GeoPark Limited

withdraw your question, please press star followed by two. 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.geo-park.com. A replay of today's call may be accessed through the webcast in the Invest With Us section of the Geopark corporate website. Before we continue, please note that certain statements contained in the results press release and on this conference call are forward looking statements rather than historical fact and are subject to risks 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 securities litigation reform act of 1995. These risks include a variety of factors, including competitive developments and risk factors listed from time to time in the company's SEC reports and public releases. Those lists are intended to identify certain principal factors that could cause actual results to differ materially from those described in the forward-looking statements, but are not intended to represent a complete list of the company's business. All financial figures included herein were prepared in accordance with the IFRS and are stated in US dollars unless otherwise noted. Reserved figures correspond to PRMS standards. On the pool today we have Marcus Andres Acampo, Chief Executive Officer, Jimmy Caballero, Chief Financial Officer, Martin Tirado, Chief Operating Officer, Rodrigo Dalle Fiore, Chief Exploration and Development Officer, and Maria Catalina Escobar, Shareholder Value and Capital Markets Director. And now, I'll turn the call over to Mr. Andres Ocampo. Mr. Ocampo, you may begin. Good morning, and welcome to the Geopark Limited.

Good morning, everyone, and thank you for joining us to review our fourth quarter and full year 2024 operational and financial results. 2024 was a year of significant achievements for Geopark, despite some operational challenges and lower oil price environment. We were able to sustain our cash generation capacity, made a game-changing acquisition in Vaca Muerta that extended our reserves life significantly, increased production in our newly acquired assets, hit a new transformational discovery in our first exploration effort in Vaca Muerta, and at the same time, we delivered the highest annual shareholder cash return in the company's history. Geopark's total oil and gas production for 2024 averaged almost 34,000 bars a day equivalent, which is 7% less than 2023, as a result of temporary production disruptions and natural decline of our main fields in Colombia. Nevertheless, our acquired unconventional hydrocarbon blocks in Vaca Muerta delivered An average production of over 15,000 barrels a day grows in the fourth quarter of 2024, which is 19% higher than the third quarter of 2024, and almost 50% higher than when we announced the transaction, which highlights the quality of the assets and impressive operating skills of our partner, Phoenix. Our Vaca Muerta assets delivered approximately $25 million of EBITDA net to Geopark in the fourth quarter, and approximately $100 million net on a full year on a pro forma basis. Importantly, during the fourth quarter of last year, we put on production our first exploration pad in the Confluencia block in the province of Rio Negro, with three wells producing approximately 4,500 parcels a day. This discovery is important Not only because it's the first step towards potentially de-risking the approximately 90 million barrels of net working interest certified contingent resources in the Confluencia blocks, but also as it represents a breakthrough in the Baca Muerta Basin. These are the first wells to flow from Baca Muerta in Rio Negro Province, and two out of the three wells ranked in the top eight producing wells in the entire basin over the last 90 days. This represents a new paradigm being broken by Phoenix and Geopark in the basin. We look forward to drilling and completing our second exploration pad in Confluencia Sur block, which is expected in the second half of 2025. The production volumes and EBITDA figures associated with Vaca Muerta are not yet reflected in our consolidated production and financial figures for 2024. that the transaction is going through the customary regulatory approval process with the respective provincial governments. The financial impact of the timing of these approvals will be neutral as the transaction became effective on July 1st, 2024. Reserves at ERN 2024 reflect the upgrade and recalibration of our asset base through the acquisition in Argentina, as well as the adjustments to the Colombian portfolio. Proforma 2P reserves reached to nearly over 160 million barrels driven by the addition of 74.6 million barrels from the Vaca Muerta assets, 41% year-on-year increase. This growth extended our reserve life index to 13 years on a 2P basis, while 1P reserves of 102 million barrels extended our 1P reserve life index to 8.2 years reinforcing our long-term value creation. Full year 2024 adjusted EBITDA reached $416 million, representing approximately 8 percent decrease compared to 2023, following lower production and one-off financial expenses in the fourth quarter of 2024, which were associated to the offer for upstream REPSOL assets in Colombia and the drawdown of a prepaid facility for the Vaca Muerta acquisition. We invested $191 million in capital expenditures during 2024, maintaining our strong capital efficiency ratio of 2.2 times adjusted EBITDA. Net income for the year stood at $96.4 million, 13 lower than 2023, mainly due to lower production, lower revenues, and higher effective tax rate. Operating profit for the year remains solid, underscoring our robust cash generation capacity and disciplined financial management amidst lower revenues. We concluded the year with $276.8 million in cash, including a $152 million withdrawal of a prepayment facility to pay down the VacaMorta acquisition. Our net leverage of 0.9 times remains well below our declared long-term target of under one and a half times adjusted EBITDA. And we have no material debt commitments due until 2030, enhancing our financial flexibility and reducing significantly our refinancing risk. Our financial strength allowed us to continue rewarding our shareholders with almost $74 million through dividends and buybacks in 2024. a record annual shareholder cash return of around 14% yield. During the year, we completed a Dodge Auction Tender that reduced our standing shares by 8% to 51.2 million and underscored our commitment to capital discipline and shareholder value. Also, we have just declared a quarterly cash dividend of almost 15 cents per share, payable on March 31st reinforcing the continuation of our long-term value return proposition. Our commitment to sustainability is deeply embedded in our speed value system, always guiding our operations and our decisions. We are proud to be included in the S&P Sustainability Yearbook for the first time and to be recognized as the industry mover in the oil and gas upstream and integrated sector. We also maintain our AA rating in the MSCI index for the second consecutive year, underscoring our position as global sustainability leader. These achievements reflect our dedication to operating responsibly and creating value for all stakeholders. Looking ahead to 2025, our focus remains on maximizing the potential of our expanded asset base. In Colombia, we expect continued progress in our water flooding project, as well as our pilot project for polymer flooding in the Janus 34 block that will enhance our recovery and field productivity. In both the Janus 34 and CP05 blocks, we will continue optimizing production and efficiency, and in the Putumayo Basin and other assets, we will advance our exploration program. In Vaca Muerta, we continue the development at the Marta Mora Norte block with the recent completion of the Pad 9 and the current drilling of Pad 12. Following this, the rig will move to Confluencia Sur block to drill our second exploration pad as mentioned before. Our partner Phoenix has already initiated the works to bring the second drilling rig to the area by early 2026 as agreed in our business plan. This will be a critical element to growing our current production base to a gross plateau in Matamora of approximately 40,000 barrels a day. We are committed to maintaining our strong balance sheet, executing disciplined capital allocation, and evaluating new growth opportunities that enhance scale and long-term value. Our goal remains simple, to deliver more energy, more value, and more prosperity for all of our stakeholders. We look forward to reporting on our progress throughout the year, and we will be happy to answer any questions you may have. Thank you.

If you'd like to ask a question on today's call, please press star followed by one on your telephone keypad or submit them via the webcast. We'll start with some written questions from Daniel Gardinella from BTB Pactual. Can you provide details on the 152 million USD recorded as customer advanced payments in the cash flow statements? and what is the expectation on this item for the upcoming quarter?