Core Viewpoint - GeoPark Limited (GPRK) has announced an agreement to acquire upstream oil and gas assets from Repsol in Colombia, which aligns with its growth strategy and aims to enhance its production and cash flow [1][5]. Group 1: Acquisition Details - GPRK is set to acquire Repsol Colombia O&G Limited, which holds a 45% working interest in the CPO-9 Block and a 25% working interest in SierraCol Energy Arauca LLC [3]. - The CPO-9 Block, operated by Ecopetrol S.A., produced approximately 16,000 barrels of oil equivalent per day for Repsol as of September 2024 [3]. Group 2: Strategic Alignment - The acquisition supports GPRK's "North Star" strategy, focusing on high-valued assets in the Llanos Basin to create a profitable and sustainable portfolio across Latin America [5]. - This new portfolio is expected to increase GPRK's production levels, reserves, and cash flow while requiring low capital investment [5]. Group 3: Financial Structure - The total deal value is $530 million, which will be financed through cash and a $345 million non-recourse debt facility arranged by Macquarie Bank Limited [6]. - A strong hedging strategy is in place to ensure price protection and reliable debt servicing for the acquisition [6].

Company Overview - GeoPark Limited (NYSE: GPRK) is an oil and gas exploration and production company operating in various LATAM countries, focusing on Ecuador, Colombia, Brazil, and recently Argentina [1] - The company is headquartered in Bogotá, Colombia, and has onshore basins in Colombia and Ecuador [1] Investment Focus - The company targets value opportunities in the commodities sector, particularly in oil and gas, metals, and mining [1] - It emphasizes companies with sustained free cash flows, low leverage, and sustainable debt levels, especially those in distress with high recovery potential [1] - The focus is on emerging markets that exhibit high margins and present good medium to long-term investment opportunities [1] Shareholder Value - The company maintains a solid pro-shareholder attitude, with ongoing buyback programs and dividend distributions [1]

Financial Data and Key Metrics Changes - The company's net revenue for Q3 2024 was $159 million, a decrease of 16% from Q2, primarily due to lower realized oil prices and production [6] - Adjusted EBITDA for the quarter was close to $100 million, representing a strong 63% margin, while adjusted EBITDA for the first nine months of 2024 amounted to $339 million, reflecting a 2% increase compared to the same period in 2023 [7] - Net profits for the quarter were $25 million, exceeding the same period last year, with significant cash flow generation leading to a cash build from $66 million on June 30 to $123 million in September and $140 million in October [8] - The net leverage ratio remains low at 0.8 times, with no principal debt maturities until 2027, providing financial flexibility [8] - The company maintained quarterly dividends of $7.5 million, totaling $73 million for the year, representing an 18% capital return yield [9] Business Line Data and Key Metrics Changes - In Colombia, the company focused on development and appraisal activities in the Llanos 34 Block, advancing water flooding campaigns and expanding facilities to enhance production [10] - In the CPO-5 Block, two wells were drilled, contributing to exploration and development goals, with the entire complex currently producing approximately 4,000 barrels per day gross [11] - The Vaca Muerta unconventional oil play acquisition marked a significant milestone, with the Pad-4 achieving a gross average production of 12,600 barrels of oil per day during the quarter [13] Market Data and Key Metrics Changes - The company is looking forward to starting its first exploration well in the Putumayo Basin later in November 2024 [11] - The operator is currently drilling four wells in Pad-9, expected to finish in December, while production and cash flow from Vaca Muerta will not be consolidated into financial statements until the transaction closes [15] Company Strategy and Development Direction - The company plans to release its 2025 work program and investment guidelines before year-end, outlining strategic priorities for sustainable growth and capital allocation [17] - There is a focus on optimizing core operations while capitalizing on new assets in Vaca Muerta to maximize long-term value [18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the financial position and flexibility to manage through market volatility while continuing to invest in high-value projects [8] - The company anticipates increased production as new wells come online and existing wells stabilize, projecting output in Mata Mora Norte to be around 13,500 to 14,500 barrels of oil equivalent by year-end [24] Other Important Information - The company has secured local capital market approvals in Argentina, including an AA+ credit rating and authorization to issue up to $500 million in local debt securities [16] - The estimated surcharge for the year is 10%, with no changes to the treatment of royalties [70][72] Q&A Session Summary Question: Update on Confluencia results and Mata Mora Norte production expectations - Management indicated that results from Confluencia are encouraging and production results will be communicated before December, with expectations for Mata Mora Norte to stabilize around 14,000 barrels of oil equivalent per day [19][20][24] Question: Expected initial production rates for Confluencia and CapEx for Llanos 34 - Initial production rates for Confluencia are expected to be between 750 to 1,500 barrels of oil per day, with a slight decline in Llanos 34 production anticipated due to field maturity [27][32] Question: Update on operational costs and plans to address rising OpEx - Management acknowledged rising OpEx per barrel, primarily driven by energy costs, and outlined plans to lock in energy prices and optimize operations to reduce costs [35][39][41] Question: Status of operations in Brazil and expectations - Operations in Brazil are expected to restart in early March 2025, following delays due to maintenance [46] Question: Progress on the DUPLICAR project and evacuation capacity - The DUPLICAR project is expected to come online around March 2025, adding 9,000 barrels per day of evacuation capacity, with current evacuation capacity at approximately 15,000 barrels per day [51][52]

Geopark (GPRK) came out with quarterly earnings of $0.48 per share, missing the Zacks Consensus Estimate of $0.59 per share. This compares to earnings of $0.44 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -18.64%. A quarter ago, it was expected that this oil and gas company would post earnings of $0.78 per share when it actually produced earnings of $0.48, delivering a surprise of -38.46%.Over the last four quarters, the co ...

