Core Viewpoint - GeoPark (NYSE: GPRK) is identified as an undervalued oil and gas producer in Latin America, operating similarly to a private equity firm by acquiring and refurbishing oil fields for monetization [1]. Company Summary - The company focuses on buying undervalued oil fields, refurbishing them, and then monetizing the assets, indicating a strategic approach to investment in the oil and gas sector [1]. - There is a belief that GeoPark is significantly mispriced in the market, suggesting potential for investment opportunities [1]. Investment Strategy - The investment philosophy emphasizes identifying high-quality and/or severely mispriced investment ideas, with a focus on purchasing great companies at attractive prices [1].

Core Insights - GeoPark Limited has terminated its agreement with Phoenix Global Resources regarding the acquisition of a non-operated working interest in four unconventional blocks in Argentina's Vaca Muerta due to Phoenix exercising its option to withdraw by the "Outside Date" of May 13, 2025 [1][2] - Despite this setback, GeoPark remains committed to its long-term strategy focused on sustainable and profitable growth in Latin America's energy sector [2] Original Vaca Muerta Block Purchase Deal - In April 2024, GeoPark proposed to acquire a non-operated working interest in the Vaca Muerta Formation, expecting to close the deal in Q3 2024, pending regulatory approval, which would add over 5,000 barrels of oil equivalent per day to its production [3] - The acquisition was valued at $200 million, with an additional $110-$120 million allocated for exploration over two years, funded through cash, credit facilities, and new financing while maintaining a net debt-to-adjusted EBITDA ratio below 1.1x [3] North Star Strategy - GeoPark reaffirmed its commitment to its "North Star" strategic pillars, focusing on developing significant assets in prolific basins with a disciplined approach [4] - The company holds $330 million in cash, a net leverage ratio under 1.0x, and a hedging program covering 87% of its 2025 volumes, positioning it well for future strategic opportunities [4] Core Strength and Strategic Flexibility - GeoPark aims to maximize returns from high-value projects in its current portfolio while pursuing inorganic growth through carefully evaluated opportunities within its core geographies [5] - The company is considering options such as share buybacks, debt reduction, or dividends based on market conditions to maintain strategic flexibility [5] Company Overview - GeoPark operates primarily in Chile, Colombia, Brazil, and Argentina, and is classified as an explorer, operator, and consolidator of oil and gas [6] - Currently, GeoPark holds a Zacks Rank of 5 (Strong Sell) [6]

Financial Data and Key Metrics Changes - The company reported adjusted EBITDA of $88 million, up 13% from the previous quarter, with operating costs decreasing to $12.3 per barrel, aligning with full-year guidance [7][8] - Net income reached $13 million despite one-time costs related to debt refinancing, which extended the average debt maturity to almost five years [7][8] - The company closed the quarter with over $308 million in cash and a net leverage ratio of 0.9 times, preserving financial flexibility [8] Business Line Data and Key Metrics Changes - Pro forma consolidated production averaged 36,000 barrels per day, exceeding the base case guidance of 35,000 barrels per day, driven by stable output in Colombia and Ecuador, and record production from new Argentina assets [4][5] - In Colombia, the Curucutu-one well encountered approximately 70 feet of net pay and tested production of around 1,300 barrels per day gross, boosting block output to nearly 5,000 barrels per day [7] - The Vaca Muerta blocks in Argentina achieved gross production of over 17,000 barrels per day in February, with plans to target 40,000 barrels per day gross capacity by mid-2026 [5][6] Market Data and Key Metrics Changes - The company has hedged approximately 70% of its 2025 production with floors of $68 to $70 per barrel, providing protection against market volatility [8][25] - Average Brent realizations for the hedged volumes are currently benign, while the unhedged 30% is subject to spot market prices [25] Company Strategy and Development Direction - The company remains committed to executing its 2025 work program, with plans for seven wells in Colombia and four in Argentina during the second quarter [10] - A strategic focus on