Geopark Ltd Stock Price, News & Analysis

GeoPark (NYSE: GPRK) announced its independent oil and gas reserves assessment as of December 31, 2024, certified by D&M under PRMS methodology. The company's 2024 year-end reserves incorporate pro forma figures reflecting the acquisition of four unconventional hydrocarbon blocks in Vaca Muerta, Argentina, which became effective on July 1, 2024.

Key highlights include:

• 2P reserves increased 41% year-on-year to 162.2 mmboe
• 1P reserves reached 102.0 mmboe
• 1P Reserve Life Index (RLI) extended by 54% to 8.2 years
• 2P RLI increased by 44% to 13.1 years
• Pro forma 2P Reserve Replacement of 480%
• 2P NPV10 After Tax of $1.8 billion
• Net debt-adjusted 2P NPV10 After Tax of $27.8 per share

The significant reserves growth was driven by the addition of 74.6 mmboe from Vaca Muerta, partially offset by a 27.5 mmboe decrease in organic 2P reserves due to technical revisions in mature fields, with the Llanos 34 Block accounting for 48% of the reduction.

GeoPark (NYSE: GPRK) has successfully completed a $550 million senior notes offering due 2030, using part of the proceeds to repurchase $405.3 million of its outstanding notes due 2027. The new notes, rated B+ by S&P and Fitch, carry an 8.750% coupon with semi-annual interest payments and will mature on January 31, 2030.

The offering was oversubscribed by approximately 2 times with more than 120 investors from the United States, Europe, Asia and Latin America participating. This refinancing transaction extends GeoPark's average debt life to 4.6 years, representing a 2.6-year extension. Following the transaction, GeoPark's notes outstanding include $94.7 million due 2027 and $550 million due 2030.

GeoPark (NYSE: GPRK) has announced the pricing of U.S.$550,000,000 aggregate principal amount of 8.750% senior notes due 2030. The notes will be guaranteed by GeoPark Colombia S.L.U., GeoPark Colombia S.A.S., and GeoPark Argentina S.A.

The settlement is expected on January 31, 2025. The net proceeds will be used to repurchase the company's outstanding 5.500% senior notes due 2027, repay up to US$152.0 million of outstanding prepayments under an offtake agreement, and any remainder for general corporate purposes, including capital expenditures.

The Notes are being offered privately to qualified institutional buyers under Rule 144A and to non-U.S. persons under Regulation S of the Securities Act.

GeoPark (NYSE: GPRK) announced the results of its cash tender offer for its outstanding 5.500% Senior Notes due 2027. As of the January 27, 2025 expiration time, U.S.$412,753,000 in aggregate principal amount of Notes had been validly tendered, representing approximately 82.6% of the total outstanding Notes.

The settlement is expected to occur on January 31, 2025. Holders who validly tendered their Notes will receive U.S.$1,000 per U.S.$1,000 principal amount, plus accrued and unpaid interest. After the settlement, the remaining outstanding principal amount will be U.S.$87,247,000. The tender offer includes U.S.$12,420,000 of Notes tendered through Guaranteed Delivery procedures.

GeoPark (NYSE: GPRK) has announced its intention to offer senior notes in a private placement to qualified institutional buyers under Rule 144A and to non-U.S. persons under Regulation S of the Securities Act. The company plans to use the proceeds for multiple purposes:

1. To purchase any and all of its outstanding 5.500% notes due 2027
2. To repay up to $152.0 million of outstanding prepayments under an offtake and prepayment agreement
3. Any remaining funds will be used for general corporate purposes, including capital expenditures

The timing and terms of the Notes offering will depend on market conditions. The Notes will not be registered under the Securities Act and will only be offered to qualified institutional buyers and non-U.S. persons.

GeoPark (NYSE: GPRK) has announced a cash tender offer to purchase any and all of its outstanding 5.500% Senior Notes due 2027. The tender offer expires at 5:00 p.m., New York City time, on January 27, 2025. The company is offering U.S.$1,000 per U.S.$1,000 of principal amount, plus accrued and unpaid interest.

The tender offer is being made in connection with a proposed offering of new U.S. dollar-denominated senior notes. Notes may be tendered in minimum denominations of U.S.$200,000 and integral multiples of U.S.$1,000 thereafter. The offer is subject to certain conditions, including a Financing Condition, and GeoPark reserves the right to amend or terminate the offer at any time.

GeoPark (NYSE: GPRK) reported its Q4 2024 operational update, showing consolidated average oil and gas production of 31,489 boepd, a 5% decrease from Q3 2024 due to blockades in Colombia. The company's annual average production reached 33,937 boepd.

Key operational highlights include: strong performance in Vaca Muerta with Q4 production of 15,052 boepd gross (19% higher than Q3); successful waterflooding projects in Llanos 34 Block contributing 5,500 gross boepd; and positive exploration results in various blocks. The Mata Mora Norte block showed significant reserves according to D&M's interim report, with net 1P reserves of 39.1 mmboe, 2P reserves of 75.2 mmboe, and 3P reserves of 142.8 mmboe.

The company maintained 10 rigs in operation at end-2024, completed 43 wells throughout the year, and achieved zero recordable incidents in Q4 2024 in GeoPark-operated assets.

GeoPark (NYSE: GPRK) has announced its 2025 Work Program, targeting production of 35,000 boepd (±2,500) with a capital expenditure of $275-310 million. The program focuses on operations across Colombia (26,000 boepd), Vaca Muerta (7,400 boepd), Ecuador (1,000 boepd), and Brazil (600 boepd).

The company plans to drill 23-31 gross wells, with 65% allocated to development and 35% to exploration. The production mix is expected to be 97% oil and 3% natural gas. The program aims to generate $350-430 million in Adjusted EBITDA at $70-80/bbl Brent prices, with a targeted ROACE above 30%.

GeoPark will maintain its annual dividend of $30 million, representing a 6-7% yield at current prices. The company expects to achieve a 35-40% reduction in GHG emissions intensity by 2025 compared to 2020 levels.

GeoPark (NYSE: GPRK) announced that its previously planned acquisition of Repsol's assets in Colombia will not proceed. The cancellation comes after Repsol's partner in SierraCol Energy Arauca exercised its preemptive rights to acquire 25% of Repsol's interest in the Llanos Norte project in Arauca Department, Colombia.

The original transaction, announced on November 29, 2024, included Repsol's 45% working interest in the CPO-9 block and its 25% interest in SierraCol Energy Arauca Despite this development, GeoPark states it remains committed to pursuing disciplined growth opportunities while leveraging its operational expertise to generate long-term value for stakeholders.