GPRK - Earnings call transcript Q3 2024

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Operator

Good morning and welcome to the GeoPark Limited conference call following the results announcement for the third quarter ending September 30, 2024. [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.geo-park.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. These risks include a variety of factors, including competitive development 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 U.S. noted. otherwise unless dollars, Terrado, to Andres ] Jaime Ocampo, Augusto and Officer; Financial correspond Catalina and from Shareholder Escobar, Caballero, today's GeoPark Officer; Value Martin Technical Chief is Chief Markets Zubillaga, Operating [ figures Officer; standards. On Maria Director. PMRS Capital call Chief Chief Reserve Executive Officer; the turn I'll Mr. now over to And call Andres Ocampo. Mr. you begin. Ocampo, may

Andrés Ocampo

performance. Good quarter XXXX third review together morning, everyone, our and thank and you financial for joining us to operational

quarter, impacted Our our for second XX% quarter from prices $XXX oil was financial us to factors, down by net maintain and million, mainly and robust revenue the allowed these realized lower margins the production. Despite profitability. discipline

Our margin. adjusted $XXX XX% to close quarter EBITDA for was strong million, representing a the

$XXX million, approximately increase the same of the to $XX X% adjusted period year. representing the for of compared exceeded also addition, of line same the X quarter EBITDA period for to last net months million profits XXXX. Bottom first a In amounted the of XXXX

This a solid in cash quarter sheet. to before, was also of million which from million Xx XX, to reinforces on $XX $XXX build strong cash X a $XXX more cash translated and September compared months up million what significant and than generation, flow June of on October, marked liquidity by a into balance

in X.Xx leverage manage to through debt at net projects. position Our ratio no with remains continuing financial flexibility market invest and principal provides to have we high-value low maturities while us until XXXX. This volatility,

and some respect activities in operational focused to dividends highlights development this Colombia, our Llanos to this which an $X.X amount will appraisal yesterday. With have XX% shareholders our and we to improve approximately general our is and In We key day X advancing both which million The the and X,XXX use appraisal $XX to steps capital quarterly entire of we exploration the distributed Block, recovery development campaign cash year flooding Block, and return total Toritos return on with the also production XX approximately drilled of we exploration yield. With continued to and producing in of million rates. In advanced a acreage, continued of to wells, barrels currently represents during We core critical one goals. expanded cash gross. our facilities, enhance and shareholders to Bisbita our CPO-X complex maintained our remains assets. further our fields. flow value announced water delineation our

our November expect and We drill and Colombia, when further X we have XXXX. Also the first Basin Norte exploration later Putumayo in drilling start exploration year-end well. in into currently X rigs are Bienparado in we onsite before well forward the will to activity year looking this

America. on acquisition recent key unconventional Our attractive Muerta the Latin X, the has most became GeoPark's a Vaca which expansion July in in Muerta oil the today play, is play hydrocarbon in in Vaca region. effective milestone marked entire

record in all-time per operator which the wells During and Pad-X, its oil The reached X Pad-X, August. The the of quarter, finish day December. to drilled, XX,XXX in of the day horizontal achieved expected on included which block and X was a average currently the barrels barrels quarter a in October. was is production third gross in put production wells XX,XXX during equivalent, completed drilling is

to is Muerta upcoming in July exploration horizontal These blocks drilling Negro. This X includes Rio working to Confluencia days. that development currently results company Phoenix production interest expecting reserves cash also the It in since addition Vaca in activities of are block the testing our finished up, and Mora, X. and completion GeoPark's wells also the flow In wells. belong important the mention cleaning from the and pad to the of in province Mata GeoPark first and have in exploration the pad

statements until of is XQ these included financial flow cash our statements. and to closed, before production Therefore, is financial expected which such been However, the not in have happen none into transaction our results will reported consolidated year-end. be

As local Argentinean anticipated to and rating to high-potential the our market and support Argentina, million provides to important developing capital securities. continue financial $XXX has capital authorization AA+ credit local including in and approvals an GeoPark needs to issue This debt new assets. of assets, up flexibility in optimization secured these

core and across expanded strategic assets We're Thank promise in our in in now may Looking new maximize upgraded continued XXXX track value. ahead, to priorities you operations any your portfolio. We have. coupled and outline support for and our framework see Muerta, long-term Vaca our for on and guidelines take allocation before focus we're ready sustainable our you to to optimizing confidence investment company. will on ongoing our release newly with work This year-end. growth particular questions program capital our

Operator

Our [Operator question comes of line Vicente Instructions] of first from the Falanga BBI.

