GeoPark Reports Fourth Quarter and Full-Year 2022 Results
Production Growth Delivered Record Revenue, Net Profit and Cash Flows to Fund Debt Reduction and Accelerate Shareholder Returns
BOGOTA, Colombia–(BUSINESS WIRE)–GeoPark Limited (“GeoPark” or the “Company”) (NYSE: GPRK), a leading independent Latin American oil and gas explorer, operator and consolidator reports its consolidated financial results for the three-month period ended December 31, 2022 (“Fourth Quarter” or “4Q2022”). A conference call to discuss 4Q2022 financial results will be held on March 9, 2023 at 10:00 am (Eastern Standard Time).
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 release does not contain all of the Company’s financial information and should be read in conjunction with GeoPark’s consolidated financial statements and the notes to those statements for the period ended December 31, 2022, available on the Company’s website.
FOURTH QUARTER AND FULL-YEAR 2022 HIGHLIGHTS
Production Growth in Core and Most Profitable Assets
- Average production of 38,433 boepd / Full-year 2022 average production of 38,620 boepd, within guidance
- Llanos 34 block (GeoPark operated, 45% WI) annual average gross production up 2% to 57,016 bopd
- CPO-5 block (GeoPark non-operated, 30% WI) annual average gross production up 50% to 18,600 bopd
Record Revenue, Adjusted EBITDA, Cash Flow & Net Profit
- Revenue of $231.0 million / Full-year revenue of $1.05 billion
- Adjusted EBITDA of $132.1 million / Full-year adjusted EBITDA of $540.8 million
- Operating Profit of $81.7 million / Full-year operating profit of $429.1 million
- Cash flow from operations of $113.4 million / Full-year cash flow from operations of $467.5 million
- Net profit of $52.2 million / Full-year net profit of $224.4 million ($3.8 basic earnings per share)
Cost and Capital Efficiency as Key Differentiators
- Despite inflationary pressures, maintained costs in line: full-year operating costs and cash G&A decreased by 1% to $98.6 million and $40.3 million, respectively
- Capital expenditures of $53.6 million / Full-year capital expenditures of $168.8 million
- 2022 adjusted EBITDA to capital expenditures ratio of 3.2x
- 2022 annual return on capital employed of 60%1
Sustained Debt Reduction and a Stronger Balance Sheet
- Paid down $170 million of gross debt in 2022 ($275 million since April 2021)
- Full-year interest payments decreased to $36.5 million (from $42.6 million), expected to be further reduced to $27-30 million in 2023
- Net leverage of 0.7x and no principal debt maturities until 2027
- Cash in hand of $128.8 million
Tripled Shareholder Returns
- 2022 cash dividends increased by 236% to $24.3 million
- 2022 share buybacks increased by 206% to $36.3 million
- Renewed discretionary share buyback program for up to 10% of shares outstanding until December 2023
- Quarterly cash dividend of $0.13 per share, or approximately $7.5 million, payable on March 31, 2023
Enhanced ESG Performance, Ratings & Recognition
- Interconnected the Llanos 34 block to Colombia’s national power grid and installed a solar park in 2022, key drivers to continue improving the Llanos 34 block’s industry-leading carbon footprint
- 2022 preliminary emissions intensity expected to decrease by 30-35% to 12-13 kg CO2e per boe2
- MSCI ESG Ratings upgraded GeoPark rating to “A”, a multi-year rating improvement (“B” in 2018, “BB” in 2019 and “BBB” in 2021)
- GeoPark was included for a second consecutive year in the Bloomberg Gender-Equality Index, covering companies with best-in-class gender-related practices and policies
2023 Work Program: Strong Cash Generation with More Shareholder Returns
- 2023 production guidance of 39,500-41,500 boepd (excluding potential production from exploration drilling)
- Self-funded 2023 capital expenditures program of $200-220 million to drill 50-55 gross wells
- At $80-90 per bbl Brent, GeoPark expects to generate an Adjusted EBITDA of $510-580 million and a free cash flow of $120-140 million, targeting to return 40-50% of free cash flow after taxes3 to shareholders
Andrés Ocampo, Chief Executive Officer of GeoPark, said: “In 2022 GeoPark posted record-setting results, the best financial performance of the Company in its 20-year history, a solid team achievement. Our high-quality asset base and streamlined cost structure allowed us to capture the advantages of a higher oil price environment and combined with our disciplined capital allocation resulted in record net profit and free cash flow to significantly reduce our debt and triple our dividends and buybacks at the same time. We look forward to continue executing our 2023 work program which was designed to grow our production while pursuing an ambitious exploration drilling program focused on low-risk, high-return opportunities, uniquely positioning GeoPark to continue generating and returning value.”
