GeoPark reports Q2 2025 production of 27,380 boepd amid field challenges

BOGOTA - Latin American energy company GeoPark Limited (NYSE:GPRK), currently trading at attractive valuations with a P/E ratio of 4.53 and maintaining an impressive 75.46% gross profit margin, reported second-quarter 2025 oil and gas production of 27,380 barrels of oil equivalent per day (boepd), down 6% from the first quarter, according to a company press release. According to InvestingPro analysis, the company maintains strong financial health with liquid assets exceeding short-term obligations.

The production decline was primarily attributed to the divestment of the Llanos 32 Block and temporary blockades at the CPO-5 Block that resulted in 16 days of shut-in production. GeoPark also experienced delays in its infill drilling campaign at the Llanos 34 Block. Despite these challenges, InvestingPro data indicates the company is currently trading below its Fair Value, suggesting potential upside opportunity for investors looking at the recent operational setbacks.

Despite these challenges, the company announced an exploration discovery at the Currucutu-1 well in the Llanos 123 Block, which produced an initial 1,360 barrels of oil per day (bopd) gross. The company also completed the Toritos Sur-3 well in June with initial production tests of 900 bopd from the Mirador Formation and 630 bopd from the Barco formation.

In the Llanos 34 Block, which accounts for the majority of GeoPark’s production, the company reported average production of 17,605 boepd net (39,122 boepd gross), down 3% from the previous quarter. Waterflooding projects contributed approximately 6,500 boepd gross, exceeding the company’s plan by 27%.

GeoPark implemented cost-saving measures in its drilling operations, reporting a 23% improvement in drilling efficiency and 30% cost savings compared to its 2024 drilling campaign. This reduced average drilling costs from $245 per foot to $171 per foot. These efficiency improvements complement the company’s already strong financial position, with a robust free cash flow yield and an attractive 8.53% dividend yield.

The company’s production portfolio for the quarter consisted of operations in Colombia (25,868 boepd), Ecuador (1,281 boepd), and Brazil (231 boepd). Year-to-date consolidated average production stood at 28,223 boepd.

For the third quarter of 2025, GeoPark plans to drill 2-4 gross wells in Colombia, focusing on appraisal and exploration projects in the Llanos 123 and Llanos 104 blocks.

The company will report its second-quarter 2025 financial results on August 6, according to the press release. For detailed analysis and additional insights, investors can access the comprehensive Pro Research Report available on InvestingPro, which includes expert analysis of GeoPark’s financial health, valuation metrics, and growth prospects among over 1,400+ top stocks covered.

In other recent news, GeoPark Limited has reported exceeding its first-quarter production guidance for 2025. The company’s consolidated average oil and gas production reached 36,279 barrels of oil equivalent per day, surpassing the target of 35,000 boepd. This achievement includes production from the Vaca Muerta shale in Argentina, although the acquisition of assets there is still awaiting regulatory approvals. GeoPark’s exploration efforts have also led to a new discovery at the Currucutu-1 well in the Llanos 123 block, producing 1,360 barrels of oil per day. The company maintains a robust hedge position, covering approximately 70% of its expected 2025 production with price floors between $68-70 per barrel. GeoPark has reported strong liquidity with a cash position of $308 million as of March 31, 2025, enhancing its financial flexibility. Additionally, the company has improved its debt profile by issuing notes due in 2030 and repurchasing those due in 2027, extending the average life of its debt to 4.6 years. Operational highlights include a 3% production increase in the CPO-5 Block following a successful workover campaign. GeoPark plans to release its first-quarter 2025 financial results on May 7, 2025, after market close.

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