GeoPark Reports Results For The Third Quarter Ended September 30, 2015
CASH PRESERVATION, PRODUCTION MAINTENANCE, NEW INVESTMENT & GROWTH
CASH PRESERVATION, PRODUCTION MAINTENANCE, NEW INVESTMENT & GROWTH
SANTIAGO, Chile, Nov. 10, 2015 /PRNewswire/ -- GeoPark Limited ("GeoPark" or the "Company") (NYSE: "GPRK"), the Latin American oil and gas explorer, operator and consolidator with operations and growth platforms in Colombia, Chile, Brazil, Argentina, and Peru[1] reports its unaudited consolidated financial results for the three-month period ended September 30, 2015 ("Third Quarter" or "3Q2015"). A conference call to discuss 3Q2015 results will be held on November 11, 2015 at 10 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.
THIRD QUARTER 2015 HIGHLIGHTS
Operational:
Financial:
Strategic/New Business:
James F. Park, Chief Executive Officer of GeoPark, said: "GeoPark moved decisively at the end of 2014 to adjust to a sustained period of low oil prices. This has enabled us to adapt quickly to the new industry environment, find ways to continue achieving both organic and inorganic growth, and continue pushing forward with our long term business plan. Defensively, our team restructured our operations to deliver important cost savings and both reduced and refocused our capital investments to the lower-risk higher-return quickest-cash flow projects. These actions, coupled with the quality and diversity of our asset base, have resulted in approximately 85% of our production being profitable at a $25-30 oil price. Consequently, our balance sheet has been kept strong and our cash safe — while still investing in projects that will ensure our long term growth. In the third quarter, we got back to finding oil with the drill bit with the discovery of two new oil fields — meaning we have been able to demonstrate continuous production and reserve growth in Colombia throughout 2015. And, considering all country business units, we are currently at record production levels. Offensively, we have also been able to continue building our portfolio of attractive assets in low risk proven hydrocarbon basins across Latin America — and in the latest bid round in Brazil were able to acquire four new attractive blocks complementary to other GeoPark assets. We salute the GeoPark team for again proving its experience, creativity, and agility — and look forward to the opportunities ahead."
THIRD QUARTER 2015
The table below sets forth key performance indicators for 3Q2015 compared to those of 3Q2014:
Key Indicators |
3Q2015 |
3Q2014 |
% Chg. |
|
Brent Oil Price ($ per bbl) |
52.0 |
103.0 |
-50% |
|
Oil production (bopd) |
14,712 |
15,739 |
-7% |
|
Gas production (mcfpd) |
27,188 |
34,854 |
-22% |
|
Average net production (boepd) |
19,244 |
21,548 |
-11% |
|
Combined price ($ per boe) |
28.2 |
69.8 |
-60% |
|
⁻ Oil ($ per bbl) |
30.1 |
82.3 |
-64% |
|
⁻ Gas ($ per mcf) |
4.2 |
7.6 |
-44% |
|
Net Oil Revenues ($ million) |
38.6 |
111.6 |
-65% |
|
Net Gas Revenues ($ million) |
9.3 |
20.2 |
-54% |
|
Net Revenues ($ million) |
47.8 |
131.8 |
-64% |
|
Production & Operating Costs* ($ million) |
-18.2 |
-41.0 |
-56% |
|
G&G, G&A and Selling Costs ($ million) |
-12.8 |
-25.8 |
-50% |
|
Adjusted EBITDA ($ million) |
18.2 |
67.9 |
-73% |
|
Adjusted EBITDA per boe ($) |
10.7 |
36.0 |
-70% |
|
Operating Netback per boe ($) |
17.6 |
43.5 |
-60% |
|
Profit (loss) for the period ($ million) |
-37.7 |
11.9 |
- |
|
Capital Expenditures ($ million) |
26.3 |
51.1 |
-49% |
|
Cash Position at period-end ($ million) |
90.4 |
128.8 |
-30% |
|
Short-Term Debt at period-end ($ million) |
26.2 |
20.6 |
27% |
|
Long-Term Debt at period-end ($ million) |
338.3 |
342.3 |
-1% |
* Production and Operating costs include operating costs and royalties paid in cash.
