GeoPark Reports First Quarter 2022 Results
Full-Cycle Performance and Delivery
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 March 31, 2022 (“First Quarter” or “1Q2022”). A conference call to discuss 1Q2022 financial results will be held on May 12, 2022 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 March 31, 2022, available on the Company’s website.
FIRST QUARTER 2022 HIGHLIGHTS
Accelerated Profitable Production
- Consolidated oil and gas production of 38,626 boepd – up 6% adjusting for divestments in Argentina
- Production in Colombia of 33,738 boepd, up 6% vs 4Q2021
- CPO-5 block (GeoPark non-operated, 30% WI) in Colombia is producing over 20,000 bopd gross, a 150%+ increase over pre-acquisition production (January 2020)
- Perico block (GeoPark non-operated, 50% WI) in Ecuador added new production from two exploration wells
Generated Record High Revenue, Adjusted EBITDA and Cash Flow from Operations
- Revenue up 70% to $249.2 million
- Adjusted EBITDA up 84% to $122.6 million (including $30.5 million of realized cash hedge losses)
- Cash flow from operations up 147% to $89.7 million
- Free cash flow of $50.3 million1
- Net profit of $31.0 million
Improved Capital and Cost Efficiencies
- Capital expenditures of $39.4 million
- Adjusted EBITDA to capital expenditures ratio of 3.1x (3.9x excluding realized cash hedge losses)
- G&G and G&A costs reduced by 12% to $12.7 million (26% lower vs 1Q2020)
Reduced Debt and Strengthened the Balance Sheet
- Cash in hand of $114.1 million ($100.6 million in December 2021)
- Net leverage of 1.5x (1.9x in December 2021)
- Repurchased $32.9 million of the 2024 Notes2, reducing gross debt and providing financial cost savings
- Sent notice to bondholders to redeem $45 million principal of the 2024 Notes, to be completed in May 2022, with more deleveraging expected in 2H2022
Returned More Value To Shareholders
- Direct returns to shareholders during 1Q2022 totaled $7.9 million3, after doubling cash dividends
- Discretionary share buyback program in place for up to 10% of shares outstanding until November 2022
- New quarterly cash dividend of $5.0 million ($0.082 per share) payable on June 10, 2022
_________________
1 Operating cash flow less purchase of property, plant and equipment line in cash flow used in investing activities.
2 January 1 to May 10, 2022, with $23.1 million repurchased in 1Q2022.
3 $3.1 million in share buybacks plus $4.8 million in quarterly dividends.
Expanded Growth Fairway and Strengthened Portfolio
- Colombia: Acquired the CPO-4-1 block (GeoPark non-operated, 50% WI), an attractive low-risk, low-cost exploration block, approximately 50% covered with 3D seismic, and strategically located adjacent to the CPO-5, the Llanos 94 (GeoPark non-operated, 50% WI) and the Llanos 123 (GeoPark operated, 50% WI) blocks
- Argentina: Completed the divestment of non-core Aguada Baguales, El Porvenir and Puesto Touquet blocks (GeoPark operated, 100% WI) on January 31, 20224
Increased Self-Funded 2022 Work Program and Production Targets
- 2022 annual production guidance revised up by 8%5 to 38,500-40,500 boepd (from 35,500-37,500 boepd) not including any potential production from 14-18 exploration wells
- Production guidance reflects ongoing drilling results, new investments and bringing back production from the Manati gas field in Brazil6
- 2022 work program expanded to $200-220 million (from $160-180 million) to drill 50-55 gross wells (from 40-48 gross wells)
- At $95-100/bbl Brent, the work program generates $250-280 million free cash flow, a 28-327% yield
- Free cash flow funding incremental capital projects, deleveraging, increased shareholder returns and other corporate purposes
Improved SPEED / ESG+ Performance and Ratings
- Electrification of the Llanos 34 block (GeoPark operated, 45% WI) is 80% complete, a decisive near-term catalyst that will improve overall operational reliability and reduce carbon emissions and energy generation costs
- Solar photovoltaic plant in the Llanos 34 block is 80% complete, and will be operational by mid-2022
- GeoPark rating upgraded to “A” by MSCI ESG Ratings, a multi-year rating improvement (GeoPark was previously rated “B” in 2018, “BB” in 2019 and “BBB” in 2021)
- GeoPark was added to the Bloomberg Gender-Equality Index, covering companies with best-in-class gender-related practices and policies