1Q2023 PRODUCTION UPDATE
GeoPark’s 2023 average consolidated production in January and February was approximately 37,000 boepd, below its production potential of 39,400-40,300 boepd mainly due to temporary shut-in production of the Indico 6 and Indico 7 wells in the CPO-5 block in Colombia for approximately 2,400-3,300 bopd net to GeoPark.
The Indico 6 and Indico 7 wells were drilled in late 2022 and together tested over 11,000 bopd gross (or 3,300 bopd net to GeoPark). After initial production tests, these two wells were shut in (Indico 6 in December 2022 and Indico 7 in early January 2023) after the regulator (ANH) requested that the CPO-5 block operator temporarily suspend production from these wells until definitive surface facilities are completed. The operator of the CPO-5 block is executing all required activities and expects to resume production in these wells in early 2Q2023.
In addition, since February 28, 2023, temporary localized blockades have been affecting overall production and operations in the CPO-5 block, which are expected to be normalized within the next few days.
GeoPark’s 1Q2023 production is expected to be below the Company’s potential. However, assuming the CPO-5 block operator puts the Indico 6 and Indico 7 wells back on production in early 2Q2023, GeoPark would still expect to meet its 2023 full-year average production guidance of 39,500-41,500 boepd, most likely towards the lower end of the range and not including potential production from exploration drilling.
CONSOLIDATED OPERATING PERFORMANCE
Key performance indicators:
|
Key Indicators |
4Q2022 |
3Q2022 |
4Q2021 |
FY2022 |
FY2021 |
|
Oil productiona (bopd) |
35,451 |
34,875 |
33,205 |
35,029 |
32,474 |
|
Gas production (mcfpd) |
17,886 |
21,126 |
28,338 |
21,546 |
30,768 |
|
Average net production (boepd) |
38,433 |
38,396 |
37,928 |
38,620 |
37,602 |
|
Brent oil price ($ per bbl) |
88.8 |
98.2 |
79.0 |
98.6 |
70.7 |
|
Combined realized price ($ per boe) |
68.5 |
77.5 |
59.3 |
78.1 |
52.2 |
|
⁻ Oil ($ per bbl) |
73.7 |
85.9 |
65.9 |
85.6 |
58.4 |
|
⁻ Gas ($ per mcf) |
5.0 |
4.5 |
4.0 |
4.8 |
4.0 |
|
Sale of crude oil ($ million) |
220.7 |
248.7 |
192.9 |
1,004.8 |
647.6 |
|
Sale of purchased crude oil ($ million) |
3.1 |
1.0 |
– |
9.5 |
– |
|
Sale of gas ($ million) |
7.1 |
8.6 |
9.5 |
35.3 |
40.9 |
|
Revenue ($ million) |
231.0 |
258.2 |
202.4 |
1,049.6 |
688.5 |
|
Commodity risk management contracts b ($ million) |
0.5 |
23.0 |
(2.5) |
(70.2) |
(109.2) |
|
Production & operating costsc ($ million) |
(77.0) |
(87.1) |
(67.6) |
