Key Takeaways GeoPark will acquire 100% of two Vaca Muerta shale blocks, assuming operatorship from Pluspetrol.The deal adds 12,300 acres with 60M barrels of oil resources under 30 year concessions.Blocks produce up to 2,000 boe/d, with output seen lifting GeoPark's 2025 pro forma production.GeoPark Limited (GPRK) , an independent oil and gas firm with primary operations across Latin America, announced that it has signed an agreement with Pluspetrol S.A. to acquire the Loma Jarillosa Este and Puesto Silva O ...

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Core Viewpoint - GeoPark Limited has announced an agreement to acquire a 100% operated working interest in the Loma Jarillosa Este and Puesto Silva Oeste blocks targeting black oil in the Vaca Muerta formation, indicating a strategic expansion in Argentina's energy sector [1]. Company Summary - GeoPark Limited is a leading independent energy company with over 20 years of successful operations across Latin America [1]. - The acquisition involves a focus on black oil, which is significant for enhancing the company's portfolio in the Vaca Muerta formation, a key area for oil production in Argentina [1]. Industry Summary - The Vaca Muerta formation in Neuquen Province, Argentina, is recognized for its potential in black oil production, making it an attractive target for energy companies [1]. - The agreement with Pluspetrol S.A. reflects ongoing investment interest in the Latin American energy sector, particularly in unconventional oil resources [1].

Core Insights - The article emphasizes the importance of value investing in companies with solid long-term potential, highlighting a strategic approach for individual investors [1]. Group 1 - The focus is on value companies, which are characterized by their strong fundamentals and long-term growth prospects [1]. - The author aims to share knowledge and analysis to support individual investors in making informed decisions [1]. Group 2 - There is a clear distinction made between personal opinions and financial advice, indicating that the insights provided are not to be construed as professional investment guidance [2][3].

Company Overview - GeoPark Limited (GPRK) shares increased by 5.8% to close at $6.57, following a notable trading volume compared to typical sessions, despite a 6.6% loss over the past four weeks [1] - The stock price surge is linked to rising crude prices, with Brent crude recovering to around $70 per barrel, which has boosted drilling activity and strengthened GeoPark's position as a Latin America-focused energy producer [2] Financial Performance - GeoPark is expected to report quarterly earnings of $0.31 per share, reflecting a year-over-year decline of 35.4%, with revenues anticipated at $114.06 million, down 28.5% from the previous year [3] - The consensus EPS estimate for the upcoming quarter has been revised 138.5% higher in the last 30 days, indicating a positive trend that typically correlates with stock price appreciation [4] Investment Highlights - The stock offers a 9.5% dividend yield and is supported by ongoing share buybacks, enhancing its attractiveness as an energy investment [2] - GeoPark has hedged 87% of its 2025 production against Brent oil prices, providing significant price protection and reducing exposure to commodity market volatility [2] - The stock currently holds a Zacks Rank of 2 (Buy), indicating a favorable outlook compared to other stocks in the same industry [5] Industry Context - GeoPark operates within the Oil and Gas - Exploration and Production sector in the United States, alongside other companies like Magnolia Oil & Gas Corp (MGY), which recently closed 4% higher at $24.61 [5] - Magnolia Oil & Gas Corp has seen a -4.7% change in its consensus EPS estimate over the past month, with a year-over-year decline of 21.2%, currently holding a Zacks Rank of 3 (Hold) [6]

