The following is a summary of the GeoPark Limited (GPRK) Q1 2024 Earnings Call Transcript:

Financial Performance:

• GeoPark reported over $111 million in adjusted EBITDA with a margin of 67% in Q1 2024.

• The company made an investment of $50 million this quarter, yielding around $2.3 in adjusted EBITDA for each dollar invested.

• GeoPark's cash position exceeded $150 million by the end of Q1, and the net leverage was 0.8 times.

• They repurchased $43.7 million in shares and declared a dividend of $7.5 million.

• The Vaca Muerta acquisition is expected to add between 5,500 to 6,500 net working interest barrels of oil per day to production, leading to an estimated increase of $90 million to $100 million in net EBITDA for FY 2024.

• Post-acquisition, the company had a cash balance of $110 million after initial payment of $50 million for the deal.

• GeoPark's EBITDA in Q4 is likely to increase by around $30 million due to the acquisition's consolidation.

Business Progress:

• Strong production observed in GeoPark's Llanos 34 and CPO-5 blocks with a rise in gross production to between 56,000 and 57,000 barrels a day in the former.

• A new record in production was set with the CPO-5 block generating over 30,000 barrels a day.

• GeoPark announced a new acquisition in Argentina's Vaca Muerta region, expected to increase assets by nearly 40,000 barrels a day within four years.

• The company achieved substantial sustainability goals by reducing greenhouse gas emission intensity by 18% from 2022.

• GeoPark emphasized obtaining provincial approvals for the Phoenix assets acquisition, expected to close the transaction in the coming months.

• With the Vaca Muerta deal, well costs are expected to reduce, and approximately 150 wells are planned for development in the area.

• The company has secured a beneficial deal with Vitol, providing $300 million for near-term drawing and presenting a significant financing option.

• GeoPark maintains a focus on exploring strategic investment options in Colombia, Brazil, and Argentina.

• The company has secured commercial conditions for a large portion of its production through a Vitol deal, covering about 20,000 barrels.

• Entry into a pipeline for the Argentinian asset in the transaction has been secured offering a capacity of roughly 19,000 barrels per day.

• Infrastructure development is in progress with pipeline construction for midstream capacity, expected to be completed by April 2026.

More details: GeoPark IR

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