(359.8) |
(212.8) |
|
G&G, G&Ad ($ million) |
(17.4) |
(16.7) |
(11.6) |
(60.6) |
(54.7) |
|
Selling expenses ($ million) |
(2.8) |
(2.0) |
(3.4) |
(8.0) |
(8.8) |
|
Operating Profit ($ million) |
81.7 |
145.4 |
69.4 |
429.1 |
185.8 |
|
Adjusted EBITDA ($ million) |
132.1 |
141.3 |
87.1 |
540.8 |
300.8 |
|
Adjusted EBITDA ($ per boe) |
39.2 |
42.4 |
25.5 |
40.2 |
22.8 |
|
Net Profit ($ million) |
52.2 |
73.4 |
36.9 |
224.4 |
61.1 |
|
Capital expenditures ($ million) |
53.6 |
43.4 |
43.9 |
168.8 |
129.3 |
|
Cash and cash equivalents ($ million) |
128.8 |
93.0 |
100.6 |
128.8 |
100.6 |
|
Short-term financial debt ($ million) |
12.5 |
6.8 |
17.9 |
12.5 |
17.9 |
|
Long-term financial debt ($ million) |
485.1 |
484.3 |
656.2 |
485.1 |
656.2 |
|
Net debt ($ million) |
368.8 |
398.1 |
573.5 |
368.8 |
573.5 |
|
Dividends paid ($ per share) |
0.127 |
0.127 |
0.041 |
0.418 |
0.123 |
|
Shares repurchased (million shares) |
0.942 |
1.110 |
0.514 |
2.743 |
0.960 |
|
Basic shares – at period end (million shares) |
57.622 |
58.543 |
60.238 |
57.622 |
60.238 |
|
Weighted average basic shares (million shares) |
58.261 |
59.029 |
60.544 |
59.330 |
60.901 |
|
a) |
Includes royalties paid in kind in Colombia for approximately 759, 911, and 1,119 bopd in 4Q2022, 3Q2022 and 4Q2021, respectively. No royalties were paid in kind in other countries. Production in Ecuador is reported before the Government’s production share. |
|
b) |
Please refer to the Commodity Risk Management Contracts section below. |
|
c) |
Production and operating costs include operating costs, royalties and economic rights paid in cash, share based payments and purchased crude oil. |
|
d) |
G&A and G&G expenses include non-cash, share-based payments for $3.3 million, $3.9 million and $0.9 million in 4Q2022, 3Q2022 and 4Q2021, respectively. These expenses are excluded from the Adjusted EBITDA calculation. |
Production: Oil and gas production in 4Q2022 was 38,433 boepd. Adjusting for divestments in Argentina (completed on January 31, 2022), consolidated oil and gas production increased by 7% compared to 4Q2021, due to higher production in Colombia, Chile and Ecuador, partially offset by lower production in Brazil.
Oil represented 92% and 88% of total reported production in 4Q2022 and 4Q2021, respectively.
For further details, please refer to the 4Q2022 Operational Update published on January 19, 2023.
Reference and Realized Oil Prices: Brent crude oil prices averaged $88.8 per bbl during 4Q2022, and the consolidated realized oil sales price averaged $73.7 per bbl in 4Q2022.