Financial Data and Key Metrics Changes - Consolidated average production for Q2 2025 reached 27,380 barrels of oil equivalent per day, with a year-to-date average of 28,223 barrels per day, reflecting a 6% decline compared to the previous quarter due to divestments and local blockades [6][10] - Adjusted EBITDA was $71.5 million with a 60% margin, driven by cost discipline and a $4.9 million gain from the commodity hedging program [9][10] - The company reported a net loss of $10.3 million for the quarter, but excluding a nonrecurring impairment charge, the net profit amounted to $20.7 million, significantly higher than previous quarters [12] Business Line Data and Key Metrics Changes - Janus 34 delivered 17,605 barrels of oil equivalent per day, exceeding expectations due to effective management and operational efficiencies [7] - Average well costs were reduced by more than 30%, and pad-to-pad mobilization time dropped from seven days to just eighteen hours [7][9] - CPO-five's performance remained stable despite some production impact from downtime, and the field is currently operating normally [8] Market Data and Key Metrics Changes - The company expects a full-year organic production range of 26,000 to 28,000 barrels of oil equivalent per day, excluding volumes from inorganic acquisitions [10] - Adjusted EBITDA for the full year is projected to be between $260 million and $290 million at Brent prices of $65 to $70 per barrel [11] Company Strategy and Development Direction - The company is focused on enhancing field productivity, stabilizing production, and improving returns over time, with a rigorous portfolio reassessment ongoing [5] - There is a commitment to responsibly increase investment and accelerate development in Colombia's oil and gas sector [5] - The company plans to divest its interest in the Perico and Espejo blocks in Ecuador to prioritize high-return assets [11] Management's Comments on Operating Environment and Future Outlook - Management acknowledged strong operational and financial results despite market volatility and lower Brent prices [6] - The CEO emphasized the importance of protecting the existing business while creating additional value and returning to a pathway of growth [17] - The company is actively assessing opportunities in Argentina, particularly in the Vaca Muerta region, and is open to both operating and non-operating partnerships [22][41] Other Important Information - The Board approved a dividend payment of $7.5 million for 2025, reflecting the company's performance during the period [12] - The company completed an open market repurchase of $54.5 million of its 2030 notes, enhancing long-term financial flexibility [10] Q&A Session Summary Question: Can you provide examples of areas for improvement in the company? - The CEO noted that the company is focused on protecting the existing business and creating additional value, with ongoing efforts to enhance operational efficiencies and address natural production declines [19] Question: What is the status of inorganic growth opportunities, particularly in Argentina? - The CEO confirmed that the company is actively looking at opportunities in Argentina, particularly in the Vaca Muerta region, and is open to both operating and non-operating roles [22][41] Question: How are you approaching reserves replacement and capital allocation? - The CEO highlighted a focus on both organic and inorganic efforts for reserves replacement, with an increased capital expenditure guidance reflecting good opportunities [28][29] Question: What are the company's cash allocation priorities moving forward? - The company aims to balance capital allocation between organic CapEx, M&A opportunities, and dividends, with a disciplined approach to managing cash [104]

Summary of Geopark's Quarterly Earnings Report Core Viewpoint - Geopark reported quarterly earnings of $0.27 per share, exceeding the Zacks Consensus Estimate of $0.15 per share, but down from $0.48 per share a year ago, indicating a significant earnings surprise of +80.00% [1] Financial Performance - The company posted revenues of $119.79 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 2.68%, but down from $190.2 million year-over-year [2] - Over the last four quarters, Geopark has surpassed consensus revenue estimates four times, but only once for EPS estimates [2] Stock Performance and Outlook - Geopark shares have declined approximately 31.2% since the beginning of the year, contrasting with the S&P 500's gain of 7.6% [3] - The current consensus EPS estimate for the upcoming quarter is $0.13 on revenues of $112.37 million, and for the current fiscal year, it is $0.80 on revenues of $473.84 million [7] Industry Context - The Oil and Gas - Exploration and Production - United States industry, to which Geopark belongs, is currently ranked in the bottom 31% of over 250 Zacks industries, indicating potential challenges ahead [8] - The performance of Geopark's stock may be influenced by the overall outlook of the industry, as historical data shows that the top 50% of Zacks-ranked industries outperform the bottom 50% by more than 2 to 1 [8]

