GeoPark(GPRK) - 2025 Q2 - Quarterly Report

Interim Condensed Consolidated Financial Statements and Explanatory Notes 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 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] - 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] Condensed Consolidated Statement of Comprehensive Income 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] Condensed Consolidated Statement of Financial Position 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] - 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][76] Condensed Consolidated Statement of Changes in Equity 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] Condensed Consolidated Statement of Cash Flow 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] - 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] Explanatory Notes to the Interim Condensed Consolidated Financial Statements 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 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] - 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] - The Group maintains a cash position of **US$266,038,