GeoPark Reports Fourth Quarter and Full-Year 2021 Results
2021 Operational Delivery & Cash Generation Funded Debt Reduction & Higher Shareholder Returns
2022 Work Program Delivering Results and Accelerating Profitable Growth
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 (“Fourth Quarter” or “4Q2021”) and for the year ended December 31, 2021 (“Full-year” or “FY2021”). A conference call to discuss 4Q2021 financial results will be held on March 10, 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 December 31, 2021, available on the Company’s website.
FOURTH QUARTER AND FULL-YEAR 2021 HIGHLIGHTS
Consistent Operational Delivery
- Quarterly oil and gas production of 37,928 boepd / Full-year oil and gas production of 37,602 boepd (or 35,466 boepd pro forma, excluding production from Argentina blocks, divested January 31, 20221)
- Full-year consolidated gross operated production of 62,270 boepd
- CPO-5 block (GeoPark non-operated, 30% WI) annual gross production up 55% vs 2020 to 12,407 bopd
- 32 gross wells drilled in 2021 (29 operated with a success rate of 96%)
- 350+ sq km of 3D seismic acquisition during 2021 in the Llanos and Putumayo basins in Colombia
Improved Capital and Cost Efficiency
- Capital expenditures of $43.9 million / Full-year capital expenditures of $129.3 million
- 2021 Adjusted EBITDA to capital expenditures ratio of 2.3x (3.2x excluding cash hedge losses)
- Full-year G&G and G&A costs reduced by 16% to $54.7 million (31% lower vs 2019)
Growing Cash Generation and Profits
- Revenue up 90% to $202.4 million / Full-year Revenue up 75% to $688.5 million
- Adjusted EBITDA up 56% to $87.1 million / Full-year Adjusted EBITDA up 38% to $300.8 million
- Net Profit of $36.9 million / Full-year Net Profit of $61.1 million
Less Debt and Stronger Balance Sheet
- Cash in hand of $100.6 million
- $105 million in debt paid down in 2021
- Net leverage of 1.9x (2.7x in December 2020)
Bigger Shareholder Returns
- Direct returns to shareholders during 4Q2021 totaled $8.9 million2 (up 36% vs 3Q2021)
- Discretionary share buyback program in place for up to 10% of shares outstanding until November 2022
- Doubling quarterly cash dividend to $5.0 million ($0.082 per share) payable on March 31, 2022
____________
|
1 |
GeoPark no longer reports production from Argentina since closing the transaction on January 31, 2022. |
|
2 |
$6.4 million in share buybacks plus $2.5 million in quarterly dividends. |
40-48 Well Drilling Program Underway and Delivering Results
- Self-funded 2022 capital expenditures program of $160-180 million to drill 40-48 gross wells
- In Ecuador in the Perico block (GeoPark non-operated, 50% WI): First discovery with the Jandaya 1 well now producing gross 870 boepd (770 light oil and 0.6 mmcfpd of gas) with a 1.7% water cut
- In Colombia in the CPO-5 block: Indico 4 development well drilled and now producing gross 4,200 bopd of light oil with less than 0.2% water cut. Currently drilling the Indico 5 development well to be followed by high-impact exploration drilling campaign beginning by the end of 1Q2022
- In Colombia in the Llanos 34 block (GeoPark operated, 45% WI): 7 new gross development wells drilled in the Tigana, Jacana and Tigui oil fields
2022 Production and Cash Generation
- Targeted 2022 production increase of 5-10% to 35,500-37,500 boepd – does not include production from Argentina3 and Brazil4 and any potential production from 15-20 exploration wells being drilled
- At $80-85/bbl Brent, the work program generates $210-240 million free cash flow, a 25-30% yield
- At $95-100/bbl Brent, the work program generates $260-280 million free cash flow, a 31-33% yield
- Free cash flow will be used to: (i) fund additional capital opportunities within the portfolio, (ii) partially or fully repay the 2024 Notes ($170 million principal remaining), as well as (iii) increasing shareholder returns (through dividends and buybacks) and other corporate purposes
James F. Park, Chief Executive Officer of GeoPark, said: “Thanks again to the incredible GeoPark team for delivering a successful 2021 and for continuing to make us a more-prepared and stronger Company – regardless of a world in constant change. Beginning as always with consistent on-the-ground operational performance and thoroughly working across all our Company to get better in every way, the year ended robustly with more cash generation, lower structure costs, smaller carbon footprint, more bottom-line profits, less debt, and more shareholder returns – including increased dividends. And 2022, building on this big momentum, is already off and running. Supported by our core low cost producing assets, we have 10 rigs working as part of a big 40-48 well drilling program – and with positive results coming in – including from an ambitious exploration drilling program focused on low-risk, quick tie-in opportunities in proven high potential basins. And, of course, there is a powerful wind at our back now with high oil prices and strong demand for the energy we are finding and producing.”