Vicente Falanga Neto

Phoenix questions basically the I regarding X JV. have

before looking September. Secretaria is website ] and Nadia you in results do the Do that Norte. on we be saw far? commented these the Do You can at you the oil think you out equivalent how per December? And that soon. day my the XX.X encouraging? month Confluencia so Mora will second Up you will results put communicate of you to [ to question you market production barrels comment, results that Mata to as see see able the what likely of We produced were

start to that will You produce mentioned at also of the end Pad-X December.

we the should oil So equivalent the output stay in until to Mora expect day? barrels of end per XX,XXX for year, Norte what should which of there close about Mata

Rodolfo Terrado

Norte-X, far the complete according and the This is track It pad X has plan, encouraging. over wells. Terrado. Confluencia on was the the Martin we drill, so to yes, of go This the wells. When look -- Norte-X results Confluencia

fracs in to each per wells. horizontal to things doing be Mora pads the and had Mata that X. more agreed frac. was differently X,XXX operator This the of are of Some from pounds intensity. the with around X drilled has one The the drilling one numbers X,XXX X,XXX of basically according plan. And we section to did meters have The

and and the of As are bit and you wells XX the X been takes and it sharing it's about little cleaning learning to unconventional, XX the over we flow about weeks. a days for know back

the and for before far, encouraging results December So the share results sure. we are will

So the pad completed. that that's about has been recent

X drilling we drilled #X, finish right As into the Mora. what it X X that's new was the we're was back wells oil stabilizing operator track wells to on of Andres This no -- all around asked Pad In already mentioned, September, expected Again, you drilling Mata now we when the It XX,XXX similar per had. day. X pad as so question basically and by what October has December. we wells the drilled was of barrels already production wells. And values average around October? production for that's for the equivalent are

about see end past, mentioned to Norte kicks excited increased oil we as are Mata of XX,XXX in will But be and XX,XXX production in of we Mora like and we to this expect year. the We around equivalent wells by Confluencia continue the overall, it stabilize. barrels to

Operator

The Demichelis Jefferies. comes Alejandro next from question of

Alejandro Anibal Demichelis

Two questions, if I may please.

follow-up different on of Mora, at The is Mata first look the of seen a wells. in one lot have bit from initial we terms Confluencia, Martin. When the we production on variability a a of

question. kind CapEx for So what should can is, for from a and And flow next the good we expect production into what think would And be how XX the question you gas then Confluencia? there? we say, of about, year? levels to first second like required expect That's Llanos

Rodolfo Terrado

barrels to So IPs of X,XXX Confluencia, in we oil when overall day. the are day barrels have at Vaca XXX we per the per look of of that Muerta for order oil

So this is exploration.

of order beyond past where but Rodrigo that will to range. were where We some expect within IPs. We Mata the in see had that they that's on in magnitude Mora that range be wells that we fall, mentioned

wells and produce oil per X,XXX We that X X,XXX have of barrels day.

in Muerta range. have percentile oil and on the that's some are Mata PXX order we Argentina wells plan within our PXX magnitude, usually, of So the are what business that we Mora. in to But Vaca of the we in of have and that's top

and soon. And to So come on question production the more pretty related that CapEx? to then

Alejandro Anibal Demichelis

Sorry, [indiscernible]. in the component gas Confluencia

Rodolfo Terrado

expect day be equivalent, from we it X%. about now, Alejandro? Does for at to for in help, similar that of component order oil we what of per barrels Confluencia when of usually It's and to And go the magnitude take Mora. have we we gas barrels oil Mata to

Alejandro Anibal Demichelis

Yes, helpful. that's very

Rodolfo Terrado

think your I And XX production question second CapEx. and was around Llanos

have will our program can seen share our and mentioned, year post with of one the for next where work partner we aligned like in what you Andres rig. But the that went to throughout all we is are GeoPark with So we weeks. we you

more drilled recently, running focus appraisal that to expect mature the concerning field drilling XX, in have have in field. And now declines level we all as infill follow-ups the We around of that right continue should some of rig drilling, rig that XX% will agreement the getting and good wells we Curucucu the with in activity magnitude of we're wells, slight one and production, we flooding next decline. of mainly is water year, workovers, infill that wells, especially order Llanos on we

Alejandro Anibal Demichelis

XX? whole the For of Llanos

Rodolfo Terrado

XX, Llanos yes. For

Alejandro Anibal Demichelis

And XX a follow-up on. clear. been a because That's and there talking as Okay. bit so into your of polymers Llanos about more partner has

that medium-term more something is So plan? can XXXX? is we in a that see that Or

Rodolfo Terrado

seeing something be it's in will No, that XXXX. we

that adding we're pilot we second That's water better half the of details XXXX. in polymer the a the working basically the to perform so year. conformance, get So to

Operator

from comes of Guardiola Daniel BTG. question The next

Daniel Guardiola

I couple of have a questions.

