Core Viewpoint - Frontera Energy Corporation acknowledges receipt of an unsolicited acquisition proposal from Parex Resources for its Colombian upstream exploration and production assets, which are also under an agreement to be sold to GeoPark Limited [1] Group 1: Acquisition Proposals - Frontera has received an unsolicited proposal from Parex Resources to acquire its upstream Colombian exploration and production business [1] - The assets in question are the same that Frontera has agreed to sell to GeoPark Limited under a previously announced arrangement agreement dated January 29, 2026 [1] - The Frontera Board of Directors is reviewing the Parex proposal while continuing to recommend the GeoPark transaction to its shareholders [1] Group 2: Company Overview - Frontera Energy Corporation is a Canadian public company engaged in the exploration, development, production, transportation, storage, and sale of oil and natural gas in South America [1] - The company has a diversified portfolio with interests in 18 exploration and production blocks in Colombia and Guyana, along with pipeline and port facilities in Colombia [1] - Frontera is committed to conducting its business in a socially, environmentally, and ethically responsible manner [1]

Core Viewpoint - Parex Resources Inc. has nominated six independent director candidates for election to GeoPark Limited's Board of Directors, aiming to maximize shareholder value ahead of the 2026 Annual Meeting of Shareholders [1][2]. Group 1: Nominations and Objectives - Parex, holding an approximate 11.8% stake in GeoPark, believes that nominating independent directors will ensure that all options for maximizing shareholder value are evaluated [1][2]. - The nominations are in accordance with GeoPark's advance notice bylaw and follow Parex's previous proposal to acquire GeoPark in late 2025 [2]. Group 2: Director Nominees - The nominated candidates include: - Jim Davidson, former co-founder and CEO of FirstEnergy Capital Corp [5][7]. - David French, former Partner at McKinsey & Company and former CEO of Obsidian Energy and Bankers Petroleum [6][7]. - Matthew Rees, former CEO of Vesta Energy [10][15]. - Michael Stewart, former Director at TC Energy and Bonterra Energy [11][15]. - Walter Vrataric, current VP at Woodcote Oil & Gas and former CEO of Chinook Energy [12][15]. - Ian Weatherdon, former CFO of Gulf Keystone Petroleum [13][15]. Group 3: Experience and Qualifications of Nominees - Jim Davidson has over 30 years of experience in the energy sector and has been recognized with multiple awards, including a Lifetime Achievement Award by the Oil & Gas Council [8]. - David French has over 30 years of experience in oil & gas and advisory sectors, holding an MBA from Harvard Business School [6][9]. - Matthew Rees has over 25 years of experience in the energy sector, with significant roles in Latin America [15]. - Michael Stewart has over 50 years of experience serving on boards of public companies [15]. - Walter Vrataric has more than 30 years of experience in the energy sector, currently serving as VP at Woodcote Oil & Gas [15]. - Ian Weatherdon has over 35 years of international oil & gas experience, including roles in CFO positions [15]. Group 4: Advisory and Legal Support - Parex has engaged Scotiabank as its financial advisor and several law firms for legal counsel, including Paul, Weiss, Rifkind, Wharton & Garrison LLP and Norton Rose Fulbright Canada LLP [4].

Core Viewpoint - GeoPark Limited (NYSE:GPRK) has announced a significant acquisition of Frontera Energy's assets in Colombia, which is expected to enhance its operational scale and financial performance substantially [3][4]. Group 1: Acquisition Details - GeoPark has signed a deal valued at $375 million in cash, with an additional $25 million contingent on development milestones [3]. - The acquisition is expected to add 147 million barrels of oil equivalent (mmboe) to GeoPark's proven and probable reserves and 99 mmboe to its proven reserves [4]. Group 2: Financial Impact - The deal is projected to increase GeoPark's pro forma production to over 90,000 barrels of oil equivalent per day (boepd) and EBITDA to approximately $950 million by 2028, effectively doubling previous forecasts [4]. - The combination is expected to deliver annual synergies of $30-50 million by 2027 [4]. Group 3: Strategic Importance - The acquisition positions GeoPark as the largest private operator in Colombia, enhancing its growth trajectory and operational resilience [5]. - The transaction allows for a full-field development approach in key assets, supporting sustained production and increased investment activity in the regions where GeoPark operates [5].