CONSOLIDATED OPERATING PERFORMANCE
Production: Consolidated production reached 19,244 boepd in 3Q2015, compared to 21,548 boepd in 3Q2014.
Due to new drilling and operational successes during 3Q2015, current consolidated production has grown to approximately 23,000 boepd, thereby already reversing the 3Q2015 decrease.
Reference and Realized Oil Prices: Average consolidated realized oil sales price averaged $30 per barrel in 3Q2015, representing a $22 discount from the average Brent crude prices of $52 per barrel. Continuous commercial efforts are underway in Colombia and Chile to improve realized oil prices.
Net Revenues: Consolidated net revenues decreased by 64% to $47.8 million in 3Q2015, compared to $131.8 million in 3Q2014, mainly driven by lower oil and gas prices.
Consolidated Oil Revenues: Consolidated oil revenues decreased by 65% to $38.6 million in 3Q2015 mainly explained by a 64% decrease in realized oil prices. Oil revenues represent 81% of total net revenues as compared to 85% in 3Q2014.
Colombian earn-out payments decreased by 75% to $1.5 million in 3Q2015, compared to $7.6 million in 3Q2014, mainly due to the decline in oil prices
Consolidated Gas Revenues: Consolidated gas revenues decreased by 54% to $9.3 million in 3Q2015 compared to $20.2 million in 3Q2014.
Production and operating costs: Consolidated production and operating costs decreased by 56% to $18.2 million in 3Q2015, representing savings of $16.4 per barrel.
Consolidated operating costs: Consolidated operating costs (excluding royalties) decreased by 61% to $13.9 million in 3Q2015, compared to $35.5 million in 3Q2014, due to cost reduction initiatives and the impact of the depreciation of the local currencies against the US Dollar. These factors resulted in lower staff costs, well maintenance, consumables, transportation, equipment rental, field camp and other operating costs.
Consolidated Royalties: Consolidated royalties paid in cash (reported in production and operating costs) amounted to $4.4 million in 3Q2015, compared to $5.5 million in 3Q2014, representing 9% of total net revenues in 3Q2015 compared to 4% in 3Q2014. The increase in royalties, as a percentage of sales, is due to the Tua and Tigana fields in the Llanos 34 Block in Colombia becoming subject to higher royalties in 2015 after surpassing the production threshold of 5 million barrels of oil.
Geological and Geophysical Expenses (G&G): Consolidated geological and geophysical expenses amounted to $3.3 million in 3Q2015 compared to $3.4 million in 3Q2014.
Selling Expenses: Consolidated selling expenses decreased by 96% to $0.4 million in 3Q2015 compared to $9.3 million in 3Q2014, mainly as the result of lower selling expenses in Colombia.
Administrative Costs (G&A): Consolidated administrative costs decreased by 30% to $9.1 million in 3Q2015 compared to $13.0 million in 3Q2014 mainly due to continuing financial discipline and cost reduction initiatives impacting consultant fees, office expenses, directors fees, share based payments and other G&A costs. The G&A cost reduction was achieved despite new start-up costs related to the Company's operations in Peru and lower overhead collected from joint venture partners due to lower capital expenditures.
Adjusted EBITDA: Consolidated Adjusted EBITDA decreased by 73% to $18.2 million in 3Q2015 compared to $67.9 million in 3Q2014, mainly caused by the 64% decrease in revenues resulting from lower international oil prices, which was partially offset by a 54% reduction in cash costs (including production and operating costs, G&A and selling expenses).
Adjusted EBITDA per boe decreased by 70% to $10.7 per boe in 3Q2015 compared to $36.0 per boe in 3Q2014.
Other Operating Costs: Consolidated other operating costs amounted to negative $3.9 million in 3Q2015, related mainly due to Chilean contract termination costs, compared to $0.8 million gain in 3Q2014.
Depreciation: Consolidated depreciation charges decreased by 10% to $24.5 million in 3Q2015, compared to $27.1 million in 3Q2014, mainly due to lower production and lower per barrel depreciation costs in Colombia, partially offset by higher depreciation costs in Chile and stable depreciation costs in Brazil.