____________
|
3 |
GeoPark no longer reports production from Argentina since closing the transaction on January 31, 2022. |
|
4 |
Please refer to section “Manati Gas Field Divestment Process Update in Brazil” included in this release. |
PORTFOLIO MANAGEMENT UPDATE
Completion of the Argentina Divestment Process
In November 2021, GeoPark accepted an offer from Oilstone Energía S.A. to purchase GeoPark’s 100% WI in the Aguada Baguales, El Porvenir and Puesto Touquet blocks for a total consideration of $16 million. Closing of the transaction occurred on January 31, 2022 and GeoPark no longer reports production from these blocks since that date.
Manati Gas Field Divestment Process Update in Brazil
In November 2020 GeoPark signed an agreement to sell its 10% non-operated WI in the Manati gas field to Gas Bridge S.A. for a total consideration of R$144.4 million ($~28 million at an exchange rate of R$5.1 per dollar), including a fixed payment of R$124.4 million plus an earn-out of R$20.0 million, subject to obtaining certain regulatory approvals. The transaction is subject to several conditions that should be met before March 31, 2022 and that have not been met as of the date of this release.
SPEED / ESG+ ACHIEVEMENTS AND RECOGNITIONS
Electrification and Solar Photovoltaic Plant Update
The electrification of the Llanos 34 block is proceeding and is 51% complete. This connection will improve overall operational reliability and reduce carbon emissions and energy generation costs, and is expected to be fully operational in 2H2022. In addition, the solar photovoltaic plant in the Llanos 34 block is now 80% complete, and will be fully operational in 1H2022.
Bloomberg Gender Equality-Index Inclusion
In January 2022 GeoPark was added to the Bloomberg Gender-Equality Index, including companies with best-in-class gender-related practices and policies.
CONSOLIDATED OPERATING PERFORMANCE
Key performance indicators:
|
Key Indicators |
4Q2021 |
3Q2021 |
4Q2020 |
FY2021 |
FY2020 |
|
Oil productiona (bopd) |
33,205 |
32,844 |
33,238 |
32,474 |
34,860 |
|
Gas production (mcfpd) |
28,338 |
30,090 |
36,390 |
30,768 |
31,992 |
|
Average net production (boepd) |
37,928 |
37,859 |
39,304 |
37,602 |
40,192 |
|
Brent oil price ($ per bbl) |
79.0 |
73.2 |
46.0 |
70.7 |
43.2 |
|
Combined realized price ($ per boe) |
59.3 |
53.9 |
31.7 |
52.2 |
28.4 |
|
⁻ Oil ($ per bbl) |
65.9 |
60.3 |
35.5 |
58.4 |
31.2 |
|
⁻ Gas ($ per mcf) |
4.0 |
4.2 |
3.0 |
4.0 |
3.0 |
|
Sale of crude oil ($ million) |
192.9 |
163.5 |
97.5 |
647.6 |
359.6 |
|
Sale of gas ($ million) |
9.5 |
10.5 |
9.2 |
40.9 |
34.1 |
|
Revenue ($ million) |
202.4 |
174.0 |
106.7 |
688.5 |
393.7 |
|
Commodity risk management contracts b ($ million) |
(2.5) |
(11.7) |
(17.5) |
(109.2) |
8.1 |
|
Production & operating costsc ($ million) |
(67.6) |
(49.2) |