high-impact material assets led to the divestment of interests in the Zanos 32 Block and the Manatee Gas Field [9] - The company aims to build a more valuable and sustainable GeoPark, focusing on significant assets in major basins with the right partners [10] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the persistent market volatility and Brent fluctuations but emphasized the company's solid results and financial robustness [4] - The company is actively working to close the Vaca Muerta transaction, with an outside date of May 13, 2025, for either party to withdraw from the agreement without penalties [19][36] - Management expressed confidence in maintaining capital allocation priorities and operational efficiency despite current market uncertainties [38][40] Other Important Information - The company declared a quarterly dividend of $0.15 per share, reinforcing its commitment to shareholder returns, targeting an annualized $30 million dividend [10] - The company is focused on cost reductions and efficiency improvements, achieving a 25% reduction in well costs through new drilling techniques [9][40] Q&A Session Summary Question: How is the company viewing CapEx and production growth in the current oil price environment? - Management stated that the capital allocation plan is designed to be economic value accretive and cash positive at $60 per barrel, and they do not see a need to change it [25][26] Question: Can you provide updates on the Argentina deal and cash flow? - Management confirmed that the transaction is still pending regulatory approval and emphasized their commitment to closing it [17][19] Question: What is the company's outlook on hedging for 2026? - Management indicated that they intend to maintain a robust hedging policy and will monitor market conditions to determine appropriate hedging levels [48][49] Question: What is the company's target cash position and leverage comfort level? - Management stated that they are comfortable with a leverage ratio of 0.9 times and aim to maintain a long-term leverage ratio around 1.5 [50][51] Question: Are there any operational disruptions affecting production levels in Colombia? - Management reported that production levels are within expectations, with minor disruptions accounted for in their planning [95][96]

Financial Data and Key Metrics Changes - The company reported a consolidated production average of 36,000 barrels per day, exceeding the guidance of 35,000 barrels per day, driven by stable output in Colombia and Ecuador, and record production from Argentina assets [4][5] - Adjusted EBITDA reached $88 million, up 13% from the previous quarter, with operating costs decreasing to $12.3 per barrel [7][9] - Net income was reported at $13 million despite one-time costs related to debt refinancing [8] Business Line Data and Key Metrics Changes - In Colombia, the Curucutu-one well encountered approximately 70 feet of net pay and tested production of around 1,300 barrels per day, boosting block output to nearly 5,000 barrels per day [7] - The Vaca Muerta blocks in Argentina achieved gross production of over 17,000 barrels per day in February, with plans for further development targeting 40,000 barrels per day gross capacity by mid-2026 [5][6] Market Data and Key Metrics Changes - The company maintained a proactive hedging program covering approximately 70% of its 2025 production with floors of $68 to $70 per barrel [9] - The average Brent realizations for the hedged volumes were reported as benign, with the company expecting full-year prices to gravitate towards $66 to $68 per barrel [82] Company Strategy and Development Direction - The company is focused on building a more valuable and sustainable GeoPark, emphasizing big assets in significant basins with the right partners [11] - A strategic decision was made to divest interests in lower-impact assets to concentrate on high-impact material assets [10] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the uncertainty surrounding the regulatory approval process for the Vaca Muerta transaction but remains committed to closing the deal [6][20] - The company expressed confidence in its capital allocation strategy, which is designed to be cash positive at $60 per barrel, and plans to execute its 2025 work program with seven wells in Colombia and four in Argentina [25][28] Other Important Information - The company declared a quarterly dividend of $0.15 per share, targeting an annualized dividend of $30 