wondering was I was about.

is this Stephane, Terrado.

the I'm to horizontal question. take So going wells

field. horizontals So XX already far, formation X the in Llanos we drilled Tigana the in have Mirador in

So horizontal wells of of production XX. XX% the than Llanos more represents

oil around of it's per So day. XX,XXX barrels

the Jacana Currently, we are drilling in field Mirador the well in the formation. horizontal first

the drilling have a also forward, planned and in campaign will So we with in Mirador continue we formation, horizontal looking the Guadalupe formation. well the well mainly

X looking wells line, X drilling between So ways in And we we'll costs. continue X drilling completion more and will optimize to parallel, for year. be to this

Since by well, improved and time the first we XX%. XX% and drilling completion cost by

Este Terrado, I'll let impairment or on question and Zorzal X Martin and go is the Jaime over the Halcon take this Stephane, then question.

So for Halcon, about basically, talking CPO-X. you're

have and to wells, X. lower X oil now about Perico and barrels seeing. right a So is X well XXX cut. what of producing Perico production, we're has Halcon little I'll bit per This share compared about Halcon we with XX% water day

producing to XX% happened XX cut. In completed, was XXX XX contrary, net logs, Perico than of when water barrels And in Halcon Perico days look well pay day feet. with around and XX drilled the feet on much the about to you operator well, has the is Halcon less What a of of that put well production. but better delay the versus had XX oil per at is has

is was fluid the completion the well about days in we So builders, and XX hole damaged. through confirm that for

and So well Furthermore, right this although that the the it we really the Tigana go oil to is rig well XX of compared is and not about go, there, the now and is Indico-X drilling expected the logs, more encouraged. of what what we to production wanted days extension we to drill we're to the XX to has seismic. will back probably and Jacana know

So discussing operator. an operational we're Halcon with that results, and setback has we're about excited the very those

cut, stable, day, the API X% water continues oil gravity Concerning Zorzal, be in barrels per Zorzal, to of XXX Zorzal about X XX. beautiful of

spot is high of So the that we good. is hit X, with drill because doing water they cut. well evaluating productivity we a and did X that coming When Zorzal were

at particular. So well looking we're that in

later again, we're discovery, at Zorzal That the looking year. appraisals the on in further said,

potentially And more maybe even color well. on the

Yes.

well in Tororoi in the fourth the we is the to you're well. that going did $X associated XX And transaction X that is time. Stephane, I'm are what in seeing this question. points. million we The Thanks X impairment that to for the the between you associated cover million rightly difference is effectively saw with Chile, is the had write-offs the Llanos books it's basically $XX.X The the angles. and Jaime. quarter that you Those as our hypothesized. at

Great.

from was last It But the noncommercial from year. well year flow well that volumes. that last was

so and not we ended to why now the to up write-off plug and and And see That's took abandon the then you well. before. evaluate and time analyze deciding

goes question next of Rossi to The Canaccord. Roman

Congrats this quarter. on great

question So the differentials. regarding crude oil first is

local discount quarter. lower market a this reported You

XXXX wanted just what that I you're So regard. to understand in for expecting

Roman, in been the would Vasconia pretty say, much I of XX-year seeing this differentials, around averages. $X stabilizing, range. is terms gravitating Jaime. to the has What $X in we're our actually they're

last barrel barrel, at over $X.X at closed kind XX $X.X to think per of per kind we is I the average close also Oriente years. $X.X at the quarter discount. the of

So stable. pretty

the are -- of is it's at is of what Brent that Overall, a look $XX what When and price, kind say both we're pace. at I growing trends terms market. you been headline market demand around Year-to-date, barrel. a and in directions would supply positive seeing the it's general

environment seeing. Roman. for So a what provides it generally now. we're what's for you, That's good occurring Thank margin

to And of Or in Are the you second year? complete of initiate will you of just XXXX? second assuming this are that the you expecting question during quarter offer regarding is you Great. announced. and Dutch have first quarter some the the

by in I Yes. that. context on The provided Andreas his overall in think Thank Roman, you, the you. was Dutch remarks. auction -- opening Thank

should to We're initiate is the of terms the likely execution, going weeks. this next it are in In we occur. seeing what that few

open time We day some have dependencies there's -- period. that. to that think XX-day I a business around for need

we that be execution Dutch means late auction to completed that what to mid- is the That's So expect. would going probably April. mid-April, the around of

we're time that the that's with operating frame at So the time.

Can the at you from what foresee a with end. questions We the CPO-X rate share you us from BTG how And is do X Guardiola question of evolving? declining my have LLA-XX. Pactual. Daniel from webcast

we X we on wells on rigs and again. we Daniel, XXXX, the drilling decline some going this got is is XX% injection. XX%. talk The base Martin and production water around the to on decline XX that vertical production about injector If some conversions with activity wells wells, for basically flat field. see Llanos Terrado horizontal But with that plus

the throughout is well CPO-X, for flat Our stay development well about coming the It's the Llanos Indico-X. XX. Talking excited year development well about well, view a we're is of that is that to going to we're last of a wells the so the to be and expect continues very magnitude flowing previous in naturally, Indico. flat -- around are of similar All production. gross the XX,XXX wells. good we well, barrels this something Indico order that

short got. the that's we term So that

throughout rig year. continue The will the

followed and continue an as Jacana, Perico the on in well Halcon, the So drill going have Indico-X from Cante Tigana. we to in the and we that to drilling -- we're the question to on the will exploration after drill seismic called mentioned of by based [indiscernible] area that, additional some then previous appraisals well some we and continuation additional then go back results Flamenco

XXXX We that regular can have capital Exxon buyback is buyback Argentina? USD the the from the looking is million. extraordinary Muerta expected more of return Are at and a Daniel. in confirm in actively combining assets The question, Vaca disposing you what for of you couple XX dividends, yield next questions

Vaca Yes, I throughout mean, opportunities active attractive or oil at X you, most of is of ones. that of know, the -- plays most you have America probably we're we underdeveloped the onshore X most Muerta Thank Daniel. in portfolio the the looking an as Latin region,

them. yes, like And opportunity place a sounds important and an is looking for X obviously, in of -- like looking interesting us, a so it And effectively company at ideas at we're that's opportunities for there. like So us. that

about the the perform. to currently, consider anticipating auction talking and that a around through regards what year, announced being and performance we're When is X%. our the end that Obviously, Dutch subject to stock you course that with dividend XX% Daniel, given the in be continuity expected of yield year of expect. to obviously throughout contingent would buybacks -- yield, may the throughout year yield these buybacks, we the how recently we type stock that's our XX% performance would and what on the we range. dividend a price up That's distribution,

[Operator for further I'll any to now appears closing questions. Instructions] back we hand comments. no It have Andreas

We're you for interest GeoPark here you, Thank always may answer your everybody, your have. support. to in and any questions

So time for and you good encourage out, feel and reach our any further call Thank a to to field day. please you, us our have operations and we free visiting or information.

Thank now today's concludes all you. you This for Thank joining. call.

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