GeoPark exceeds 1Q2025 production guidance with new discovery

BOGOTA - GeoPark Limited (NYSE: GPRK), an independent energy company active in Latin America, has reported exceeding its first-quarter production guidance for 2025. The company’s operations, including new exploration results, have demonstrated resilience and profitability despite market challenges. With an impressive gross profit margin of 76% and EBITDA of $409 million in the last twelve months, InvestingPro data shows GeoPark maintains strong operational efficiency.

In the first quarter of 2025, GeoPark’s consolidated average oil and gas production reached 36,279 barrels of oil equivalent per day (boepd), surpassing the 35,000 boepd target. This figure includes production from the Vaca Muerta shale in Argentina, although the acquisition of assets there is pending regulatory approvals and has not been finalized.

The company’s production from existing operations, excluding Vaca Muerta, was 29,076 boepd, an 8% decrease from the previous quarter. This decline was primarily due to the suspension of operations at the Platanillo Block and the divestiture of the Llanos 32 Block. However, this was partially mitigated by strong workover results in the CPO-5 Block.

GeoPark’s exploration efforts in the Llanos Basin have yielded a new discovery at the Currucutu-1 well in the Llanos 123 block, currently producing 1,360 barrels of oil per day (bopd) gross.

The company has maintained a robust hedge position to mitigate the downside risk of fluctuating oil prices, with approximately 70% of its expected 2025 production covered by hedges with floors between $68-70 per barrel. As of March 31, 2025, GeoPark reported strong liquidity with a cash position of $308 million, enhancing its financial flexibility. Trading at a P/E ratio of just 3.54x and offering a substantial 9% dividend yield, InvestingPro analysis suggests the stock is currently undervalued. For detailed valuation metrics and 10+ additional ProTips, visit InvestingPro’s Most Undervalued Stocks.

GeoPark has also improved its debt profile by issuing notes due in 2030 and repurchasing notes due in 2027, which extends the average life of its debt to 4.6 years and reduces refinancing risks.

In terms of operational highlights, the Llanos 34 Block’s average production was 18,175 boepd net, down 6% from the fourth quarter of 2024, with waterflooding projects contributing to production. The CPO-5 Block experienced a 3% production increase to 6,605 bopd net following a successful workover campaign.

In Argentina’s Vaca Muerta, GeoPark achieved another production record in the first quarter of 2025 with an average production of 15,533 boepd gross. The company also initiated construction of a new Central Processing Facility and started operations of the Duplicar Plus Pipeline.

GeoPark will release its first-quarter 2025 financial results on May 7, 2025, after market close, followed by a conference call on May 8, 2025.

This article is based on a press release statement from GeoPark Limited.

In other recent news, GeoPark Ltd reported its Q4 2024 earnings, revealing a mixed performance. The company exceeded revenue expectations with $143.7 million, surpassing the forecasted $141.83 million. However, the earnings per share (EPS) fell short at $0.2987, below the expected $0.36. GeoPark’s full-year adjusted EBITDA decreased by 8% from 2023, totaling $416 million, and net income dropped by 13% to $96.4 million. Despite these declines, the company maintained a strong cash position of $276.8 million and continued to focus on strategic expansion in the Vaca Muerta region. The company also announced plans to increase production in Vaca Muerta, targeting 20,000 barrels per day by mid-2025. GeoPark’s strategic initiatives include exploring merger and acquisition opportunities in Colombia, Argentina, and Brazil. These developments underscore GeoPark’s commitment to capital discipline and long-term value creation.

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