Upcoming Catalysts
- Drilling 10-12 gross wells in 2Q2022, targeting development, appraisal, and exploration projects, including initiation of the exploration drilling campaign in the CPO-5 block
- Interconnecting Tigana field in the Llanos 34 block to Colombia’s national grid as first phase of the electrification of the block, to be followed by the interconnection of Jacana in early 2H2022
James F. Park, Chief Executive Officer of GeoPark, said: “Tremendous thanks and congratulations to the GeoPark team for doing its job and building value across our complete business again this period, including: growing profitable production, finding new oil fields, drilling wells successfully, carrying out seismic and developing new prospects, keeping our team safe and healthy, reducing costs and increasing capital efficiency, achieving record cash flows, reducing debt, increasing our self-funded work program, managing risks, expanding our acreage footprint, building partnerships, protecting the environment and reducing emissions, being a good community neighbor, improving our ESG ratings, improving our organization, strengthening our culture, attracting new long term investors, increasing dividends, giving back more to all our stakeholders, and implementing an exciting new leadership team. This full-cycle GeoPark approach – always supported by our own cash flows – is the right business model for our industry today – and our consistent delivery provides powerful momentum for a promising and pivotal 2022 and beyond.”
_________________
4 GeoPark no longer reports production, revenue or costs from these blocks since the transaction closed.
5 Calculated as the middle point of previous and new production guidance.
6 The Manati gas field divestment process was not completed before the March 31, 2022 deadline and upon expiry, GeoPark decided not to extend the target date.
7 Free cash flow yield is calculated as free cash flow divided by GeoPark’s average market capitalization from January 3 to April 30, 2022.
INCREASED 2022 PRODUCTION GUIDANCE
GeoPark’s 2022 annual average production guidance was revised up by 8%8 to 38,500-40,500 boepd (from 35,500-37,500 boepd), not including any potential production from 14-18 exploration wells to be drilled from May to December 2022.
Revised production guidance reflects successful drilling results, new investments due to a higher oil price environment and the reintegration of production from the Manati gas field in Brazil.
The 2022 work program was expanded to $200-220 million (from $160-180 million) to drill 50-55 gross wells. New investments for approximately $40 million include drilling of 8-9 new gross wells plus facilities and other permitting projects.
Incremental investments are expected to be allocated as follows:
- Llanos 34 block – $15-20 million to drill 1-2 gross development, 3 gross injection and 2 gross exploration wells plus infrastructure and facilities
- Platanillo block (GeoPark operated, 100% WI) – $7-10 million to drill 1 exploration well plus facilities and other permitting projects
- Perico block – $5-10 million to drill 1 gross exploration well plus other optimization projects
Free cash flow sensitivities to different Brent oil prices is shown in the table below:
|
2022 Free Cash Flow9 (in millions of $) |
$80-85 per bbl |
$95-100 per bbl |
|
Operating Netback |
550-580 |
590-620 |
|
Adjusted EBITDA |
500-530 |
540-570 |
|
Cash Taxes |
(40-45) |
(40-45) |
|
Capital Expenditures |
(200-220) |
(200-220) |
|
Mandatory Debt Service Payments10 |
(38-42) |
(38-42) |
|
Free Cash Flow |
210-240 |
250-280 |
|
Free Cash Flow Yield (in %) |
24-27% |
28-32% |
Adjusted EBITDA is defined as profit for the period (determined as if IFRS 16 Leases has not been adopted), before net finance cost, income tax, depreciation, amortization, certain non-cash items such as impairments and write-offs of unsuccessful exploration efforts, accrual of share-based payment, unrealized result on commodity risk management contracts, geological and geophysical expenses allocated to capitalized projects, and other non-recurring events. Operating Netback is equivalent to Adjusted EBITDA before cash expenses included in Administrative, Geological and Geophysical and Other operating expenses.
