Q2 2024 GeoPark Ltd Earnings Call Transcript
Key Points
- GeoPark Ltd (GPRK) reported a 14% increase in revenue to $190 million for the second quarter, driven by higher oil prices.
- Adjusted EBITDA rose by 15% to $128 million, resulting in a strong EBITDA margin of 67%.
- The company demonstrated capital discipline by generating almost three times its capital expenditures in adjusted EBITDA.
- GeoPark Ltd (GPRK) continues to enhance financial flexibility with strategic oil prepayment agreements, providing additional liquidity.
- The company is on track to exceed shareholder returns from 2023, with over $66 million returned to shareholders by the end of the third quarter.
- Net profit was impacted by non-cost charges related to the devaluation of the Colombian peso, affecting deferred income taxes.
- Operational challenges were noted, including increased blockages in key blocks, which could affect production targets.
- The company faces potential risks from social unrest, which has led to higher-than-expected downtime in production blocks.
- GeoPark Ltd (GPRK) may be at risk of being on the low end of its production guidance due to operational disruptions.
- The company is experiencing a decline in mature fields, with Llanos 34 expected to decline by 10% to 15% despite ongoing activities.
Good morning and welcome to the GeoPark Limited conference call following the results announcement for the second quarter ending June 30, 2024. (Operator Instructions) If you do not have a copy of the press release, it is available at the Invest With Us section on the company's corporate website at www.geopark.com. A replay of today's call may be accessed through this webcast in the Invest With Us section of the GeoPark corporate website.
Before we continue, please note that certain statements contained in the result press release and on this conference call are forward-looking statements rather than historical facts and are subject to risk and uncertainties that could cause actual results to differ materially from those described.
With respect to such forward-looking statements, the company seeks protections afforded by the Private Security Litigation Reform Act of 1995. This risk includes a variety of factors, including competitive development and risk factors listed from time-to-time in the company's SEC reports and
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