GeoPark Limited Q2 FY2025 earnings call

• Felipe Bayon, as new CEO, focused on thorough business review at project level to build long-term value.
• Solid operational and financial results despite market volatility, divestments, and blockades.
• Stable performance across core assets; Llanos 34, CPO-5, and Llanos 123 had specific operational successes.
• Proactive cost management, disciplined capital allocation, and financial flexibility.
• Completed open market repurchase of $54.5 million of 2030 notes.
• Board approved $7.5 million dividend for Q2 2025 and is reviewing capital allocation priorities.

In the second quarter, GeoPark delivered solid operational and financial results. Consolidated average production for the quarter reached 27,380 barrels of oil equivalent per day, contributing to year-to-date average production of 28,223 barrels of oil equivalent per day. Adjusted EBITDA was $71.5 million with a 60% margin. Operating costs remained within 2025 guidance at $12.3 per barrel. The 6% decline in production compared to the last quarter was due to divestment of the non-operated Llanos 32 Block and 16 days of shut-in production in CPO-5 Block. Llanos 34 delivered 17,605 barrels of oil equivalent per day net with base management, waterflooding and workovers exceeding expectations. Drilling team efficiency improved with average well costs reduced by over 30% and pad-to-pad mobilization time dropped from 7 days to 18 hours. In Llanos 123, 2 exploration wells were drilled and completed, adding new production.

• Full year organic production range of 26,000 to 28,000 barrels of oil equivalent per day.
• Adjusted EBITDA expected to be USD 260 million to USD 290 million at $65 to $70 per barrel Brent.
• Capital program of USD 90 million to USD 120 million directed to short-cycle, high-return development and appraisal drilling.
• $12.5 million in structural efficiencies achieved, equivalent to $17.5 million annually.
• Dividend of $7.5 million approved for Q2 2025.

• Competitive developments.
• Regulatory uncertainties and blockades impacting operations.
• Market volatility affecting financial results.
• Risks related to M&A and portfolio optimization, including potential non-recurring impairments from divestments.

Q: Alejandro Demichelis asked about examples of improving existing assets and inorganic efforts in Argentina.

A: Felipe Bayon mentioned teams working on operational efficiencies, like well drilling and completion, and interest in Argentina's Vaca Muerta for inorganic opportunities with fluid pipeline of unconventionals.

Q: Joaquin Robet asked about enhancing P1 reserve life, reserves replacement, and organic vs inorganic strategy.

A: Felipe Bayon said increased CapEx guidance reflects opportunities, inorganic efforts have good pipeline, and focus on Colombia base first.

Q: Anne Milne asked about Brazil's role, Argentina valuations, staffing, and bond buybacks.

A: Felipe Bayon and Jaime Caballero discussed focus on Colombia, Argentina's Vaca Muerta opportunities, capability in Argentina, and potential for bond buybacks based on cash position.

Q: Cristian Fera asked about additional asset divestments and updated guidance.

A: Felipe Bayon said ongoing portfolio review, guidance on production, EBITDA, CapEx, and $12.5M in efficiencies.

Q: Juan Jose Muñoz asked about Colombia's 2026 election impact.

A: Felipe Bayon discussed potential opportunities with different government scenarios in Colombia.

Q: Stephane Foucaud asked about production excluding Ecuador, exploration EUR potential, and CPO-5 write-down.

A: Martin Terrado and Jaime Caballero provided details on production, exploration potential, and CPO-5 write-down context.

Q: Eduardo Muniz asked about capital allocation priorities.

A: Felipe Bayon discussed disciplined capital allocation including CapEx, dividends, buybacks, and M&A aligned with growth.

Q: Vicente Falanga asked about polymer injections in Llanos.

A: Felipe Bayon and Rodrigo Dalle Fiore said polymer injection project approved, starting in December 2025.

Q: Joao Cabrita asked about relationship with Pampa Energia and Vaca Muerta partnership.

A: Felipe Bayon discussed ongoing respectful conversations with Pampa Energia regarding Vaca Muerta partnership.