GeoPark Limited, a leading independent Latin American oil and gas explorer, operator and consolidator with operations and growth platforms in Colombia, Peru, Argentina, Brazil, and Chile reports its consolidated financial results for the three-month period ended December 31, 2018 and its audited annual results for 2018. 

Record Oil and Gas Production

• Consolidated oil and gas production up 26% to 38,741 boepd / Annual average production up 31% to 36,027 boepd
• Oil production increased by 30% to 32,859 bopd
• Gross operated production in the Llanos 34 block (GeoPark operated, 45% WI) in Colombia surpassed the 70,000 bopd milestone

Record Reserves and Net Asset Value

• Net proven developed producing (PDP) reserves of 44.2 mmboe, net 1P reserves of 113.9 mmboe, net 2P reserves of 183.7 mmboe and net 3P reserves of 347.0 mmboe
• 1P NPV10 of $1.8 billion, equivalent to Net debt adjusted NPV10 of $25 per share
• 2P NPV10 of $2.7 billion, equivalent to Net debt adjusted NPV10 of $40 per share

Record Top and Bottom Lines 

• 4Q2018 Revenues of $151.2 million / Full-year record Revenues of $601.2 million
• 4Q2018 Net Profit of $42.6 million / Full-year record Net Profit of $102.7 million
• 4Q2018 Adjusted EBITDA of $85.7 million / Full-year record Adjusted EBITDA of $330.6 million
• 4Q2018 Cash Flow from Operating Activities of $77.8 million / Full-year record Cash Flow from Operating Activities of $256.2 million  
• 4Q2018 free cash flow(1) of $43.9 million/ Full-year record free cash flow of $131.5 million
• 2018 record Earnings per share of $1.19

Capital Efficiency and Strong Balance Sheet

• $127.7 million cash in hand
• Net debt to Adjusted EBITDA ratio of 1x
• 2018 Capital investment program of $124.7 million generated $454 million increase in 2P NPV10
• Best-in-class consolidated Finding and Development costs (F&D) of $3.6/boe for 2P reserves, $2.9/boe for 2P reserves in Colombia

Value-Adding Acquisition

• Accretive acquisition of LGI’s 20% equity interest in GeoPark’s Colombian and Chilean subsidiaries for $111 million, the equivalent of $2 per share generated an estimated 2P NPV10 of $4 per share in 2018
• Portfolio strengthening by divestment of high-cost, non-core La Cuerva and Yamu Colombian assets for up to $20 million

Returning Value to Shareholders

• Share buyback program in place since December 2018 to repurchase up to 10% of shares outstanding
• Best performing(2) independent upstream oil & gas company on the NYSE for two years in a row (2017-2018)

James F. Park, Chief Executive Officer of GeoPark said: 
“Many thanks and congratulations to the GeoPark women and men for a year of tremendous results across the board. Double digit plus increases in production, reserves, EBITDA, free cash flow, net present value, and net asset value per share. Belt-tightening decreases in capital and operating costs and debt leverage ratio. Leading-the-pack improvements in safety, environmental, employee and community performance. Opportunity expansion with growing acreage, exploration resources, and new project inventory - with increased capabilities and know-how across our operating base. And big market rewards by being the number one performing E&P stock on the NYSE for the second year in a row. But most important is to place these achievements within the context of our continuous through ‘thick-and-thin’ 16-year growth track record and what is coming next. We feel we are just picking up steam - and the GeoPark team has proven it can and will continue to deliver big.” 

(1) Free cash flow is defined as cash flow from operating activities less cash used in investing activities, excluding Argentina acquisition and cash advances from divesture of La Cuerva and Yamu. Free cash flow is a non-GAAP measure. See reconciliation below.
(2) Stocks with Market Cap above $150 million