GeoPark Limited (NYSE:GPRK) Q3 2023 Results Conference Call November 9, 2023 10:00 AM ET

Company Participants

Andrés Ocampo - Chief Executive Officer

Veronica Davila - Chief Financial Officer

Augusto Zubillaga - Chief Technical Officer

Martin Terrado - Chief Operating Officer

James Deckelman - Chief Exploration Officer

Stacy Steimel - Shareholder Value Director

Conference Call Participants

Alejandro Demichelis - Jefferies

Stephane Foucaud - Auctus Advisors

Operator

Good morning. And welcome to the GeoPark Limited Conference Call following the Results Announcement for the Third Quarter Ended September 30th, 2023 and 2024 work program and investment guidelines. After the speaker's remarks, there will be a question-and-answer session [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 Web site at www.geo-park.com. A replay of today's call may be accessed through this webcast 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 Reforms Act of 1995. These risks include a variety of factors, including competitive developments and risk factors listed from time-to-time in the company’s SEC reports and public releases. Those lists are intended to identify certain principal factors that could cause actual results to differ materially from those described in the forward-looking statements, but are not intended to represent a complete list of the company’s business. All financial figures included herein were prepared in accordance with the IFRS and are stated in US dollars unless otherwise noted. Reserves figures correspond to PRMS standards. On the call today from GeoPark is Andrés Ocampo, Chief Executive Officer; Veronica Davila, Chief Financial Officer; Augusto Zubillaga, Chief Technical Officer; Martin Terrado, Chief Operating Officer; James Deckelman, Chief Exploration Officer; and Stacy Steimel, Shareholder Value Director.

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

Andrés Ocampo

Good morning, everyone, and thank you for joining our call. We are here today in Bogota with our team to report our third quarter results and next year's work program and budget guidelines. During the third quarter, GeoPark invested $44 million, drilled 14 wells and produced approximately 35,000 barrels a day equivalents, impacted by temporary production shut-ins in CPO-5, which were restored in late September. Production today is at approximately 39,000 barrels a day equivalent. The company recorded revenues of $192 million and adjusted EBITDA of $115 million, a margin of 60%, which means that, for every dollar invested, GeoPark generated approximately $2.60. As a result, net profits reached $25 million or $0.44 per share. Over the last 12 months, our return on capital employed was 42%. In 2023, GeoPark continues to return value to its shareholders, which ensure buybacks and dividends expects to exceed $50 million, including the announced dividend of $7.5 million to be paid in December. This should be above the target of 40% to 50% of free cash flow for the year. After investing in our assets, servicing our debt and taxes, as well as distributing cash back to shareholders, GeoPark ended the quarter with $160 million in cash on the balance sheet and a net leverage ratio of less than 1 times.