GeoPark Limited

Good morning and welcome to the Geopark Limited conference call following the results announcement for the fourth quarter ended December 31st, 2025. After the speaker's remarks, there'll be a question and answer session. If you would like to ask a question at this time, press star one on your telephone keypad. If you would like to withdraw your question, please press star 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 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 development 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 PMRS standards. On the call today from Geopark is Philippe Brion, Chief Executive Officer, Jaime Caballero, Chief Financial Officer, Martin Tirado, Chief Operating Officer, Rodrigo de la Fura, Chief Exploration and Development Officer, and Maria Catalina Escobar, Chief Shareholder of 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 fourth quarter and full year 2025 results call. 2025 marked a turning point for Geopark, defined by strategic clarity, operational discipline, and a decisive portfolio reset well underway. We strengthened our foundation through an anticipated inflection point in production and continued financial discipline Repositioning the company for long-term value creation. Importantly, we delivered or exceeded our full year guidance across all key metrics despite a materially lower oil price environment. Production average 28,233 barrels of oil equivalent per day for the full year 2025. Above the upper end of our guidance, reflecting a platform in both Colombia and Argentina, that is executing and evolving while staying grounded in operational discipline. In Colombia, we achieved an earlier than anticipating production stabilization supported by resilient base production in Janus 34, sustained contribution from CPO5, and successful drilling in Janus 123. We also launched a polymer injection recovery project in Janus 34 that delivered solid results. Argentina began contributing production ahead of plan and assets were integrated safely to our operations. Fourth quarter volumes average 28,351 barrels of oil equivalent per day, broadly in line with the prior quarter and reflecting the fresh production of our Vaca Muerta assets. Full year financial results primarily reflect lower realized prices, which average $58.1 per BOE in 2025 versus $65.6 per BOE in 2024. Adjusted EBITDA reached $277 million within our guidance range while margins remained resilient. Fourth quarter adjusted EBITDA was $46 million reflecting lower realized prices and the impact of specific non-recurring items including deferred sales volumes, logistics-related adjustments, and startup costs in Vaca Muerta. These are timing-related effects, some of which will be reversed in our first quarter 2026 results. Even in a lower-priced environment and with temporary quarterly impacts, our operational platform remains resilient and capital allocation disciplined. We invested $98 million during the year in line with our plan and delivered a 2.8 times adjusted EBITDA to CAPEX ratio and achieved an 18% ROCHI underscoring disciplined returns-based capital allocation. We delivered meaningful structural efficiencies in 2025. Operating cost averaged $13.4 per barrel for the year. and G&A stood at an average of $4.8 per barrel, both within guidance. We also achieved $32 million in structural cash savings, setting a lower cost base expected to generate a run rate of some $45 million in annualized savings in 2026 and beyond. Our balance sheet and risk management remain strong. Cash stood at over $100 million and net leverage closed at 1.6 times and we have no material debt maturities until 2027. During the year, we repurchased over $100 million of our 2030 notes below par, capturing a $10 million gain and a $9.5 million annual interest saving. Over 84% of our 2026 production is now hedged through three-way collars and hedging has already started for our 2027 production, ensuring continued cash flow protection. Our portfolio reset is well underway, reinforcing our Colombian foundation while establishing a new unconventional growth platform in Argentina. In October, we successfully closed the acquisition of Loma Jarillosa Este and Puesto Silva Oeste blocks in Vaca Muerta securing full operational control of two high-quality blocks in one of the most attractive unconventional planes in the world. Production is already online and development is underway, with a clear path towards the 20,000 barrels of oil equivalent per day plateau production by 2028 that we have shared with the market. In January 2026, we announced the agreed acquisition of Frontera Energy's Colombian upstream assets, a transaction that more than doubles our reserve space and that brings an expected performer production of approximately 40,000 barrels of oil equivalent per day net to Geopark, which significantly expands our scale, diversification, and operating leverage. This is a transformative deal that consolidates our position as the leading private operator in Colombia and strengthens our platform for disciplined long-term growth. On a pro forma basis, this acquisition can take production to exceed 90,000 barrels of oil equivalent per day by 2028, an adjusted EBITDA of approximately $950 million. Doubling our previously communicated standalone outlook. Together, these two transactions reshape the company. Materially increasing production, improving cash flow durability, and enhancing our ability to reinvest efficiently across the cycle. Our strategy remains clear, protecting and maximizing our cash generating base in Colombia and scaling a transformational unconventional platform in Argentina. By year 2028, we're targeting 44,000 to 46,000 barrels of oil equivalent per day and an adjusted EBITDA of $490 to $520 million with additional upsides as the Frontera acquisition is integrated. In line with this roadmap, we reached a production inflection point in Colombia earlier than expected. anticipating the time we had originally outlined to the market. Execution remains disciplined and focused as we balance financial strength with long-term growth. To support the strategy, the Board declared a quarterly dividend of $0.03 per share. As previously communicated, the Board will reassess shareholder distributions following the normalization of free cash flow after peak investments in Vaca Muerta. Before closing, I would like to briefly address the recent announcement by Paris regarding directors nominations to two parts board. Our board remains fully committed to strong governance, disciplined capital allocation and long term value creation. All nominations will be reviewed through our established governance process as we remain focused on executing our strategy and delivering results for all shareholders. Geopark shareholders do not need to take any action at this time. Regarding PARC's proposal to acquire from TEDA's upstream assets, Geopark remains fully committed to our agreement, which we believe creates a leading independent E&P platform across Colombia and Argentina. We have a strong conviction in the merits of the transaction and believe that amongst other reasons, our strong operating expertise, deep local presence, and longstanding relationships in Colombia make us the strongest strategic feet for Frontera's assets. Our agreement follows more than a year of detailed evaluation, technical diligence, and structured discussions with Frontera. supported by comprehensive operational, financial, and contractual analysis. These steps of preparation underpins our confidence in the integration plan and value creation roadmap. We believe the transaction delivers immediate and certain value to Frontera shareholders while enhancing long-term value for Geopark shareholders to greater scale, reserve debt, and cash flow durability. Our full field development approach is also expected to sustain production and investment in Colombia, supporting royalties, taxes, and employment while strengthening the country's energy platform. In summary, 2025 was a pivotal year for Geopark. We protected and optimized what we have while continuing to deliver results with consistency and focus. In parallel, we launched a new growth engine in Argentina and secured a transformational acquisition in Colombia that will improve scale, competitiveness, long-term optionality, and value for the company and our shareholders. We have entered 2026 with momentum. We have a stronger, more diversified portfolio that has a linear cost base. and a clearer path forward to continue building long-term value for all of our shareholders. With that, let me open the floor for your questions.

Thank you. To ask a question, please press star followed by one on your telephone keypad. If you change your mind, please press star followed by two to exit the queue. And when preparing to ask your question, please ensure that your device is unmuted locally. Our first question will be from the line of Alejandro Demichelis with Jefferies. Please go ahead. Your line is now open.