(34.9) |
(212.8) |
(125.1) |
|
G&G, G&Ad ($ million) |
(11.6) |
(13.8) |
(20.7) |
(54.7) |
(65.3) |
|
Selling expenses ($ million) |
(3.4) |
(1.8) |
(1.0) |
(8.8) |
(5.8) |
|
Adjusted EBITDA ($ million) |
87.1 |
86.8 |
56.0 |
300.8 |
217.5 |
|
Adjusted EBITDA ($ per boe) |
25.5 |
26.9 |
16.6 |
22.8 |
15.7 |
|
Operating Netback ($ per boe) |
29.0 |
30.8 |
22.2 |
26.7 |
19.9 |
|
Net Profit (loss) ($ million) |
36.9 |
37.0 |
(119.2) |
61.1 |
(233.0) |
|
Capital expenditures ($ million) |
43.9 |
30.6 |
26.1 |
129.3 |
75.3 |
|
Amerisur acquisitione ($ million) |
– |
– |
– |
– |
272.3 |
|
Cash and cash equivalents ($ million) |
100.6 |
76.8 |
201.9 |
100.6 |
201.9 |
|
Short-term financial debt ($ million) |
17.9 |
18.1 |
17.7 |
17.9 |
17.7 |
|
Long-term financial debt ($ million) |
656.2 |
656.8 |
766.9 |
656.2 |
766.9 |
|
Net debt ($ million) |
573.5 |
598.1 |
582.7 |
573.5 |
582.7 |
|
a) |
Includes royalties paid in kind in Colombia for approximately 1,119, 1,213 and 986 bopd in 4Q2021, 3Q2021 and 4Q2020, 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, $1.7 million and $2.3 million in 4Q2021, 3Q2021 and 4Q2020, respectively. These expenses are excluded from the Adjusted EBITDA calculation. |
|
e) |
The Amerisur acquisition is shown net of cash acquired. |
Production: Oil and gas production in 4Q2021 was 37,928 boepd. Compared to 4Q2020, oil and gas production decreased by 4%, resulting from lower production in Chile, Brazil, and Argentina, partially offset by a slight production increase in Colombia.
Oil represented 88% and 85% of total reported production in 4Q2021 and 4Q2020, respectively.
For further details, please refer to the 4Q2021 Operational Update published on January 19, 2022.
Reference and Realized Oil Prices: Brent crude oil prices averaged $79.0 per bbl during 4Q2021, and the consolidated realized oil sales price averaged $65.9 per bbl in 4Q2021.
The tables below provide a breakdown of reference and net realized oil prices in Colombia, Chile and Argentina in 4Q2021 and 4Q2020:
|
4Q2021 – Realized Oil Prices ($ per bbl) |
Colombia |
Chile |
Argentina |
|
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% |
|
4Q2020 – Realized Oil Prices ($ per bbl) |
Colombia |
Chile |
Argentina |
|
Brent oil price (*) |
46.0 |
45.6 |
46.0 |
|
Local marker differential |
(2.3) |
– |
– |
|
Commercial, transportation discounts & Other |
(8.4) |
(7.8) |
(5.0) |
|
Realized oil price |
35.3 |
37.8 |
41.0 |
|
Weight on oil sales mix |
95% |
1% |
4% |
|
(*) Brent oil price may differ in each country as sales are priced with different Brent reference prices. |
|||
Revenue: Consolidated revenue increased by 90% to $202.4 million in 4Q2021, compared to $106.7 million in 4Q2020, reflecting higher oil and gas prices and to a lesser extent a 2% increase in oil and gas deliveries.