The touch like to first I on costs. one, would

the do of has barrel $XX to can look And us Looking first and is second at close doubled. you we So at once you follow with if this again the you driving can years, if that's a almost the of with the in share be last if And can that is answer if to up all, OpEx OpEx quarter, what tackle okay to with planning would per per I first your then in X wanted can the barrel. question. And -- costs? levels two, we to one, know, saw it $XX, we deterioration company And deterioration I costs? my to this basically significant you guys. increase what want,

Rodolfo Terrado

Martin Absolutely, again. Daniel. This is

we our barrel, at range. our fluid has a XXXX are is per in dollar our -- fluid comments. goal has those at assets has to consumption the our when barrels XX What So increased the megawatts. Right about we day XXX,XXX and in are of main the look XX, Llanos increased happened of and XX%. referring to per to XX% X per we look of producing you was is requirements on One $XX years at of in couple past from barrel what energy and $XX a megawatt XXX,XXX total stay our if order now OpEx by

lock we is had we of OpEx of to cost. when look grid, Since national fixed the Nino, energy first to price are prices in the And at energy that energy one and had have gone was the we we up. Colombia, the clearly, cost. visions spot price. and of and today, couple where So around years the the are connected El we Unfortunately, our with XX% tie we so objectives OpEx, the

energy now and so complement hour that more this are, In volatility those of excuses COP to inflation happen happened. and addition kilowatt locking we that, we're doesn't that if can have to later have on, course, the windows Jaime lock have But And you but exchange than and things and paying we're we going have want to I'm XXX What working we rate. we per or let that done? that. say, prices

purchase in and places looking where have OpEx We facilities. have looked also can at we're where we reviewing we

example, barrels Llanos on got about in production production we For zero ago. now. XXX, X,XXX right We years X.X had

we're All facilities make with we're they to our looking also and purchasing contracts supply reviewing quick group and keep. And sense those have that of the of opportunities. our payouts facilities were course, those rented and at of chain sections

range to So $XX again, to the and want the stay is you that it barrel next between take years. in make I goal $XX that sure per

Jaime Caballero Uribe

complement to it's this is I on good side, levers. And the everybody, Daniel, clearly biggest that, morning, think on one energy Jaime. the of

middle significantly the rates the following we're stabilizing. And long-term kind that evolving, El we that that and look under this market had can market crisis secured be seeing what is are the contracts at next when One of all very is energy of are years, things attractive, the the becoming the number they expected. right? of we Nino you of actually, for is year, at that And

and energy the clean possibility particularly that that in increasing to going Llanos for lot to locking to something So into the associated for is the mitigate trend looking field. fields, our of that of us a recovery the XX, secure energy is enhanced rates costs of we're that help

operations, have see the Ecuador the we a exploration immature would Janos, supply going what open don't account Putumayo we I that fronts extent in and benefit of appraisal when take of as is well. to the that that and expect angle we systematic that a economies the that operation of all periphery that lifting are Llanos scale other you exploration the is of in associated economies evolution in XX. And barrel. is call need per chain from the they and should the have there that mature to have operations think OpEx approach capture operations into help I which into in the Those to are to component sorts fronts to you scale of currently. can mature those and that's To development, affecting we from associated costs consolidated

per look Daniel. the consider OpEx to as barrel. So prognosis long-term those Thanks, X things are of we the at

Daniel Guardiola

mean, My Brazil. wanted update production And the you your second this second Brazil on us I if where in posting Brazil. from to is on going I can an and going forward? consecutive on question quarter what's X are expectations is what provide know you're

Rodolfo Terrado

Daniel. Yes,

So restart ago, operations us X shared late additional to we that was that firefighting and have required. they is the we and communicated operator the with been by maintenance the had latest, date weeks October

So the this been our of you X,XXX equivalent barrels that per is had oil day late it's of February. plan XXXX since And new is all as and in shutting for of date middle March. we mentioned,

