GeoPark Reports Third Quarter 2025 Results

Core Insights - GeoPark reported strong operational and financial results for the third quarter of 2025, aligning with its 2025 guidance and driven by higher production, stable prices, and disciplined cost control [2][3][4] - The company successfully completed the acquisition of the Vaca Muerta operation, enhancing its growth platform in Argentina [2][7] - A quarterly cash dividend of $0.03 per share was announced, with a total expected distribution of approximately $6 million over the next four quarters [11][12] Financial Performance - In 3Q2025, GeoPark achieved Adjusted EBITDA of $71.4 million, maintaining a 57% margin, supported by increased production of 28,136 boepd compared to 27,380 boepd in 2Q2025 [4][19] - Net income for the quarter was $15.9 million, a significant recovery from a net loss of $10.3 million in 2Q2025, despite a non-recurring write-off of $7.5 million related to prior exploration costs [5][19] - Year-to-date Adjusted EBITDA reached approximately $230 million, reflecting the impact of cost discipline and efficiency initiatives [4][19] Capital Expenditures and Debt Management - Capital expenditures in 3Q2025 totaled $17.5 million, primarily focused on production maintenance and exploration activities [6][19] - The company repurchased $33 million of its 2030 Notes, resulting in annual cash coupon savings of $9.5 million, with net debt standing at $373.4 million and a low leverage ratio of 1.2x [9][19] Strategic Initiatives - GeoPark's long-term strategic plan aims to sustain a high-margin base in Colombia while scaling growth in Argentina's Vaca Muerta formation, targeting consolidated production of 42,000–46,000 boepd and Adjusted EBITDA of $520–550 million by 2030 [3][19] - A Special Committee of independent directors was established to evaluate any revised offers from Parex Resources and other value-maximizing alternatives [15][19] Operational Highlights - The company has successfully integrated the Vaca Muerta operations, initiating workover activities to enhance productivity shortly after the acquisition [7][19] - GeoPark's cash position at the end of 3Q2025 was $197 million, enabling it to fund its investment program and reduce debt [8][19]