Valuation and Performance - GeoPark is currently undervalued, trading at 12.7 times forward adjusted earnings and 0.70 times sales, which is below sector norms and its own five-year average [1] - The stock has experienced a decline of 40% from its 52-week high of $11.67, but has shown a 10% increase over the past three months [2] - GeoPark's revenue for the latest quarter was $125.1 million, a 4% sequential increase but a 21% decrease year-over-year, with EPS at $0.31 [8] Production and Financial Health - GeoPark's consolidated average oil and gas output reached 28,136 barrels of oil equivalent per day (boepd), nearly 3% higher than the previous quarter [9] - Adjusted EBITDA was $71.4 million, reflecting a strong 57% margin, with operating costs steady at $12.50 per boe [10] - The company has over $197 million in cash and a net debt of $373.4 million, resulting in a low leverage ratio of 1.2 [10] Future Outlook - GeoPark aims for production of 42,000 to 46,000 barrels per day by 2030, with adjusted EBITDA projected between $520 million and $550 million [11] - Analysts expect Q4 earnings to be $0.28 per share, with fiscal 2025 EPS projected at $0.70 and fiscal 2026 EPS at $0.58 [11] - The stock has a consensus "Moderate Buy" rating, with an average price target of $9.50, indicating a potential upside of 38% [12]

Group 1 - GeoPark Limited (NYSE:GPRK) experienced an 11.7% decline in share price from December 3 to December 10, 2025, making it one of the worst-performing energy stocks during that week [1] - Acquisition discussions between GeoPark and Parex Resources have ceased, ending over a month of negotiations [2] - Parex Resources declined to increase its initial cash offer of $9 per share, which GeoPark believes undervalues its assets [3] Group 2 - On December 1, 2025, GeoPark announced its 2026 Work Program, aiming to triple capital expenditures (CapEx), double adjusted EBITDA, and increase production by over 60% by 2028 [4]

Core Viewpoint - GeoPark Limited (NYSE:GPRK) is identified as a cheap oil stock under $10 with a consensus Moderate Buy rating from analysts, indicating potential upside from its current price [1][4]. Group 1: Production Plans and Growth - GeoPark has unveiled a 2026 Work Program targeting production of 44,000 to 46,000 barrels of oil equivalent per day (boepd) in 2026, an increase from 35,000 boepd in 2025 [2][3]. - The growth in production will be supported by drilling 72 gross wells, with 55 in Colombia and 17 in Argentina, alongside contributions from the Vaca Muerta formation [3]. - The company anticipates production to reach 45,000–47,000 boepd by 2027 and 46,000–48,000 boepd by 2028, driven by intensified unconventional activity [3]. Group 2: Analyst Ratings and Price Targets - Jefferies has reaffirmed its Buy rating on GeoPark, maintaining a price target of $10.50, which reflects confidence in the company's growth potential [4]. - The average 12-month price target for GeoPark is $9.50, suggesting a 13% upside from the current price of $8.41 [1]. Group 3: Company Overview - GeoPark is an oil and gas exploration and production company operating onshore fields across Latin America, with key assets in Colombia, Chile, Brazil, Ecuador, and Argentina [4]. - The company's strategy includes sustaining high-margin Colombian output while expanding unconventional development in Argentina's Vaca Muerta formation [2].

Core Insights - OPEC+ has decided to pause production hikes in Q1 2026, failing to stimulate an oil price rally amid ongoing concerns of a supply glut [1][3][9] OPEC+ Production Decisions - OPEC+ announced a halt to its scheduled return of voluntary cuts for Q1 2026, with a minor increase of 137,000 b/d planned for December 2025 [3] - Russia advocated for the pause in supply hikes to better assess the impact of sanctions on its crude production [3] - Saudi Arabia supported Russia's motion, citing expected inventory builds globally in Q1 2026, which would not justify worsening the supply glut [4] Production Quotas and Real Output - OPEC+ countries have collectively increased their quotas by 2.9 million b/d this year, which is half of the total 5.85 million b/d voluntary cuts [4] - In real terms, OPEC+ has only boosted production by 70-75% of their targets, as many analysts believe these volumes were already in the market [5] Market Reactions and Company Movements - BP has agreed to sell minority stakes in its US onshore pipeline assets for $1.5 billion, responding to pressure from activist investors [6] - Chevron has signed a deal to explore two offshore blocks in Guinea Bissau, taking a 90% working interest [6] - Geopark rejected an unsolicited acquisition proposal from Parex Resources worth almost $1 billion [7] - ENI has signed a deal to assess five offshore oil and gas blocks in Sierra Leone [7] - Libya's National Oil Company reported a new oil discovery in the Ghadames Basin, with production nearing 5,000 b/d [8] Market Sentiment - Despite OPEC+'s efforts to address oversupply concerns, crude oil prices remained stagnant, with ICE Brent around $65 per barrel [9] - Oil executives in Abu Dhabi expressed optimism that next year's oil glut would not be as severe, but a price rally may depend on escalating US-Venezuela tensions [9]

