Earnings call transcript: GeoPark Ltd Q2 2025 misses EPS forecast, revenue beats

GeoPark Ltd reported its second-quarter 2025 earnings, revealing a significant miss in earnings per share (EPS) but a slight beat in revenue forecasts. The company posted an EPS of -$0.20, falling short of the expected $0.20, marking a 200% negative surprise. Despite this, GeoPark’s revenue reached $119.8 million, surpassing the forecast of $117 million. Following the announcement, the stock saw a modest increase of 2.04%, closing at $6.51 in after-hours trading. According to InvestingPro analysis, the stock appears undervalued at current levels, with impressive gross profit margins of 74%.

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Key Takeaways

• GeoPark’s EPS missed expectations by 200%, but revenue exceeded forecasts by 2.39%.
• The stock price rose 2.04% in after-hours trading despite the EPS miss.
• The company maintained strong operational performance with a 60% EBITDA margin.
• GeoPark increased its full-year capital expenditure guidance, reflecting strategic investments.
• Future growth focuses on exploration in Colombia and Argentina.

Company Performance

GeoPark Ltd demonstrated robust operational efficiency in Q2 2025, maintaining a 60% EBITDA margin with adjusted EBITDA at $71.5 million. The company’s cash balance stood at $266 million, and it completed a bond repurchase worth $54.5 million, reflecting a conservative financial strategy. InvestingPro data shows the company maintains a healthy current ratio of 2.47, with liquid assets well exceeding short-term obligations. Average production was reported at 27,380 barrels of oil equivalent per day (boepd), slightly below the year-to-date average of 28,223 boepd. The company also offers an attractive dividend yield of 9.58%, having maintained dividend payments for seven consecutive years.

Financial Highlights

• Revenue: $119.8 million, up from the forecasted $117 million.
• Earnings per share: -$0.20, missing the forecasted $0.20.
• Cash Balance: $266 million.
• Adjusted EBITDA: $71.5 million, 60% margin.
• Net Leverage Ratio: 1.1x.

Earnings vs. Forecast

GeoPark’s Q2 2025 EPS of -$0.20 significantly missed the forecast of $0.20, resulting in a 200% negative surprise. However, revenue came in at $119.8 million, beating expectations by 2.39%. This mixed performance indicates challenges in profitability despite achieving higher-than-expected sales.

Market Reaction

Despite the EPS miss, GeoPark’s stock price increased by 2.04% in after-hours trading, closing at $6.51. This movement might reflect investor confidence in the company’s revenue growth and strategic initiatives. The stock remains within its 52-week range, which has seen highs of $11.72 and lows of $5.66. Analyst targets range from $6.50 to $18.00, suggesting potential upside, while the company maintains a strong free cash flow yield of 31%.

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Outlook & Guidance

GeoPark has revised its capital expenditure guidance upwards to $90-$120 million from the previous $80-$100 million, indicating increased investment in exploration and production, particularly in Colombia and Argentina. The full-year production guidance remains steady at 26,000-28,000 boepd.

Executive Commentary

CEO Felipe Bayon emphasized the company’s strategic focus, stating, "We want to ensure that we’re optimizing value and creating value for shareholders." He also highlighted opportunities in Argentina’s Vaca Muerta, adding, "We see a good pipeline of opportunities in Vaca Muerta."

Risks and Challenges

• Potential policy changes in Colombia post-2026 elections could impact operations.
• The reduced industry rig count may affect future production capabilities.
• Market volatility and fluctuating oil prices could pressure margins.
• GeoPark’s increased capital expenditure may strain financial resources if not managed effectively.
• Exploration and production in Argentina’s unconventional markets present operational and regulatory challenges.

Q&A

During the earnings call, analysts inquired about exploration potential in Torito Sur Tres and Coricutu-1 and ongoing portfolio optimization. Discussions also covered possible partnerships and unconventional opportunities in Colombia, reflecting investor interest in the company’s strategic direction.

Full transcript - GeoPark Ltd (GPRK) Q2 2025:

Conference Moderator, GeoPark Limited: Good morning, and welcome to the GeoPark Limited Conference Call following the Results Announcement for the Second Quarter Ended 06/30/2025. After the speakers’ remarks, there will be a question and answer session. If you do not have a copy of the press release, it is available at the Invest With Us section on the company’s corporate website at wwwwww.geopark.com. A replay of today’s call may be accessed through this webcast in the Invest With Us 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 the actual results to differ materially from those described in those 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. Reserves figures correspond to PRMS standards. On this call today from GeoPark, we have Felipe Dayon, chief executive officer Jaime Caballero, chief financial officer Martin Tarrado, chief operating officer Rodrigo Dalle Fiore, Chief Exploration and Development Officer and Maria Catalina Escobar, Shareholder Value and Capital Markets Director. And now, I’ll turn the call over to Mr. Felipe Bayon.

Mr. Bayon, you may now proceed.

Felipe Bayon, Chief Executive Officer, GeoPark Limited: Good morning, everyone, and thank you for joining us at our second quarter twenty twenty five conference call. This is my first earning call as GeoPark’s CEO, and I want to start by acknowledging the strong platform I’ve encountered here. Over the last couple of months, I focused on taking a thorough comprehensive view of every aspect of our business at the project level, asset by asset. The work is ongoing and it’s grounded on a simple objective, ensuring GeoPark is positioned to thrive in the current environment and build durable long term value for our shareholders. This review is part of a broader strategic research to challenge legacy assumptions and strengthen the way we prioritize capital and performance.