A breakdown of reference and net realized oil prices in relevant countries in 4Q2022 and 4Q2021 is shown in the tables below:
|
4Q2022 – Realized Oil Prices ($ per bbl) |
Colombia |
Chile |
Argentina4 |
Ecuador |
|||
|
Brent oil price (*) |
88.8 |
|
87.5 |
|
– |
89.3 |
|
|
Local marker differential |
(7.2 |
) |
– |
|
– |
– |
|
|
Commercial, transportation discounts & other |
(8.2 |
) |
(7.3 |
) |
– |
(8.0 |
) |
|
Realized oil price |
73.4 |
|
80.2 |
|
– |
81.3 |
|
|
Weight on oil sales mix |
96 |
% |
1 |
% |
– |
3 |
% |
|
4Q2021 – Realized Oil Prices ($ per bbl) |
Colombia |
Chile |
Argentina |
Ecuador |
|||
|
Brent oil price (*) |
79.0 |
|
80.5 |
|
79.0 |
|
– |
|
Local marker differential |
(4.8 |
) |
– |
|
– |
|
– |
|
Commercial, transportation discounts & other |
(8.1 |
) |
(8.0 |
) |
(19.8 |
) |
– |
|
Realized oil price |
66.1 |
|
72.5 |
|
59.2 |
|
– |
|
Weight on oil sales mix |
95 |
% |
1 |
% |
4 |
% |
– |
|
(*) Corresponds to average month of sale price ICE Brent for Colombia, Ecuador and Argentina, and Dated Brent for Chile. |
Revenue: Consolidated revenue increased by 14% to $231.0 million in 4Q2022, compared to $202.4 million in 4Q2021, reflecting higher oil and gas prices.
Sales of crude oil: Consolidated oil revenue increased by 14% to $220.7 million in 4Q2022, mainly explained by a 12% increase in realized oil prices. Oil revenue was 96% of total revenue in 4Q2022 and 95% in 4Q2021.
|
(In millions of $) |
4Q2022 |
4Q2021 |
|
Colombia |
211.7 |
184.0 |
|
Chile |
3.2 |
2.3 |
|
Argentina |
– |
6.4 |
|
Brazil |
0.1 |
0.2 |
|
Ecuador |
5.6 |
– |
|
Oil Revenue |
220.7 |
192.9 |
- Colombia: 4Q2022 oil revenue increased by 15% to $211.7 million, reflecting higher realized oil prices and higher oil deliveries. Realized prices increased by 11% to $73.4 per bbl due to higher Brent oil prices while oil deliveries increased by 4% to 32,420 bopd. Earn-out payments increased to $7.3 million in 4Q2022, compared to $6.0 million in 4Q2021 in line with higher oil prices.
- Chile: 4Q2022 oil revenue increased by 42% to $3.2 million, reflecting higher realized prices and higher oil deliveries. Realized prices increased by 11% to $80.2 per bbl due to higher Brent oil prices while oil deliveries increased by 28% to 434 bopd.
- Ecuador: 4Q2022 oil revenue totaled $5.6 million, reflecting a realized oil price of $81.3 with deliveries of 755 bopd. Deliveries in Ecuador are net of the Government’s production share.
Sales of purchased crude oil: 4Q2022 sales of purchased crude oil totaled $3.1 million, which corresponds to oil trading operations (purchasing and selling crude oil from third parties with the cost of the oil purchased being reflected in production and operating costs).
Sales of gas: Consolidated gas revenue decreased by 24% to $7.1 million in 4Q2022 compared to $9.5 million in 4Q2021 reflecting 40% lower gas deliveries, partially offset by 25% higher gas prices. Gas revenue was 3% and 5% of total revenue in 4Q2022 and 4Q2021, respectively.
|
(In millions of $) |
4Q2022 |
4Q2021 |
|
Chile |
3.5 |
3.5 |
|
Brazil |
3.5 |
4.5 |
|
Argentina |
– |
1.0 |
|
Colombia |
0.1 |
0.5 |
|
Gas Revenue |
7.1 |
9.5 |
- Chile: 4Q2022 gas revenue was flat at $3.5 million, reflecting higher gas prices and lower gas deliveries. Gas prices were 3% higher, at $3.8 per mcf ($22.8 per boe) in 4Q2022. Gas deliveries fell by 2% to 10,061 mcfpd (1,677 boepd).
- Brazil: 4Q2022 gas revenue decreased by 22% to $3.5 million, due to lower gas deliveries, partially offset by higher gas prices. Gas deliveries decreased by 48% from the Manati gas field to 5,156 mcfpd (859 boepd). Gas prices increased to $7.5 per mcf ($44.8 per boe) in 4Q2022.