Free cash flow is used here as Adjusted EBITDA less income tax paid included in cash flows from operating activities, less capital expenditures included in cash flows used in investing activities, less mandatory interest payments included in cash flows used in financing activities.
The free cash flow yield is calculated as free cash flow divided by GeoPark’s average market capitalization from January 3 to April 30, 2022.
_________________
8 Calculated as the middle point of previous and new production guidance.
9 Brent oil price assumptions refer to May-December 2022 and consider a $3-4 Vasconia/Brent differential. Free cash flow excludes changes in working capital.
10 Excluding potential and voluntary prepayments on existing financial debt.
CONSOLIDATED OPERATING PERFORMANCE
Key performance indicators:
|
Key Indicators |
1Q2022 |
4Q2021 |
1Q2021 |
|
Oil productiona (bopd) |
34,442 |
33,205 |
32,877 |
|
Gas production (mcfpd) |
25,096 |
28,338 |
31,522 |
|
Average net production (boepd) |
38,626 |
37,928 |
38,131 |
|
Brent oil price ($ per bbl) |
96.9 |
79.0 |
61.1 |
|
Combined realized price ($ per boe) |
75.8 |
59.3 |
44.7 |
|
⁻ Oil ($ per bbl) |
84.3 |
65.9 |
49.8 |
|
⁻ Gas ($ per mcf) |
4.8 |
4.0 |
3.6 |
|
Sale of crude oil ($ million) |
239.0 |
192.9 |
137.3 |
|
Sale of gas ($ million) |
10.2 |
9.5 |
9.3 |
|
Revenue ($ million) |
249.2 |
202.4 |
146.6 |
|
Commodity risk management contracts b ($ million) |
(78.1) |
(2.5) |
(47.3) |
|
Production & operating costsc ($ million) |
(80.6) |
(67.6) |
(42.9) |
|
G&G, G&Ad ($ million) |
(12.7) |
(11.6) |
(14.4) |
|
Selling expenses ($ million) |
(2.0) |
(3.4) |
(1.7) |
|
Adjusted EBITDA ($ million) |
122.6 |
87.1 |
66.5 |
|
Adjusted EBITDA ($ per boe) |
37.3 |
25.5 |
20.3 |
|
Operating Netback ($ per boe) |
41.0 |
29.0 |
24.2 |
|
Net Profit (loss) ($ million) |
31.0 |
36.9 |
(10.3) |
|
Capital expenditures ($ million) |
39.4 |
43.9 |
20.3 |
|
Cash and cash equivalents ($ million) |
114.1 |
100.6 |
187.6 |
|
Short-term financial debt ($ million) |
8.7 |
17.9 |
5.9 |
|
Long-term financial debt ($ million) |
633.9 |
656.2 |
767.1 |
|
Net debt ($ million) |
528.4 |
573.5 |
585.4 |
|
a) |
Includes royalties paid in kind in Colombia for approximately 1,115, 1,119 and 1,101 bopd in 1Q2022, 4Q2021 and 1Q2021, respectively. No royalties were paid in kind in other countries. |
||
|
b) |
Please refer to the Commodity Risk Management section included below. |
||
|
c) |
Production and operating costs include operating costs and royalties paid in cash. |
||
|
d) |
G&A and G&G expenses include non-cash, share-based payments for $0.9 million, $0.9 million and $2.0 million in 1Q2022, 4Q2021 and 1Q2021, respectively. These expenses are excluded from the Adjusted EBITDA calculation. |
Production: Oil and gas production in 1Q2022 was 38,626 boepd, a 1% increase compared to 1Q2021. Adjusting for recent divestments in Argentina, consolidated oil and gas production increased by 6% compared to 1Q2021, due to higher production in Colombia and to a lesser extent, recent exploration successes in Ecuador, partially offset by lower production in Chile and Brazil.
