GeoPark (GPRK) Q4 2024 earnings summary

Executive summary

• Achieved significant milestones in 2024, including the transformative Vaca Muerta acquisition, a major discovery in the Confluencia block, and record shareholder returns despite operational challenges and lower oil prices.

• Total oil and gas production averaged nearly 34,000 boepd in 2024, down 7% year-over-year due to temporary disruptions and natural decline in Colombia.

• Vaca Muerta assets delivered strong growth, with Q4 gross production up 19% sequentially and nearly 50% higher than at acquisition announcement; acquisition effective July 2024, with 4Q2024 gross production of 15,052 boepd, not yet consolidated.

• First exploration pad in Confluencia block produced 4,500 boepd, with two wells ranking among the top eight in the basin.

• Returned $73.7 million to shareholders in FY2024 through dividends and buybacks, achieving a 14% capital return yield and reducing outstanding shares by 8%.

Financial highlights

• Full year 2024 adjusted EBITDA was $416.9 million, down from $451.9 million in 2023, due to lower production, lower realized prices, and one-off expenses.

• Net income for 2024 was $96.4 million, a 13% decrease from 2023, mainly from lower production, revenues, and a higher effective tax rate.

• Ended 2024 with $276.8 million in cash, including a $152 million prepayment facility drawdown for the Vaca Muerta acquisition.

• 4Q2024 revenue was $143.7 million, down 28% year-over-year; FY2024 revenue was $660.8 million.

• Capital expenditures totaled $191.3 million in FY2024, with a 2.2x Adjusted EBITDA to capex ratio.

Outlook and guidance

• Focus for 2025 is on maximizing the expanded asset base, advancing water and polymer flooding projects in Colombia, and further exploration, including development in Vaca Muerta and Confluencia Sur Block.

• Vaca Muerta development continues, targeting 20,000 boepd gross by mid-2025 and 40,000 boepd gross with a second rig by early 2026.

• CapEx plans are stress-tested at $60/bbl Brent, with 70% of next 12 months' production hedged at $68–69/bbl, ensuring stability.

• Ongoing evaluation of inorganic growth opportunities in large assets and basins.