GeoPark (GPRK) Q1 2026 earnings summary

Executive summary

• Achieved strong operational and financial performance in Q1 2026, with production averaging 27,249 boepd, exceeding Q4 2025 and within annual guidance, supported by higher realized oil prices and disciplined cost management.

• Advanced growth initiatives in Argentina's Vaca Muerta, initiating drilling and infrastructure upgrades, targeting a ramp-up from 1,430 to 5,000–6,000 boepd by year-end.

• Maintained robust asset performance in Colombia, with secondary recovery and water flooding supporting production.

• Strengthened balance sheet and liquidity through strategic financing, escrow recovery, and a new equity partner, Grupo Gilinski, who acquired a 20% stake.

• Declared a quarterly dividend of $0.023 per share, but dividend suspension will commence with 3Q2026, to be reassessed after peak investment phase.

Financial highlights

• Revenues reached $128.4 million, up 16% sequentially, driven by higher sales volumes and improved realized prices, though down 7% year-over-year.

• Adjusted EBITDA was $71.3 million (56% margin), up 54% from the prior quarter, but down 19% year-over-year.

• Operating profit rose to $58 million from $20.6 million in Q4 2025.

• Net income was $20.2 million, despite non-recurring items and higher taxes, up from $13.1 million in 1Q2025 but down from $31.1 million in 4Q2025.

• Cash and cash equivalents increased to $274.9 million as of March 31, 2026.

Outlook and guidance

• 2026 CapEx guidance remains $190–$220 million, with potential for acceleration of activities in Vaca Muerta and Colombia.

• Production in Vaca Muerta expected to reach 5,000–6,000 boepd by December 2026, with further ramp-up planned for 2027.

• Maintains a disciplined risk management approach, with oil price protection for 2026 and 2027 through three-way collars covering significant production volumes.

• Dividend suspension commencing with 3Q2026; Board will reassess dividends after peak investment phase and resumption of positive free cash flow.

• Long-term strategy focuses on maximizing Colombian assets and transformational growth in Argentina, while evaluating opportunities in Venezuela.