GeoPark (GPRK) Gears Up for Q2 Earnings: What's in Store?

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].