Oil represented 89% and 86% of total reported production in 1Q2022 and 1Q2021, respectively.
For further details, please refer to the 1Q2022 Operational Update published on April 11, 2022.
Reference and Realized Oil Prices: Brent crude oil prices averaged $96.9 per bbl during 1Q2022, and the consolidated realized oil sales price averaged $84.3 per bbl in 1Q2022.
A breakdown of reference and net realized oil prices in Colombia, Chile and Argentina in 1Q2022 and 1Q2021 is shown in the tables below:
|
1Q2022 – Realized Oil Prices ($ per bbl) |
Colombia |
Chile |
Argentina |
|
Brent oil price (*) |
96.9 |
103.7 |
96.9 |
|
Local marker differential |
(3.7) |
– |
– |
|
Commercial, transportation discounts & Other |
(8.8) |
(7.8) |
(40.2) |
|
Realized oil price |
84.4 |
95.9 |
56.7 |
|
Weight on oil sales mix |
98% |
1% |
1% |
|
1Q2021 – Realized Oil Prices ($ per bbl) |
Colombia |
Chile |
Argentina |
|
Brent oil price (*) |
61.1 |
60.5 |
61.1 |
|
Local marker differential |
(2.9) |
– |
– |
|
Commercial, transportation discounts & Other |
(8.5) |
(8.6) |
(10.5) |
|
Realized oil price |
49.7 |
51.9 |
50.6 |
|
Weight on oil sales mix |
95% |
1% |
4% |
(*) Corresponds to ICE Brent for Colombia and Argentina. Corresponds to Dated Brent for Chile
Revenue: Consolidated revenue increased by 70% to $249.2 million in 1Q2022, compared to $146.6 million in 1Q2021, reflecting higher oil and gas prices.
Sales of crude oil: Consolidated oil revenue increased by 74% to $239.0 million in 1Q2022, driven by a 69% increase in realized oil prices and to a lesser extent 3% higher oil deliveries. Oil revenue was 96% of total revenue in 1Q2022 and 94% in 1Q2021.
|
(In millions of $) |
1Q2022 |
1Q2021 |
|
Colombia |
234.0 |
130.1 |
|
Chile |
3.1 |
1.4 |
|
Argentina |
1.7 |
5.8 |
|
Brazil |
0.2 |
0.1 |
|
Oil Revenue |
239.0 |
137.3 |
- Colombia: 1Q2022 oil revenue increased by 80% to $234.0 million, reflecting higher realized oil prices and higher oil deliveries. Realized prices increased by 70% to $84.4 per bbl due to higher Brent oil prices while oil deliveries increased by 6% to 31,903 bopd. Earn-out payments increased to $8.4 million in 1Q2022, compared to $4.5 million in 1Q2021 in line with higher oil prices.
- Chile: 1Q2022 oil revenue increased by 129% to $3.1 million, reflecting higher realized prices and higher oil deliveries. Realized prices increased by 85% to $95.9 per bbl due to higher Brent oil prices while oil deliveries increased by 24% to 362 bopd.
- Argentina: 1Q2022 oil revenue decreased by 71% to $1.7 million from $5.8 million in 1Q2021, reflecting revenue only until divestment of the Aguada Baguales, El Porvenir and Puesto Touquet blocks that occurred on January 31, 2022.