Write-off of Unsuccessful Efforts: Consolidated write-off of unsuccessful effort charges amounted to $3.7 million in 3Q2015, compared to nil in 3Q2014, mainly resulting from the impact of two wells plugged and abandoned in Colombia; one well in the CPO-4 Block and one well in the non-operated Llanos 32 Block.
CONSOLIDATED NON-OPERATING RESULTS AND PROFIT FOR THE PERIOD
Financial Costs: Net financial costs increased by 20% to $9.0 million in 3Q2015, compared to $7.5 million in 3Q2014 mainly from: (i) $0.6 million lower capitalized costs due to lower capital expenditures, and (ii) $0.5 million decrease in interest income due to lower average cash position.
Foreign Exchange Losses: Net foreign exchange losses increased to $28.4 million in 3Q2015 from $13.0 million in 3Q2015, mainly related to the impact of the depreciation of the Brazilian Real over US Dollar-denominated net debt incurred at the local subsidiary level, where the functional currency is the Brazilian Real. This effect may be partially offset in the following quarters due to fluctuations in the local currency.
Income Tax Expense: Income tax amounted to $15.0 million in 3Q2015, in line with consolidated losses before taxes in 3Q2015, compared to negative $6.2 million in 3Q2014.
Profit: Losses for the period amounted to $37.7 million in 3Q2015 compared to a profit of $11.9 million in 3Q2014, mainly due to lower revenues resulting from lower realized prices and foreign exchange losses, partially offset by lower Production and Operating costs, G&A costs, Selling expenses, Depreciation and Income tax charges.
BALANCE SHEET
Cash and Cash Equivalents: Cash and cash equivalents totaled $90.4 million as of September 30, 2015. Year-end 2014 cash and cash equivalents amounted to $127.7 million, the difference primarily being (i) cash used in investing activities during 9M2015 amounting to $42.3 million and (ii) $25.1 million of funds used in financing activities that are mainly explained by interest payments, and (iii) previous two components partially offset by cash generation from operating activities that amounted to $32.9 million.
Total Assets: Total assets amounted to $919.1 million as of September 30, 2015 compared to $1,039 million as of December 31, 2014. The decrease is mainly due to lower PP&E assets derived from depreciation charges during 9M2015 and lower cash and cash equivalents as explained in the paragraph above.
Capital Expenditures: Total investments in 9M2015 amounted to $42.3 million and mainly included: (i) $28.1 million invested in Colombia, (ii) $9.1 million invested in Chile, and (iii) $5.0 million invested in Brazil.
Financial Debt: Total financial debt (net of debt issuance costs) amounted to $364.6 million, including the $300 million 2020 Bond and the credit facility in Brazil for the acquisition of an interest in the Brazilian Manati Field amounting to $70.4 million.
Equity: Equity reached $397.8 million and included non-controlling interests of $97.0 million related to LG International's participation in the Chilean and Colombian operations. (LG International Corp., the Korean conglomerate, holds a 20% equity interest in GeoPark's Colombian operations, a 20% equity interest in the Fell Block and a 31% equity interest in the Tierra del Fuego blocks in Chile). Equity as of September 30, 2015 decreased by $81.3 million since December 31, 2014 mainly because of the $83.1 million loss in the nine-month period ended September 30, 2015, partially offset by share-based payment charges amounting to $4.5 million.
FINANCIAL RATIOS (*)
Amounts in $ million |
||||||
Year / Period |
Financial Debt |
Cash Position |
Gross Debt / |
Interest Coverage |
||
2Q2014 (**) |
368.6 |
125.3 |
1.8x |
6.0x |
||
3Q2014 (**) |
362.9 |
128.8 |
1.6x |
6.7x |
||
FY2014 (**) |
370.0 |
127.7 |
1.7x |
7.5x |
||
1Q2015 |
363.4 |
91.4 |
1.9x |
6.3x |
||
2Q2015 |
370.4 |
105.3 |
2.6x |
4.7x |
||
3Q2015 |
364.6 |
90.4 |
4.0x |
2.9x |
(*) Based on trailing 12 months financial results.