[Interim Condensed Consolidated Financial Statements and Explanatory Notes](index=3&type=section&id=Item%201%20Interim%20Condensed%20Consolidated%20Financial%20Statements%20and%20Explanatory%20Notes) This section presents GeoPark Limited's interim financial statements and explanatory notes, detailing financial performance, position, cash flows, and key accounting events for H1 2025 [Condensed Consolidated Statement of Income](index=5&type=section&id=Condensed%20Consolidated%20Statement%20of%20Income) GeoPark Limited's H1 2025 income statement shows significant declines in revenue and operating profit, resulting in a Q2 net loss and reduced H1 profit, primarily due to impairment and increased financial expenses Condensed Consolidated Statement of Income - Key Metrics | Metric (US$ '000) | 3-month ended Jun 30, 2025 | 3-month ended Jun 30, 2024 | 6-month ended Jun 30, 2025 | 6-month ended Jun 30, 2024 | | :---------------- | :------------------------- | :------------------------- | :------------------------- | :------------------------- | | Revenue | 119,787 | 190,204 | 257,136 | 357,620 | | Operating Profit | 7,132 | 90,321 | 57,548 | 174,276 | | Profit (Loss) for the Period | (10,335) | 25,738 | 2,734 | 55,930 | | Basic EPS (US$) | (0.20) | 0.49 | 0.05 | 1.04 | | Diluted EPS (US$) | (0.20) | 0.48 | 0.05 | 1.03 | - Impairment loss for non-financial assets of **$30,989,000** was recognized in Q2 2025 and H1 2025, significantly impacting operating profit[12](index=12&type=chunk) - Financial expenses increased significantly to **$19,047,000** for the three-month period and **$43,883,000** for the six-month period in 2025, compared to $10,885,000 and $22,022,000 in 2024, respectively[12](index=12&type=chunk) [Condensed Consolidated Statement of Comprehensive Income](index=6&type=section&id=Condensed%20Consolidated%20Statement%20of%20Comprehensive%20Income) Total comprehensive income for GeoPark Limited shifted from a profit of $24.8 million in Q2 2024 to a loss of $0.7 million in Q2 2025, primarily due to period profit/loss and cash flow hedge fluctuations Condensed Consolidated Statement of Comprehensive Income - Key Metrics | Metric (US$ '000) | 3-month ended Jun 30, 2025 | 3-month ended Jun 30, 2024 | 6-month ended Jun 30, 2025 | 6-month ended Jun 30, 2024 | | :---------------- | :------------------------- | :------------------------- | :------------------------- | :------------------------- | | Profit (Loss) for the period | (10,335) | 25,738 | 2,734 | 55,930 | | Profit (Loss) on cash flow hedges | 14,517 | 327 | 15,319 | (3,616) | | Total comprehensive (loss) profit for the period | (729) | 24,824 | 12,663 | 52,658 | - Profit on cash flow hedges significantly increased to **$14,517,000** for the three-month period and **$15,319,000** for the six-month period in 2025, compared to $327,000 and a loss of $3,616,000 in 2024, respectively[15](index=15&type=chunk) [Condensed Consolidated Statement of Financial Position](index=7&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, GeoPark's total assets decreased to $1,069.4 million from $1,200.1 million, driven by reductions in non-current and current assets, while non-current borrowings increased Condensed Consolidated Statement of Financial Position - Key Metrics | Metric (US$ '000) | At June 30, 2025 | At December 31, 2024 | | :---------------- | :--------------- | :------------------- | | Total Assets | 1,069,406 | 1,200,055 | | Total Equity | 203,423 | 203,291 | | Total Liabilities | 865,983 | 996,764 | | Non-Current Assets | 698,039 | 769,944 | | Current Assets | 371,367 | 430,111 | | Non-Current Liabilities | 715,818 | 628,091 | | Current Liabilities | 150,165 | 368,673 | - Cash and cash equivalents decreased to **$266,038,000** at June 30, 2025, from $276,750,000 at December 31, 2024[19](index=19&type=chunk) - Non-current borrowings increased to **$594,782,000** at June 30, 2025, from $492,007,000 at December 31, 2024, reflecting the issuance of Notes due 2030[19](index=19&type=chunk)[76](index=76&type=chunk) [Condensed Consolidated Statement of Changes in Equity](index=8&type=section&id=Condensed%20Consolidated%20Statement%20of%20Changes%20in%20Equity) GeoPark's total equity remained relatively stable, increasing slightly from $203.3 million to $203.4 million, influenced by comprehensive income and cash distributions Condensed Consolidated Statement of Changes in Equity - Key Metrics | Metric (US$ '000) | At