GeoPark Reports Fourth Quarter and Full-Year 2024 Results
Full Year Adjusted EBITDA of
Portfolio Transformation Well Underway
Record Shareholder Value Returns
Quarterly Cash Dividend of
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
Net profit in 4Q2024 was
During 2024, GeoPark invested
Strategic capital allocation underpinned a probable reserves (2P) increase of
Underscoring its commitment and ability to continue rewarding shareholders by making the highest annual payout in the Company's history, GeoPark returned
At end-2024 GeoPark’s cash balance was
GeoPark started 2025 by completing an offering of
GeoPark remains focused on maximizing production and driving efficiencies at its Llanos 34 and CPO-5 blocks in
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
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 $660.8 million -
Adjusted EBITDA of
$77.7 million $416.9 million -
Operating profit of
$44.6 million $273.5 million -
Net Profit of
$15.3 million $96.4 million $1.8
Cost and Capital Efficiency
-
Capital expenditures of
$47.4 million $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 $152.0 million Argentina - Full-Year net leverage of 0.9x and no principal debt maturities until January 2027
Record Shareholder Value Return
-
Returned
$73.7 million $30.0 million 6% dividend yield7, and$43.7 million 8% of total shares outstanding -
Quarterly cash dividend of
$0.14 7$7.5 million
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: |
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Key Indicators |
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4Q2024 |
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3Q2024 |
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4Q2023 |
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FY2024 |
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FY2023 |
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Oil productiona (bopd) |
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31,354 |
|
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33,091 |
|
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35,842 |
|
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33,544 |
|
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33,958 |
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Gas production (mcfpd) |
|
808 |
|
|
747 |
|
|
14,841 |
|
|
2,362 |
|
|
15,632 |
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Average net production (boepd) |
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31,489 |
|
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33,215 |
|
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38,315 |
|
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33,937 |
|
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36,563 |
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Brent oil price ($ per bbl) |
|
74.0 |
|
|
78.5 |
|
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82.9 |
|
|
79.8 |
|
|
82.2 |
|
Combined realized price ($ per boe) |
|
59.6 |
|
|
65.1 |
|
|
67.1 |
|
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65.6 |
|
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64.0 |
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Oil ($ per bbl) |
|
61.9 |
|
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67.7 |
|
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73.0 |
|
|
68.6 |
|
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69.5 |
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Gas ($ per mcf) |
|
7.1 |
|
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6.8 |
|
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4.4 |
|
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5.9 |
|
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4.6 |
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Sale of crude oil ($ million) |
|
141.8 |
|
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157.5 |
|
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192.6 |
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648.7 |
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726.9 |
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Sale of purchased crude oil ($ million) |
|
1.4 |
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1.5 |
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1.3 |
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7.2 |
|
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5.5 |
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Sale of gas ($ million) |
|
0.5 |
|
|
0.5 |
|
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5.9 |
|
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5.1 |
|
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25.0 |
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Commodity risk management contracts ($ million) |
|
— |
|
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— |
|
|
(0.2 |
) |
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(0.1 |
) |
|
(0.8 |
) |
Revenue ($ million) |
|
143.7 |
|
|
159.5 |
|
|
199.7 |
|
|
660.8 |
|
|
756.6 |
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Production & operating costsb ($ million) |
|
(44.3 |
) |
|
(39.8 |
) |
|
(60.9 |
) |
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(164.0 |
) |
|
(232.3 |
) |
G&G, G&Ac ($ million) |
|
(17.7 |
) |
|
(15.7 |
) |
|
(15.3 |
) |
|
(62.1 |
) |
|
(55.2 |
) |
Selling expenses ($ million) |
|
(2.9 |
) |
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(3.5 |
) |
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(4.8 |
) |
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(14.9 |
) |
|
(13.1 |
) |
Operating profit ($ million) |
|
44.6 |
|
|
54.7 |
|
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44.3 |
|
|
273.5 |
|
|
270.9 |
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Adjusted EBITDA ($ million) |
|
77.7 |
|
|
99.8 |
|
|
117.8 |
|
|
416.9 |
|
|
451.9 |
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Adjusted EBITDA ($ per boe) |
|
32.2 |
|
|
40.7 |
|
|
39.6 |
|
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41.4 |
|
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38.2 |
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Net profit ($ million) |
|
15.3 |
|
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25.1 |
|
|
26.3 |
|
|
96.4 |
|
|
111.1 |
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Capital expenditures ($ million) |
|
47.4 |
|
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45.9 |
|
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66.6 |
|
|
191.3 |
|
|
199.0 |
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Cash and cash equivalents ($ million) |
|
276.8 |
|
|
123.4 |
|
|
133.0 |
|
|
276.8 |
|
|
133.0 |
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Short-term financial debt ($ million) |
|
22.3 |
|
|
5.7 |
|
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12.5 |
|
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22.3 |
|
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12.5 |
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Long-term financial debt ($ million) |
|
492.0 |
|
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491.1 |
|
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488.5 |
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492.0 |
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488.5 |
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Net debt ($ million) |
|
237.6 |
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373.3 |