Sales of crude oil: Consolidated oil revenue increased by 98% to $192.9 million in 4Q2021, driven by a 87% increase in realized oil prices and to a lesser extent 6% higher oil deliveries. Oil revenue was 95% of total revenue in 4Q2021 and 91% in 4Q2020.
|
(In millions of $) |
4Q2021 |
4Q2020 |
|
Colombia |
184.0 |
91.6 |
|
Chile |
2.3 |
1.3 |
|
Argentina |
6.4 |
4.4 |
|
Brazil |
0.2 |
0.2 |
|
Oil Revenue |
192.9 |
97.5 |
- Colombia: 4Q2021 oil revenue increased by 101% to $184.0 million, reflecting higher realized oil prices and higher oil deliveries. Realized prices increased by 87% to $66.1 per bbl due to higher Brent oil prices while oil deliveries increased by 6% to 31,277 bopd. Earn-out payments increased to $6.0 million in 4Q2021, compared to $3.6 million in 4Q2020 in line with higher oil prices.
- Chile: 4Q2021 oil revenue increased by 69% to $2.3 million, reflecting higher realized prices that were partially offset by lower oil deliveries. Realized prices increased by 92% to $72.5 per bbl due to higher Brent oil prices while oil deliveries decreased by 12% to 339 bopd.
- Argentina: 4Q2021 oil revenue increased by 45% to $6.4 million, due to 44% higher realized oil prices of $59.2 per bbl. Oil deliveries remained flat at 1,175 bopd.
Sales of gas: Consolidated gas revenue increased by 3% to $9.5 million in 4Q2021 compared to $9.2 million in 4Q2020 reflecting 35% higher gas prices, partially offset by 24% lower gas deliveries. Gas revenue was 5% and 9% of total revenue in 4Q2021 and 4Q2020, respectively.
|
(In millions of $) |
4Q2021 |
4Q2020 |
|
Chile |
3.5 |
3.5 |
|
Brazil |
4.5 |
4.5 |
|
Argentina |
1.0 |
0.6 |
|
Colombia |
0.5 |
0.6 |
|
Gas Revenue |
9.5 |
9.2 |
- Chile: 4Q2021 gas revenue remained flat at $3.5 million, reflecting lower gas deliveries that were offset by higher gas prices. Gas deliveries fell by 38% to 10,254 mcfpd (1,709 boepd). Gas prices were 61% higher, at $3.7 per mcf ($22.0 per boe) in 4Q2021.
- Brazil: 4Q2021 gas revenue remained flat at $4.5 million, due to higher gas prices that were offset by lower gas deliveries. Gas prices increased by 20% to $5.0 per mcf ($29.9 per boe). Gas deliveries decreased by 16% from the Manati gas field (GeoPark non-operated, 10% WI) to 9,881 mcfpd (1,647 boepd).
- Argentina: 4Q2021 gas revenue increased by 49% to $1.0 million, resulting from higher gas prices and higher gas deliveries. Gas prices increased by 47% to $2.4 per mcf ($14.4 per boe) while deliveries increased by 2% to 4,327 mcfpd (721 boepd).
Commodity Risk Management Contracts: Consolidated commodity risk management contracts amounted to a $2.5 million loss in 4Q2021, compared to a $17.5 million loss in 4Q2020.
The table below provides a breakdown of realized and unrealized commodity risk management contracts in 4Q2021 and 4Q2020:
|
(In millions of $) |
4Q2021 |
4Q2020 |
|
Realized (loss) gain |
(31.0) |
5.3 |
|
Unrealized gain (loss) |
28.5 |
(22.8) |
|
Commodity risk management contracts |
(2.5) |
(17.5) |
The realized portion of the commodity risk management contracts registered a loss of $31.0 million in 4Q2021 compared to a $5.3 million gain in 4Q2020. Realized losses recorded in 4Q2021 reflected the impact of zero cost collar hedges covering a portion of the Company’s oil production with average ceiling prices below actual Brent oil prices during the quarter.