(**) Considers Adjusted EBITDA generated by the acquired interest in the Brazilian Manati Field only since 2Q2014.
GeoPark's consolidated financial incurrence test covenants included in the 2020 Bond Indenture are:
As stated in the table above, as of September 30, 2015 the Company's Leverage Ratio was above the 2.5 times threshold included in the 2020 Bond Indenture and in addition, the Interest Coverage Ratio was below the 3.5 times threshold included in the 2020 Bond Indenture. These ratios were impacted by the current low oil price environment. Failure to comply with the incurrence test ratios does not trigger an event of default. However, this situation may limit the Company's capacity to incur additional indebtedness, other than permitted debt, as specified in the indenture governing the Notes. Incurrence covenants as opposed to maintenance covenants must be tested by the Company before incurring additional debt or performing other specific corporate actions including but not limited to dividend payments, restricted payments, and others.
OTHER NEWS / RECENT EVENTS
New Oil Field Discoveries in Llanos 34 Block in Colombia
During 3Q2015, GeoPark announced two new oil field discoveries, following successful drilling of the Chachalaca and Jacana exploratory wells, both located on the Llanos 34 Block in Colombia.
New blocks awarded in the Brazilian Round 13 auction
In October 2015, GeoPark was awarded four new exploratory blocks (covering 30,200 acres) in the Brazilian Round 13 auction, complementing GeoPark's existing exploration portfolio in the Reconcavo and Potiguar basins. GeoPark has committed to invest a minimum of approximately $3.50 million (including bonus and work program commitments) during the first exploratory period ending 2019.
The awarded blocks were:
Block |
Gross |
WI |
Operator |
Bonus |
Investment Commitment |
POT-T-747 |
6,900 |
70%* |
GeoPark |
$0.09 million |
$1.10 million |
POT-T-882 |
7,900 |
70%* |
GeoPark |
$0.05 million |
$0.30 million |
REC-T-93 |
7,800 |
70%* |
GeoPark |
$0.04 million |
$0.20 million |
REC-T-128 |
7,600 |
70% |
GeoPark |
$0.08 million |
$1.60 million |
* 30% WI of proposed partners is subject to ANP approval.
The bidding round was organized by the ANP and all proceedings and bids have been made public. The winning bids are subject to confirmation of qualification requirements.
CONFERENCE CALL INFORMATION
GeoPark will host its Third Quarter 2015 Financial Results conference call and webcast on Wednesday, November 11, 2015, at 10:00 a.m. Eastern Standard Time.
Chief Executive Officer, James F. Park, Chief Operating Officer, Augusto Zubillaga, and Director of Capital Markets, Pablo Ducci, will discuss GeoPark's financial results for 3Q2015, with a question and answer session immediately following.
Interested parties can access the conference call by dialing the following number from outside the United States: +1 201-689-8035. From within the United States, interested parties can access the call by dialing 1 877-407-8035 (Passcode: GeoPark). To listen to the webcast, please visit the Investor Support section of the Company's website (www.geo-park.com).