million [11] - The company closed the quarter with over $308 million in cash and a net leverage ratio of 0.9 times, indicating strong financial flexibility [9] Q&A Session Summary Question: How is the company viewing CapEx and production growth in the current oil price environment? - Management stated that the capital allocation remains unchanged and is designed to be economic value accretive and cash positive at $60 per barrel [25][26] Question: Can you provide more details on the Argentina deal and cash flow? - Management confirmed that the transaction is still pending regulatory approval and emphasized their commitment to closing the deal [20][21] Question: What are the requirements preventing the transaction from closing? - Management indicated that all requisites have been complied with and there are no specific requirements currently impeding the transaction [38] Question: How is the company planning to manage costs in the current environment? - Management highlighted ongoing discussions about capital allocation priorities and noted that they are actively looking for cost efficiencies across various operational aspects [40][41] Question: What is the outlook for production in Colombia? - Management confirmed that production guidance remains at 35,000 barrels per day, with adjustments made for divestments impacting annual production [62][66] Question: What is the company's stance on hedging for 2026? - Management stated that they intend to hedge for 2026 but will monitor market conditions before locking in prices [50][52] Question: What is the target cash position for the year? - Management indicated that they are comfortable with a leverage ratio of around 1.5 times and are currently well below that at 0.9 times [53][54]

Core Insights - Geopark (GPRK) reported quarterly earnings of $0.34 per share, missing the Zacks Consensus Estimate of $0.46 per share, and down from $0.54 per share a year ago, representing an earnings surprise of -26.09% [1] - The company posted revenues of $137.3 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 0.94%, but down from $167.42 million year-over-year [2] - Geopark shares have declined approximately 26.9% since the beginning of the year, compared to a -4.7% decline in the S&P 500 [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.34 on revenues of $125.72 million, and for the current fiscal year, it is $1.46 on revenues of $582.49 million [7] - The estimate revisions trend for Geopark is currently unfavorable, resulting in a Zacks Rank 5 (Strong Sell), indicating expected underperformance in the near future [6] Industry Context - The Oil and Gas - Exploration and Production - United States industry is currently in the bottom 25% of over 250 Zacks industries, which may negatively impact Geopark's stock performance [8]

[Interim Condensed Consolidated Financial Statements and Explanatory Notes for the three-month periods ended March 31, 2025 and 2024](index=3&type=section&id=Interim%20Condensed%20Consolidated%20Financial%20Statements%20and%20Explanatory%20Notes) [Condensed Consolidated Statement of Income](index=5&type=section&id=Condensed%20Consolidated%20Statement%20of%20Income) For the first quarter of 2025, GeoPark reported a significant decrease in revenue and profit compared to the same period in 2024. Revenue fell by 18% to $137.3 million, and net profit dropped by 57% to $13.1 million. The decline was primarily driven by lower sales, a write-off of unsuccessful exploration efforts, and higher financial expenses related to debt refinancing Q1 2025 vs Q1 2024 Income Statement Highlights (in US$ '000) | Metric | Q1 2025 (Unaudited) | Q1 2024 (Unaudited) | Change (%) | | :--- | :--- | :--- | :--- | | **Revenue** | **137,349** | **167,416** | **-18.0%** | | Production and operating costs | (35,437) | (38,540) | -8.1% | | Write-off of unsuccessful exploration efforts | (5,883) | — | N/A | | **Operating Profit** | **50,416** | **83,955** | **-39.9%** | | Financial expenses | (24,836) | (11,137) | +123.0% | | Profit Before Income Tax | 25,516 | 75,065 | -66.0% | | **Profit for the Period** | **13,069** | **30,192** | **-56.7%** | | **Basic EPS (US$)** | **0.25** | **0.55** | **-54.5%** | | **Diluted EPS (US$)** | **0.25** | **0.54** | **-53.7%** | [Condensed Consolidated Statement of Comprehensive Income](index=6&type=section&id=Condensed%20Consolidated%20Statement%20of%20Comprehensive%20Income) Total comprehensive profit for Q1 2025 was $13.4 million, a 52% decrease