The unrealized portion of the commodity risk management contracts amounted to a $28.5 million gain in 4Q2021, compared to a $22.8 million loss in 4Q2020. Unrealized gains during 4Q2021 resulted from the reclassification of unrealized to realized losses during 4Q2021 plus unrealized losses accrued in 4Q2021 due to the increase in the forward Brent oil price curve at December 31, 2021 compared to September 30, 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 Costs5: Consolidated production and operating costs increased to $67.6 million from $34.9 million, mainly resulting from a $26.2 million increase in cash royalties due to higher oil and gas prices, and to a lesser extent, due to increased operating costs.
The table below provides a breakdown of production and operating costs in 4Q2021 and 4Q2020:
|
(In millions of $) |
4Q2021 |
4Q2020 |
|
Cash royalties |
(37.7) |
(11.6) |
|
Share-based payments |
(0.1) |
(0.4) |
|
Operating costs |
(29.8) |
(22.9) |
|
Production and operating costs |
(67.6) |
(34.9) |
Consolidated royalties increased to $37.7 million in 4Q2021 compared to $11.6 million in 4Q2020, in line with higher oil and gas prices.
Consolidated operating costs increased to $29.8 million in 4Q2021 compared to $22.9 million in 4Q2020.
The breakdown of operating costs is as follows:
- Colombia: Operating costs per boe amounted to $7.7 in 4Q2021, compared to $6.5 in 4Q2020. Total operating costs increased to $21.4 million in 4Q2021 from $16.4 million in 4Q2020 due to higher deliveries (deliveries in Colombia increased by 6%) and higher operating costs per boe resulting from inventories reduction in the Platanillo block, with higher costs per boe than the Llanos 34 or CPO-5 blocks, combined with higher maintenance costs.
- Chile: Operating costs per boe amounted to $14.9 in 4Q2021, compared to $8.9 in 4Q2020. Total operating costs increased to $2.8 million in 4Q2021 from $2.6 million in 4Q2020, in line with higher operating costs per boe, partially offset by lower oil and gas deliveries (deliveries in Chile decreased by 35%).
- Brazil: Operating costs per boe amounted to $7.4 in 4Q2021 compared to $7.6 in 4Q2020. Total operating costs decreased to $0.8 million in 4Q2021 from $0.9 million in 4Q2020, due to lower operating costs per boe and reflecting lower gas deliveries in the Manati field (deliveries in Brazil decreased by 16%).
- Argentina: Operating costs per boe amounted to $27.8 in 4Q2021 compared to $18.5 in 4Q2020. Total operating costs increased to $4.8 million in 4Q2021 from $3.1 million in 4Q2020, due to higher operating costs per boe and higher oil and gas deliveries.
Lower operating costs per boe in 4Q2020 in Chile and Argentina mainly resulted from reduced or suspended well intervention and maintenance activities resulting from the lower oil price environment in 2020.
Selling Expenses: Consolidated selling expenses increased to $3.4 million in 4Q2021, compared to $0.9 million in 4Q2020.
____________
|
5 |
Operating costs per boe represents the figures used in Adjusted EBITDA calculation with certain adjustments to the reported figures. |
Administrative Expenses: Consolidated G&A decreased to $11.0 million in 4Q2021 compared to $16.0 million in 4Q2020 due to lower staff costs and higher allocation to joint operations.
Geological & Geophysical Expenses: Consolidated G&G expenses decreased to $0.6 million in 4Q2021 compared to $4.8 million in 4Q2020 due to lower staff costs.
Adjusted EBITDA: Consolidated Adjusted EBITDA6 increased by 56% to $87.1 million, or $25.5 per boe, in 4Q2021 compared to $56.0 million, or $16.6 per boe, in 4Q2020.
