GeoPark Limited

Good morning and welcome to the Geopark Limited conference call following the results announcement for the third quarter ended September 30th, 2025. After the speaker remarks, there will be a question and answer session. If you would like to ask a question at this time, press star followed by one on your telephone keypad. If you would like to 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 this 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 facts 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 forward-looking statements, but are not intended to represent a complete list of the company's business. All financial figures included here were prepared in accordance with the IFRS and are stated in the US dollar unless otherwise noted. Reserve figures correspond to PRMS standards. On the call today from Geopark is Felipe Bayon, Chief Executive Officer, Jaime 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. Felipe Bayon. Mr. Bayon, you may begin.

Good morning, everyone, and thank you for joining Geopark's third quarter 2025 results call. We are at a pivotal moment in Geopark's journey towards strengthening our foundation and advancing our long-term growth strategy. On October 16, we successfully closed the acquisition of two high-quality blocks in Vaca Muerta, Neuquén, securing full operational control of Loma Jarillosa Este and Puesto Silva Oeste. With this move, we have entered one of the world's most promising unconventional basins and opened a new chapter of long-term growth and diversification. In parallel, we launched our new strategic plan and capital allocation framework during our investor day on October 21st. The plan is built around two clear priorities. First, sustaining a resilient and high margin base in Colombia, and second, rapidly scaling a transformational platform in Argentina. In our base case, 2030, we are targeting consolidated production of 42 to 46,000 barrels of oil equivalent per day an adjusted EBITDA of 520 to 550 million U.S. dollars, and a net leverage ratio of 0.8 to 1.0, all while maintaining capital discipline, financial strength, and our commitment to ESG. Beyond this firm plan, our vision for the business entails materializing further significant upsides in our existing high-quality asset base, along with accretive inorganic growth. To support this strategy, the Board of Directors approved a revised dividend program totaling approximately $6 million over the next four quarters, or the equivalent of $0.03 per share per quarter, starting with the third quarter of 2025 payout. As of the third quarter of 2026, dividends will be suspended as investments in Argentina peak. Dividend levels will be reviewed as we progress through the investment cycle and return to positive free cash flow. This reflects our ongoing commitment to strong shareholder returns, investment in growth, and financial flexibility. Turning now to our 3Q 2025 results, on the operational front, we had a solid third quarter. We delivered average consolidated production of 28,136 barrels of oil equivalent per day, which is exceeding 2025 guidance and up nearly 3% quarter over quarter. And this is driven by strong performance in our core operated and non-operated assets in Colombia. Janus 34, which we operate, we made a key engine. with continued efficiency gains across drilling and work over operations and stable base management. In Janus 1.23, we advanced drilling operations at Toritos Norte 3, and we made progress on infrastructure in Puerto Gaitan, preparing for the next campaign in Janus 1.04. Our team continued to improve efficiency and cost management across the board. Operating cost averaged $12.5 per barrel fully in line with our 2025 guidance. By the end of the third quarter, we had captured more than $15 million in efficiencies, equivalent to about $19.5 million in annual structured savings, a clear sign of a leaner and more agile operating model underway. On the financial front, adjusted EBITDA reached $71.4 million with a 57% margin broadly stable versus the second quarter, supported by higher volumes and steady realized prices. Net income was 15.9 million US dollars compared to the net loss in the previous quarter. Excluding a non-recurrent expiration write-off in the Putumayo Asian, net profit would have been 23.4 million US dollars, consistent with our strong EBITDA performance. We invested 17.5 million US dollars during the quarter, mainly to sustain and enhance production in Janus 34 and progress exploration across Colombia. We ended the quarter with 197 million US dollars in cash. From June to October, we repurchased 108 million US dollars of our 2030 notes below par, generating nine and a half million US dollars in annual cash savings and further optimizing our capital structure. With no principal maturities until 2027 and a net leverage ratio of 1.2 times, we remain in a strong balance sheet position to manage our liabilities proactively. Our hedging program remains a key element of our financial resilience. As of early November, approximately 62% of the expected 2026 production is already projected through three-way colors with a first floor at $65 per barrel, a second floor at $50 per barrel, and an average ceiling at $73 per barrel. In summary, this was a quarter of disciplined execution and strategic performance. Looking ahead, We are on track to release our 2026 World Program and Investment Guidelines before year-end. This plan will provide further granularity on our renewed strategic direction. Again, focus on building and maximizing value delivery from a high margin base in Colombia on our new operated assets in Vaca Muerta, Argentina. In particular, we are preparing to scale up operations in Loma Jarillosa Este and Puesto Silva Oeste blocks where we've already begun implementing productivity enhancements. Our priorities remain clear, operate safely and efficiently, maintain financial discipline, and maximize shareholder value. Before we take your questions, we also wanted to briefly discuss the proposal we received from Parex Resources. As we said in our press release on October 29th, our board is always open to opportunities that fairly reflect the company's value, strategy, and long-term potential. Following a robust process, our board unanimously determined that the unsolicited non-binding proposal of $9 per share that was submitted by PARICS on September 4, 2025, prior to our announcement of Geopark's transformative Vaca Muerta acquisition under Values Geopark fails to reflect our growth prospects and our diversified portfolio and is not in the best interest of our shareholders. Following Parex's public reiteration of its $9 per share offer, the board unanimously authorized me to further engage with Parex and provide additional information to help Parex improve its offer. In addition, Geoparks Board of Directors has formed a special committee of independent directors, including Silvia Escobar, Konstantin Papadimitriou, Sumit Varma, and Brian Maxted, to evaluate any potential revised offer from PARICS and other value-maximizing alternatives for the company. We are not going to make any further comments regarding PARICS or the process unless and until we determine that further disclosure is appropriate. We'd appreciate if you keep your question focused on the quarter. With that, let's open the floor to your questions.

Thank you. To ask a question, please press star followed by one on your telephone keypad now. If you change your mind, please press star followed by two. When preparing to ask your question, please ensure your device is unmuted locally. Our first question comes from Joaquin Ribet from the Lions Capital. Your line is now open. Please go ahead.