Sales of gas: Consolidated gas revenue increased by 9% to $10.2 million in 1Q2022 compared to $9.3 million in 1Q2021 reflecting 34% higher gas prices, partially offset by 18% lower gas deliveries. Gas revenue was 4% and 6% of total revenue in 1Q2022 and 1Q2021, respectively.
|
(In millions of $) |
1Q2022 |
1Q2021 |
|
Chile |
3.6 |
3.2 |
|
Brazil |
5.7 |
4.7 |
|
Argentina |
0.3 |
0.8 |
|
Colombia |
0.5 |
0.5 |
|
Gas Revenue |
10.2 |
9.3 |
- Chile: 1Q2022 gas revenue increased by 12% to $3.6 million, reflecting higher gas prices, partially offset by lower gas deliveries. Gas prices were 30% higher, at $3.7 per mcf ($22.3 per boe) in 1Q2022. Gas deliveries fell by 14% to 10,775 mcfpd (1,796 boepd).
- Brazil: 1Q2022 gas revenue increased by 22% to $5.7 million, due to higher gas prices that were partially offset by lower gas deliveries. Gas prices increased by 33% to $6.5 per mcf ($39.0 per boe). Gas deliveries decreased by 8% from the Manati gas field to 9,823 mcfpd (1,637 boepd).
- Argentina: 1Q2022 gas revenue decreased by 65% to $0.3 million from $0.8 million in 1Q2021, reflecting revenue only until divestment of the Aguada Baguales, El Porvenir and Puesto Touquet blocks that occurred on January 31, 2022.
Commodity Risk Management Contracts: Consolidated commodity risk management contracts amounted to a $78.1 million loss in 1Q2022, compared to a $47.3 million loss in 1Q2021.
The table below provides a breakdown of realized and unrealized commodity risk management contracts in 1Q2022 and 1Q2021:
|
(In millions of $) |
1Q2022 |
1Q2021 |
|
Realized loss |
(30.5) |
(20.6) |
|
Unrealized loss |
(47.6) |
(26.7) |
|
Commodity risk management contracts |
(78.1) |
(47.3) |
The realized portion registered a loss of $30.5 million in 1Q2022 compared to a $20.6 million loss in 1Q2021. Realized losses in 1Q2022 reflected hedges with average ceiling prices below actual Brent oil prices during the quarter.
The unrealized portion registered a loss of $47.6 million in 1Q2022, compared to a $26.7 million loss in 1Q2021. Unrealized losses in 1Q2022 mainly resulted from the increase in the forward Brent oil price curve at March 31, 2022 compared to December 31, 2021.
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 Costs11: Consolidated production and operating costs increased to $80.6 million from $42.9 million, mainly resulting from a $38.2 million increase in royalties in cash, due to higher oil and gas prices, partially offset by lower operating costs.
The table below provides a breakdown of production and operating costs in 1Q2022 and 1Q2021:
|
(In millions of $) |
1Q2022 |
1Q2021 |
|
Operating costs |
22.5 |
23.1 |
|
Royalties in cash |
58.0 |
19.8 |
|
Share-based payments |
0.1 |
0.0 |
|
Production and operating costs |
80.6 |
42.9 |
Consolidated operating costs decreased to $22.5 million in 1Q2022 compared to $23.1 million in 1Q2021.
_________________
11 Operating costs per boe represents the figures used in Adjusted EBITDA calculation with certain adjustments to the reported figures.
The breakdown of operating costs is as follows:
- Colombia: Operating costs per boe amounted to $5.9 in 1Q2022, compared to $6.9 in 1Q2021. Total operating costs decreased to $16.2 million in 1Q2022 from $17.4 million in 1Q2021 due to lower operating costs per boe, partially offset by higher deliveries (deliveries in Colombia increased by 6%).
- Chile: Operating costs per boe amounted to $18.9 in 1Q2022, compared to $9.2 in 1Q2021. Total operating costs increased to $3.7 million in 1Q2022 from $2.0 million in 1Q2021, in line with higher operating costs per boe due to higher maintenance costs, partially offset by lower oil and gas deliveries (deliveries in Chile decreased by 9%).
- Brazil: Operating costs per boe amounted to $10.6 in 1Q2022 compared to $6.0 in 1Q2021. Total operating costs increased to $1.2 million in 1Q2022 from $0.5 million in 1Q2021, due to higher operating costs per boe, partially offset by lower gas deliveries in the Manati field (deliveries in Brazil decreased by 8%).