|
(In millions of $) |
4Q2021 |
4Q2020 |
|
Colombia |
90.1 |
60.5 |
|
Chile |
1.8 |
0.3 |
|
Brazil |
2.9 |
2.2 |
|
Argentina |
(2.8) |
(1.7) |
|
Corporate, Ecuador and Other |
(4.9) |
(5.3) |
|
Adjusted EBITDA |
87.1 |
56.0 |
The table below shows production, volumes sold and the breakdown of the most significant components of Adjusted EBITDA for 4Q2021 and 4Q2020, on a per country and per boe basis:
|
Adjusted EBITDA/boe |
Colombia |
Chile |
Brazil |
Argentina |
Total |
|||||||
|
|
4Q21 |
4Q20 |
4Q21 |
4Q20 |
4Q21 |
4Q20 |
4Q21 |
4Q20 |
4Q21 |
4Q20 |
||
|
Production (boepd) |
32,002 |
31,858 |
2,162 |
3,133 |
1,822 |
2,167 |
1,942 |
2,146 |
37,928 |
39,304 |
||
|
Inventories, RIKa & Other |
(512) |
(2,329) |
(114) |
11 |
(150) |
(187) |
(46) |
(266) |
(822) |
(2,771) |
||
|
Sales volume (boepd) |
31,490 |
29,529 |
2,048 |
3,144 |
1,672 |
1,980 |
1,896 |
1,880 |
37,106 |
36,533 |
||
|
% Oil |
99.3% |
99.3% |
17% |
12% |
2% |
1% |
62% |
62% |
88% |
85% |
||
|
($ per boe) |
|
|
|
|
|
|
|
|
|
|
||
|
Realized oil price |
66.1 |
35.3 |
72.5 |
37.8 |
79.5 |
43.2 |
59.2 |
41.0 |
65.9 |
35.5 |
||
|
Realized gas priceb |
26.7 |
31.3 |
22.0 |
13.7 |
29.9 |
24.9 |
14.4 |
9.8 |
24.0 |
17.7 |
||
|
Earn-out |
(2.1) |
(1.3) |
– |
– |
– |
– |
– |
– |
(2.0) |
(1.1) |
||
|
Combined Price |
63.7 |
33.9 |
30.3 |
16.6 |
30.6 |
25.2 |
42.2 |
29.3 |
59.3 |
31.7 |
||
|
Realized commodity risk management contracts |
(10.7) |
2.0 |
– |
– |
– |
– |
– |
– |
(9.1) |
1.6 |
||
|
Operating costs |
(7.7) |
(6.5) |
(14.9) |
(8.9) |
(7.4) |
(7.6) |
(27.8) |
(18.5) |
(9.1) |
(7.4) |
||
|
Royalties in cash |
(12.5) |
(3.8) |
(1.2) |
(0.6) |
(2.2) |
(2.0) |
(5.8) |
(4.5) |
(11.1) |
(3.4) |
||
|
Selling & other expenses |
(1.0) |
(0.2) |
(0.4) |
(0.3) |
(0.0) |
– |
(2.5) |
(1.2) |
(1.0) |
(0.3) |
||
|
Operating Netback/boe |
31.8 |
25.4 |
13.9 |
6.9 |
21.0 |
15.6 |
6.0 |
5.2 |
29.0 |
22.2 |
||
|
G&A, G&G & other |
|
|
|
|
|
|
|
|
(3.5) |
(5.6) |
||
|
Adjusted EBITDA/boe |
|
|
|
|
|
|
|
|
25.5 |
16.6 |
||
|
a) |
Includes royalties paid in kind in Colombia for approximately 1,119 and 986 bopd in 4Q2021 and 4Q2020, respectively. No royalties were paid in kind in other countries. |
|
b) |
Conversion rate of $mcf/$boe=1/6. |
Depreciation: Consolidated depreciation charges decreased by 23% to $22.2 million in 4Q2021 compared to $28.8 million in 4Q2020, in line with lower depreciation costs per boe, partially offset by a 2% increase in oil and gas volumes delivered.
Write-off of unsuccessful exploration efforts: The consolidated write-off of unsuccessful exploration efforts was zero in 4Q2021 compared to $48.9 million in 4Q2020.