Core Viewpoint - Parex Resources Inc. has proposed to acquire GeoPark for US$9.00 per share in cash, representing a significant premium to GeoPark's current share price, but the GeoPark Board has rejected the proposal without constructive engagement [1][3][5]. Summary by Sections Proposal Details - The proposed acquisition price of US$9.00 per share represents a 44% premium to GeoPark's share price at the time of the proposal [5][12]. - Parex has acquired an 11.8% ownership stake in GeoPark, allowing it to call a special shareholder meeting [2][3]. - The total value of GeoPark, including net debt, is approximately US$940 million, which exceeds the value of GeoPark's Colombian proved plus probable reserves based on 2024 disclosures [5][6]. Company Statements - The CEO of Parex stated that the rejection of the proposal denies GeoPark shareholders the opportunity to receive cash at a significant premium and criticized GeoPark's decision to pursue a capital-intensive investment in Argentina [3][8]. - Parex remains willing to engage with GeoPark to finalize the transaction and hopes the GeoPark Board will reconsider its position [2][8]. Historical Context - Parex previously submitted a proposal in December 2021, which was rejected by GeoPark, and has since attempted to engage with GeoPark multiple times regarding its recent proposal [6][8]. - Key dates include the initial proposal submission on September 4, 2025, and the acquisition of the 11.8% stake on October 29, 2025, after GeoPark's Board rejected the proposal [6][8]. Financial and Legal Advisory - Parex has retained Scotiabank as its financial advisor and several law firms for legal counsel, indicating a serious commitment to the proposed acquisition [8].

Core Insights - Chevron Corporation continues to expand its presence in Argentina's Vaca Muerta shale, viewing it as a vital part of its global portfolio with plans for further development in the near term [1][6] - Vaca Muerta has become a key driver of Argentina's national production, achieving a record crude output of 816,000 barrels per day in August 2025, with two-thirds of this output coming from shale [2] - Chevron's involvement includes a $3 billion pipeline project aimed at increasing takeaway capacity from 180,000 to approximately 700,000 barrels per day, supporting Argentina's goal of becoming a regional energy exporter [3][6] Company Developments - GeoPark Limited has acquired the Loma Jarillosa Este and Puesto Silva Oeste blocks for $115 million, planning to invest $14.5 million in a pilot program to enhance production [4] - YPF Sociedad Anónima is ramping up its Vaca Muerta operations with a planned investment of $3.3 billion in 2025, targeting a production goal of 200,000 barrels per day by year-end [5]

Core Insights - Chevron Corporation aims to increase its oil output in Argentina's Vaca Muerta shale formation to 30,000 barrels per day (bpd) by the end of 2025, reflecting confidence in this significant energy resource [1][2] Company Expansion - Chevron has been investing in Vaca Muerta for years, currently producing approximately 25,000 bpd and planning to ramp up to 30,000 bpd by year-end 2025 [2] - The company’s Argentina country manager highlights the growth potential of Vaca Muerta, emphasizing its strong unconventional resource base and the ability to scale quickly under favorable conditions [2][8] Industry Impacts - Vaca Muerta is recognized as the world's second-largest shale gas reserve and fourth-largest for shale oil, playing a crucial role in Argentina's energy strategy to reduce reliance on imports amid an economic crisis [3][4] - Increased production from Vaca Muerta is expected to enhance Argentina's energy independence and economic prospects, with analysts estimating crude production could reach 1 million bpd by 2030 [4] Market Pressures - Despite its potential, Vaca Muerta faces challenges from global oil market pressures, including lower oil prices and reduced spending, which have led to a slowdown in drilling activities [5] - Other companies, such as TotalEnergies and GeoPark, have scaled back their involvement in the region, indicating a cautious approach to investment in Vaca Muerta [6][7] Regulatory Environment - Chevron emphasizes the need for a stable investment climate in Argentina, calling for competitive costs and predictable regulatory frameworks to support its expansion plans [8][9] - The company’s executives stress that uncertainties in capital movement and government policy could hinder the formation's potential [9] Future Outlook - Chevron's plans for increased output come amid mixed signals for shale development globally, but Vaca Muerta continues to show momentum with ongoing investments [10] - The anticipated Vaca Muerta South pipeline, expected to be operational by 2027, will further support production and export capabilities [10][11]