From day one, we’ve been working to identify opportunities to accelerate the development of our portfolio, increase our ability to adapt and grow smartly. We’re also continuing a rigorous portfolio reassessment where teams are actively working to enhance field productivity, stabilize production and improve returns over time. This is not about changing guidance today, but about building the technical and operational foundation for better outcomes in the future. Finally, we’re working closely and constructively with authorities and partners to unlock additional activity across our core assets in Colombia. These discussions are active and ongoing, and they reflect our shared commitment to responsibly increase investment, accelerate development and support the long term competitiveness of Colombia’s oil and gas sector.

Let me now walk you through the quarter’s performance. In the second quarter, GeoPark delivered solid operational and financial results despite having market volatility, a lower Brent price environment, divestment of some of our noncore assets and some temporary blockades that impacted operations. Consolidated average production for the quarter reached 27,380 barrels of oil equivalent per day, contributing to year to date average production of 28,223 barrels of oil equivalent per day, in line with our guidance. The 6% decline when compared to last quarter reflects the divestment of the non operated Janus 32 block and sixteen days of shut in production in CPO-five Block due to local blockades. The strong operational delivery reflects stable performance across core assets.

For example, Janus thirty four delivered 17,605 barrels of oil equivalent per day net with base management, water flooding and workovers exceeding our expectations. Our drilling team also delivered step changes in efficiency. For example, average well costs were reduced by more than 30% and pad to pad mobilization time dropped from seven days to just eighteen hours. In CPO-five, although some production was impacted by higher than anticipated downtime in relation to 1Q twenty twenty five, performance remains stable and the field is currently operating normally. In Janus, Siento and Tires, two exploration wells, Curacutuno and Torito Sur Tires were drilled and completed, contributing new production and demonstrating additional upside.

In particular, at Torito Sur Tres, the strategic decision to reposition the well to intercept the Mirador formation as a secondary target proved successful and revealed a new productive horizon for the block. In late twenty twenty five, we plan to drill a second well to further explore and appraise the potential of this discovery. On the financial side, results reflect proactive cost management, disciplined capital allocation and financial flexibility to pursue long term growth. Adjusted EBITDA was $71,500,000 with a 60% margin driven by cost discipline and a $4,900,000 gain from our commodity hedging program. Operating costs remain within 2025 guidance at $12.3 per barrel.

We invested approximately $24,000,000 during the quarter and ended up with $266,000,000 in cash and a net leverage ratio of 1.1 times. We also completed an open market repurchase of $54,500,000 of our 2,030 notes below par, thus enhancing long term financial flexibility and reducing future interest payments, underscoring our disciplined approach to balance sheet optimization. Finally, as of today, our hedging program has advanced to protect oil price volatility over approximately 9,000 barrels of oil equivalent per day for the 2026 and eight thousand barrels of oil equivalent per day for the 2026. Let me now turn briefly on how we see the second half of twenty twenty five shaping up. We see a full year organic production range of 26,000 to 28,000 barrels of oil equivalent per day, which incorporates the strength of our core assets and the adjusted impact of Llanos 32, Manatee and Ecuador divestments.

Importantly, this production range excludes volume from inorganic acquisitions. We expect the adjusted EBITDA of $260,000,000 to $290,000,000 at $65 to $70 per barrel Brent, supported by the quality and resilience of our base business and the price support provided by our existing hedging program. We’re executing this plan with a lean, focused capital program of 90,000,000 to $120,000,000 directed primarily to short cycle, high return development and appraisal drilling. At the same time, we’ve captured $12,500,000 in structural efficiencies to date, which equates roughly to $17,500,000 annually. As part of our anticipated portfolio optimization, we agreed to divest our interest in the Perico and Espejo blocks in Ecuador.

This transaction reflects our ongoing focus on prioritizing material, high return assets and streamlining the portfolio for maximum impact. Divestments brought a nonrecurring impairment charge and as a result, a net loss for the quarter of $10,300,000 If we exclude this charge, net profit for the quarter amounted to $20,700,000 significantly higher than in previous quarters. Finally, the Board has approved the payment of a $7,500,000 dividend for the 2025, reflecting the company’s performance during the period. In parallel, the Board is actively reviewing the company’s capital allocation priorities, including dividend distribution going forward in the context of evolving strategic priorities and the need to preserve flexibility to pursue value accretive growth opportunities. This review will continue over the coming months as part of our ongoing overall financial and strategic positioning.

In summary, this was a resilient quarter for GeoPark. We delivered solid results, protected our financial strength and are actively reshaping the business to be more focused, more agile and better positioned for long term value growth. We’re just getting started and we’re committed to building a more competitive, resilient and value driven GeoPark. With that, let me now open the floor for your questions.

Conference Moderator, GeoPark Limited: Thank you so much. We’ll now begin our Q and A session. Our first question comes from Alejandro Dimitriemos of Jefferies. Your line is now open.

Alejandro Dimitriemos, Analyst, Jefferies: Yes, good morning. Thank you very much for taking my questions. Felipe, congratulations the first few months here and welcome. Couple of questions, if I may. Maybe you talk about the review that you’re kind of taking over on the company.

Maybe you can give us some kind of examples of where you think that things can be improved, where you think that things can kind of move to? That’s probably the first part of the question. And then the second one is, you mentioned some of the inorganic moves that you have been kind of working on. Maybe you can kind of give us some update on how you see things, particularly in Argentina. Thank you.

Felipe Bayon, Chief Executive Officer, GeoPark Limited: Alejandro, hi, and thanks for being here today, and thanks for the interest in Geo Park. So a couple of things, and I’ll share some personal reflections on this first couple of months. The first thing I’d say is that since my arrival, and just for context, I’ve known GeoPark for probably the last eight or nine years. So I’ve had a lot of reference. And it’s always been a company that I’ve respected.

And when I joined the company, I found a company that does things very well, operates in a way that’s safe, efficient, it operates ethically and with very, very good relationships with communities and stakeholders. So I just wanted to start there. And one of the things we’ve done with respect to our existing assets in the following context, I think there’s directionally two things we need to do. And I think you addressed both of them in your questions. The first one is how do we protect our existing business, ongoing business, and how do we create additional value?