____________
|
6 |
See “Reconciliation of Adjusted EBITDA to Profit (Loss) Before Income Tax and Adjusted EBITDA per boe” included in this press release. |
Impairment of non-financial assets: The consolidated impairment charges amounted to a $17.6 million loss in 4Q2021 compared to a $35.4 million loss in 4Q2020. Impairment charges in 4Q2021 refer to costs incurred in previous years in the Fell block in Chile, resulting from lower oil and gas reserves in the 2021 year-end reserves certification. An impairment loss is recognized for the amount by which an asset’s carrying amount exceeds its recoverable amount.
Other Income (Expenses): Other operating expenses showed a $8.0 million loss in 4Q2021, compared to a $2.7 million loss in 4Q2020.
CONSOLIDATED NON-OPERATING RESULTS AND PROFIT FOR THE PERIOD
Financial Expenses: Net financial expenses decreased to $13.1 million in 4Q2021 compared to $16.4 million in 4Q2020, mainly resulting from the strategic deleveraging process executed in April 2021 that resulted in significant gross debt reduction with extended maturities and lower cost of debt.
Foreign Exchange: Net foreign exchange charges amounted to a $0.4 million loss in 4Q2021 compared to a $6.3 million loss in 4Q2020.
Income Tax: Income taxes totaled $19.1 million in 4Q2021 compared to $13.4 million in 4Q2020, mainly resulting from the effect of higher taxable profits before tax recorded in 4Q2021 compared to 4Q2020.
Net Profit: Gain of $36.9 million in 4Q2021 compared to a $119.2 million loss recorded in 4Q2020.
BALANCE SHEET
Cash and Cash Equivalents: Cash and cash equivalents totaled $100.6 million as of December 31, 2021, compared to $201.9 million as of December 31, 2020.
The net decrease in cash and cash equivalents as of December 31, 2021, compared to December 31, 2020 is explained by the following:
|
(In millions of $) |
FY2021 |
|
Cash flows from operating activities |
216.8 |
|
Cash flows used in investing activities |
(126.6) |
|
Cash flows used in financing activities |
(190.4) |
|
Net decrease in cash & cash equivalents |
(100.2) |
Cash flows from operating activities are shown net of cash taxes paid of $65.3 million.
Cash flows used in investing activities included capital expenditures incurred by the Company as part of its 2021 work program, partially offset by proceeds from the disposal of assets of $2.7 million.
Cash flows used in financing activities included the strategic deleveraging process executed in April 2021 through a tender to purchase $255.0 million of the 2024 Notes that was funded with a combination of cash and cash equivalents and funds obtained from the reopening of the 2027 Notes.
Financial Debt: Total financial debt net of issuance cost was $674.1 million, including the remainder of the 2024 Notes, the 2027 Notes and other bank loans totaling $2.3 million. Short-term financial debt was $17.9 million as of December 31, 2021.
|
(In millions of $) |
Dec 31, 2021 |
Dec 31, 2020 |
|
2024 Notes |
171.9 |
428.7 |
|
2027 Notes |
499.9 |
352.1 |
|
Other bank loans |
2.3 |
3.7 |
|
Financial debt |
674.1 |
784.6 |
For further details, please refer to Note 27 of GeoPark’s consolidated financial statements as of December 31, 2021, available on the Company’s website.
FINANCIAL RATIOSa
| (In millions of $) | |||||
|
Period-end |
Financial |
Cash and Cash |
Net |
Net Debt/LTM |
LTM |
|
4Q2020 |
784.6 |
201.9 |
582.7 |
2.7x |
4.5x |
|
1Q2021 |
773.0 |
187.6 |
585.4 |
2.8x |
4.1x |
|
2Q2021 |
683.7 |
85.0 |
598.7 |
2.5x |
4.9x |
|
3Q2021 |
674.9 |
76.8 |
598.1 |
2.2x |
5.8x |
|
4Q2021 |
674.1 |
100.6 |
573.5 |
1.9x |
6.7x |
|
a) |
Based on trailing last twelve-month financial results (“LTM”). |
Covenants in the 2024 and 2027 Notes: The 2024 and 2027 Notes include incurrence test covenants that provide, among other things, that the Net Debt to Adjusted EBITDA ratio should not exceed 3.
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
