GeoPark (GPRK) Q3 2024 earnings summary

Executive summary

• Net revenue for Q3 2024 was $159.5 million, down 16–17% sequentially/year-over-year due to lower oil prices, production, and divestments.

• Adjusted EBITDA for Q3 was $99.8 million (63% margin), down 13% year-over-year; nine-month adjusted EBITDA rose 2% to $339 million.

• Net profit for the quarter was $25.1 million, slightly up from the prior year.

• Cash position increased from $66 million at June 30 to $123.4 million at September 30, with $140 million in October.

• Quarterly dividends of $7.5 million maintained; total 2024 cash distributed to shareholders will reach $73 million (18% capital return yield).

Financial highlights

• Net leverage ratio remains low at 0.8x, with no principal debt maturities until 2027.

• Adjusted EBITDA margin for Q3 was 63%.

• Production and operating costs dropped to $39.8 million, mainly due to higher economic rights paid in kind.

• Income tax expense decreased to $21.6 million, reflecting a lower Colombian tax surcharge.

• Return on average capital employed was 34% for the last twelve months.

Outlook and guidance

• 2025 work program and investment guidelines to be released before year-end, focusing on sustainable growth and capital allocation.

• Production in Vaca Muerta expected to remain around 13,500–14,500 boe/d by year-end.

• Llanos 34 production expected to decline about 15% in 2025 due to field maturity, with continued infill drilling and water flooding.