from $27.8 million in Q1 2024. The decrease is mainly attributed to the lower net profit for the period. Other comprehensive income turned positive at $0.3 million, compared to a loss of $2.4 million in the prior year, primarily due to gains on cash flow hedges Q1 2025 vs Q1 2024 Comprehensive Income (in US$ '000) | Metric | Q1 2025 (Unaudited) | Q1 2024 (Unaudited) | | :--- | :--- | :--- | | Profit for the period | 13,069 | 30,192 | | Gain (Loss) on cash flow hedges | 802 | (3,943) | | Other comprehensive profit (loss) for the period | 323 | (2,358) | | **Total comprehensive profit for the period** | **13,392** | **27,834** | [Condensed Consolidated Statement of Financial Position](index=7&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of March 31, 2025, GeoPark's total assets remained stable at approximately $1.2 billion compared to year-end 2024. Key changes include an increase in cash and cash equivalents to $308.0 million and a significant shift in liabilities, with non-current borrowings increasing to $638.4 million and current liabilities decreasing substantially, mainly due to the repayment of a large customer advance Financial Position Highlights (in US$ '000) | Metric | At March 31, 2025 (Unaudited) | At Dec 31, 2024 | | :--- | :--- | :--- | | **Total Assets** | **1,197,956** | **1,200,055** | | Cash and cash equivalents | 307,993 | 276,750 | | Property, plant and equipment | 709,360 | 740,491 | | **Total Liabilities** | **987,265** | **996,764** | | Borrowings (Non-current) | 638,432 | 492,007 | | Trade and other payables (Current) | 110,948 | 279,949 | | **Total Equity** | **210,691** | **203,291** | [Condensed Consolidated Statement of Changes in Equity](index=8&type=section&id=Condensed%20Consolidated%20Statement%20of%20Changes%20in%20Equity) Total equity increased from $203.3 million at the start of the year to $210.7 million as of March 31, 2025. The increase was driven by a comprehensive profit of $13.4 million, partially offset by cash distributions (dividends) of $7.5 million and other transactions with owners - Equity at March 31, 2025, stood at **$210.7 million**, up from **$203.3 million** at January 1, 2025[21](index=21&type=chunk) - The increase in equity was primarily due to the profit for the period of **$13.1 million**[21](index=21&type=chunk) - The company made cash distributions of **$7.5 million** during the quarter[21](index=21&type=chunk) [Condensed Consolidated Statement of Cash Flow](index=9&type=section&id=Condensed%20Consolidated%20Statement%20of%20Cash%20Flow) The company experienced a net cash outflow from operating activities of $78.8 million in Q1 2025, a sharp reversal from an inflow of $87.6 million in Q1 2024, largely due to a significant negative change in working capital, including a $132.8 million repayment of an advance from Vitol. Financing activities provided a net cash inflow of $116.1 million from issuing new debt. Overall, cash and cash equivalents increased by $30.6 million to $308.0 million Q1 2025 vs Q1 2024 Cash Flow Summary (in US$ '000) | Metric | Q1 2025 (Unaudited) | Q1 2024 (Unaudited) | | :--- | :--- | :--- | | Cash flows (used in) from operating activities | (78,763) | 87,621 | | Cash flows used in investing activities | (6,675) | (46,649) | | Cash flows from (used in) financing activities | 116,064 | (23,127) | | **Net increase in cash and cash equivalents** | **30,626** | **17,845** | | **Cash and cash equivalents at end of period** | **307,993** | **150,721** | - The negative operating cash flow was heavily impacted by a **$161.6 million** negative change in working capital, which includes a partial repayment of **$132.8 million** of an advance payment from Vitol[24](index=24&type=chunk)[25](index=25&type=chunk) - Financing activities were driven by proceeds from new borrowings of **$550 million**, used to repay **$405.3 million** of principal on other debt[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 information on accounting policies, segment performance, financial instruments, and key business activities. Highlights include a breakdown of revenue and costs by geography, details on debt refinancing, recent divestments of non-core assets in Colombia and Brazil, and significant subsequent events such as oil price volatility and the appointment of a new CEO [Note 1: General Information, Basis of Preparation, and Financial Risk](index=10&type=section&id=Note%201%20General%20information) GeoPark Limited is a Bermuda-incorporated