- Argentina: Operating costs per boe amounted to $24.1 in 1Q2022 compared to $18.8 in 1Q2021. Total operating costs decreased to $1.3 million in 1Q2022 from $3.2 million in 1Q2021, reflecting costs until divestment of the Aguada Baguales, El Porvenir and Puesto Touquet blocks that was completed on January 31, 2022.
Selling Expenses: Consolidated selling expenses increased to $2.0 million in 1Q2022, compared to $1.7 million in 1Q2021.
Geological & Geophysical Expenses: Consolidated G&G expenses decreased to $2.7 million in 1Q2022 compared to $3.1 million in 1Q2021.
Administrative Expenses: Consolidated G&A decreased to $9.9 million in 1Q2022 compared to $11.3 million in 1Q2021 due to lower staff costs, share based payments and higher allocation to joint operations due to higher level of activity.
Adjusted EBITDA: Consolidated Adjusted EBITDA12 increased by 84% to $122.6 million, or $37.3 per boe, in 1Q2022 compared to $66.5 million, or $20.3 per boe, in 1Q2021.
_________________
12 See “Reconciliation of Adjusted EBITDA to Profit (Loss) Before Income Tax and Adjusted EBITDA per boe” included in this press release.
|
(In millions of $) |
1Q2022 |
1Q2021 |
|
Colombia |
121.8 |
64.3 |
|
Chile |
2.1 |
1.7 |
|
Brazil |
3.6 |
3.2 |
|
Argentina |
(1.7) |
1.1 |
|
Corporate, Ecuador and Other |
(3.2) |
(3.8) |
|
Adjusted EBITDA |
122.6 |
66.5 |
The table below shows production, volumes sold and the breakdown of the most significant components of Adjusted EBITDA for 1Q2022 and 1Q2021, on a per country and per boe basis:
|
Adjusted EBITDA/boe |
Colombia |
Chile |
Brazil |
Argentina |
Total |
|||||||||||||||||
|
|
1Q22 |
1Q21 |
1Q22 |
1Q21 |
1Q22 |
1Q21 |
1Q22 |
1Q21 |
1Q22 |
1Q21 |
||||||||||||
|
Production (boepd) |
33,738 |
31,455 |
2,279 |
2,491 |
1,815 |
1,984 |
604 |
2,201 |
38,626 |
38,131 |
||||||||||||
|
Inventories, RIKa & Other |
(1,635) |
(1,151) |
(121) |
(117) |
(153) |
(170) |
1 |
(232) |
(2,098) |
(1,670) |
||||||||||||
|
Sales volume (boepd) |
32,103 |
30,304 |
2,158 |
2,374 |
1,662 |
1,814 |
605 |
1,969 |
36,528 |
36,461 |
||||||||||||
|
% Oil |
99.4% |
99.3% |
17% |
12% |
1% |
1% |
54% |
64% |
89% |
87% |
||||||||||||
|
($ per boe) |
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Realized oil price |
84.4 |
49.7 |
95.9 |
51.9 |
104.5 |
58.4 |
56.7 |
50.6 |
84.3 |
49.8 |
||||||||||||
|
Realized gas priceb |
28.8 |
25.8 |
22.3 |
17.1 |
39.0 |
29.3 |
11.9 |
13.4 |
28.8 |
21.5 |
||||||||||||
|
Earn-out |
(2.9) |
(1.7) |
– |
– |
– |
– |
– |
– |
(2.9) |
(1.6) |
||||||||||||
|
Combined Price |
81.2 |
47.9 |
34.6 |
21.4 |
39.9 |
29.7 |
36.0 |
37.3 |
75.8 |
44.7 |
||||||||||||
|
Realized commodity risk management contracts |
(10.6) |
(7.6) |
– |
– |
– |
– |
– |
– |
(9.3) |
(6.3) |
||||||||||||
|
Operating costs |
(5.9) |
(6.9) |
(18.9) |
(9.2) |
(10.6) |
(6.0) |
(24.1) |
(18.8) |
(7.2) |
(7.6) |
||||||||||||
|
Royalties in cash |
(19.7) |
(6.7) |
(1.4) |
(0.8) |
(3.2) |
(2.4) |
(5.0) |
(5.6) |
(17.7) |
(6.0) |
||||||||||||
|
Selling & other expenses |
(0.6) |
(0.5) |
(0.4) |
(0.4) |
– |
– |
