GPRK · GeoPark Limited

GeoPark's 2025 was a transformative year, marked by strategic repositioning under new CEO Felipe Bayon. Despite a 14.5% decline in Brent prices ($68.2/bbl vs $79.8/bbl in 2024), the company met or exceeded all key guidance metrics. Operational highlights include average production of 28,233 boepd (above the 27,000-28,000 boepd guidance range), driven by strong secondary recovery at Llanos 34 and successful drilling at Llanos 123. Adjusted EBITDA fell to $277.1 million from $416.9 million, primarily due to lower realized prices, but was partially offset by $32 million in structural cost savings. Management expects $45 million in annualized savings from 2026 onward. The balance sheet was strengthened through debt repurchases ($108.3 million of 2030 Notes below par) and equity infusion ($107 million from Grupo Gilinski), ending the year with $100.3 million cash and net leverage of 1.6x. Strategic initiatives include the October 2025 acquisition of two Vaca Muerta oil blocks (operated, >12,300 gross acres), positioning GeoPark for long-term growth in Argentina's premier shale play. The company demonstrated capital discipline by walking away from a competing bid for Frontera Energy's Colombian assets and by adopting a limited-duration shareholder rights plan after a rapid accumulation of shares by a single investor. An unsolicited acquisition proposal from Parex Resources was rejected as undervaluing the company. The Board also decided to suspend dividends after Q2 2026 to fund a peak investment phase in Vaca Muerta and Colombia. The annual general meeting on July 14, 2026, will include the election of new directors (Gabriel Gilinski already appointed in March, plus nominees Camilo Martínez and Dorita Gilinski) and the appointment of Ernst & Young as auditors. These events collectively signal a focused strategy toward disciplined growth, operational efficiency, and shareholder alignment.