company focused on oil and gas exploration and production in Latin America. The financial statements are prepared under IAS 34. The company actively manages financial risks, including price and currency risk, and maintains a strong liquidity position with $308 million in cash and access to significant credit facilities - The Group's principal activity is the exploration, development, and production of oil and gas reserves in Latin America[27](index=27&type=chunk) - As of March 31, 2025, the Group maintained a cash position of **$308.0 million** and had access to committed and uncommitted credit lines totaling over **$481 million**, plus approval for a **$500 million** debt program in Argentina[36](index=36&type=chunk) [Note 2: Segment Information](index=12&type=section&id=Note%202%20Segment%20information) In Q1 2025, Colombia was the primary contributor to the company's performance, generating $129.9 million in revenue and $88.4 million in Adjusted EBITDA. Overall Adjusted EBITDA decreased to $87.9 million from $111.5 million in Q1 2024, mainly due to lower revenue. Total assets were predominantly located in Colombia ($915.9 million) and Argentina ($216.1 million) Adjusted EBITDA by Segment (Q1 2025 vs Q1 2024, in US$ '000) | Segment | Q1 2025 Adj. EBITDA | Q1 2024 Adj. EBITDA | | :--- | :--- | :--- | | Colombia | 88,389 | 113,405 | | Ecuador | 3,393 | (279) | | Brazil | (1,487) | 796 | | Argentina | (1,241) | (696) (part of Other) | | **Total** | **87,944** | **111,543** | - A reconciliation shows that after accounting for depreciation, write-offs, and other items, the Adjusted EBITDA of **$87.9 million** reconciles to a Profit Before Income Tax of **$25.5 million** for Q1 2025[45](index=45&type=chunk) [Note 4: Commodity Risk Management Contracts](index=15&type=section&id=Note%204%20Commodity%20risk%20management%20contracts) GeoPark uses derivative financial instruments, specifically zero-premium collars, to manage oil price risk. For Q1 2025, the company had 19,500 bbl/d hedged with a floor price of $69.79/bbl and a ceiling of $82.48/bbl. Hedging volumes are scheduled to decrease quarterly through the remainder of 2025 Production Hedging Schedule (as of March 31, 2025) | Period | Volume (bbl/d) | Average Price (US$/bbl) | | :--- | :--- | :--- | | Q1 2025 | 19,500 | 69.79 Put / 82.48 Call | | Q2 2025 | 19,000 | 69.26 Put / 79.02 Call | | Q3 2025 | 17,500 | 68.69 Put / 78.59 Call | | Q4 2025 | 16,000 | 68.25 Put / 77.50 Call | | Q1 2026 | 1,000 | 68.00 Put / 77.40 Call | [Note 9: Financial Results](index=18&type=section&id=Note%209%20Financial%20results) Financial expenses more than doubled to $24.8 million in Q1 2025 from $11.1 million in Q1 2024. The increase was primarily driven by a one-off, non-cash charge of $6.2 million for borrowing cancellation costs related to the early repurchase of the 2027 Notes, and higher interest expenses - A significant component of the increased financial expense was a **$6.24 million** one-off non-cash charge for 'Borrowings cancellation costs' due to the accelerated amortization of deferred issuance costs from the partial repurchase of the Notes due 2027[56](index=56&type=chunk)[57](index=57&type=chunk) - Interest and amortization of debt issue costs increased to **$11.8 million** from **$7.7 million** year-over-year[56](index=56&type=chunk) [Note 10: Income Tax](index=18&type=section&id=Note%2010%20Income%20tax) The effective tax rate for Q1 2025 was 49%, down from 60% in Q1 2024. The rate remains higher than Colombia's statutory rate of 40% (35% base + 5% estimated surcharge) primarily due to non-deductible expenses, including a one-off charge related to debt refinancing - The effective tax rate was **49%** for Q1 2025, compared to **60%** for Q1 2024[59](index=59&type=chunk) - The statutory income tax rate in Colombia for 2025 is estimated to be **40%**, including a **5%** surcharge based on Brent oil prices[60](index=60&type=chunk) - The higher effective tax rate was mainly driven by non-deductible tax losses and the non-cash charge from the early extinguishment of debt[61](index=61&type=chunk) [Note 11: Property, Plant and Equipment](index=20&type=section&id=Note%2011%20Property%2C%20plant%20and%20equipment) The carrying amount of Property, Plant and Equipment (PP&E) decreased to $709.4 million from $740.5 million at year-end 2024. During the quarter, the company recorded a $5.9 million write-off for an unsuccessful exploration well in the PUT-8 Block in Colombia