Commodity Risk Management Contracts: Consolidated commodity risk management contracts amounted to a $0.5 million gain in 4Q2022, compared to a $2.5 million loss in 4Q2021.
The table below provides a breakdown of realized and unrealized commodity risk management contracts in 4Q2022 and 4Q2021:
|
(In millions of $) |
4Q2022 |
|
4Q2021 |
|
|
Realized loss |
(2.2 |
) |
(31.0 |
) |
|
Unrealized loss |
2.7 |
|
28.5 |
|
|
Commodity risk management contracts |
0.5 |
|
(2.5 |
) |
The realized portion registered a loss of $2.2 million in 4Q2022 compared to a $31.0 million loss in 4Q2021. Realized losses in 4Q2022 reflected hedges with average ceiling prices below actual Brent oil prices during the quarter.
The unrealized portion registered a gain of $2.7 million in 4Q2022, compared to a $28.5 million gain in 4Q2021. Unrealized gains in 4Q2022 mainly resulted from reclassifications to realized losses, combined with differences between the forward Brent oil price curve at September 30, 2022 and the actual Brent oil price during the quarter.
Please refer to the “Commodity Risk Oil Management Contracts” section below for a description of hedges in place as of the date of this release.
Production and Operating Costs5: Consolidated production and operating costs increased to $77.0 million from $67.6 million, mainly resulting from higher royalties and economic rights due to higher oil prices, partially offset by lower operating costs.
The table below provides a breakdown of production and operating costs in 4Q2022 and 4Q2021:
|
(In millions of $) |
4Q2022 |
|
4Q2021 |
|
|
Royalties |
(14.2 |
) |
(11.5 |
) |
|
Economic rights |
(34.7 |
) |
(26.2 |
) |
|
Operating costs |
(25.3 |
) |
(29.8 |
) |
|
Purchased crude oil |
(2.6 |
) |
– |
|
|
Share-based payments |
(0.2 |
) |
(0.1 |
) |
|
Production and operating costs |
(77.0 |
) |
(67.6 |
) |
Consolidated royalties amounted to $14.2 million in 4Q2022 compared to $11.5 million in 4Q2021, in line with higher oil prices.
Consolidated economic rights (including high price participation, x-factor and other economic rights paid to the Colombian Government) amounted to $34.7 million in 4Q2022 compared to $26.2 million in 4Q2021, in line with higher oil prices.
Consolidated operating costs decreased to $25.3 million in 4Q2022 compared to $29.8 million in 4Q2021.
The breakdown of operating costs is as follows:
- Colombia: Total operating costs decreased to $20.5 million in 4Q2022 from $21.4 million in 4Q2021, mainly due to lower operating costs per boe, partially offset by higher deliveries (deliveries in Colombia increased by 3%).
- Chile: Total operating costs decreased to $2.2 million in 4Q2022 from $2.8 million in 4Q2021, in line with lower operating costs per boe, partially offset by higher oil and gas deliveries (deliveries in Chile increased by 3%).
- Brazil: Total operating costs increased to $1.0 million in 4Q2022 compared to $0.8 million in 4Q2021, due to higher operating costs per boe, partially offset by lower gas deliveries in the Manati field (deliveries in Brazil decreased by 48%).
- Ecuador: Total operating costs were $1.6 million in 4Q2022.
- Argentina: The divestment of the Aguada Baguales, El Porvenir and Puesto Touquet blocks was completed in January 2022. The comparative period, 4Q2021, included $4.8 million in operating costs.
Consolidated purchased crude oil charges amounted to $2.6 million in 4Q2022, which corresponds to oil trading operations (purchasing and selling crude oil from third parties with the sale of purchased oil being reflected in revenue).
Selling Expenses: Consolidated selling expenses decreased to $2.8 million in 4Q2022 compared to $3.4 million in 4Q2021.
Geological & Geophysical Expenses: Consolidated G&G expenses increased to $2.5 million in 4Q2022 compared to $0.6 million in 4Q2021.
