GeoPark Reports First Quarter 2025 Results

Strong Financial Discipline and Cost Efficiency Underpin Profitability

Robust Cash Generation and Low Leverage Amid Volatile Market Conditions

Quarterly Cash Dividend of $0.147 Per Share

BOGOTA, Colombia--(BUSINESS WIRE)--May 07, 2025-- 

GeoPark Limited ("GeoPark" or the "Company") $(GPRK)$, a leading independent energy company with over 20 years of successful operations across Latin America, reports its consolidated financial results for the three-month period ended March 31, 2025 ("First Quarter" or "1Q2025"). A conference call to discuss these financial results will be held on May 8, 2025, at 10:00 am (Eastern Daylight Time).

GeoPark's profitable, dependable, and sustainable platform continued to deliver in 1Q2025, driven by the focused execution of its 2025 Work Program and the consistent application of disciplined capital allocation. Solid operational results across core operated and non-operated assets enabled GeoPark to exceed its pro forma production guidance of 35,000 boepd, while maintaining a competitive cost structure and advancing key strategic initiatives. The Company's commitment to portfolio resilience, capital efficiency, and operational excellence has allowed it to navigate lower Brent prices and heightened market volatility, while maintaining the flexibility to pursue value-accretive growth opportunities.

Operational figures include estimated pro forma production from the Mata Mora Norte Block (GeoPark non-operated, 45% WI) and Confluencia Norte Block (GeoPark non-operated, 50% WI) both in Vaca Muerta, Argentina. The Company's 1Q2025 financial results do not include the consolidation of production, revenues, or costs related to these assets, which remain subject to the completion of regulatory approvals by the relevant provincial authorities. We continue to work diligently to advance the approval process.

FIRST QUARTER 2025 FINANCIAL SUMMARY

In 1Q2025 GeoPark reported Adjusted EBITDA(1) of $87.9 million (64% Adj. EBITDA margin), a 13% increase compared to 4Q2024, mainly driven by strong cost discipline and higher realization prices that offset the lower production when excluding Vaca Muerta.

Operating costs per produced barrel of oil equivalent (boe) decreased to $12.3 in 1Q2025 from $14.5 in 4Q2024, within the range set for 2025 ($12-14 per boe). As part of its ongoing efforts to enhance competitiveness and profitability, the Company launched a comprehensive efficiency program aimed at generating $5--7 million in annual savings. The program focuses on optimizing expenditures, improving asset returns, and streamlining the corporate structure. To date, 90% of the targeted savings have already been achieved, with additional initiatives underway to fully reach the program's objectives.

Net profit for the quarter amounted to $13.1 million, compared to $15.3 million in 4Q2024, mainly due to one-off costs related to the partial repurchase of the 2027 Notes and higher financial cost associated to the issuance of the 2030 Notes. This strategic decision capitalized on favorable market conditions to successfully extend the average debt maturity to 4.6 years and reduce near-term refinancing risk.

During 1Q2025, GeoPark invested $22.6 million to strengthen operations and support future growth. Investments focused primarily on workover campaigns, completion activities and infrastructure development in the Llanos 34 Block (GeoPark operated, 45% WI), as well as exploration drilling activity in the Llanos 123 Block (GeoPark operated, 50% WI), both in Colombia. On a pro forma basis, GeoPark invested an additional $23.8 million(2) to advance key development and infrastructure projects in Vaca Muerta, including the completion and fracture of three wells in PAD 9 and the drilling of four wells in PAD 12. Adjusted EBITDA to capital expenditures ratio of 3.9x and a return on average capital employed (ROACE) of 27% showed continued robust capital efficiency.

Liquidity remained strong, with a cash balance of $308.0 million, further enhanced by the divestment of the non-core Llanos 32 and Manati blocks, which resulted in a $15.8 million cash inflow and a $3.2 million net gain (with an additional $7-8 million gain from Manati expected upon closing). The Company closed the period with net debt of $349.4 million and a strong leverage ratio of 0.9x, underscoring disciplined financial management and a resilient debt structure.

GeoPark proactively maintains strong downside protection against oil price volatility, with approximately 70% of its expected 2025 pro forma production -- including volumes from Vaca Muerta -- covered by hedging instruments with floor prices between $68 and $70 per barrel.

Demonstrating its continued commitment to shareholder returns, GeoPark declared a quarterly cash dividend of $0.147 per share (approximately $7.5 million), payable on June 5, 2025.

Andrés Ocampo, Chief Executive Officer of GeoPark, said: "Our first-quarter performance underscores the strength and resilience of the Company we have built together--efficient, disciplined, and future-focused. Through rigorous execution and proactive risk management, we delivered a stronger balance sheet, a healthier cash position, and a more robust debt profile--achieving solid financial results despite a volatile market environment. I am profoundly grateful to everyone who has contributed to this chapter of GeoPark's journey. The significant steps we've taken to strengthen our team and streamline our portfolio have positioned us to unlock greater value and build a more powerful platform for growth in the years to come."