|
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368.0 |
|
|
237.6 |
|
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368.0 |
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Dividends paid ($ per share) |
|
0.147 |
|
|
0.147 |
|
|
0.134 |
|
|
0.577 |
|
|
0.526 |
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Shares repurchased (million shares) |
|
— |
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— |
|
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0.850 |
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4.369 |
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3.074 |
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Basic shares – at period end (million shares) |
|
51,247 |
|
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51,193 |
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55,328 |
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51,247 |
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55,328 |
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Weighted average basic shares (million shares) |
|
51,227 |
|
|
51,178 |
|
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55,892 |
|
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52,488 |
|
|
56,837 |
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a) |
Includes royalties and other economic rights paid in kind in |
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b) |
Production and operating costs include operating costs, royalties and economic rights paid in cash, share-based payments and purchased crude oil. |
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c) |
G&A and G&G expenses include non-cash, share-based payments for |
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 |
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FY2024 (In millions of $) |
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Other(a) |
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Total |
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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 |
|
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0.0 |
|
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0.9 |
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— |
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— |
|
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7.8 |
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Others |
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1.4 |
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0.1 |
|
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(3.0 |
) |
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0.0 |
|
|
2.0 |
|
|
0.6 |
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OPERATING PROFIT (LOSS) |
|
298.2 |
|
|
(1.1 |
) |
|
(7.2 |
) |
|
(0.1 |
) |
|
(16.2 |
) |
|
273.5 |
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Financial costs, net |
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|
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|
|
|
|
|
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|
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(43.5 |
) |
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Foreign exchange charges, net |
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|
|
|
|
|
|
|
12.2 |
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PROFIT BEFORE INCOME TAX |
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|
|
|
|
|
|
|
|
|
|
242.2 |
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FY2023 (In millions of $) |
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|
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Other(a) |
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Total |
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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 |
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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 |
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Financial costs, net |
|
|
|
|
|
|
|
|
|
|
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(39.6 |
) |
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Foreign exchange charges, net |
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|
|
|
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(16.8 |
) |
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PROFIT BEFORE INCOME TAX |
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214.5 |
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a) |
Includes |
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
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2027 Notes |
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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 |
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Adjusted EBITDA per boe |
Adjusted EBITDA divided by total boe deliveries |
|
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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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Bbl |
Barrel |
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Boe |
Barrels of oil equivalent |
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Boepd |
Barrels of oil equivalent per day |
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Bopd |
Barrels of oil per day |
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G&A |
Administrative Expenses |
|
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G&G |
Geological & Geophysical Expenses |
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Mcfpd |
Thousand cubic feet per day |
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Net Debt |
Current and non-current borrowings less cash and cash equivalents |
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WI |
Working interest |
NOTICE
Additional information about GeoPark can be found in the Invest with Us section of the website at www.geo-park.com.
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.
1 |
For reconciliations, see “Reconciliation of Adjusted EBITDA to Profit Before Income Tax” table below. |
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2 |
Not including 7 wells in Vaca Muerta. |
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3 |
The interim period adjustment will include the reimbursement for capital expenditures (including a portion of exploration commitments) and other net results from the operation since July 1, 2024 (the effective date of the acquisition) until the regulatory closing. |
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4 |
Based on GeoPark’s average market capitalization from December 1 to December 31, 2024. |
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5 |
Reported in the 4Q2024 Operational Update and not including production from Vaca Muerta. |
|
6 |
ROACE is defined as last twelve-month operating profit divided by average total assets minus current liabilities. |
|
7 |
Based on GeoPark’s average market capitalization from December 1 to December 31, 2024. |
View source version on businesswire.com: https://www.businesswire.com/news/home/20250305852061/en/
For further information, please contact:
INVESTORS:
Maria Catalina Escobar
Shareholder Value and Capital Markets Director
mescobar@geo-park.com
Miguel Bello
Investor Relations Officer
mbello@geo-park.com
Maria Alejandra Velez
Investor Relations Leader
mvelez@geo-park.com
MEDIA:
Communications Department
communications@geo-park.com
Source: GeoPark Limited