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Financial Data and Key Metrics Changes - Revenue increased by 14% compared to the first quarter, reaching $190 million, driven by higher oil prices [4] - Adjusted EBITDA rose 15% to $128 million, resulting in an EBITDA margin of 67% [4] - Net profit was $25.7 million, equivalent to $0.50 per share, impacted by non-cost charges related to the devaluation of the Colombian peso [4] - The return on average capital employed over the last 12 months was 38% [4] - The company ended the quarter with a cash position of $66 million after various financial activities [5] Business Line Data and Key Metrics Changes - Consolidated production is currently 5,000 to 5,500 barrels a day higher than reported due to recent acquisitions [7] - The Mata Mora Norte Block produced an average of 12,500 barrels a day gross in the second quarter [7] - The company expects to drill three to five new wells before the end of the year in the Llanos basin blocks [6] Market Data and Key Metrics Changes - The average production in Argentina was 2,500 barrels per day, with expectations for gradual increases [29] - The company anticipates finishing the year with production between 13,000 and 14,000 barrels equivalent per day [10][32] Company Strategy and Development Direction - The company is focused on strategic growth initiatives, disciplined financial management, and sustainability as key performance drivers [9] - Inorganic opportunities are a key component of the company's strategy, focusing on assets that provide immediate production capabilities [13][15] - The company is targeting acquisitions in Colombia, Argentina, and Brazil to enhance long-term sustainability [16] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about production increases in Argentina and the performance of new wells in Vaca Muerta [10][12] - The company is addressing operational challenges, including social unrest affecting production [26] - Future tax obligations are expected to be influenced by oil price environments, with a projected effective tax rate around 40% for the year [33][34] Other Important Information - The company repurchased $43.7 million worth of shares and paid $7.5 million in dividends during the quarter [5] - A new oil prepayment agreement was established, providing additional liquidity and a lower discount for CPO-5 production [36] Q&A Session Summary Question: What is the expected production progress in Argentina for the second half of the year and 2025? - Management expects a gradual increase in production, aiming for 20,000 barrels per day net by the end of 2025 [10] Question: Is the company targeting new acquisitions in the region? - The company is actively pursuing inorganic opportunities, focusing on assets that provide immediate production capabilities and long-term sustainability [13][15] Question: What is the current production in Colombia and the expected cash tax for the second half of the year? - Current production in Colombia is around 28,000 barrels per day, with expected cash tax outflows of approximately $20 million to $25 million for the remainder of the year [20][33] Question: Can you provide details on the new prepayment agreement and its implications? - The prepayment agreement with Trafigura covers a 12-month duration and aims to capture a premium for lighter crudes, enhancing financial flexibility [36][37]

Geopark (GPRK) came out with quarterly earnings of $0.48 per share, missing the Zacks Consensus Estimate of $0.78 per share. This compares to earnings of $0.59 per share a year ago. These figures are adjusted for nonrecurring items. This quarterly report represents an earnings surprise of -38.46%. A quarter ago, it was expected that this oil and gas company would post earnings of $0.59 per share when it actually produced earnings of $0.54, delivering a surprise of -8.47%. Over the last four quarters, the co ...

Core Viewpoint - GeoPark Limited (GPRK) is expected to report second-quarter 2024 earnings on August 14, with previous earnings missing estimates and a negative surprise average of 16.57% over the last four quarters [1][6]. Estimate Trend - The Zacks Consensus Estimate for second-quarter earnings per share is 78 cents, reflecting a 32.2% improvement from the same quarter last year [2]. - The estimated revenue for the second quarter is $182.7 million, indicating a slight increase of 0.2% year-over-year [2]. Factors to Consider - The average spot prices for West Texas Intermediate crude were $85.35 in April, $80.02 in May, and $79.77 in June, while Europe Brent crude prices were $89.94, $81.75, and $82.25 respectively, suggesting a favorable pricing environment for exploration and production activities [3]. - Despite favorable pricing, international drilling activities declined, with Baker Hughes reporting a rig count of 963 in the second quarter, down from the previous quarter [4]. - The decrease in drilling activities indicates that companies like GeoPark likely reduced spending on upstream activities, leading to a production decline of 3% year-over-year, totaling 35,608 barrels of oil equivalent per day [5]. Earnings Whispers - The current model does not indicate an earnings beat for GeoPark, with an Earnings ESP of 0.00% and a Zacks Rank of 4 (Sell) [6].

Geopark (GPRK) is expected to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended June 2024. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price. The earnings report might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may ...

i 1 t i Funtay Thesis Recap I covered GeoPark Limited (NYSE:GPRK) in April 2024, with the overall thesis that the company sports high margins and strong growth potential. I like this Latin American oil producer for its cheap valuation and nice dividend as well, highlighting it as a potential income play for investors. Since then, I remain bullish and view the recent sell-off in the stock as another buying opportunity. The company has made many value-adding acquisitions since my last report, and I view manag ...