Administrative Expenses: Consolidated G&A increased to $14.9 million in 4Q2022 compared to $11.0 million in 4Q2021.
Adjusted EBITDA: Consolidated Adjusted EBITDA6 increased by 52% to $132.1 million, or $39.2 per boe, in 4Q2022 compared to $87.1 million, or $25.5 per boe, in 4Q2021.
|
(In millions of $) |
4Q2022 |
|
4Q2021 |
|
|
Colombia |
124.5 |
|
90.1 |
|
|
Chile |
2.7 |
|
1.8 |
|
|
Brazil |
1.7 |
|
2.9 |
|
|
Argentina |
1.8 |
|
(2.8 |
) |
|
Ecuador |
2.6 |
|
(0.7 |
) |
|
Corporate |
(1.2 |
) |
(4.3 |
) |
|
Adjusted EBITDA |
132.1 |
|
87.1 |
|
The table below shows production, volumes sold and the breakdown of the most significant components of Adjusted EBITDA for 4Q2022 and 4Q2021, on a per boe basis:
|
Adjusted EBITDA/boe |
Colombia |
Chile |
Brazil |
Ecuador |
Totald |
||||||||||||||
|
|
4Q22 |
|
4Q21 |
|
4Q22 |
|
4Q21 |
|
4Q22 |
|
4Q21 |
|
4Q22 |
|
4Q21 |
4Q22 |
|
4Q21 |
|
|
Production (boepd) |
33,749 |
|
32,002 |
|
2,291 |
|
2,162 |
|
1,134 |
|
1,822 |
|
1,259 |
|
– |
38,433 |
|
37,928 |
|
|
Inventories, RIKa & Other |
(1,274 |
) |
(512 |
) |
(180 |
) |
(114 |
) |
(259 |
) |
(150 |
) |
(504 |
) |
– |
(1,804 |
) |
(822 |
) |
|
Sales volume (boepd) |
32,475 |
|
31,490 |
|
2,111 |
|
2,048 |
|
875 |
|
1,672 |
|
755 |
|
– |
36,629 |
|
37,106 |
|
|
% Oil |
99.8 |
% |
99.3 |
% |
21 |
% |
17 |
% |
2 |
% |
2 |
% |
100 |
% |
– |
93 |
% |
88 |
% |
|
($ per boe) |
|
|
|
|
|
|
|
|
|
|
|||||||||
|
Realized oil price |
73.4 |
|
66.1 |
|
80.2 |
|
72.5 |
|
91.2 |
|
79.5 |
|
81.3 |
|
– |
73.7 |
|
65.9 |
|
|
Realized gas pricec |
15.5 |
|
26.7 |
|
22.8 |
|
22.0 |
|
44.8 |
|
29.9 |
|
– |
|
– |
30.0 |
|
24.0 |
|
|
Earn-out |
(2.4 |
) |
(2.1 |
) |
– |
|
– |
|
– |
|
– |
|
– |
|
– |
(2.3 |
) |
(2.0 |
) |
|
Combined Price |
70.9 |
|
63.7 |
|
34.6 |
|
30.3 |
|
45.6 |
|
30.6 |
|
81.3 |
|
– |
68.5 |
|
59.3 |
|
|
Realized commodity risk management contracts |
(0.8 |
) |
(10.7 |
) |
– |
|
– |
|
– |
|
– |
|
– |
|
– |
(0.7 |
) |
(9.1 |
) |
|
Operating costse |
(7.1 |
) |
(7.7 |
) |
(16.6 |
) |
(14.9 |
) |
(16.5 |
) |
(7.4 |
) |
(23.7 |
) |
– |
(8.2 |
) |
(9.1 |
) |
|
Royalties & economic rights |
(16.2 |
) |
(12.5 |
) |
(1.4 |
) |
(1.2 |
) |
(3.5 |
) |
(2.2 |
) |
0.0 |
|
– |
(14.5 |
) |
(11.1 |
) |
|
Purchased crude oilb |
– |
|
– |
|
– |
|
– |
|
– |
|
– |
|
– |
|
– |
(0.8 |
) |
– |
|
|
Selling & other expenses |
(0.6 |
) |
(1.0 |
) |
(0.4 |
) |
(0.4 |
) |
(0.0 |
) |
(0.0 |
) |
(12.1 |
) |
– |
(0.8 |
) |
(1.0 |
) |
|
Operating Netback/boe |
46.2 |
|
31.8 |
|
16.3 |
|
13.9 |
|
25.7 |
|
21.0 |
|
45.5 |
|
– |
43.6 |
|
29.0 |
|
|
G&A, G&G & other |
|
|
|
|
|
|
|
|
(4.4 |
) |
(3.5 |
) |
|||||||
|
Adjusted EBITDA/boe |
|
|
|
|
|
|
|
|
39.2 |
|
25.5 |
|
|||||||
|