For further information please contact:
|
Pablo Ducci – Director Capital Markets |
|
Santiago, Chile |
|
T: +562 2242 9600
Dolores Santamarina – Investor Manager Buenos Aires, Argentina T: +5411 4312 9400 |
|
GeoPark can be visited online at www.geo-park.com
ANALYSIS INFORMATION BY BUSINESS SEGMENT
Colombia |
3Q2015 |
3Q2014 |
% Chg. |
||
Oil production (bopd) |
12,967 |
11,892 |
9% |
||
Gas production (mcfpd) |
395 |
251 |
57% |
||
Average net production (boepd) |
13,033 |
11,934 |
9% |
||
Oil price ($ per bbl) |
28.8 |
79.0 |
-63% |
||
Net oil Revenues ($ million) |
32.3 |
78.3 |
-59% |
||
Production and Operating Costs* ($ million) |
-11.0 |
-25.5 |
-57% |
||
Adjusted EBITDA ($ million) |
17.6 |
42.0 |
-58% |
||
Adjusted EBITDA per boe ($) |
15.0 |
38.6 |
-61% |
||
Operating Netback per boe ($) |
19.6 |
43.5 |
-55% |
||
Chile |
3Q2015 |
3Q2014 |
% Chg. |
|
Oil production (bopd) |
1,700 |
3,721 |
-54% |
|
Gas production (mcfpd) |
9,039 |
13,637 |
-34% |
|
Average net production (boepd) |
3,207 |
5,994 |
-46% |
|
Combined price ($ per boe) |
34.6 |
76.3 |
-55% |
|
⁻ Oil ($ per bbl) |
41.0 |
90.0 |
-55% |
|
⁻ Gas ($ per mcf) |
4.3 |
6.4 |
-33% |
|
Net Oil Revenues ($ million) |
6.1 |
32.3 |
-81% |
|
Net Gas Revenues ($ million) |
2.9 |
5.4 |
-46% |
|
Net Revenues ($ million) |
9.0 |
37.7 |
-76% |
|
Production and Operating Costs* ($ million) |
-5.1 |
-12.1 |
-58% |
|
Adjusted EBITDA ($ million) |
- |
20.2 |
- |
|
Adjusted EBITDA per boe ($) |
- |
40.8 |
- |
|
Operating Netback per boe ($) |
13.8 |
50.2 |
-73% |
Brazil |
3Q2015 |
3Q2014 |
% Chg. |
|
Oil production (bopd) |
45 |
56 |
-20% |
|
Gas production (mcfpd) |
17,754 |
20,882 |
-15% |
|
Average net production (boepd) |
3,004 |
3,536 |
-15% |
|
Gas Price ($ per mcf) |
4.2 |
7.9 |
-47% |
|
Net Revenues ($ million) |
6.6 |
15.3 |
-57% |
|
Production and Operating Costs* ($ million) |
-2.0 |
-2.6 |
-23% |
|
Adjusted EBITDA ($ million) |
3.6 |
8.3 |
-57% |
|
Adjusted EBITDA per boe ($) |
13.8 |
27.6 |
-50% |
|
Operating Netback per boe ($) |
17.5 |
38.1 |
-46% |
* Production and Operating costs include operating costs and royalties paid in cash.
FIRST NINE-MONTHS 2015
The table below sets forth some key performance indicators for 9M2015 compared with 9M2014. Figures corresponding to 9M2014 include information relating to the acquired interest in the Brazilian Manati Field completed on March 31, 2014. As from that date, GeoPark started consolidating line by line its results of operations for accounting purposes within its Brazilian operations.
Key Indicators |
9M2015 |
9M2014 |
% Chg. |
|
Oil production (bopd) |
14,445 |
14,426 |
0% |
|
Gas production (mcfpd) |
30,132 |
30,645 |
-2% |
|
Average net production (boepd) |
19,467 |
19,533 |
0% |
|
Combined price ($ per boe) |
32.4 |
71.9 |
-55% |
|
⁻ Oil ($ per bbl) |
35.3 |
85.7 |
-59% |
|
⁻ Gas ($ per mcf) |
4.7 |
7.1 |
-34% |
|
Net Oil Revenues ($ million) |
129.6 |
298.8 |
-57% |
|
Net Gas Revenues ($ million) |
34.7 |
49.2 |
-29% |
|
Net Revenues ($ million) |
164.3 |
348.0 |
-53% |
|
Production & Operating Costs* ($ million) |
-64.6 |
-98.4 |
-34% |
|
G&G, G&A, & Selling ($ million) |
-40.7 |
-65.6 |
-38% |
|
Adjusted EBITDA ($ million) |
63.2 |
192.7 |
-67% |
|
Adjusted EBITDA per boe ($) |
12.5 |
39.8 |
-69% |
|
Operating Netback per boe ($) |
19.1 |
47.6 |
-60% |
|
Profit (loss) for the period ($ million) |
-83.1 |
49.6 |
- |
* Production and Operating Costs include operating costs and royalties paid in cash.