March. expecting is So early new date the that we're restart

Daniel Guardiola

would question us you And like anticipated you if or this be if producers. do to you have just be the know of is your would know total by you that on oil? And I And squeeze expected you And start guys how additional to capacity the a fully additional to with on project would progressing? XXXX? share potential project, great last which barrels for to thoughts I And be spare to this Argentina. DUPLICAR capacity in the if do with eagerly may if us most also project? see can And when you you can project great share the of expect shipping online is it what any foresee in secured use it

Jaime Caballero Uribe

Jaime. is This Daniel. Sure,

let's guess the I So start from baseline.

are Our evacuation going efforts Muerta well. around Vaca

our means are that it's because times, higher with where in sort than total few we results You having we're And a there's And That ago around a see secured even we it the that transported currently than currently with months problem right? So we we have are line, surplus remainder, -- better good barrels good. make using our we're through capacity That's change actually to in little through those capacity, available to capacity different -- currently, we're that where anticipated, in from in well, are third parties' we that basically volumes That's that around expected online trucking own are. that about if what much no barrels XX% are in place -- X,XXX to is available. Oldelval, very day. The as is There's of at production Oldelval being bulk Oldelval, the third-party us. not is we DUPLICAR is evacuation that. the a the different that of through what March. mechanisms, been it, our own kind of component capacity we around but expected a getting we capacity to is around at a what trucking. production wells. Currently, capacity Oldelval means available that of of Oldelval. contracted that them it's have actually use -- bit the a through come levels XX,XXX and

evacuation in you go that industry consensus you time, into there's And pretty are that at have but a frame. say, broad March. If be capacity other XX that's expect own the to April, what feel around go going around still than that us as and could day barrels, we a MBV, our And to this. -- it's sources, confident net forth it time Some our to which know it there producing that delays, of puts it's case, I X,XXX back be barrels additional we we eventually an significantly that but is to more which brings time. that's GeoPark at net, case. In

midstream are our volumes as they production all, all well ahead be. So to our of and in going efforts are need

Operator

What We year Or production? now 'XX CPO-X Cante current Curucucu? LLXX Foucaud impacting well, written Bienparado [ Auctus. X revision the you Do How And be 'XX and see reserves have at XXXX? Stephan this a of growth could you X? do at Norte update see reserves potential Is any reserves Ecuador about is question XP from production? at at Flamenco exploration there year ] minus technical and XP in in the on production Toritos directionally?

Rodolfo Terrado

the Stephan, So thank you, questions. for

I to sure that think them I wrote miss if I we'll make come any, back. And all.

for So the it. we first took sure, one,

was XX the to day the be year day. That XX,XXX net XX, oil per for of the basically expect what's be along barrels expect what in to workovers Llanos we are Llanos went to So current X order field of and of we to us, to X on production data in on year water mature. we more is full per mind previous barrels intense reserves? For we XXXX where do in had XX,XXX oil A and years is than down of a horizontal getting more well mentioning. as on rigs points very rig. flooding. Good of that drilling, that a worth many from results successful on you This on couple know,

know, what can the say next all around of as quarter what this year. What year, we've our mentioned not are getting things think it's the tell, we that seen we like communicate and in we of throughout some too reserves, about reserves is before, early already And some that we as on what in So water water first have we're year we some cuts flooding we discussing when wells some based we've been the that decline and to horizontal you order reserves certification. is positives started XX%. a things also And and quicker good.

Outside XX, we we follow-up the results we and will of Llanos see. results appraisals So the encouraging have good wells that have. on on exploration Llanos

with probably that can blocks reserve, to a that question this there's at you point. If have move we share overall, the Ecuador. Stephan, In the workovers, now in We of next the much block, can not we potential and from we production Ecuador, and growth X for around it's that flooding. So day oil Perico drilling that we we we have production finished see X,XXX campaign water around per production. did on barrels the in growth around understand the

the see need we of that Some pressure they support. wells, can some

Bienparado, coming with and we we're next see the that that's well been in next minutes at expect what recent Difficulty] second well Bienparado Norte, we'll So right wells propose Platanillo, for year. And rig we in When again a move few half year. is west partner completed. The now mobilizing our the to to as a looking discussion ago have we drilled and this the a Putumayo-X it's spud Espejo of block, we in Platanillo. Andres like Civil of [Technical that's works to for mentioned to November.

we're have spudding quick, platform. and we will well finishing the So well pretty a that we that be second

sure, a excited is X wells. Bienparado about sand. that. Norte stratigraphic/structural very We're play. targeting the So N I'm for