and divested $78.2 million in assets (at cost) - The company wrote off **$5.9 million** corresponding to one unsuccessful exploration well drilled in the PUT-8 Block in Colombia[62](index=62&type=chunk)[63](index=63&type=chunk) - Assets with a cost of **$78.2 million** were divested during the quarter[62](index=62&type=chunk) [Note 14: Borrowings](index=23&type=section&id=Note%2014%20Borrowings) In January 2025, GeoPark completed a major debt refinancing. The company issued $550 million of new senior notes due 2030 with an 8.75% coupon. The proceeds were used to repurchase $405.3 million of its existing notes due 2027 and to repay a $152 million prepayment facility with Vitol - On January 31, 2025, the company issued **$550 million** in senior notes due 2030 at an **8.75%** coupon[68](index=68&type=chunk) - Net proceeds were used to repurchase **$405.3 million** of its Notes due 2027 through a tender offer[70](index=70&type=chunk) - The remainder of the proceeds was used to repay up to **$152 million** of an offtake and prepayment agreement with Vitol and for general corporate purposes[70](index=70&type=chunk) [Note 16: Trade and Other Payables](index=25&type=section&id=Note%2016%20Trade%20and%20other%20payables) Trade and other payables decreased significantly to $110.9 million from $279.9 million at year-end 2024. The primary reason for this reduction was the repayment of a $152 million advance payment from a customer (Vitol), of which $19.2 million remained outstanding at quarter-end - Customer advance payments dropped from **$152.0 million** at year-end 2024 to **$19.2 million** at March 31, 2025[72](index=72&type=chunk) - Between February and March 2025, GeoPark repaid **$126.4 million** in cash and **$6.4 million** in kind from the Vitol advance payment[72](index=72&type=chunk) [Note 19: Business Transactions](index=27&type=section&id=Note%2019%20Business%20transactions) During the quarter, GeoPark executed two key divestments. It agreed to sell its non-operated working interest in the Llanos 32 Block in Colombia for $19 million. It also agreed to sell its 10% non-operated interest in the Manati gas field in Brazil for $1 million plus a potential $1 million contingent payment. Assets and liabilities related to the Manati field have been classified as held for sale - On March 14, 2025, GeoPark agreed to sell its non-operated working interest in the Llanos 32 Block (Colombia) for a total consideration of **$19.0 million**[79](index=79&type=chunk) - On March 27, 2025, GeoPark agreed to sell its 10% non-operated working interest in the Manati gas field (Brazil) for **$1.0 million**, plus a contingent payment of an additional **$1.0 million**[80](index=80&type=chunk) - Assets of **$6.2 million** and liabilities of **$12.8 million** related to the Manati gas field were classified as held for sale[81](index=81&type=chunk) [Note 21: Subsequent Events](index=28&type=section&id=Note%2021%20Subsequent%20events) After the quarter-end, GeoPark noted significant oil price volatility with Brent crude falling over 20% in early April 2025 before partially recovering. The company also announced the appointment of Felipe Bayon, former CEO of Ecopetrol, as its new Chief Executive Officer, effective June 1, 2025. Additionally, new currency risk hedging contracts were entered into for the second half of 2025 - In early April 2025, international crude oil prices experienced a significant decline, with Brent falling by more than **20%** to below **$60 per barrel** before partially recovering[83](index=83&type=chunk) - On April 24, 2025, GeoPark announced the appointment of Felipe Bayon as its new CEO, effective June 1, 2025. Mr. Bayon was previously the CEO of Ecopetrol[87](index=87&type=chunk)[88](index=88&type=chunk) - In April 2025, the company entered into new zero-premium collar currency hedges for a notional amount of **$30 million** to mitigate exposure to the Colombian Peso in H2 2025[86](index=86&type=chunk)

GeoPark Limited (GPRK) recently released its operational update for the first quarter of 2025, showing signs of strong operational momentum and strategic discipline. The update underscores its resilience to survive in a volatile oil market, driven by both organic growth and smart portfolio management. A standout was the Vaca Muerta basin in Argentina, where the company reported a record production of 17,358 boepd gross in February. While the acquisition of the Vaca Muerta assets is still pending regulatory ...