So that’s point number one. And point number two is how do we return to a pathway of growth? So I’ll talk about the first one, which is your first question. So and without going into detail because that will come in due time, The teams have been working for some months now, three months or so. And over the last couple of months that I’ve been here, I’ve had the opportunity to look at every asset at the project level in detail, look at not only current performance operationally.

Again, I think the results show that we’ve been able to deliver good results, resilient results, despite of the drop in Brent and some of the drop in production that’s related to some blockage that we have in some of the non operated areas. So that review, I think, has led to a place where I personally feel we can extract a lot of value from the existing assets. So that’s point number one. There’s a lot of things that the guys are doing in terms of the operations, from our efficiencies around how we drill the wells, how do we complete the wells, how do we do things like water shutoffs and well interventions, how do we do the mop, demop of the different drilling rigs, how do we actually deal with water volumes. So a lot of details and specifics on the operations that are looking good.

And I think that gives me the confidence, Alejandro, that back to the core business, we can continue to arrest decline, natural decline, which is priority. It’s a fundamental priority. And two, we can continue to look for other areas that can provide some additional legs, if you will, in the mid to long term. And I’ll talk specifically about Torito Sur Tres that’s in release, but it’s a well where we on purpose changed the direction of well, if you will. We went through Mirador, and we have some very good results.

And that may open some additional areas. So very pleased with the ongoing business. And again, we need to ensure that we have a solid, robust business that creates the platform for us to grow. So that’s to your first question. In terms of the inorganics and especially Argentina, I’ll give you a bit of context.

So the first thing is that we continue to look at the region as a whole, but we want to create a lot of focus. So clearly, Colombia is our focus for ongoing operations. And I think Vaca Muerta provides, in terms of unconventionals, a world class opportunity. And I’ll share with you that I came to this job on June 1. By June 6, I was already at Neuquen.

I had a very good conversation with the Governor of Neuquen and expressing that GeoPark wants to be part of the development of unconventionals in Argentina, particularly in the province of Neuquen. We want to invest, we want to operate. So there is a clear intent of us to go into the inorganic opportunities in Vaca Muerta. And the other thing that I’ll mention, Alejandro, is that we have, I think, a very fluid and solid pipeline of opportunities for unconventionals in Vaca Muerta. And it’s a combination of things that we have been looking at and also things that a lot of potential partners have brought to the table in this conversation, which is great.

Know that people are saying, we want to team up with GeoPark. We see them as a good partner that brings a lot into the conversation. So that’s also happening. And obviously, Alejandro will update you on both things. How do we progress on this reassessment of our current portfolio?

And two, how do we progress on M and A? Thanks, Alejandro. Thank you very much. Thank

Conference Moderator, GeoPark Limited: you. Our next question comes from Joaquin Robet of Valens Capital. Your line is now open.

Joaquin Robet, Analyst, Valens Capital: Hello. Welcome, Felipe. I have two questions. First, could you provide more color on your plans to enhance the P1 reserves life? And how are you approaching reserves replacement?

And what portion of the strategy is expected to come from organic versus inorganic efforts? That’s the first question.

Felipe Bayon, Chief Executive Officer, GeoPark Limited: Okay, Joaquin. I was waiting for you to put on the second question, but I’ll go at the first one then. So the first thing I’ll mention, and this is linking it back to some of the things that Alejandro was asking us about and some of the response that I gave. First thing is that is in terms of context and order of magnitude, and this is as of 2024, two peer reserves for the company in Colombia at around 84,000,000 barrels. And so this is broader than P1.

But if you look at that number and then you link it to the exercise that I was referring to, where we have in detailed look at all the assets, look at our execution plans, look at our understanding of the subsurface, look at everything in terms of how we can develop those areas. I’d say that both actually are linked together very well in terms of these reserves life, I’m talking about 2P, that could take us through the end of the decade and beyond, five, ten years actually in terms of how we see that projection going forward is very, very well aligned with the internal review we’re doing. So in that sense, a lot of focus in actually bringing some more reserves and actually accelerating some of those reserves as well. And I’ll take the opportunity to put something out there that was in the release, but I just want to highlight it. And is that a prior guidance on CapEx was around 80,000,000 to $100,000,000 for this year.

In this release that you guys have seen, we’ve increased that to 90,000,000 to $120,000,000 So that’s basically, I think, a reflection of how efficiently we can operate, how we can deploy the capital and also that we see good opportunities going forward that we can actually assess now. So I think that message in terms of us increasing our capital expenditure guidance is also relevant in that sense. And then the other thing, and obviously, the inorganic efforts will come when they come, right? And they will be communicated at the right time. Yeah.

We’re can you can you hear me well?

Joaquin Robet, Analyst, Valens Capital: Yes, can hear you now.

Felipe Bayon, Chief Executive Officer, GeoPark Limited: Okay. Sorry, sorry. Yes, I don’t know where I cut I was cut off. But I was saying that additional sort of guidance or increased guidance in terms of capital expenditures, so we can have some additional opportunities this year. And then in terms of the inorganic, which was the second part of your first question was, we’re very thoughtful.

We’re looking at a good pipeline of opportunities. And obviously, when they come, we will be talking about them in detail. But as I said on my initial response, there’s quite a few potential partners that have reached out to us, and we’re assessing opportunities. So that will come when they come. And hopefully, they’ll provide additional upside and potential on reserves.

You want to go with your second

Joaquin Robet, Analyst, Valens Capital: sure. Okay. And I’m in line with your answer. My second question is, owing recent divestments from noncore areas, are you planning to accelerate CapEx in core assets to offset decline more aggressively? Or is the focus shifting towards inorganic growth opportunities to sustain?

