GeoPark (GPRK, Financial) recently released its quarterly operational results for the period ending June 30. For the year so far, the company's average oil and gas output reached 28,223 barrels of oil equivalent per day (boepd). In the second quarter, GeoPark averaged 27,380 boepd, a slight decrease of 6% from the previous quarter. This decline was primarily due to the sale of the Llanos 32 Block and temporary shutdowns in the CPO-5 Block, which halted production for 16 days.
The company's drilling activities in the Llanos 34 Block faced some delays but managed partial compensation through base management, waterflooding, and well workovers. Over the second quarter, GeoPark successfully drilled and completed five wells, bringing the total number of wells completed this year to ten. Additionally, a new exploration success was reported at the Currucutu-1 well in the Llanos 123 Block, which delivered an initial output of 1,360 barrels of oil per day (bopd) gross.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 2 analysts, the average target price for GeoPark Ltd (GPRK, Financial) is $12.00 with a high estimate of $13.50 and a low estimate of $10.50. The average target implies an upside of 74.17% from the current price of $6.89. More detailed estimate data can be found on the GeoPark Ltd (GPRK) Forecast page.
Based on the consensus recommendation from 4 brokerage firms, GeoPark Ltd's (GPRK, Financial) average brokerage recommendation is currently 2.0, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for GeoPark Ltd (GPRK, Financial) in one year is $7.30, suggesting a upside of 5.95% from the current price of $6.89. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the GeoPark Ltd (GPRK) Summary page.
GPRK Key Business Developments
Release Date: May 08, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- GeoPark Ltd (GPRK, Financial) exceeded its production guidance, averaging 36,000 barrels per day, surpassing the base case of 35,000 barrels per day.
- The company reported a strong financial position with an adjusted EBITDA of $88 million, up 13% from the previous quarter.
- GeoPark Ltd (GPRK) maintained a robust cash position with over $308 million and a net leverage ratio of 0.9 times.
- The company achieved significant cost reductions, with operating costs decreasing to $12.3 per barrel, aligning with full-year guidance.
- GeoPark Ltd (GPRK) declared a quarterly dividend of $0.15 per share, reinforcing its commitment to shareholder returns with an annualized $30 million dividend.
Negative Points
- The completion of regulatory approvals for the Argentina assets is pending, creating uncertainty around the timing and successful completion of the transaction.
- There is a risk of either party withdrawing from the Argentina transaction after the outside date of May 13, 2025, if approvals are not obtained.
- GeoPark Ltd (GPRK) faces market volatility and Brent price fluctuations, which could impact future financial performance.
- The company experienced delays in the in-field drilling campaign in Colombia, which started later than planned.
- GeoPark Ltd (GPRK) has not yet consolidated production, revenue, or costs from the new Argentina assets, affecting current financial results.