[Press Release: Filing of Form 20-F for Fiscal Year 2024](index=3&type=section&id=ITEM%201.%20Press%20Release%20dated%20April%202%2C%202025%20titled%20%22GeoPark%20Announces%20the%20Filing%20of%20its%20Form%2020-F%20for%20Fiscal%20Year%202024%22) [Filing Announcement](index=3&type=page&id=Filing%20Announcement) On April 2, 2025, GeoPark Limited announced the filing of its Form 20-F for the fiscal year ended December 31, 2024, with the U.S. Securities and Exchange Commission (SEC) - GeoPark announced the filing of its Form 20-F for the fiscal year ended December 31, 2024, with the SEC[6](index=6&type=chunk) - The company is described as a leading independent energy company with over 20 years of successful operations across Latin America[6](index=6&type=chunk) [Accessing the Report](index=3&type=page&id=Accessing%20the%20Report) The Form 20-F is available on the SEC's website and GeoPark's website, with shareholders able to request a free hard copy - The Form 20-F can be accessed on the SEC's website (www.sec.gov) or the company's website (www.geo-park.com)[7](index=7&type=chunk)[9](index=9&type=chunk) - Shareholders are entitled to receive a free hard copy of the company's audited financial statements or the complete 2024 Form 20-F upon request from the Investor Relations team[7](index=7&type=chunk) [Contact Information](index=3&type=page&id=Contact%20Information) The company provided specific contact details for investors and media inquiries - Contact information is provided for investors and media, including specific personnel for Shareholder Value, Investor Relations, and Communications[8](index=8&type=chunk)

Oil Price Dependency - For the year ended December 31, 2024, 99% of the company's revenues were derived from oil, indicating a strong reliance on oil prices for financial performance[117]. - A substantial or extended decline in oil and natural gas prices could adversely affect the company's business, financial condition, and results of operations[119]. - The company expects a slightly more balanced supply-demand dynamic in 2025, with potential supply growth from non-OPEC producers possibly leading to a softer price environment compared to 2024[118]. - The market for oil and natural gas has historically been volatile, with Brent spot prices ranging from $19.3 to $128.0 per barrel over the last five years[115]. - Brent crude prices averaged $79.8 per barrel in 2024, with fluctuations driven by geopolitical factors and OPEC+ production cuts of approximately 2.2 million barrels per day[116]. Production and Reserves - As of December 31, 2024, the reserves-to-production ratio for net proved reserves in Colombia, Ecuador, and Brazil was 5.0 years[128]. - If drilling and development activities ceased on January 1, 2025, the proved developed producing reserves base would decline by 14%, 44%, 12%, and 43% in Colombia, Ecuador, Brazil, and Argentina, respectively, during the first year[129]. - As of December 31, 2024, the Llanos Basin accounted for 95.6% of the company's net proved reserves and generated 90.1% of its production[180]. - The company incurred capital expenditures of $191.3 million and $199.0 million during the years ended December 31, 2024 and 2023, respectively[143]. - 88% of the company's net proved reserves are developed, but the development of undeveloped reserves may take longer and require higher capital expenditures than anticipated[208]. Financial Risks and Management - The company is exposed to credit risks from key customers, and any material nonpayment could adversely affect cash flow and results of operations[110]. - The company actively manages counterparty credit risk by assessing clients' credit profiles and including early payment terms in contracts[132]. - Financial problems experienced by customers could result in impairment of the company's assets and a decrease in operating cash flows[211]. - The company is subject to significant indebtedness, which could limit cash flow availability for acquisitions and capital expenditures due to higher interest rates on current debt[233]. - The principal amount of the company's outstanding consolidated indebtedness was US$654.7 million as of March 31, 2025, with 84% corresponding to Notes due 2030[232]. Operational Challenges - The company operates in regions with significant political and economic risks, which could impact operations and financial performance[111]. - The company has faced disruptions in 2024 due to strikes by local communities, which could significantly hinder market access and impact financial results[163]. - The company is subject to various operational risks, including delays in project development and compliance with governmental regulations, which could adversely affect financial condition[154]. - The company competes with major oil and gas firms that have greater financial and technical resources, impacting its ability