But it was Sure, my

Felipe Bayon, Chief Executive Officer, GeoPark Limited: sure. But I’d say, yes, we’ve done some divestments. We announced yesterday on the release Ecuador, and closing on that will take some months. But yes, absolutely. So I think we’re deploying some more CapEx, which is great news.

We finalized these divestments. We continue to look at our portfolio constantly. We’re reassessing portfolio. And we’ll let you guys know when we have something around new opportunities that actually come into the fold, and we actually have agreed on some inorganic opportunities. Thanks for that, Joaquin.

Joaquin Robet, Analyst, Valens Capital: Thank you. Felipe.

Conference Moderator, GeoPark Limited: Thank you. Our next question comes from Ann Noon of Bank of America. Your line is now open. Good morning. Thank

Ann Noon, Analyst, Bank of America: you very much for the call. It’s nice to hear you on the call, Felipe. And hello to Harna, Catherine and the rest of the team. Good to hear from you. So my questions are following up on some of the strategic comments you’ve made already.

So maybe it sounds like your focus on your strategic side is Colombia for current production and Argentina for nonconventional going forward. You’ve divested Ecuador. I guess one question would be Brazil, how that fits into the strategic plan? And then on the Argentina element, maybe just out of curiosity, with the lower Brent prices this year, have you seen changes in the valuations of the types of transactions you’re seeing? And if you were to go forward, I guess the question would be, since your experience of Joe Park is primarily unconventional, do you have the staffing, or would there be partners that have staffing?

Would you wanna be the operator on the transaction, or would you prefer to be a a partner there? That would be my first sort of big strategic question. And the second is more financial related to the bond buyback that you did. And I guess the question is, would you consider doing more if the prices stay at the low levels? And secondly, one thing investors are very happy about is the large cash balances, deal partners currently had recently, especially with some of the volatility in the market.

What would be the minimum cash that you would want to have since you do you have increased your CapEx program, you do pay dividends and you did buy back bonds? Thank you.

Felipe Bayon, Chief Executive Officer, GeoPark Limited: Thanks, Ann. And it’s great to hear you. Thanks for being here today. So in terms of I think you’re right in terms of what are we focusing on in terms of Colombia and then Argentina. Colombia, we have a very, I think, solid business that’s operated very well, And we continue to find legs in that business.

That’s the way I would think about it. So again, there’s some and I referred to particular Llanos One Hundred Twenty Three or Ciento Venti Tres, Torito Sur Tres. But those opportunities or those wells actually continue to open up some areas where we can go and do some more stuff, which is great. So the existing licenses and please bear in mind, there’s licenses that have production right now, but there’s licenses that have a lot of exploration opportunities. So we will continue to look at those.

And as I said, we need to ensure that we strengthen the base so we can grow on top of that. In terms of Argentina, you’re right, inorganic. And I’ll probably just give you a bit more color. So we are focused on Vaca Muerta. We like the unconventionals.

I’m a big believer in unconventionals from past experiences. We have both lenses. We can be an operator. We can be a nonoperating partner. So we’re comfortable with both.

We have the capability and the know how in house. And I think that’s very important. Remember that when GeoPark did a prior deal in Argentina, we had a team that actually was embedded in the operator. They were seconded into the operations, and we’ve kept that team. And they’re very, very extremely knowledgeable.

They have a lot of experience, not only from GeoPark Times, but from prior experiences. A lot of them have worked in Neuquen for most of their careers. So we do have the capability. Something you didn’t ask, but I’ll put out there, Anne, We’re looking at the 30,000,000 to 50,000,000 barrel opportunity kind of size, just so you guys can have some reference. This could be in the order of $300,000,000 to $500,000,000 combination of ticket plus initial commitments and stuff.

And I’m just giving you ballpark numbers, but that’s how we’re looking at Argentina right now. In terms of valuation, a lot of people want to go into Argentina. And but there’s also a lot of people that are refocusing or exiting Argentina. So there’s always opportunity. There’s always opportunity.

And remember that GeoPark, I mean, made this deal last year. So there’s a lot of knowledge inside the organization. In terms of valuation, in terms of potentials, in terms of the rocks, in terms of how do we actually can develop these opportunities in a way that makes sense. How can we go into factory mode and develop the unconventionals? And again, personally very enthused with the opportunities, and we’ll let you know when we have something penciled down and signed off.

In terms of Brazil, with Manati divestment, it’s going to take some time for it to close. But I’ll say that we continue to permanently assess and filter opportunities in the region, and I’m talking about the broader region, with the focus, as you were putting it, in Colombia and Argentina. So I think that’s where I would leave it. And in terms of your additional question, which is more a financial one, yes, very happy with how that repurchase actually went. It created value for us.

And I think it reflects a good use of our ability to deploy capital. I would just say, and I’ll hand over to Jaime so he can give us more color. There’s things that we’re doing around cost efficiencies as well. You see that we’re doing some redeployment of capital. You see that we repurchased some bonds.

So everything, I think, needs to be looked at holistically in terms of how we manage capital. Jaime?

Jaime Caballero, Chief Financial Officer, GeoPark Limited: Thanks, Felipe. Hi, Anne. I guess, I’ll go through how we are thinking about liquidity. If you look at the first half of the year, we’re ending with a cash balance of around $270,000,000 And when you look at the breakdown of what’s behind it, you actually see an EBITDA of about $160,000,000 but then you actually see these outflows. And I’m going to go into a little bit of detail, but because they’re actually quite meaningful.

Taxes were $87,000,000 just the tax component. CapEx was $47,000,000 debt service was $16,000,000 And where I’m trying to go here is that our current cash position is very strong despite these significant outflows, particularly those related to tax, which were which are seasonal and were actually quite extraordinary given the strong year that we had last year. So where I’m going at with this is that when you look at going forward at the second half of the year, actually that second half is actually going to benefit from three big changes. First, materially lower tax outflow because the tax season is effectively over. So what we’re going to see is some minor outflows associated to withholding tax, but income tax, which is the big component of our tax burden is in the past now.