January 1, 2025 | At June 30, 2025 | | :---------------- | :----------------- | :--------------- | | Total Equity | 203,291 | 203,423 | | Profit for the six-month period | 2,734 | 2,734 | | Other comprehensive profit for the period | 9,929 | 9,929 | | Share-based payment | 2,553 | 2,553 | | Cash distribution | (15,084) | (15,084) | - Cash distributions amounted to **$15,084,000** for the six-month period ended June 30, 2025[21](index=21&type=chunk) [Condensed Consolidated Statement of Cash Flow](index=9&type=section&id=Condensed%20Consolidated%20Statement%20of%20Cash%20Flow) GeoPark experienced a net decrease in cash and cash equivalents of $11.9 million for H1 2025, driven by negative operating cash flows offset by investing and financing activities Condensed Consolidated Statement of Cash Flow - Key Metrics | Metric (US$ '000) | 6-month ended Jun 30, 2025 | 6-month ended Jun 30, 2024 | | :---------------- | :------------------------- | :------------------------- | | Cash flows (used in) from operating activities – net | (85,807) | 143,168 | | Cash flows from (used in) investing activities – net | 7,487 | (133,745) | | Cash flows from (used in) financing activities - net | 66,446 | (76,097) | | Net decrease in cash and cash equivalents | (11,874) | (66,674) | | Cash and cash equivalents at the end of the period | 266,038 | 66,013 | - Operating activities resulted in a net cash outflow of **$85,807,000** in H1 2025, a reversal from a $143,168,000 inflow in H1 2024, primarily due to a large change in working capital[24](index=24&type=chunk) - Financing activities generated **$66,446,000** in net cash in H1 2025, largely due to **$550,000,000** in proceeds from new borrowings, partially offset by principal payments and cash distributions[24](index=24&type=chunk) [Explanatory Notes to the Interim Condensed Consolidated Financial Statements](index=10&type=section&id=Explanatory%20Notes%20to%20the%20Interim%20Condensed%20Consolidated%20Financial%20Statements) The explanatory notes provide detailed context and breakdowns for the interim condensed consolidated financial statements, covering general information, segment performance, revenue, risk management, various expenses, financial results, income tax, asset and liability movements, equity changes, capital commitments, business transactions including divestments, impairment tests, and subsequent events [Note 1 General information](index=10&type=section&id=Note%201%20General%20information) This note provides general information about GeoPark Limited, its operations, financial statement preparation, liquidity, and key subsidiary changes - GeoPark Limited is a Bermuda-incorporated company focused on oil and gas exploration, development, and production in Latin America[29](index=29&type=chunk) - The interim financial statements are prepared in accordance with IAS 34 and should be read with the annual IFRS statements for December 31, 2024[31](index=31&type=chunk) - The Group maintains a cash position of **US$266,038,

Group 1 - The article discusses the importance of strategizing to counter external risks and price volatility in the oil and gas market when considering potential portfolio additions [1] - The author has nearly two decades of experience in the logistics sector and focuses on stock investing and macroeconomic analysis, particularly in ASEAN and NYSE/NASDAQ stocks [1] - The author emphasizes the diversification of investments across various industries and market cap sizes, including banking, telecommunications, logistics, and hotels [1] Group 2 - The author began trading in the Philippine stock market in 2014, initially investing in blue-chip companies and later expanding to different sectors [1] - The entry into the US market occurred in 2020, with the author gaining insights through a relative's trading account before opening their own [1] - The author has been utilizing analyses from Seeking Alpha to compare with their own research in the Philippine market since discovering the platform in 2018 [1]

Company Focus - GeoPark emphasizes profitability, discipline, and sustainable value creation as its core operational focus [1] - The company maintains a highly attractive valuation and efficient operations, prioritizing capital return [1] Investment Approach - The investment strategy highlighted focuses on value companies with solid long-term potential, indicating a preference for stability and growth [1]