Supplementary information is available at the following link:

https://ir.geo-park.com/1Q25-SupplementaryRelease

FIRST QUARTER 2025 HIGHLIGHTS

Oil and Gas Production and Operations

   -- 1Q2025 consolidated average oil and gas production of 29,076 boepd3 or 
      36,279 boepd pro forma including Vaca Muerta, exceeding the 2025 base 
      case guidance of 35,000 boepd 
 
   -- 8 rigs in operation (3 drilling and 5 workover) at the end of 1Q2025, 
      including one drilling rig in Vaca Muerta 
 
   -- Production in Vaca Muerta reached a record of 17,358 boepd gross during 
      February 2025 
 
   -- New exploration discovery at the Currucutu-1 well in the Llanos 123 Block 
 
   -- Enhanced field optimization and well interventions in the Llanos 34 and 
      CPO-5 blocks, including the deployment of new-generation drilling rigs 
      delivering faster cycle times and lower well costs 

Revenue, Adjusted EBITDA and Net Profit

   -- Revenue of $137.3 million 
 
   -- Adjusted EBITDA of $87.9 million (64% Adjusted EBITDA margin) 
 
   -- Operating profit of $50.4 million 
 
   -- Net profit of $13.1 million ($0.25 basic earnings per share) 

Cost and Capital Efficiency

   -- Capital expenditures of $22.6 million 
 
   -- 1Q2025 Adjusted EBITDA to capital expenditures ratio of 3.9x 
 
   -- ROACE of 27%4 
 
   -- Operating costs per produced boe of $12.3 

Balance Sheet Reflects Financial Quality

   -- Cash in hand of $308.0 million, including $152.0 million to be used upon 
      regulatory closing of the acquisition of assets in Vaca Muerta, Argentina 
 
   -- Full-Year net leverage of 0.9x and no principal debt maturities until 
      January 2027 
 
   -- Current cash position of $330 million (May 4, 2025) 

Commitment to Disciplined Capital Allocation

   -- Divestment of the non-core, non-operated Llanos 32 Block in Colombia and 
      Manati gas field in Brazil for an aggregate total consideration of $20 
      million5 (net of $12 million liabilities related to decommissioning or 
      retirement obligations at the Manati gas field) 

Continued Shareholder Value Return

   -- Quarterly cash dividend of $0.147 per share, or approximately $7.5 
      million, payable on June 5, 2025, to shareholders of record at the close 
      of business on May 22, 2025 
 
   -- Through our commitment to shareholder returns we expect an annualized 
      dividend of approximately $30 million in 2025, or a 9% dividend yield6 

Sustainability and Corporate Governance

   -- Our 2024 SPEED/Sustainability Report highlights substantial emissions 
      reductions and operational efficiency, as well as multiple awards for 
      climate action, biodiversity, and decarbonization leadership 
 
CONSOLIDATED OPERATING PERFORMANCE 
Key performance indicators: 
 
 
Key Indicators                           1Q2025   4Q2024   1Q2024 
--------------------------------------   ------   ------   ------ 
Oil production(a) (bopd)                 28,972   31,354   34,255 
Gas production (mcfpd)                      624      808    7,305 
Average net production (boepd)           29,076   31,489   35,473 
---------------------------------------  ------   ------   ------ 
Brent oil price ($ per bbl)                74.9     74.0     81.8 
Combined realized price(b) ($ per boe)     62.8     59.6     65.1 
   Oil(c) ($ per bbl)                      65.3     61.9     69.5 
   Gas ($ per mcf)                           --      7.1      5.4 
Sale of crude oil ($ million)             137.1    141.8    162.2 
Sale of purchased crude oil ($ million)     0.4      1.4      1.8 
Sale of gas ($ million)                      --      0.5      3.5 
Commodity risk management contracts ($ 
 million)                                  (0.2)      --     (0.1) 
Revenue ($ million)                       137.3    143.7    167.4 
Production & operating costs(d) ($ 
 million)                                 (35.4)   (44.3)   (38.5) 
G&G, G&A(e) ($ million)                   (11.5)   (17.7)   (12.7) 
Selling expenses ($ million)               (2.2)    (2.9)    (4.1) 
Operating profit ($ million)               50.4     44.6     84.0 
Adjusted EBITDA ($ million)                87.9     77.7    111.5 
Adjusted EBITDA ($ per boe)                40.2     32.2     43.4 
Net profit ($ million)                     13.1     15.3     30.2 
---------------------------------------  ------   ------   ------ 

(MORE TO FOLLOW) Dow Jones Newswires

May 07, 2025 16:30 ET (20:30 GMT)