You’re actually going to see lower debt service as well associated to the debt repurchases that we did. And we’re actually going to see also in EBITDA the benefit of the lower cost structure interventions that have been made. So going forward,

Alejandro Dimitriemos, Analyst, Jefferies: when

Jaime Caballero, Chief Financial Officer, GeoPark Limited: you see all things equal, right, if we normalize, if you will, for price and we can, given that we are significantly hedged, the outlook of cash generation for the second half of the year should amply support the CapEx for the organic business that we are anticipating. So that’s I’m tactical here, but it’s important to see that those components of seasonality support a good cash position going forward. Now when you take that to a strategic level of capital allocation, what we’re seeing there is that the $270,000,000 that we have provides ample room for, again, for the organic CapEx requirements that we might see, which may go up to $120,000,000 this year because there’s good projects coming in from our team. So that’s the first priority. The second priority is M and A deployment.

And when we look at how those transactions could occur and when you look at the when can they close and what kind of down payments would they require, see that our position supports that very well. And then we look at the minimum liquidity necessary for our organic business, which is probably 30,000,000 or $40,000,000 or so. It’s no more than that. So in that context, with all of that considered, there could be some headroom for further potential for debt repurchases. To be opportunistic.

It’s going to depend on how we see things evolving over the next few months. And we’re going to act on the basis of that, right? But there could be some potential for that. Thanks.

Ann Noon, Analyst, Bank of America: Excellent. Thank you very much.

Conference Moderator, GeoPark Limited: Thank you. Our next question comes from Christine Ferra of KNG Securities. Your line is now open.

Christine Ferra, Analyst, KNG Securities: Hey, Felipe, welcome and thanks for the call. So I have three questions, one by one. First question is, if you could comment on whether there are any additional asset divestment planned in the near term?

Felipe Bayon, Chief Executive Officer, GeoPark Limited: Thanks. Thanks, Christian, and thanks for joining the call. And as I referred to in one of the prior responses, I’d say that we’ve done the divestments, finishing with Ecuador that we announced yesterday, and we will constantly continue to look at our portfolio. We want to ensure that we’re optimizing value and in that sense, creating value for shareholders. So I won’t talk about any specifics or if there’s anything else planned, but we will continue to look at our assets.

And remember, I was saying earlier that we’ve had an in-depth, very detailed review of all of our assets at the project level. So we will continue to do that. Next question, Christian.

Juan Jose Manos, Analyst, BTG Pactual: All right.

Christine Ferra, Analyst, KNG Securities: Yes. Could you remind us of the updated guidance for the year?

Felipe Bayon, Chief Executive Officer, GeoPark Limited: Sure, Christian. And I’ll give you some headlines. But we talked about a production that it’s between 26,028 barrels of oil equivalent per day. So I think that’s the first thing. And you saw where we ended up not only in the average for one half or the first half of the year, but in 2Q.

EBITDA, adjusted it to $260,000,000 to $290,000,000 That would be in the $65 to $70 per barrel range for Brent. I’ll repeat the CapEx number. Remember, we had guidance that was 80,000,000 to $100,000,000 that we’re reviewing to 90,000,000 to 120 So it does show that we’ve come up with a lot more opportunities. And the other thing that we haven’t talked too much, I briefly mentioned it, but we’ve captured already $12,500,000 in structural efficiencies. And this is over the last couple of months that we’ve gone out, we’ve looked for them, the teams are working very hardly on that.

And this, if you look at that what would that mean on an annual basis, it’s equivalent to $17,500,000 So that’s sort of the framework, Christian, that I would use for to describe what’s coming in terms of our next few months to close the year.

Christine Ferra, Analyst, KNG Securities: Just a quick follow-up on that. So are those efficiencies reflected in the operating costs that we see that they continue to decline?

Felipe Bayon, Chief Executive Officer, GeoPark Limited: Yes. Some of them are. Some of them have been implemented, and I’ll ask Martin to expand on that a bit to give us more color and detail. Remember that we’ve given guidance on the 12 to $14 per barrel range. We ended up at roughly $12.5 So we’re in a good place.

And efficiencies in terms of operating is always part of the focus that we have. Martin, do you want to expand on that, please?

Stephanie Foucaud, Analyst, Octus Advisors: Yes. Good morning, everybody, and thanks, Felipe. Christian, thanks for your interest in GeoPark. So like Felipe was saying, our guidance on operating expenses is 12% to 14%, and we took the challenge of keeping that guidance even though Vaca Muerta was gone. That guidance was the guidance that we had with Vaca Muerta production, but also Vaca Muerta had around $66 to $7 per barrel.

So the teams, not only from operations, but back here in Bogota supporting the field, we have been working on several initiatives that are already implemented. And I’ll give you a little bit of a flavor of what are the things that we’ve done. First one, we can talk about energy efficiency. On energy efficiency, it’s critical for these assets since most of the OpEx is around energy. And not only are we looking at the price of the energy that we pay, but also trying to use less energy.

We’ve been communicating to you guys the success of workovers. And it’s a success not only getting additional production, but also we’re shutting off water. So year to date, we have shut off 5% of the water that we were producing. So that’s around 24,000 barrels of water per day. That’s energy that we use to produce it and then inject it back in the ground.

So that’s one example. I’ll give you another example is we have been working very thoroughly to use all of the associated gas that comes with the production. So we’ve been working together to reduce our emissions. And the last thing that we did, and it’s already implemented, is that, that gas is not only captured, but it’s generating energy, and that’s around 2% of the total consumption. So we’re basically saving of going out and purchasing that energy.

