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GeoPark Q1 2025 Earnings Report
GeoPark reported a profitable first quarter in 2025, driven by strong financial discipline, cost efficiency, and robust cash generation.
Key Takeaways
GeoPark reported strong first-quarter 2025 results, with Adjusted EBITDA increasing by 13% compared to the previous quarter, reaching $87.9 million. This was primarily due to strong cost discipline and higher realization prices, which offset lower production when excluding Vaca Muerta. The company maintained a strong liquidity position with $308.0 million in cash and a low net debt leverage ratio of 0.9x, while continuing its commitment to shareholder returns with a declared quarterly cash dividend of $0.147 per share.
Adjusted EBITDA increased by 13% to $87.9 million, driven by cost discipline and higher realization prices.
Operating costs per produced barrel of oil equivalent decreased to $12.3, within the 2025 target range.
Net profit for the quarter was $13.1 million, despite one-off costs related to debt repurchase and issuance.
The company maintained strong liquidity with $308.0 million in cash and a net debt of $349.4 million, resulting in a leverage ratio of 0.9x.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
GeoPark's forward guidance emphasizes continued financial discipline, operational efficiency, and strategic growth, aiming to maintain a strong balance sheet and deliver shareholder value.
Positive Outlook
- Expected annualized dividend of approximately $30 million in 2025, representing a 9% dividend yield.
- Proactive hedging instruments cover approximately 70% of expected 2025 pro forma production, with floor prices between $68 and $70 per barrel.
- Continued focus on enhancing competitiveness and profitability through a comprehensive efficiency program aimed at generating $5-7 million in annual savings.
- Strategic decision to extend average debt maturity to 4.6 years and reduce near-term refinancing risk.
- Commitment to portfolio resilience, capital efficiency, and operational excellence to navigate market volatility and pursue value-accretive growth opportunities.
Challenges Ahead
- Financial results for Vaca Muerta assets remain subject to completion of regulatory approvals, which could impact consolidation of production, revenues, or costs.
- The company's financial performance is still subject to volatile market conditions and Brent prices.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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