GeoPark Renews Offtake Agreement With Vitol in Colombia

Key Terms

offtake agreement financial

A contract in which a buyer commits to purchase a set portion or percentage of a producer’s future output—such as minerals, energy, agricultural goods, or manufactured products—often over a multi‑year period. It matters to investors because it creates predictable sales and cash flow, reduces the risk of unsold inventory, and can make projects easier to finance; think of it like pre‑selling future harvests or securing long‑term customers before production begins.

prepayment facility financial

A prepayment facility is a lending arrangement that gives a company an upfront cash advance in exchange for early repayment or reduction of future payments it would otherwise make or receive. Think of it like getting an advance against future paychecks: it boosts short-term cash but reduces future income or increases repayable obligations. Investors care because it changes a company’s cash flow, debt level and future revenue visibility, which can affect valuation and risk.

netbacks financial

Netbacks measure how much money a company keeps from each unit of product sold after paying the direct costs tied to producing, processing and delivering that unit. Think of it as the pocket change left from the sale price once you subtract the costs of making and getting the item to market; investors use netbacks to compare true profitability per unit across companies or projects regardless of headline prices or volumes.

SOFR financial

The Secured Overnight Financing Rate (SOFR) is a market benchmark that measures the cost of borrowing cash overnight using U.S. Treasury securities as collateral. Investors watch SOFR because it acts like a speedometer for short-term interest costs—affecting loan rates, bond yields and the pricing of interest-rate contracts—so movements change borrowing expenses, cash returns and the value of interest-sensitive investments.

Improved Price Realizations and Lower-cost Flexible Funding of up to $500 Million

BOGOTA, Colombia--(BUSINESS WIRE)-- GeoPark Limited (“GeoPark” or the “Company”) (NYSE: GPRK), a leading independent energy company with over 20 years of successful operations across Latin America, today announced the renewal of its offtake and prepayment agreement with Vitol, extending the term and expanding the scope of collaboration across the Llanos basin in Colombia.

The new offtake agreement provides for GeoPark to sell and deliver to Vitol 100% of its crude oil production from the Llanos 34 (operated, 45% WI), Llanos 123 (operated, 50% WI), and CPO-5 (non-operated, 30% WI) blocks, extending the current agreement from its original expiry in June 2027 through December 31, 2028.

The renewed terms restore GeoPark’s weighted-average netbacks to single-digit levels, comparable to 2020 benchmarks, effectively offsetting the cumulative impact of midstream tariff adjustments and inflationary trends over the past five years. Portfolio realizations are expected to improve by approximately US$0.33 per barrel on a weighted-average basis compared to the Company’s average over the past six months, supporting stronger margins and improved cash-flow visibility. The new terms take effect in January 2026, with deliveries beginning in January 2026 for Llanos 34 and in May 2026 for CPO-5 and Llanos 123, and remaining in force through December 31, 2028.

As part of the renewal, GeoPark will have access to a prepayment facility from Vitol that provides for a total of up to $500 million, consisting of a firm $330 million committed availability with an option to increase the availability by up to another $170 million in prepaid future oil sales over the period of the offtake contract. The renewed prepayment facility reflects the strength of GeoPark’s operational delivery in the Llanos basin, and builds on the track record established under the prior agreement.

Amounts under the facility do not constitute a mandatory funding requirement and if drawn can be repaid through future oil deliveries or prepaid at any time without penalty. The interest cost for any drawn amounts is based on a one-month term SOFR risk-free rate plus a margin of 3.50% per annum, representing a 25-bps reduction versus the prior prepayment agreement with Vitol, and, together with the decline in SOFR, would currently be equivalent to an interest rate of approximately 7.15–7.25%¹. Funds committed by Vitol will be made available until June 30, 2027, subject to certain conditions.

The prepayment facility is an integral feature of the improved commercial framework agreed with Vitol, enhancing GeoPark’s financial flexibility and resilience under current market conditions while providing further optionality and certainty of funding to support the execution of the Company’s strategic plans for the 2026–2028 period and beyond.

Vitol is one of the world’s leading energy and commodity companies, and its strong presence and operations in Colombia and Latin America includes a well-established commercial relationship with GeoPark.

NOTICE

Additional information about GeoPark can be found in the “Invest with Us” section on the website at www.geo-park.com.

Rounding amounts and percentages: Certain amounts and percentages included in this press release have been rounded for ease of presentation. Percentages included in this press release have not in all cases been calculated on the basis of such rounded amounts, but on the basis of such amounts prior to rounding. For this reason, certain percentages in this press release may vary from those obtained by performing the same calculations on the basis of the amounts in the financial statements. Similarly, certain other amounts included in this press release may not sum due to rounding.

CAUTIONARY STATEMENTS RELEVANT TO FORWARD-LOOKING INFORMATION

This press release contains statements that constitute forward-looking statements. Many of the forward-looking statements contained in this press release can be identified by the use of forward-looking words such as ‘‘anticipate,’’ ‘‘believe,’’ ‘‘could,’’ ‘‘expect,’’ ‘‘should,’’ ‘‘plan,’’ ‘‘intend,’’ ‘‘will,’’ ‘‘estimate’’ and ‘‘potential,’’ among others.

Forward-looking statements that appear in a number of places in this press release include, but are not limited to, statements regarding the intent, belief or current expectations, regarding various matters, including, drilling campaign, production guidance, capital expenditures, and projected Adjusted EBITDA, ROACE, net debt to EBITDA, and net debt to EBITDA leverage ratio. Forward-looking statements are based on management’s beliefs and assumptions, and on information currently available to the management. Such statements are subject to risks and uncertainties, and actual results may differ materially from those expressed or implied in the forward-looking statements due to various factors.

Forward-looking statements speak only as of the date they are made, and the Company does not undertake any obligation to update them in light of new information or future developments or to release publicly any revisions to these statements in order to reflect later events or circumstances, or to reflect the occurrence of unanticipated events. For a discussion of the risks facing the Company which could affect whether these forward-looking statements are realized, see filings with the U.S. Securities and Exchange Commission (SEC).

Oil and gas production figures included in this release are stated before the effect of royalties paid in kind, consumption and losses. Annual production per day is obtained by dividing total production by 365 days.

¹ Calculated using the One-Month Term SOFR of 3.69% as of January 26, 2026.

View source version on businesswire.com: https://www.businesswire.com/news/home/20260127753033/en/

For further information, please contact:

INVESTORS:

Maria Catalina Escobar

Shareholder Value and Capital Markets Director

mescobar@geo-park.com

Miguel Bello

Investor Relations Officer

mbello@geo-park.com

Maria Alejandra Velez

Investor Relations Leader

mvelez@geo-park.com

MEDIA:

Communications Department

communications@geo-park.com

Source: GeoPark Limited