And second big one is around innovation. And in innovation, the example we want to share in channels 123, we just put on stream about a month ago, a water treatment plant. That water treatment plant, it’s basically helping us save around $2 per barrel versus what we were doing before, which was tracking the water. And when we look ahead, what’s coming is that module of facilities that were designed in house, we’re going to start applying in other blocks that we operate. And we’re also sharing that with our with those blocks where we’re non operators.

So examples of how we’re pushing for reducing the OpEx and other things that we’re working on right now, it’s around maintenance and pooling efficiencies. One of the things that we will continue doing is trying to use the workover rig, the less amount of time as possible and do rig less interventions. And by doing that, we’re saving around 25% of the cost. Since they are rig less, it’s much cheaper. So those are the things that we’ve been doing.

There are some risks. And the main risks looking ahead, first one is around, like I said, increased total fluid production and cost of the energy. So that’s one. The second one is community claims. As there are blockages and some of those blockages many times result in some increased cost.

And finally, it’s not going to hit us this year, but it’s something that we’re monitoring very closely close is on in Colombia, any labor cost regulations. So with that, those are what are the things we’re doing, what are the risks. And finally, to close, our guidance stays that we’re going to be between the $12 to $14 per barrel before the end of the year on average for the year.

Felipe Bayon, Chief Executive Officer, GeoPark Limited: Martin. Got it. Thank you. Christian, thank

Christine Ferra, Analyst, KNG Securities: you very much. Yes. My final question is regarding your cash uses for 2025 and 2026. Do you anticipate further bond buybacks and or dividend distributions? Thank you.

Felipe Bayon, Chief Executive Officer, GeoPark Limited: Thanks, Christian. And I think Jaime alluded to that earlier. And as we were saying, there’s obviously the minimum requirements in terms of cash for the operations. There is an increase in the guidance on CapEx. There are some efficiencies that we continue to pursue in terms of cost efficiencies.

And again, I would say that we do have the right amount in terms of balancing sources and uses to pursue, should the space be there, additional repurchases of bonds. Well, we just announced a dividend distribution yesterday and be able to do M and A. So I think in that sense, we’re in a good shape. Thanks, Christian.

Christine Ferra, Analyst, KNG Securities: Thank you, Philippe.

Conference Moderator, GeoPark Limited: Thank you. Our next question comes from Juan Jose Manos of BTG Pactual. Your line is open.

Juan Jose Manos, Analyst, BTG Pactual: Thank you, Felipe and Jaime for the presentation. Just last question here regarding Colombia. Looking ahead to 2026 with an election year in Colombia, what new opportunities this could open up for GeoPark if a market friendly government comes to power? Yes, what new opportunities do you see if a change of regime happens here in Colombia? Thank Thank you again for the presentation.

Felipe Bayon, Chief Executive Officer, GeoPark Limited: Thanks, Juan Jose, and thanks again for your interest in GeoPark. Yes, I’d give you my views, but obviously, lots of uncertainty still, especially in this sector, on the oil and gas industry, in particular. There’s a production overall production in terms of oil that has not increased dramatically in country. There’s some if you look at the industry as a whole, not just fuel part, number of rigs has reduced. The investment amount has also gone down.

And I think industry is looking at what’s going to come in 2026. So there’s one scenario where we continue with a government that has the same policies as the current one, which is no more exploration acreage being led to industry. And I see and I’m linking this back to how I started my response. A lot of the decline in activity, I think, has been led by that. People seeing that there is no additional acreage and there’s no more licensing going on.

Having said that, on the flip side, and it’s still early days, remember that elections, first round are in May and second round, should there need to be one, it would be in June. There’s a lot of free candidates right now that are talking about restrengthening the sector, being able to let more licenses to the industry, which would be good. And something that we haven’t discussed, but there’s some candidates talking about unconventionals in Colombia. And if you look at the long shot, we as GeoPark are very interested in Vaca Muerta and using some of the experience and expertise and capabilities we have, developing further abilities in that space in Neuquen and assuming the flipside scenario, which is unconventionals being back on the table in Colombia, you could bring that experience back home or back here where we currently are. So I just wanted to put that on the table.

But again, we’ll see. We’ll see, Juan Jose, what happens. Still early days. Thanks for the question.

Juan Jose Manos, Analyst, BTG Pactual: Thank you, Felipe.

Conference Moderator, GeoPark Limited: Thank you. Our next question comes from Stephanie Foucaud of Octus Advisors. Your line is now open.

Stephanie Foucaud, Analyst, Octus Advisors: Good morning, guys. Thanks for taking my questions. I’ve got three. So the first one, the context of those blockade and so forth. What’s the current production excluding Ecuador?

Hello, Stefan, this is Martin. So I’ll go from the high to the low view. The highest view is our guidance, 26,000 to 28,000. And our first half, like Felipe was mentioning, we were at 28,200 barrels of oil per day. In July, we are in similar values to that average for the first half of the year on the high range.

When you look at the different fronts, in Channel thirty four, we had had a very successful infill drilling campaign. Felipe already mentioned our efficiencies on the execution. Now we’re testing the wells and the wells are delivering around 6% of the total production and within the expected production. Workovers and upsize, it’s again another very good story in Channels 34 that it’s providing fresh production, but also, as I mentioned before, reducing our OpEx by shutting down water and that’s contributing around 11%. And then the water flooding keeps providing good results at around 14% of the production.

So in Channels 34, we’re delivering according to our plan. When we look at channels 123, we have increased by 16% the production quarter on quarter. Torito Sur three is, like Felipe mentioned, a very good result, and we’re having discussions with our partner. We’re actually right now drilling about to start drilling the next well. So on that asset, we continue drilling appraisals and some exploration wells.