CONSOLIDATED STATEMENT OF INCOME
(unaudited)
|
||||
(In millions of $, except for %) |
3Q2015 |
3Q2015 |
9M2015 |
9M2014 |
NET REVENUES |
||||
Sale of crude oil |
38.6 |
111.6 |
129.6 |
298.8 |
Sale of gas |
9.3 |
20.2 |
34.7 |
49.2 |
TOTAL NET REVENUES |
47.8 |
131.8 |
164.3 |
348.0 |
Production and operating costs |
-18.2 |
-41.0 |
-64.6 |
-98.4 |
Geological and Geophysical costs |
-3.3 |
-3.4 |
-9.6 |
-9.0 |
Administrative expenses |
-9.1 |
-13.0 |
-27.3 |
-34.9 |
Selling expenses |
-0.4 |
-9.3 |
-3.8 |
-21.6 |
Depreciation |
-24.5 |
-27.1 |
-74.3 |
-72.8 |
Write-off of unsuccessful efforts |
-3.7 |
-0.0 |
-3.7 |
-8.6 |
Other operating |
-3.9 |
0.8 |
-12.6 |
1.8 |
OPERATING PROFIT |
-15.2 |
38.7 |
-31.7 |
104.3 |
Financial costs, net |
-9.0 |
-7.5 |
-26.1 |
-20.0 |
Foreign Exchange Losses |
-28.4 |
-13.0 |
-44.4 |
-11.7 |
PROFIT BEFORE INCOME TAX |
-52.6 |
18.1 |
-102.2 |
72.6 |
Income tax |
15.0 |
-6.2 |
19.1 |
-23.0 |
PROFIT (LOSS) FOR THE PERIOD |
-37.7 |
11.9 |
-83.1 |
49.6 |
Non‑controlling interest |
-1.5 |
3.5 |
-6.7 |
12.7 |
ATTRIBUTABLE TO OWNERS OF GEOPARK |
-36.2 |
8.5 |
-76.4 |
36.9 |
RECONCILIATION OF ADJUSTED EBITDA TO PROFIT BEFORE INCOME TAX AND ADJUSTED EBITDA PER BOE
(unaudited) |
||||||
3Q2015 |
3Q2014 |
9M2015 |
9M2014 |
|||
Adjusted EBITDA |
18.2 |
67.9 |
63.2 |
192.7 |
||
Depreciation |
-24.5 |
-27.1 |
-74.3 |
-72.8 |
||
Share Based Payments |
-1.4 |
-2.4 |
-4.5 |
-8.0 |
||
Impairment and write-off |
-3.7 |
-0.0 |
-3.7 |
-8.6 |
||
Others |
-3.8 |
0.3 |
-12.3 |
1.1 |
||
OPERATING PROFIT |
-15.2 |
38.7 |
-31.7 |
104.3 |
||
Financial costs, net |
-9.0 |
-7.5 |
-26.1 |
-20.0 |
||
Foreign Exchange Losses, net |
-28.4 |
-13.0 |
-44.4 |
-11.6 |
||
PROFIT BEFORE INCOME TAX |
-52.6 |
18.1 |
-102.2 |
72.6 |
||
Adjusted EBITDA |
18.2 |
67.9 |
63.2 |
192.7 |
||
Total deliveries (in millions of boe) |
1.7 |
1.9 |
5.1 |
4.8 |
||
Adjusted EBITDA per boe |
10.7 |
36.0 |
12.5 |
39.8 |
||
CONSOLIDATED SUMMARIZED BALANCE SHEET
(Quarterly information unaudited) |
||
Sept'15 |
Dec '14 |
|
Non Current Assets |
||
Property, Plant and Equipment |
725.4 |
790.8 |
Other Non Current Assets |
60.6 |
47.8 |
Total Non Current Assets |
786.0 |
838.5 |
Current Assets |
||
Inventories |
4.7 |
8.5 |
Trade Receivables |
11.6 |
36.9 |
Other Current Assets |
26.4 |
27.5 |
Cash at bank and in hand |
90.4 |
127.7 |
Total Current Assets |
133.1 |
200.6 |
Total Assets |
919.1 |
1,039.1 |
Equity |
||
Equity attributable to owners of GeoPark |
300.8 |
375.6 |
Non-controlling interest |
97.0 |
103.6 |
Total Equity |
397.8 |
479.1 |
Non Current Liabilities |
||
Borrowings |
338.3 |
342.4 |
Other Non Current Liabilities |
93.1 |
93.6 |
Total Non Current Liabilities |
431.4 |
436.0 |
Current Liabilities |
||
Borrowings |
26.2 |
27.2 |
Other Current Liabilities |
63.7 |
96.8 |
Total Current Liabilities |
89.9 |
124.0 |
Total Liabilities and Equity |
919.1 |
1,039.1 |
SELECTED HISTORICAL OPERATIONAL AND FINANCIAL DATA
Year ended December 31, |
|||||
2014 |
2013 |
2012 |
2011 |
2010 |
|
Oil Reserves (2P PRMS) - mmboe |
56.3 |
33.9 |
27.8 |
16.9 |
16.2 |