a) RIK (Royalties in kind). Includes royalties paid in kind in Colombia for approximately 759 bopd and 1,119 bopd in 4Q2022 and 4Q2021, respectively. No royalties were paid in kind in Chile, Brazil, Argentina or Ecuador. Production in Ecuador is reported before the Government’s production share. |
|
b) Reported in the Corporate business segment. |
|
c) Conversion rate of $mcf/$boe=1/6. |
|
d) Includes amounts recorded in the Corporate and Argentina segments. |
|
e) Operating costs per boe included in this table include certain adjustments to the reported figures (IFRS 16 and other). |
Depreciation: Consolidated depreciation charges increased to $30.5 million in 4Q2022 compared to $22.2 million in 4Q2021.
Write-off of unsuccessful exploration efforts: The consolidated write-off of unsuccessful exploration efforts amounted to $19.9 million in 4Q2022 and zero in 4Q2021. Amounts recorded in 4Q2022 correspond to unsuccessful exploration efforts in the Platanillo, Llanos 34 and Llanos 94 blocks in Colombia, and in the Espejo block in Ecuador.
Other Income (Expenses): Other operating expenses showed a $2.2 million loss in 4Q2022, compared to a $8.0 million loss in 4Q2021.
CONSOLIDATED NON-OPERATING RESULTS AND PROFIT FOR THE PERIOD
Financial Expenses: Net financial expenses decreased to $9.9 million in 4Q2022 from $13.1 million in 4Q2021, mainly resulting from a sustained deleveraging process that started in April 2021 and continued in 2022.
Foreign Exchange: Net foreign exchange gains amounted to $7.8 million in 4Q2022 compared to $0.4 million loss in 4Q2021. Gains recorded in 4Q2022 mainly resulted from the devaluation of the Colombian peso and its effect on liabilities in local currency.
Income Tax: Income taxes totaled $27.3 million in 4Q2022 compared to $19.1 million in 4Q2021, mainly resulting from higher profits before income taxes plus the effect of fluctuations of the Colombian peso and initial effects of the tax reform over deferred income taxes.
Net Profit: Net Profit increased to $52.2 million in 4Q2022 compared to $36.9 million in 4Q2021.
BALANCE SHEET
Cash and Cash Equivalents: Cash and cash equivalents totaled $128.8 million as of December 31, 2022, compared to $100.6 million as of December 31, 2021.
This net increase is explained by the following:
|
(In millions of $) |
FY2022 |
|
|
Cash flows from operating activities |
467.5 |
|
|
Cash flows used in investing activities |
(153.7 |
) |
|
Cash flows used in financing activities |
(286.6 |
) |
|
Currency Translation |
1.0 |
|
|
Net increase in cash & cash equivalents |
28.2 |
|
Cash flows used in investing activities included $168.8 million in capital expenditures incurred by the Company as part of its 2022 work program, partially offset by proceeds from the disposal of assets that amounted to $15.1 million.
