GeoPark Limited (NYSE:GPRK) Q4 2018 Earnings Conference Call Transcript
Mar 07, 2019 • 09:00 am ET
Good morning, and welcome to the GeoPark Limited conference call following the results announcement for the fourth quarter ended December 31st, 2018. (Operator Instructions) If you do not have a copy of the press release, please call Sard Verbinnen & Co. in New York at +1-212-687-8080, and we will have one sent to you. Alternatively, you may obtain a copy of the release at the Investor Support 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 Investor Support 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 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 U.S. dollars, unless otherwise noted. Reserve figures correspond to the PRMS standards.
On the call today from GeoPark is Chief Executive Officer, James F. Park; Chief Financial Officer, Andres Ocampo; Chief Operating Officer, Augusto Zubillaga; and Shareholder Value Director, Stacy Steimel.
And now, I'll turn the call over to Mr. James Park. Mr. Park, you may begin.
James F. Park
Thank you and welcome, everyone. We're joining you today with our executive team from London, England. Many thanks and congratulations to the GeoPark women and men for our tremendous results in 2018. We broke records with double-digit plus increases in every key metric. Oil and gas production, up 31%; reserves, up 15% with a reserve replacement ratio of 285%; net asset value per share, up 37% to $40 per share; EBITDA, up 89% to $330 million with a CapEx of just $125 million; free cash flow of more than $130 million; net income of over $100 million with earnings per share of $1.20; and we improved our Company across the board by being one of the region's most active explorers, drilling 33 wells with a more than 85% hit rate to find more oil and gas.
Being the low cost and most efficient operator by continuing to drive down capital and operating costs, being the partner and neighbor of choice by continuing to make improvements in safety, environmental, employee and community performance, being a value consolidator by acquiring more acreage including LG's interest to expand our asset and opportunity base. And our shareholders were richly rewarded by GeoPark being the number one performing E&P stock