GeoPark's 2025 Plan Focuses on Higher Production and Increasing Value

Core Viewpoint - GeoPark Limited (GPRK) has announced its 2025 guidance, focusing on enhancing shareholder value through disciplined capital allocation, operational excellence, and sustainable growth, aligning with its "North Star" strategy [1] Production Targets - GPRK aims for a mid-term production target of 70,000 barrels of oil equivalent per day (boepd) by 2028 and 100,000 boepd by 2030, with a 2025 target of 35,000 boepd supported by capital expenditure (Capex) of $275-$310 million [2] - The production mix is expected to be 97% oil and 3% natural gas, with a focus on unconventional (22%) and conventional (78%) resources, primarily from Colombia (26,000 boepd) and the Vaca Muerta shale formation in Argentina (7,400 boepd) [2] Drilling Targets - GPRK plans to drill 23-32 wells in the coming years, including 10-15 gross exploration wells, with significant drilling in Colombia's Llanos 34 and CPO-5 blocks and Argentina's Mata Mora Norte and Confluencia Sur blocks [3] - The Capex allocation for Colombia is estimated at $80-$90 million, while for Argentina, it is about $195-$220 million [3] Financial Targets - For 2025, GPRK projects an adjusted EBITDA of $350 million to$430 million, assuming a Brent crude price of $70 to$80 per barrel [4] - The company expects to maintain a net debt to EBITDA ratio of 1.5-2.1, with ending cash projected at $120-$180 million, funding its targets through internal cash generation and debt [4] - Approximately 50% of the estimated average production for 2025 is hedged to mitigate downside price risk [4] Shareholder Returns - GPRK anticipates returning about $30 million to shareholders via dividend payments in 2025, representing a yield of 6-7% based on current market prices [5] Sustainability Strategy - The company aims for a 35-40% reduction in carbon intensity by 2025 compared to 2020 levels, focusing on operational excellence and best health, safety, and environmental practices [6]