GeoPark Limited

GeoPark reported Q2 production of 37.3 thousand barrels of oil equivalent per day. Revenue increased 12% sequentially to $143.3 million, adjusted EBITDA reached $73.1 million with a 51% margin, operating profit was $40.8 million, and net income was $14 million. Management said Brent averaged approximately $97/bbl, while stronger realized prices were partly offset by hedging costs and higher operating costs from currency appreciation and energy. For the rest of 2026, management expects $40 million-$50 million of capital investment in the second half, with about 70%-80% of that in Q3, and said full-year capex could rise from the previously discussed $190 million-$220 million range to as much as $250 million if additional accretive activity is accelerated.

Felipe Bayon framed the quarter as another period of consistent execution, emphasizing resilient Colombian cash generation and Argentina as the company’s key growth platform. He highlighted that Argentina moved quickly from acquisition to operations, saying GeoPark drilled and fractured 5 horizontal wells in about 9 months and is moving toward an exit rate of approximately 5 thousand-6 thousand boe/d by year-end 2026. He was also upbeat on Colombia under the incoming administration, saying the government appears supportive of oil and gas, and pointed to Venezuela and possible Argentina bidding opportunities as additional growth avenues.

Jaime Caballero and Martin Terrado focused on disciplined capital, hedging, and cost pressure. Terrado said second-half capital investment is expected at $40 million-$50 million, with first-half capex around $55 million, while the company maintained cash of $316 million and net leverage of 1.2x EBITDA. He also noted lifting costs rose to $17.8/bbl in Q2 from $14.7/bbl in Q1, with full-year second-half guidance now at $17-$19/bbl due mainly to FX and energy, and said each 100 pesos move in the exchange rate changes OpEx by about $2.5 million. Caballero said hedging remains important to support predictable cash flow during a period of higher investment, citing 2027 structures with floors around $75/bbl and ceilings around $85-$86/bbl, and said the 2026 hedge position is unchanged at about 20 thousand bbl/d with floors of $65/bbl and ceilings of about $72-$73/bbl.

Analysts focused on Colombia’s incoming government, social unrest, Venezuela opportunities, Vaca Muerta capex, cost inflation, and hedging. Management said the new Colombian administration appears supportive of investment and could create more room for conventional and unconventional oil and gas, though changes will take time and depend on licensing and permitting. On Vaca Muerta, management said the second-half spend will go mainly to facilities, a connection to a neighboring operator, a water disposal well, and pad construction for early-2027 drilling; on hedging, they said the strategy is meant to protect cash flow during a heavy investment phase and can still deliver attractive returns in the price ranges they cited.