GeoPark Limited

Good morning and welcome to the Geopark Limited conference call following the result announcement for the third quarter ended September 30th, 2026. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question at this time, press star 1 on your telephone keypad. If you would like to withdraw your question, press star 1 again. 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. Agustina Wisky, Felipe Bayon Pardo, Rodolfo Martin Terrado Uribe Reserves figures correspond to PRMS standards. On the call today from Geopark is Felipe Bayon, Chief Executive Officer, Jaime Caballero, Chief Financial Officer, Martin Terrado, Chief Operating Officer, Rodrigo Dalle Fiore, Chief Exploration and Development Officer, and Catalina Escobar, Shareholder Value and Capital Markets Director. And now, I will turn the call over to Mr. Felipe Bayon. Mr. Bayon, you may begin.

I would like to highlight two important developments that reflect the progress we are making in transforming Geopark into a more diversified energy company with multiple platforms for long-term growth. Earlier this week, we announced the successful completion of our strategic entry into Venezuela through the body block following the effectiveness of the 25-year production participation contract with PDVSA. This milestone was achieved well ahead of the original contractual timeline and reflects the execution capabilities of our teams and the constructive collaboration we have built with PDVSA. With the contract now effective, our focus shifts to the safe and disciplined operational takeover of Bade, which we expect to complete before the end of the year. We have already assessed approximately 300 to 400 wells for potential reactivation, establishing a foundation for the initial redevelopment phase. The transaction adds a large-scale, long-duration redevelopment opportunity to our portfolio with significant potential to restore production by leveraging existing wells and infrastructure. It also marks an important step in our strategy to build a more diversified regional platform. We also announced recently the award of Corralera Noreste Block in Argentina, adding approximately 26,900 gross acres to our position in northern Vaca Muerta. This is a very important expansion to our unconventional portfolio with material resource potential and a strategic location adjacent to an expanding development area. We will approach this opportunity through a phased appraisal program, applying the same technical discipline and investment criteria that guide our capital allocation decisions across the company. Together, These developments reflect the progress we have made in expanding our portfolio beyond Colombia while preserving the strong operating foundation that has supported Geopark's growth over the past two decades. Turning now to our third quarter results, we delivered solid operational performance with stable production in Colombia and accelerating growth in Argentina. Consolidated production average 27,973 barrels of oil equivalent per day, increasing approximately 3% compared with the prior quarter. In Colombia, production remained stable at approximately 25,900 barrels of oil equivalent per day. Barjanos 34 block continued benefiting from water flooding and polymer injection projects, while Janos 123 delivered higher production supported by ongoing development activity. At CPO5, we also achieved encouraging exploration results, including the Milano 1X discovery, which has been testing at around 1,000 barrels of oil equivalent per day, reinforcing the remaining potential of our Colombian portfolio. Argentina continues to demonstrate the progress of our development program. Production increased by 51% quarter over quarter to approximately 2,100 barrels of oil equivalent per day following the successful completion and startup of five wells at Pad 1030 in Loma Jarillosa Este. These wells underwent 180 hydraulic fracturing stages and gross fuel production exceeded 5,000 barrels of oil equivalent per day following their startup. We are now preparing for the next phase of development with a focus on transitioning towards a more continuous and efficient drilling and completion program. From a financial perspective, the third quarter was more challenging, despite our good operations performance. Although Brent prices remained relatively strong, averaging $91.4 per barrel, our results were significantly affected by wider crude oil differentials in both Colombia and Argentina. In Colombia, the Vasconia differential widened from a discount of $1.43 per barrel in the second quarter to $6.67 per barrel. In Argentina, The Medanito differential shifted from a premium of $1.79 per barrel to a discount of $3.50 per barrel. These movements, together with the impact of our existing commodity hedging contracts, reduced our combined realized price to $56.20 per barrel of oil equivalent compared to $67.20 per barrel in the prior quarter. Our Commodity Risk Management Contract resulted in a negative impact of $36.4 million on revenue compared to $41.2 million in the second quarter. In response, we have continued to actively manage our hedge portfolio to improve future price protection and participation in stronger market conditions, including optimizing our fourth quarter positions and extending coverage into 2028. At the same time, operating costs increased to $20.70 per produced barrel of oil equivalent, compared to $17.90 in the prior quarter, mainly reflecting higher energy costs, increased well intervention activities, and the appreciation of the Colombian and Argentine currencies. We recognize the importance of addressing these pressures. Our teams are implementing operational efficiencies and cost optimization initiatives, including energy price hedges designed to mitigate price volatility. As a result of these factors, quarterly revenue reached $116.2 million and adjusted EBITDA totaled $45.8 million, representing a 39% margin. While financial performance was below the prior quarter, our operational results demonstrate the resilience of our portfolio and the progress of our development program. We remain focused on improving margins and cash generation through disciplined execution and active cost management. During the third quarter, we invested $72.2 million, primarily focused on development activities in Vaca Muerta and continued production and infrastructure investments in Colombia. Operating cash flow was also impacted by lower profitability and working capital requirements. As expected, during this phase of elevated investment, free cash flow remained negative. This reinforces the importance of maintaining a disciplined approach to capital allocation and preserving liquidity as we advance our development plans. At quarter end, GeoPark held $253.4 million in cash with net leverage of 1.6 times the last 12 months adjusted EBITDA. Following quarter end, we successfully completed our liability management transaction, including a $550 million senior notes issuance due in 2033. This transaction extended our debt maturity profile, addressed our near-term refinancing requirements, and secured long-term funding for a substantial portion of our planned investment program in Vaca Muerta. It represents an important step in aligning our capital structure with our growth strategy and provides greater financial flexibility as we move through this investment phase. Looking ahead, We continue to expect full-year production and adjusted EBITDA to remain within our guidance ranges, supported by growing production contributions from Argentina and Colombia and the optimization of our fourth quarter hedge positions. Our priorities remain clear. Complete the safe operational takeover of the body block, accelerate development in Vaca Muerta, Thank you for joining us today. Generate sustainable cash flow and create long-term value for our shareholders. Finally, I want to recognize our employees for their commitment to safety, operational excellence, and disciplined execution, and thank our partners and shareholders for their continued support. Thank you again for joining us today. With that, we are ready to take your questions.

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