GPRK · GeoPark Limited

GeoPark delivered robust Q1 2026 results amid a constructive oil pricing environment, with Brent averaging $77.9/bbl supporting a realized price of $60.4/boe, up from $54.8/boe in 4Q2025. Revenue growth of 16% to $128.4 million stemmed from 8% higher sales volumes, including commercialization of deferred 4Q2025 volumes, and improved pricing despite hedging impacts and Vasconia differentials. Adjusted EBITDA surged 54% to $71.3 million with a 56% margin, bolstered by operating costs dropping to $14.7/boe from $15.8/boe, even with adverse FX in Colombia and Argentina. Net income of $20.2 million reflected operating profit of $58.0 million but was tempered by higher taxes, including Colombia's 10% oil price surcharge, offset by a $25 million break-up fee from the failed Frontera Energy acquisition net of costs. Production averaged 27,249 boepd, slightly above plan with 9 rigs active, focused on Llanos 34 (45% WI) drilling/workovers and initial Vaca Muerta efforts in Loma Jarillosa Este. Capex of $22.0 million yielded 3.2x EBITDA coverage and 19% ROACE, emphasizing returns discipline. Balance sheet fortified with cash at $274.9 million, net debt $333.1 million (1.3x leverage), fueled by $107 million Grupo Gilinski equity for 20% stake, $65 million local debt, and $100.3 million escrow/fee recovery. Hedging secures 19,000 bpd for 2026 via 3-way collars ($64.8/$50/$72) and 11,000 bpd for 2027. A $0.023/share dividend aligns with revised policy, suspending from 3Q2026 to prioritize investments until positive free cash flow resumes post-peak capex.