BOGOTA - GeoPark Limited (NYSE: NYSE:GPRK), a Bermuda-incorporated company with an impressive 75% gross profit margin and "GREAT" financial health according to InvestingPro, announced today its intention to offer senior notes in a private placement aimed at qualified institutional buyers, according to Rule 144A and Regulation S under the Securities Act of 1933. The specifics of the offering, including pricing and terms, will depend on prevailing market conditions and other factors.
In a related move, GeoPark concurrently declared a cash tender offer for the full redemption of its outstanding 5.500% notes due in 2027. Trading at an attractive P/E ratio of 5.3 and generating a robust 32% free cash flow yield, the company intends to allocate the net proceeds from the new notes offering towards the purchase of these 2027 notes, repayment of up to $152 million in outstanding prepayments under an existing offtake and prepayment agreement, and for general corporate purposes that may include capital expenditures.
The notes in question have not been registered under the Securities Act or any state securities laws. As such, they will be available only to qualified institutional buyers and non-U.S. persons outside the United States, with no plans for a public offering in any jurisdiction where it would be unlawful without registration or qualification under the respective securities laws.
This press release contains forward-looking statements that involve risks and uncertainties, which could cause actual results to differ materially from those projected or anticipated by the company. GeoPark has a policy of not updating forward-looking statements and emphasizes that these statements are based on current expectations and assumptions that may not be accurate. For deeper insights into GeoPark’s financial health and growth potential, investors can access comprehensive analysis and 8 additional ProTips through InvestingPro’s detailed research reports, available for over 1,400 US stocks.
The information for this news article is based on a press release statement from GeoPark Limited.
In other recent news, GeoPark Limited, an independent Latin American energy company, recently unveiled its 2025 Work Program. The program aims to enhance shareholder value through disciplined capital allocation, operational excellence, and sustainable growth, with a production target of 70,000 barrels of oil equivalent per day by 2028 and 100,000 by 2030. GeoPark’s 2025 capital expenditure is projected at $275 million to $310 million, supporting an average production estimate of 35,000 barrels of oil equivalent per day.
GeoPark also anticipates an adjusted EBITDA of $350 million to $430 million for 2025, assuming a Brent crude price of $70 to $80 per barrel. The company plans to continue its annual dividend payment of around $30 million to shareholders. Also, GeoPark is committed to reducing its environmental footprint, aiming for a 35-40% reduction in carbon intensity by 2025 compared to 2020 levels.
However, GeoPark’s acquisition of a 45% interest in the CPO-9 block in Colombia has been halted due to Ecopetrol’s decision to exercise its preemptive rights. Meanwhile, the potential to acquire Repsol (OTC:REPYY)’s 25% interest in SierraCol Energy Arauca LLC remains open. Both GeoPark and Parex Resources face a potential tax hike as the Colombian government considers raising taxes on oil and gas industries, according to Jefferies.
GeoPark reported mixed Q3 results, with a 16% decline in net revenue to $159 million, primarily due to lower oil prices and production. However, the company achieved a net profit of $25 million and saw a significant improvement in cash flow, with cash reserves rising to $140 million. These are recent developments that investors should be aware of as they assess the future prospects of the company.
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