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GeoPark (GPRK)
NYSE:GPRK
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GeoPark (GPRK) AI Stock Analysis

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GPRK

GeoPark

(NYSE:GPRK)

Rating:64Neutral
Price Target:
$7.50
▲(9.33%Upside)
GeoPark's stock shows a balanced profile with strengths in valuation and cash flow management. Despite operational successes highlighted in the earnings call, challenges persist with revenue decline and high leverage. Regulatory uncertainties further impact the outlook, leading to a cautious score.

GeoPark (GPRK) vs. SPDR S&P 500 ETF (SPY)

GeoPark Business Overview & Revenue Model

Company DescriptionGeoPark (GPRK) is a leading independent oil and gas exploration and production company focused primarily on Latin America. It operates in several countries across the region, including Colombia, Chile, Brazil, Argentina, and Ecuador. The company is engaged in the exploration, development, and production of oil and natural gas, leveraging its expertise and strategic partnerships to optimize resource extraction and maximize shareholder value.
How the Company Makes MoneyGeoPark generates revenue primarily through the exploration, extraction, and sale of crude oil and natural gas. The company's revenue streams are largely derived from selling these commodities in the global market, where prices can fluctuate based on supply and demand dynamics. GeoPark benefits from its diversified portfolio of assets in multiple Latin American countries, which helps mitigate geopolitical and market risks. Key partnerships with national oil companies and other industry players can enhance operational efficiencies and access to new opportunities. Additionally, GeoPark invests in technological innovations and sustainable practices to improve production processes and reduce costs, thereby enhancing profitability.

GeoPark Earnings Call Summary

Earnings Call Date:May 07, 2025
(Q1-2025)
|
% Change Since: 3.16%|
Next Earnings Date:Aug 06, 2025
Earnings Call Sentiment Neutral
The earnings call presented a strong financial and operational performance with production exceeding expectations and significant operational efficiencies. However, uncertainties due to regulatory delays in Argentina and potential transaction withdrawal present notable challenges.
Q1-2025 Updates
Positive Updates
Production Exceeds Guidance
Pro forma consolidated production averaged 36,000 barrels a day, exceeding the base case guidance of 35,000 barrels a day, driven by stable output in Colombia and Ecuador, and record production from new Argentina assets.
Record Production from Argentina's Vaca Muerta
The Vaca Muerta blocks in Argentina achieved a record high production of over 17,000 barrels a day in February.
Strong Financial Performance
Adjusted EBITDA increased by 13% from the previous quarter to $88 million, with operating costs decreasing to $12.3 per barrel.
Net Leverage and Cash Position
Net leverage ratio stands at 0.9x, and the company closed the quarter with over $308 million in cash.
Operational Efficiency Improvements
New drilling efficiencies reduced cycle times by 20% in Llanos 34, and a new well was drilled in record time of 4.5 days.
Negative Updates
Regulatory Approval Delays
The Argentina assets' production, revenue, or costs are not yet consolidated due to pending regulatory approvals, creating uncertainty around the transaction's completion.
Potential Transaction Termination
The transaction agreement with Phoenix includes an outside date of May 13, 2025, after which either party can withdraw from the transaction without penalty if approvals are not obtained.
Operational Blockages in CPO-5
CPO-5 experienced approximately 12 days of blockages, although this was within the expected range.
Company Guidance
During the GeoPark Limited conference call for the first quarter of 2025, CEO Andres Ocampo highlighted several key metrics and strategic initiatives. GeoPark's consolidated production averaged 36,000 barrels per day, surpassing their guidance of 35,000 barrels per day. The company achieved an adjusted EBITDA of $88 million, a 13% increase from the previous quarter, and reduced operating costs to $12.3 per barrel, aligning with their full-year guidance. Notably, GeoPark's Argentina assets in the Vaca Muerta region reached a record high production of over 17,000 barrels per day in February. The company closed the quarter with over $308 million in cash and maintained a net leverage ratio of 0.9x. GeoPark's hedging program effectively covered approximately 70% of their 2025 production at a floor price between $68 and $70 per barrel. The company also declared a quarterly dividend of $0.15 per share, targeting an annualized dividend yield of approximately 9%.