Gas Reserves (2P PRMS) - mmboe |
35.8 |
27.7 |
29.1 |
32.6 |
33.4 |
Combined Reserves (2P PRMS) - mmboe |
92.1 |
61.6 |
56.9 |
49.5 |
49.6 |
Peru* |
30.2 |
- |
- |
- |
- |
Total including Peru |
122.3 |
- |
- |
- |
- |
Oil Production (thousand boepd) |
14.5 |
11.1 |
7.5 |
2.5 |
1.9 |
Gas Production (thousand boepd) |
5.1 |
2.4 |
3.8 |
5.1 |
5.0 |
Production (thousand boepd) |
19.6 |
13.5 |
11.3 |
7.6 |
6.9 |
Oil Revenues ($ million ) |
367 |
315 |
222 |
74 |
48 |
Gas Revenues ($ million) |
62 |
23 |
29 |
38 |
31 |
Total Revenues ($ million) |
429 |
338 |
250 |
112 |
80 |
Adjusted EBITDA ($ million) |
220 |
167 |
121 |
63 |
41 |
* Transaction executed with Petroperu on October 1, 2014 with final closing subject to Peru Government approval.
GLOSSARY
Adjusted EBITDA |
Adjusted EBITDA is defined as profit for the period before net finance cost, income tax, depreciation, amortization, certain non-cash items such as impairments and write-offs of unsuccessful efforts, accrual of share-based payment and other non-recurring events
|
Adjusted EBITDA per boe |
Adjusted EBITDA divided by total boe deliveries
|
Operating Netback per boe |
Net revenues, less production costs (net of depreciation charges and accrual of stock options and stock awards) and selling expenses, divided by total boe deliveries. Operating Netback is equivalent to Adjusted EBITDA net of cash expenses included in Administrative, Geological and Geophysical and Other operating costs
|
ANP |
Agencia Nacional do Petroleo, Brazil's National Agency of Petroleum |
ANH |
Agencia Nacional de Hidrocarburos de Colombia
|
boe |
Barrels of oil equivalent
|
boepd |
Barrels of oil equivalent per day
|
bopd |
Barrels of oil per day
|
CEOP |
Contrato Especial de Operacion Petrolera (Special Petroleum Operations Contract)
|
D&M |
DeGolyer and MacNaughton
|
EPS |
Earnings per share
|
IPO |
Initial Public Offering
|
mbbl |
Thousand barrels of oil
|
mmbo |
Million barrels of oil
|
mmboe |
Million barrels of oil equivalent
|
mcfpd |
Thousand cubic feet per day
|
mmcfpd |
Million cubic feet per day
|
Mm3/day |
Thousand cubic meters per day
|
PRMS |
Petroleum Resources Management System
|
SPE |
Society of Petroleum Engineers
|
WI |
Working interest
|
NPV10 |
Present value of estimated future oil and gas revenues, net of estimated direct expenses, discounted at an annual rate of 10%
|
Sqkm |
Square kilometers |
NOTICE
Additional information about GeoPark can be found in the "Investor Support" section on the website at www.geo-park.com.
Rounding amounts and percentages: Certain amounts and percentages included in this press release have been rounded for ease of presentation. Percentage figures included in this press release have not in all cases been calculated on the basis of such rounded figures, but on the basis of such amounts prior to rounding. For this reason, certain percentage amounts in this press release may vary from those obtained by performing the same calculations using the figures in the financial statements. In addition, certain other amounts that appear in this press release may not sum due to rounding.