(1.9) |
(1.4) |
(0.6) |
(0.5) |
||||||||||||
|
Operating Netback/boe |
44.3 |
26.2 |
13.9 |
11.0 |
26.2 |
21.4 |
5.0 |
11.5 |
41.0 |
24.2 |
||||||||||||
|
G&A, G&G & other |
(3.7) |
(3.9) |
||||||||||||||||||||
|
Adjusted EBITDA/boe |
37.3 |
20.3 |
||||||||||||||||||||
|
a) |
RIK (Royalties in kind). Includes royalties paid in kind in Colombia for approximately 1,115 bopd and 1,101 bopd in 1Q2022 and 1Q2021, respectively. No royalties were paid in kind in Chile, Brazil or Argentina. |
||
|
b) |
Conversion rate of $mcf/$boe=1/6. |
Depreciation: Consolidated depreciation charges decreased by 4% to $21.6 million in 1Q2022 compared to $22.6 million in 1Q2021, in line with lower depreciation costs per boe.
Other Income (Expenses): Other operating expenses showed a $4.5 million gain in 1Q2022, compared to a $1.8 million loss in 1Q2021. Gains recognized in 1Q2022 are mainly related to the sale of the Aguada Baguales, El Porvenir and Puesto Touquet blocks in Argentina that was closed in January 2022.
CONSOLIDATED NON-OPERATING RESULTS AND PROFIT FOR THE PERIOD
Financial Expenses: Net financial expenses decreased to $15.1 million in 1Q2022 compared to $15.5 million in 1Q2021, mainly resulting from the strategic deleveraging process executed in April 2021 that resulted in significant gross debt reduction, extended maturities and lower cost of debt, partially offset by $0.8 million borrowing cancellation in 1Q2022. Borrowing cancellation costs relate to repurchases of the 2024 Notes during 1Q2022 for $23.1 million in open market transactions, reflecting the difference between the carrying amount of debt repurchased and the consideration paid.
Foreign Exchange: Net foreign exchange charges amounted to a $6.6 million loss in 1Q2022 compared to a $2.7 million gain in 1Q2021.
Income Tax: Income taxes totaled $5.9 million in 1Q2022 compared to $13.4 million in 1Q2021, mainly resulting from the effect of fluctuations of local currencies over deferred income taxes, partially offset by higher profits before income taxes.
Net Profit: Gain of $31.0 million in 1Q2022 compared to a $10.3 million loss recorded in 1Q2021.
BALANCE SHEET
Cash and Cash Equivalents: Cash and cash equivalents totaled $114.1 million as of March 31, 2022, compared to $100.6 million as of December 31, 2021.
This net increase is explained by the following:
|
(In millions of $) |
1Q2022 |
|
Cash flows from operating activities |
89.7 |
|
Cash flows used in investing activities |
(25.0) |
|
Cash flows used in financing activities |
(52.9) |
|
Currency Translation |
1.7 |
|
Net increase in cash & cash equivalents |
13.5 |
Cash flows used in investing activities included $39.4 million in capital expenditures incurred by the Company as part of its 2022 work program, partially offset by proceeds from the disposal of assets in Argentina of $14.4 million.
Cash flows used in financing activities included $23.
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: +5411 4312 9400
dgully@geo-park.com
MEDIA:
Communications Department
communications@geo-park.com
