GPRK · GeoPark Limited

GeoPark Limited delivered Q1 2026 results with profit of US$20.2 million, up 54% from Q1 2025's US$13.1 million, primarily propelled by a one-time US$25 million break-up fee from the terminated acquisition of Frontera Energy’s Colombian E&P assets, recognized in other income netting to US$14.4 million. Revenue dipped 7% to US$128.4 million, reflecting realized losses on commodity hedges of US$10.2 million amid volatile oil prices averaging US$100/bbl in March, partially offset by higher crude sales of US$138.6 million. Operating costs rose modestly to US$37.7 million, while selling expenses jumped to US$8.8 million due to shifts in delivery points under a new BP arrangement. Operating profit climbed to US$58.0 million from US$50.4 million, though financial expenses eased to US$17.5 million from US$24.8 million, and income tax expense doubled to US$21.3 million at a 51% effective rate influenced by Colombia's tax surcharge. Balance sheet strengthened with cash at US$274.9 million (up from US$100.3 million year-end), fueled by US$107 million equity issuance to Grupo Gilinski affiliate Colden Investments for 12.9 million shares at US$8.31/share, granting 20% ownership and board seats; combined Gilinski entities reached 25.8% by period-end. Total debt stood at US$608 million, with new short-term Colombian loans for the failed deal. Operating cash flow turned positive at US$50.0 million versus US$78.8 million outflow last year, supporting US$22.0 million capex. A small US$1.9 million dividend was declared at US$0.03/share. Hedge portfolio shows significant mark-to-market liability of US$129.8 million from Brent price surge, with ongoing collars and 3-ways capping upside through 2027. The unconsummated Frontera deal returned the US$75 million deposit plus interest, avoiding integration risks but forgoing growth assets.