Ubaque the This Flamenco-X ago. encouraging for Cante us Ubaque crude. sure, Flamenco-X, API Cante find exploration year, completed by that come shut in because there that drilling let Ubaque, wells. The target the oil northern have XX really And in Block. well an Ubaque that Water big is formation call. to me we of main XXX,XXX in, the more target, We our we of well Mirador. as is of think was I that what a is the contact. oil a a flowing workover. The you was remember, drilled in see, most API very CPO-X Metiica. target Alto encouraging in geologists' XX all Mirador, the again, water opportunities with flowing well is tested first contact The part for found the next is end are, the of that through look is thing the producing and around east gravity the on block, results to was and news other secondary we it now Ubaque. time Indico same clearly was Ubaque. millions the block. It's it on The gave So moving the in and were side acres. -- opens right the waiting so de of eyes years well at, close, engineers' that okay, This

the on Ubaque primary where of workover is going program Cante So Flamenco-X again, order feet end the and to Mirador, found XX the is magnitude, net the next the was coming step Mirador. of year. test isolate pay. of before We're we target

aligned the or us cut. I well Curucucu. the we X The the in first of with so with think working and very good Curucucu rates before -- It's that to order with in is well platform you are X, and well of we partner XX% sorry, #X. asked go this year, drilled And the the we'll another follow-up oil end producing day about Curucucu. appraisal Curucucu Curucucu. is a back XXX to drill Llanos-XX our barrels per of water

around also X. Let Toritos me us asked you see,

ago, want Before now mentioned per producing exploration Andres so I block are XXX where in right I we barrels X XX Llanos day. months about X,XXX we're of order that also Llanos little X, reinforce of a share the XXX. production in to we where oil into to jump Toritos just bit it, And overall had

previous to X we're have other platforms, we is Toritos have where from one questions, running, the the blocks of Saltador. This facilities where We going is one and rigs one Bisbita and purchasing is oil X Este, our we well, that really of and them us X are X have barrels ones around the Toritos-X, drilled X,XXX reduce And all performed recently Sur OpEx. giving of to Bisbita day. per Toritos back

And for we discoveries. continue with next continue So drilling these activity. we year, appraising will

water of well all questions, we right the now, oil us in doing, Toritos please, we of day how of any covered them, specific know to let And think XXX want less than order are questions? any missed it's you there? Sur know. Operator, but that Are more with X XX% there you per barrels I the cut. producing is that If if

Operator

We which Colombia? says on the written non-dilutables have Instructions] on another question, [Operator of royalties surcharge update the of

Rodolfo Terrado

repeat you hear please? [Audio Gap] you the please? us? can can Gap] Operator, question, Can repeat you the Sorry, question, [Audio

Operator

[Operator Instructions]

Rodolfo Terrado

operator can okay? Hi, you hear us

Operator

[Operator Instructions] [Audio Gap]

Rodolfo Terrado

technical a think we apparently, they us. a The there hear we received investors cannot us, problem [Audio be understand people the messages we can confirming seems operator. I but So We hear hear operator us. with to -- have problem. Gap] So can but that She cannot us, hear from investors

So we'll you about try Colombia. last We have the was to in writing? the question. surcharge it answer in Miguel, understand

Miguel Ospina

surcharge. the on update An

Rodolfo Terrado

surcharge. update An on the Jaime?

Jaime Caballero Uribe

Great.

So of under tax on different the for surcharge classifying reform, that for context tax you up is the there depending XX%. front, Remember, average this year having kind is the a estimate around this a year, we're of the scale is bracket. surcharge the end oil with that the price on

XX% and the project around of said and through understand pass question And that pronounced is of reform that of Given tax the quarter themselves oil a the courts believe price to before, going on up didn't months part and ago. I we over where evolution have that's the that for few we on we're year, we versus expectation kind unchanged end treatment the bracket royalties. were last the the Colombia the in as courts. that the included also have that we've

had us of The So what a that surcharge, the is component the the is unchanged only at versus tax we past. royalties Thanks. in it's and applies XX%. treatment to of reform

Operator

We have no questions. further

to back the pass team remarks. closing I'll management any So for

Andrés Ocampo

had the technical Thanks, were questions of reach answered. were not out the directly. to please -- of free completed, that Hopefully anybody any everybody, us the questions and we all pending apologize all feel difficulties. for If answers to

good So support and thanks and our company your very a of have day. much for joining

Operator

for Thank you That concludes the GeoPark's call. conference all joining.

lines. You now may disconnect your

GeoPark Limited (GPRK) 7 Nov 242024 Q3 Earnings call transcript