And I think finally, when we go to CPO-five, CPO-five had a really good success story on our workovers that basically were as the water encroaches, we had to put artificial lift from natural flow to artificial lift. So those results have been above average and they’ve been able to compensate for the blockages that we had. Overall, on blockages, we have been able to work really good with the communities on those where we operate, really low downtimes. And CPO-five, it has the disadvantage that is not connected to the pipeline, an oil pipeline and to electric lines. So we’ve been working hand in hand with ONCC, the operator.

Last blockage was a really positive result. And since that one, all of July, we had no blockages. So I don’t know if I answered exactly what you were looking for, but that’s where we stand today. July and August, again, the first couple of days of August are strong days on production as well.

Felipe Bayon, Chief Executive Officer, GeoPark Limited: Great. Thank you. That’s

Stephanie Foucaud, Analyst, Octus Advisors: useful. Second, on exploration. So you reported Kurukui 2, Torrey 20 So first, I was wondering what sort of EUR potential additional resources those those two areas add? And maybe as a follow on, I saw that there is a write down associated with CPO-five, I think, over the quarter. Did you have a disappointing drain at CPO-five in Q2?

And I have another question at all.

Jaime Caballero, Chief Financial Officer, GeoPark Limited: Stefan, hi, how are you? This is Jaime. I’m going to start with your second question about write offs in CPO-five. So we actually haven’t had any write offs in CPO-five this year. Probably what you are referring to is some notes that we had comparing the year to year.

On a year to year basis, last year, we did have an exploration write off in CPO-five. It was associated to two wells. So we had one in 2Q, one in 3Q was the Sisne and the Lark wells at the time, which in total the total amount of write off associated to those in both quarters was $7,000,000 but that’s a 2024 event. We haven’t had any write offs associated to CPO-five in 2025. So over to Rodrigo on your first question.

Stephanie Foucaud, Analyst, Octus Advisors: Hello, Stephane. Going back to

Rodrigo Dalle Fiore, Chief Exploration and Development Officer, GeoPark Limited: your question about the recent discovery that we announced from Janos one hundred and twenty three, we can start with Coricutu-one. We had a very good result in that well. We started more than 1,000 barrels per day of oil. Today, we are producing about 400 barrels of oil per day. The preliminary result looks very promising.

We are working with our partner, trying to incorporate one more well in the structure because we need to delimitate the area. So it’s too preliminary to talk about volume right now. We need to incorporate more activity to estimate the potential, but definitely, we see a good result there. Related with Torito Sur Tres, the Mirador formation, at least, is very promising. We are seeing 900 barrels per day with no water.

So next step is incorporate a new well. Definitely, we want to do it as soon as possible. If we can do it before the end of this year, it’s going to be good. In order with that result, we are going to be in position to say the size of the discovery that we have there. But both cases in the Janos and 01/2023 looks very promising and if they grow at least is where we want to grow in the next coming months and years.

What we are doing in terms of exploration today, we are drilling Matraquero in the block, Janos 1 And 4. So that is the first well in the block. And we want to we plan to do another one back to this well before the end of this year. The name is Pensejo. So that’s the current activity that we are doing.

We expect more exploration during this year. We will see the results. And looking forward, of course, we need to drill Prestinacion, the project that we have been talking about for long, that is in CPO-five. So we are trying to agree with our partner, ONGC, to start with that well in the next drilling campaign. And we see some prospect in Janos eighty seven and continue deploying the Janus 123, where we see a lot of near field exploration opportunities.

Felipe Bayon, Chief Executive Officer, GeoPark Limited: Thanks, Rodrigo.

Stephanie Foucaud, Analyst, Octus Advisors: Thank you. That’s great. And thank

Alejandro Dimitriemos, Analyst, Jefferies: you for putting out the CPO filing. You’re right. I’ll look at

Stephanie Foucaud, Analyst, Octus Advisors: the front here. Last question is around is more around strategy. So I was wondering whether so you talk about the focus on Argentina and generally in the region. Now in in the context of that, it has proven to be quite difficult to execute in Argentina. Rather historically, it’s quite prices are quite high.

Venezuela is probably a no go area

Alejandro Dimitriemos, Analyst, Jefferies: at the moment. So, generally, how competitive do

Stephanie Foucaud, Analyst, Octus Advisors: you see the landscape? How difficult is it to transact with regards to the same strategy that you’ve got? And where do you differentiate?

Felipe Bayon, Chief Executive Officer, GeoPark Limited: Yes. Thanks, Stephane. So I’d say that I mean, obviously, in the region, in Argentina in particular, I’d say there’s plenty of opportunities. There’s a lot of activity. Let’s bear in mind that this is an area that where close to $10,000,000,000 are being invested on a yearly basis.

And there’s a line of sight of over $100,000,000,000 of commitments going forward. So there’s plenty of opportunities, there’s plenty of assets. And I think that GeoPark brings to the table, and this is reinforced by the conversations we’ve had with the local province authorities, some of our potential partners in the future, where they want the expertise we bring in terms of operations, in terms of efficiencies, in terms of subsurface knowledge. So there’s a lot of alignment in that sense. So I think there’s always opportunity.

And I think the other thing that I’d say, and I mentioned earlier that on the June 6, I was actually meeting with the Governor of Neuquen, Doctor. Figueroa. They’ve mentioned publicly that they want companies like us coming into the province. So we’ll see where that takes us, Stephane. But clearly, there always will be competition in terms of some of the opportunities.

But I think we’re very well positioned to actually go and capture some of those. Thank you.

Stephanie Foucaud, Analyst, Octus Advisors: Thank you. That’s it for me.

Conference Moderator, GeoPark Limited: Thank you. That will conclude the audio portion of today’s call. So we do have text questions that did come in from the webcast. Our first question is from Eduardo LeMiz of Santander. The question reads, Hi, Thanks for taking my questions.

