GeoPark Argentina Obtains AA+(arg) Credit Rating and Approval From Argentine Regulator to Issue up to $500 Million in Debt Securities
October 22 2024 - 7:33AM
Business Wire
GeoPark Limited (“GeoPark” or the “Company”) (NYSE: GPRK), a
leading independent Latin American oil and gas explorer, operator
and consolidator, announces that its wholly owned subsidiary
GeoPark Argentina S.A. (“GeoPark Argentina”) has received approval
from the Argentinian securities regulator (Comisión Nacional de
Valores or “CNV” by its Spanish acronym) to issue up to $500
million in debt securities over the next five years, and has
obtained an “AA+(arg)” credit rating from Fitch Ratings’ local
Argentine affiliate, FIX.
Following the acquisition of four unconventional blocks in Vaca
Muerta earlier this year1, the key factors contributing to the
strong rating assigned to GeoPark Argentina by FIX include its
existing reserves, production and cash flow generation, alongside a
robust production plan in the Mata Mora Norte Block. Additional
competitive advantages include low operational costs, conservative
leverage, and strong backing from GeoPark.
The Mata Mora Norte Block is currently producing more than
12,500 boepd gross and is expected to generate $90-100 million in
Adjusted EBITDA2 for GeoPark in full-year 2024 on a proforma basis.
By 2028-2030, the block is projected to reach plateau production of
around 40,000 boepd gross, contributing approximately $300 million
net per year for GeoPark in Adjusted EBITDA (based on a Brent price
of $70 per barrel). This does not include the exploratory potential
from the Mata Mora Sur, Confluencia Norte and Confluencia Sur
blocks.
To support the expected production growth, GeoPark Argentina
plans to fund its capital expenditures through ongoing cash flow
generation from the Mata Mora Norte Block and debt raised in the
domestic capital market, where attractive rates and terms are
currently available.
As of the date of this release, GeoPark Argentina has also
secured over $100 million in local credit lines in Argentina and no
amount has been drawn on such credit lines.
______________________ 1 The acquisition of the Vaca Muerta
unconventional blocks in Argentina is expected to close in 4Q2024,
pending customary regulatory approvals. 2 The Company is unable to
present a quantitative reconciliation of GeoPark Argentina’s
full-year 2024 Adjusted EBITDA which is a forward-looking non-GAAP
measure, because the Company cannot reliably predict certain of the
necessary components, such as write-off of unsuccessful exploration
efforts or impairment loss on non-financial assets, etc.
NOTICE
Additional information about GeoPark can be found in the “Invest
with Us” section on the website at www.geo-park.com.
Rounding amounts: Certain amounts included in this press release
have been rounded for ease of presentation.
CAUTIONARY STATEMENTS RELEVANT TO FORWARD-LOOKING
INFORMATION
This press release contains statements that constitute
forward-looking statements. Many of the forward-looking statements
contained in this press release can be identified by the use of
forward-looking words such as ‘‘anticipate,’’ ‘‘believe,’’
‘‘could,’’ ‘‘expect,’’ ‘‘should,’’ ‘‘plan,’’ ‘‘intend,’’ ‘‘will,’’
‘‘estimate’’ and ‘‘potential,’’ among others.
Forward-looking statements that appear in a number of places in
this press release include, but are not limited to, statements
regarding the intent, belief or current expectations, regarding
various matters, including, expected production, expected Adjusted
EBITDA, capital expenditures and timing for the closing of the
acquisition. Forward-looking statements are based on management’s
beliefs and assumptions, and on information currently available to
the management. Such statements are subject to risks and
uncertainties, and actual results may differ materially from those
expressed or implied in the forward-looking statements due to
various factors.
Forward-looking statements speak only as of the date they are
made, and the Company does not undertake any obligation to update
them in light of new information or future developments or to
release publicly any revisions to these statements in order to
reflect later events or circumstances, or to reflect the occurrence
of unanticipated events. For a discussion of the risks facing the
Company which could affect whether these forward-looking statements
are realized, see filings with the U.S. Securities and Exchange
Commission (SEC).
Oil and gas production figures included in this release are
stated before the effect of royalties paid in kind, consumption and
losses.
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version on businesswire.com: https://www.businesswire.com/news/home/20241021165352/en/
For further information, please contact:
INVESTORS: Maria Catalina Escobar,
mescobar@geo-park.com Shareholder Value and Capital Markets
Director Miguel Bello, mbello@geo-park.com Investor
Relations Officer Maria Alejandra Velez, mvelez@geo-park.com
Investor Relations Leader
MEDIA: Communications Department,
communications@geo-park.com
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