GeoPark Financial Statement Overview

Summary
GeoPark's financial performance is mixed. While the company shows strong operational efficiencies and cash flow strength, with a solid EBIT and EBITDA Margin, challenges include a revenue decline and high leverage, reflecting potential financial instability.
Income Statement
65
Positive
GeoPark's income statement reveals mixed performance. The Gross Profit Margin for the most recent year is approximately 75.2%, indicating strong cost management relative to revenue. However, there is a notable decrease in total revenue from $756.6 million in 2023 to $660.8 million in 2024, reflecting a revenue decline of about 12.7%. Net Profit Margin stands at 14.6%, suggesting moderate profitability given the industry's volatile environment. EBIT and EBITDA Margins are solid at 41.4% and 63.4% respectively, showing efficiency in operations despite revenue challenges.
Balance Sheet
55
Neutral
The balance sheet indicates some financial stability concerns. The Debt-to-Equity Ratio is elevated at 2.53, highlighting significant leverage and potential risk if earnings do not improve. Return on Equity is relatively high at 47.4%, but this is driven by a low equity base, which implies financial risk. The Equity Ratio is 16.9%, indicating a reliance on debt financing with limited equity cushioning, which could pose challenges during downturns.
Cash Flow
70
Positive
GeoPark's cash flow statement shows healthy cash generation. Operating Cash Flow of $471 million is robust, with an Operating Cash Flow to Net Income ratio of 4.89, suggesting strong cash earnings quality. Free Cash Flow has increased substantially by 174.5%, improving liquidity. However, the Free Cash Flow to Net Income Ratio is 2.9, indicating efficient cash conversion, which is a positive sign for financial flexibility.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue660.80M756.63M1.05B688.54M393.69M
Gross Profit496.80M403.37M593.10M386.78M150.55M
EBITDA409.07M381.26M548.67M281.48M-2.43M
Net Income96.38M111.07M224.44M61.13M-232.95M
Balance Sheet
Total Assets1.20B1.02B974.00M895.74M960.27M
Cash, Cash Equivalents and Short-Term Investments276.80M133.04M128.80M101.47M201.94M
Total Debt540.26M533.28M497.60M694.84M806.93M
Total Liabilities996.76M840.53M858.40M957.69M1.07B
Stockholders Equity203.29M176.02M115.60M-61.95M-109.19M
Cash Flow
Free Cash Flow279.70M101.90M298.69M87.52M93.40M
Operating Cash Flow471.00M300.94M467.50M216.78M168.70M
Investing Cash Flow-226.85M-198.59M-153.70M-126.56M-347.63M
Financing Cash Flow-99.20M-98.72M-286.55M-190.44M271.14M

GeoPark Technical Analysis

Technical Analysis Sentiment
Negative
Last Price6.86
Price Trends
50DMA
6.92
Negative
100DMA
6.97
Negative
200DMA
7.86
Negative
Market Momentum
MACD
-0.04
Positive
RSI
48.45
Neutral
STOCH
48.29
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GPRK, the sentiment is Negative. The current price of 6.86 is below the 20-day moving average (MA) of 6.89, below the 50-day MA of 6.92, and below the 200-day MA of 7.86, indicating a bearish trend. The MACD of -0.04 indicates Positive momentum. The RSI at 48.45 is Neutral, neither overbought nor oversold. The STOCH value of 48.29 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GPRK.

GeoPark Peers Comparison

Overall Rating
UnderperformOutperform
Sector (67)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
79
Outperform
$291.77M8.2528.43%69.21%47.13%
75
Outperform
$397.63M6.7911.83%6.53%3.02%-8.43%
74
Outperform
$321.65M2.3925.10%38.46%
67
Neutral
$15.28B9.736.25%5.18%4.49%-71.88%
64
Neutral
$351.99M4.5438.79%8.57%-14.94%-25.19%
61
Neutral
$380.81M5.9414.68%4.19%-15.94%2.90%
61
Neutral
$268.93M251.9739.61%0.40%-85.94%-88.55%
* Energy Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GPRK
GeoPark
6.86
-2.59
-27.41%
PNRG
Primeenergy
175.71
58.45
49.85%
SD
SandRidge Energy
10.51
-2.32
-18.08%
EGY
Vaalco Energy
3.83
-3.05
-44.33%
SJT
San Juan Basin Royalty
5.87
1.99
51.29%
GFR
Greenfire Resources
4.60
-2.32
-33.53%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 25, 2025