GeoPark (GPRK) Q4 2025 earnings summary

Executive summary

• Exceeded all 2025 guidance metrics with operational discipline, portfolio reset, and production inflection, despite Brent oil price dropping to $68.2/bbl from $79.8/bbl year-over-year.

• Average production reached 28,233 boepd in 2025, above guidance, with stabilization in Colombia and early contributions from Argentina.

• Major milestones included the acquisition of Vaca Muerta assets in Argentina and the announced acquisition of Frontera Energy's Colombian upstream assets, expected to double reserves and significantly expand production.

• Initiated cost-saving initiatives, generating $32 million in structural cash cost savings in 2025.

• The company targets 44,000-46,000 boepd and Adjusted EBITDA of $490-$520 million by 2028, with further upside from the Frontera integration.

Financial highlights

• FY2025 revenue was $492.5 million, down from $660.8 million in FY2024.

• Adjusted EBITDA for 2025 was $277 million, within guidance, down from $416.9 million in FY2024; Q4 Adjusted EBITDA was $46 million, impacted by non-recurring items.

• Operating costs averaged $13.2/boe for FY2025, within guidance.

• $32 million in structural cash savings achieved, with a run rate of $45 million annualized savings expected from 2026.

• Cash balance over $100 million; net leverage at 1.6x; no material debt maturities until 2027.

Outlook and guidance

• Portfolio reset expected to more than double reserves and scale, with pro forma production to exceed 90,000 boepd by 2028.

• EBITDA projected to reach approximately $950 million by 2028 post-acquisitions.

• 2026 OpEx guidance is $13-$15/bbl and G&A around $4/bbl.

• Production uplift expected in Argentina by year-end 2026, with Vaca Muerta exit rate targeted at 5,000-6,000 boepd.

• Over 84% of 2026 production hedged; hedging for 2027 underway.