Congrats on the results and welcome, Felipe. Following the recent portfolio review, what should we expect in terms of capital allocation priorities? Whether that is M and A, reinvestment buybacks or dividends, how do those decisions align with your growth ambitions over the next couple of years?

Felipe Bayon, Chief Executive Officer, GeoPark Limited: Thanks, Eduardo, and thanks for being part of the call today for the webcast. So and I think we’ve touched on some of these elements already in some of the responses we’ve given. But in terms of capital allocation, the first thing I’d say, we want to be very disciplined. So when we’re reviewing the options, especially the uses of capital, we’re very disciplined. And I’ll go back and make reference to some of the things that we’ve highlighted over the last couple of days.

First one, an increased guidance on CapEx. And that basically reflects that we have some good opportunities that we can go and pursue before year end. So again, from 80,000,000 to $100,000,000 to 90,000,000 to 120,000,000 So I think that’s one. We’ve talked about not only the cost efficiencies and all the efforts we’re doing that, we’ve talked about dividends that we declared yesterday that were approved by the Board. We’ve talked about the debt reduction and repurchase of the bonds.

And we’ve talked about M and A. So I think in that sense, all of your elements in the question that you posed to us are included. And we’ll continue to, in a very disciplined way, review those and ensure that we can actually make the right allocation of CapEx. And in terms of the longer term view or vision, I’ll go back to where I started this Q and A session was two things we need to do, protect the ongoing business. And I think the guys, Martin and Rodrigo, have talked in detail about some of those things, and we’ll continue to do that.

Casing point is the redeployment of some CapEx in that sense. And second, return to the pathway of growth. And we’ve talked about M and A. So I think in a nutshell, Eduardo, that’s how I would reflect on your question. Thank you.

Conference Moderator, GeoPark Limited: Thank you. Our next question is from Vicente Falanga of Bradesco. The question reads, could you please provide an update on the result of the polymer injections in Elanos? When should we have final results?

Felipe Bayon, Chief Executive Officer, GeoPark Limited: Thanks, Vicente. And I’d say we’re very enthused. We’re very happy with the polymer injection project. All the approvals have been gained. So we have all the approvals, and we should start in December.

So it’s going to take some months before we see results. But Rodrigo, why don’t you expand a bit on that?

Rodrigo Dalle Fiore, Chief Exploration and Development Officer, GeoPark Limited: Yes. We are proactively moving forward with the project. The study that we have conducted along with the background information shared by our partner Parex coming from Cabristero field that is next to our field Janus thirty four are very encouraging. So we are very excited to move forward with the project. We also completed the bidding process.

So we have already selected both, not only the polymer, but the associated facilities as well. So the result will show us how good it is the technology for the field, but we are ready to expand the technology as soon as we identify those results and we are able to dimension how good is the in term of economics. So that’s the status today of the project.

Felipe Bayon, Chief Executive Officer, GeoPark Limited: Thanks Rodrigo and thanks Vicente.

Conference Moderator, GeoPark Limited: Thank you. Our last question of today’s call is from Joel Coppina of Sunnova Research. The question reads, how is your relationship with Pampa Energia going? Do you plan to partner in Vaca Muerta?

Felipe Bayon, Chief Executive Officer, GeoPark Limited: Joao, thanks, and thanks for being here today with us. Yes, I was mentioning earlier that June 6, I had the opportunity to visit the governor of Noquen in his office. And I’ve since then have had some discussions with them, with the provincial authorities and with the governor himself. The day before that, on the fifth, I had the opportunity to meet with Pampa in Buenos Aires. And I’d say a very, very encouraging, very respectful conversation.

And we’re always, I think, striving to identify opportunities where we can jointly partner. And that conversations or those conversations continue, are ongoing. Those conversations have continued to actually happen. And obviously, won’t go into more details, but I think we have a very respectful conversation with Pampa. And the other thing I’d say, Pampa has been a very successful company over the last years.

And they very aggressively looked at gas developments. They’re looking at they’re actually pursuing oil developments and stuff. So a lot of respect for Pampa, and we’re having some very good conversations with them. Thanks, Joao.

Conference Moderator, GeoPark Limited: Thank you. That concludes the Q and A portion of today’s call. So I’ll pass it back over to Felipe Bayonne for any closing remarks.

Felipe Bayon, Chief Executive Officer, GeoPark Limited: Thank you so much. Thanks for that. And again, thanks for your help with the call today, and especially thanks to all those all of you that participated in the call. So before we close, I’d like to share with you some results of our AGM. So our twenty twenty five Annual General Meeting was held earlier today, this morning.

And a few things coming out of that. The first one is that all nominated candidates were duly elected and confirmed as members of the Boards of Directors for GeoPark. The second one, E and Y, Ernst and Young, audit SAS was appointed as external auditor to the company. And the third one is that the audit committee, which is part of the Board, was authorized to determine remuneration for the auditor. So I just wanted to provide that update, which I think is very timely.

I’ll say that we will continue in GeoPark to be focused on capital discipline. And I know there’s a lot of interest. I mean, I don’t know, probably 50% of the questions had some element of capital discipline. So thanks for that. We will protect our financial strengths.

We will continue to invest to position the company for the next phase that will be profitable and sustainable in the long term, always with a vision of growth. We remain very confident in our strategy and our ability to continue to create value, always safely, responsibly and consistently. And again, thanks everybody for your interest and support in GeoPark, and we’re always here to answer any questions. If there’s follow-up questions, please reach out to the guys in the team, and we’ll be happy to address them. So, Regan, thanks for your help.

And everybody else, thanks for being here today and have a great day. Thanks.

Conference Moderator, GeoPark Limited: Thank you. That will conclude today’s call. Thank you for your participation. You may now disconnect your line.

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