to acquire properties and attract capital[156]. - The company is not the sole owner or operator of all licensed areas, limiting control over exploration and production efforts[189]. Regulatory and Compliance Issues - The company is subject to extensive regulations in Colombia, Ecuador, Brazil, and Argentina, which could impact operational costs and compliance requirements[275]. - Legislative initiatives regarding hydraulic fracturing in Colombia could increase future costs and impede operational plans[229]. - Compliance with anti-corruption regulations is critical, as breaches could result in substantial fines and reputational damage, impacting business operations[286]. - The Colombian government enacted a tax reform in 2022 that materially impacted oil-producing companies, and new tax measures were issued in February 2025, potentially increasing financial liabilities[267]. - The Colombian government has announced it will not grant any new oil and gas exploration licenses, which may limit future expansion opportunities in the country[289]. Environmental and Social Factors - The company expects to reduce operational Scope 1 and 2 GHG emissions intensity by 35-40% by year-end 2025 and by 40-60% by year-end 2030 against a 2020 baseline[224]. - The company is subject to numerous environmental, social, health, and safety laws, which may result in material liabilities and costs[214]. - The company has mechanisms in place to ensure compliance with environmental regulations, including a dedicated environmental team and external audits[218]. - Climate-related risks, including extreme weather events and regulatory changes, could increase operational costs and affect the company's ability to operate effectively[248]. - The company is engaged in prior consultation processes with indigenous communities, which may lead to delays in project timelines and additional compliance costs[252]. Shareholder Returns and Financial Flexibility - The company distributed a total of US$298.7 million to shareholders from 2018 to 2024, including US$200.1 million through share repurchases and US$98.6 million in cash dividends[297]. - The ability of the company to pay dividends is subject to Bermuda legal constraints, which require that the company must not be unable to pay its liabilities as they become due[298]. - The company's principal source of revenue and cash flow is distributions from its subsidiaries, which may be limited by law and contract[301]. - The market price of the company's common shares may be volatile and influenced by various factors, including operating performance and fluctuations in oil or gas prices[295]. - The company may issue additional common shares or convertible securities in the future to finance potential acquisitions[303]. Economic and Market Conditions - The Economic Commission for Latin America and the Caribbean forecasts a regional growth of 2.4% in 2025, indicating ongoing low growth and economic challenges in the region[263]. - Oil and gas operations are subject to political and economic uncertainties, including changes in energy policies and potential civil unrest in the countries of operation[264]. - Argentina has experienced high inflation and significant currency devaluation, leading to multiple exchange rates, which could create financial inefficiencies and increase costs[292]. - Restrictions on foreign exchange and transfer of funds abroad in Argentina could adversely affect the company's liquidity and financial flexibility[291]. - New U.S. trade tariffs may adversely affect the company's cost structure and supply chain, contributing to increased uncertainty in global trade dynamics[261].

Core Viewpoint - GeoPark Limited (GPRK) is divesting non-core assets in Colombia and Brazil to optimize its portfolio, reduce costs, and focus on high-impact projects [1][2]. Group 1: Asset Divestment - GeoPark has signed agreements to sell its non-operated working interests in the Llanos 32 Block in Colombia and a 10% stake in the Manati gas field in Brazil for a total consideration of $20 million, net of decommissioning liabilities [2]. - The Llanos 32 Block had net 1P PRMS reserves of 1.9 million barrels of oil equivalent (mmboe) and an average production rate of 490 barrels of oil equivalent per day (boepd) in 2024 [5]. - The Manati gas field held 1.0 mmboe in reserves and produced 222 boepd in 2024 [6]. Group 2: Strategic Focus and Financial Discipline - GeoPark is evaluating strategic options for its assets in Ecuador while aiming to maximize shareholder value and maintain financial discipline [3]. - The company is implementing a cost reduction strategy that could save $5-$7 million annually in operating, general, and administrative expenses through various initiatives [4]. Group 3: Future Outlook - The divestment deals are expected to close in the third quarter of 2025, pending regulatory approvals [3].