GeoPark Limited

GeoPark said consolidated production averaged 28 thousand barrels of oil equivalent per day, about 3% higher than the prior quarter. Colombia produced approximately 25.9 thousand boe/d, while Argentina increased 51% quarter over quarter to about 2.1 thousand boe/d. Revenue was $116 million and adjusted EBITDA was $45.8 million, implying a 39% margin. Brent averaged $91.4/bbl, but realized price fell to $56.20/boe from $67.20/boe in the prior quarter due to wider differentials and hedging effects; the commodity risk management contract reduced revenue by $36.4 million. Operating cost rose to $20.70 per produced boe from $17.90. The company invested $72.2 million in the quarter, held $253 million in cash at quarter-end, and reported net leverage of 1.6x LTM adjusted EBITDA. Management said full-year production and adjusted EBITDA should remain within guidance ranges.

Felipe Bayon framed the quarter as part of a broader transformation toward a more diversified regional platform with three distinct operating bases: Colombia, Argentina and Venezuela. He emphasized that the Bare block in Venezuela was completed ahead of schedule and that GeoPark is focused on a safe operational takeover before year-end, while also calling Corralera Northeast a meaningful expansion to the Argentina portfolio. His tone was constructive but measured: he repeatedly acknowledged that growth brings execution complexity and that the company is in a heavy investment phase.

Jaime Caballero focused on the drivers of the weaker financial performance and the actions being taken to protect margins and liquidity. He pointed to the sharp move in Colombia’s Vasconia differential from a $1.43/bbl discount in Q2 to $6.67/bbl, and Argentina’s Medanito changing from a $1.79/bbl premium to a $3.50/bbl discount, while also noting the $36.4 million negative revenue impact from hedging. He said the company ended the quarter with $253 million in cash and 1.6x net leverage, and after quarter end completed a liability management deal including a $550 million senior notes issuance due in 2033, which extends maturities and funds a substantial portion of planned Vaca Muerta investment. He also said available financing is around $600 million to $700 million when including committed lines, and that 2027 is funded in aggregate.

Analysts focused heavily on Venezuela and Vaca Muerta execution, asking for the cadence of Bare reactivations, workovers and drilling, and the technical case for Corralera Northeast. Management said Bare’s first phase is reactivation, with about one-third of the 300-450 planned reactivations done next year, workovers starting in 2027, and drilling beginning in 2028; it also said more than 50% of critical takeover contracts are already awarded. On Corralera, management said the block sits in the oil window near active operators, has evidence the reservoir is present, but still needs four years of de-risking and testing for productivity, water cut and landing zones. Questions also probed how GeoPark will manage share-tender mechanics, tax-linked contingent consideration in Venezuela, and whether the company has enough funding; management said the tender runs for 90 days post-closing, is open to all shareholders except Grupo Gilinski on a pro rata basis if oversubscribed, and that current financing plus committed lines is sufficient for the plan.