GeoPark Ltd. Q1 FY2025 earnings call

• Pro forma consolidated production exceeded base case guidance, driven by stable output in core assets and strong performance in Argentina assets.
• Exploration in Colombia's Currucutu-1 well encountered net pay and boosted block output.
• Financially, adjusted EBITDA increased, operating costs were in line with guidance, and net income was reported despite onetime costs.
• The company invested in core assets and Vaca Muerta, divested interests in certain blocks, and maintained a strong cash position and low net leverage ratio.
• CEO Andres Ocampo highlighted the company's resilience, disciplined operations, and commitment to value-accretive opportunities, while noting the ongoing process with the Argentina transaction and transition in leadership.

Pro forma consolidated production averaged 36,000 barrels a day, exceeding the base case guidance of 35,000 barrels a day. In Colombia, the Currucutu-1 well boosted block output to nearly 5,000 barrels a day. In Argentina, Vaca Muerta assets had gross production over 17,000 barrels a day in February. Financially, adjusted EBITDA was $88 million, up 13% from the previous quarter, operating costs decreased to $12.3 per barrel, in line with full year guidance. Net income reached $13 million. The company invested $23 million in core assets and $24 million pro forma in Vaca Muerta. It closed the quarter with over $308 million in cash and a net leverage ratio of 0.9x.

• Pro forma consolidated production guidance of 35,000 barrels a day was exceeded.
• Full year operating cost guidance of $12-14 per barrel was met.
• 2025 work program includes 7 wells in Colombia and 4 in Argentina.
• The company remains committed to executing its work program and pursuing positive outcomes with the Argentina transaction.

• Delay in obtaining regulatory approvals for the Argentina transaction, creating material uncertainty around its timing and completion.
• Market volatility and Brent price fluctuations.
• Competitive developments and regulatory uncertainties in operating jurisdictions.

Q: How are you seeing the situation about CapEx, production growth in the current oil price environment and progress on the Argentina deal?

A: Andres Ocampo discussed the Argentina deal progress, noting the transaction is pending regulatory approvals with an outside date of May 13, 2025, and Jaime Caballero addressed CapEx and production growth, stating the company's plan is built around economic, value-accretive, and cash-positive at $60 a barrel principles with active hedging.

Q: Confirm on the contract with Phoenix, if on May 13 each party can walk away freely without penalties and requirements preventing the transaction from closing?

A: Andres Ocampo stated each party has the right to withdraw from the contract under the terms with no penalty, and there are no specific requirements impeding the transaction other than regulatory approvals. Jaime Caballero discussed weathering market volatility and capital allocation considerations.

Q: Are you planning a similar hedging approach for 2026 and what level of leverage is comfortable?

A: Jaime Caballero stated hedging is an integral part of the financial framework and they intend to hedge for 2026, monitoring market conditions. The company aims to maintain a long-term leverage ratio of around 1.5x.

Q: Updates or revisions to guidance for Colombian operations and impact of Argentina deal not approved?

A: Jaime Caballero and Martin Terrado discussed Colombian operations guidance, with pro forma guidance unchanged but consolidated numbers dependent on Argentina deal closure. In case of non-approval, capital allocation would focus on growth opportunities and strategic optionality.

Q: Any other operational disruptions in Colombia production and how much more cost efficiency can be achieved?

A: Martin Terrado discussed no major surprises in Colombian production, with some one-offs within guidelines. Jaime Caballero and Martin Terrado addressed cost efficiency, mentioning ongoing efforts to optimize through various approaches including reviewing contracts and maintenance strategies.