CAUTIONARY STATEMENTS RELEVANT TO FORWARD-LOOKING INFORMATION
This press release contains statements that constitute forward-looking statements. Many of the forward looking statements contained in this press release can be identified by the use of forward-looking words such as ''anticipate,'' ''believe,'' ''could,'' ''expect,'' ''should,'' ''plan,'' ''intend,'' ''will,'' ''estimate'' and ''potential,'' among others.
Forward-looking statements that appear in a number of places in this press release include, but are not limited to, statements regarding the intent, belief or current expectations, regarding various matters, including expected 2015 production growth and capital expenditures plan. Forward-looking statements are based on management's beliefs and assumptions, and on information currently available to the management. Such statements are subject to risks and uncertainties, and actual results may differ materially from those expressed or implied in the forward-looking statements due to various factors.
Forward-looking statements speak only as of the date they are made, and the Company does not undertake any obligation to update them in light of new information or future developments or to release publicly any revisions to these statements in order to reflect later events or circumstances, or to reflect the occurrence of unanticipated events. For a discussion of the risks facing the Company which could affect whether these forward-looking statements are realized, see filings with the U.S. Securities and Exchange Commission.
Oil and gas production figures included in this release are stated before the effect of royalties paid in kind, consumption and losses.
Information about oil and gas reserves: The SEC permits oil and gas companies, in their filings with the SEC, to disclose only proved, probable and possible reserves that meet the SEC's definitions for such terms. GeoPark uses certain terms in this press release, such as "PRMS Reserves" that the SEC's guidelines do not permit GeoPark from including in filings with the SEC. As a result, the information in the Company's SEC filings with respect to reserves will differ significantly from the information in this press release.
NPV10 for PRMS 1P, 2P and 3P reserves is not a substitute for the standardized measure of discounted future net cash flows for SEC proved reserves.
Adjusted EBITDA: The Company defines Adjusted EBITDA as profit for the period before net finance cost, income tax, depreciation, amortization and certain non-cash items such as impairments and write-offs of unsuccessful exploration and evaluation assets, accrual of stock options stock awards, bargain purchase gain on acquisition of subsidiaries and other non-recurring events. Adjusted EBITDA is not a measure of profit or cash flows as determined by IFRS. The Company believes Adjusted EBITDA is useful because it allows us to more effectively evaluate our operating performance and compare the results of our operations from period to period without regard to our financing methods or capital structure. The Company excludes the items listed above from profit for the period in arriving at Adjusted EBITDA because these amounts can vary substantially from company to company within our industry depending upon accounting methods and book values of assets, capital structures and the method by which the assets were acquired. Adjusted EBITDA should not be considered as an alternative to, or more meaningful than, profit for the period or cash flows from operating activities as determined in accordance with IFRS or as an indicator of our operating performance or liquidity. Certain items excluded from Adjusted EBITDA are significant components in understanding and assessing a company's financial performance, such as a company's cost of capital and tax structure and significant and/or recurring write-offs, as well as the historic costs of depreciable assets, none of which are components of Adjusted EBITDA. The Company's computation of Adjusted EBITDA may not be comparable to other similarly titled measures of other companies. For a reconciliation of Adjusted EBITDA to the IFRS financial measure of profit for the year or corresponding period, see the accompanying financial tables.
Operating netback per boe should not be considered as an alternative to, or more meaningful than, profit for the period or cash flows from operating activities as determined in accordance with IFRS or as an indicator of our operating performance or liquidity. Certain items excluded from Operating netback per boe are significant components in understanding and assessing a company's financial performance, such as a company's cost of capital and tax structure and significant and/or recurring write-offs, as well as the historic costs of depreciable assets, none of which are components of Operating Netback per boe. The Company's computation of Operating Netback per boe may not be comparable to other similarly titled measures of other companies. For a reconciliation of Operating Netback per boe to the IFRS financial measure of profit for the year or corresponding period, see the accompanying financial tables.
[1] Transaction executed with Petroperu on October 1, 2014 with final closing subject to Peru Government approval
SOURCE GeoPark Limited
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