Cash flows used in financing activities mainly included $181.6 million related to repurchases and redemptions of the 2024 Notes (including borrowing cancellation costs and other costs paid), $36.5 million related to interest payments, $36.3 million related to executing the Company’s share buyback program and $24.3 million related to dividend payments.
Financial Debt: Total financial debt net of issuance cost was $497.6 million, including the 2027 Notes. Short-term financial debt was $12.5 million as of December 31, 2022.
|
(In millions of $) |
December 31, 2022 |
December 31, 2021 |
|
2024 Notes |
– |
171.9 |
|
2027 Notes |
497.6 |
499.9 |
|
Other bank loans |
– |
2.3 |
|
Financial debt |
497.6 |
674.1 |
During 2022, the Company significantly reduced its gross debt through repurchases and the redemption of its 2024 Notes.
For further details, please refer to Note 27 of GeoPark’s consolidated financial statements as of December 31, 2022, available on the Company’s website.
FINANCIAL RATIOSa
|
(In millions of $) |
|
|
|
|||
|
Period-end |
Financial |
Cash and Cash |
Net Debt |
Net Debt/LTM |
LTM Interest |
|
|
|
||||||
|
4Q2021 |
674.1 |
100.6 |
573.5 |
1.9x |
6.7x |
|
|
1Q2022 |
642.5 |
114.1 |
528.4 |
1.5x |
8.4x |
|
|
2Q2022 |
585.4 |
122.5 |
462.9 |
1.0x |
10.8x |
|
|
3Q2022 |
491.1 |
93.0 |
398.1 |
0.8x |
12.7x |
|
|
4Q2022 |
497.6 |
128.8 |
368.8 |
0.7x |
14.9x |
|
|
a) Based on trailing last twelve-month financial results (“LTM”). |
||||||
Covenants in the 2027 Notes: The 2027 Notes include incurrence test covenants that provide, among other things, that the Net Debt to Adjusted EBITDA ratio should not exceed 3.25 times and the Adjusted EBITDA to Interest ratio should exceed 2.5 times.
For further details, please refer to Note 27 of GeoPark’s consolidated financial statements as of December 31, 2022, available on the Company’s website.
COMMODITY RISK OIL MANAGEMENT CONTRACTS
The table below summarizes commodity risk management contracts in place as of the date of this release:
|
Period |
Type |
Reference |
Volume (bopd) |
Contract Terms (Average $ per bbl) |
|
|
|
|
|
|
Purchased Put |
Sold Call |
|
1Q2023 |
Zero cost collar |
Brent |
9,500 |
66.0 |
112.6 |
|
2Q2023 |
Zero cost collar |
Brent |
10,000 |
69.3 |
110.6 |
|
3Q2023 |
Zero cost collar |
Brent |
5,000 |
70.0 |
98.7 |
|
4Q2023 |
Zero cost collar |
Brent |
2,500 |
70.0 |
90.7 |
For further details, please refer to Note 8 of GeoPark’s consolidated financial statements for the period ended December 31, 2022, available on the Company’s website.
SELECTED INFORMATION BY BUSINESS SEGMENT
|
Colombia (In millions of $) |
4Q2022 |
|
4Q2021 |
|
|
Sale of crude oil |
211.7 |
|
184.0 |
|
|
Sale of gas |
0.1 |
|
0.5 |
|
|
Revenue |
211.8 |
|
184.5 |
|
|
Production and operating costsa |
(69.0 |
) |
(57.6 |
) |
|
Adjusted EBITDA |
124.5 |
|
90.1 |
|
|
Capital expenditure |
50.4 |
|
38.5 |
|
Contacts
INVESTORS:
Stacy Steimel
Shareholder Value Director
T: +562 2242 9600
ssteimel@geo-park.com
Miguel Bello
Market Access Director
T: +562 2242 9600
mbello@geo-park.com
Diego Gully
Investor Relations Director
T: +55 21 99636 9658
dgully@geo-park.com
MEDIA:
Communications Department
communications@geo-park.com
