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GeoPark (GPRK)
NYSE:GPRK
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GeoPark
(NYSE:GPRK)
Rating:66Neutral
Price Target:
$7.50
▲( 10.95% Upside)
GeoPark (GPRK) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$356.60M
Dividend Yield8.46%
Average Volume (3M)1.12M
Price to Earnings (P/E)4.5
Beta (1Y)0.64
Revenue Growth-14.94%
EPS Growth-25.19%
CountryUS
Employees476
SectorEnergy
Sector Strength40
IndustryOil & Gas Exploration & Production
Share Statistics
EPS (TTM)0.25
Shares Outstanding51,309,776
10 Day Avg. Volume1,554,081
30 Day Avg. Volume1,118,383
Financial Highlights & Ratios
PEG Ratio-0.41
Price to Book (P/B)1.67
Price to Sales (P/S)0.00
P/FCF Ratio1.28
Enterprise Value/Market Cap1.69
Enterprise Value/Revenue0.21
Enterprise Value/Gross Profit1.68
Enterprise Value/Ebitda0.36
Forecast
1Y Price Target
$8.25Price Target Upside22.04% Upside
Rating ConsensusHold
Number of Analyst Covering2
GeoPark Business Overview & Revenue Model
Company DescriptionGeoPark Limited engages in the exploration, development, and production of oil and gas reserves in Chile, Colombia, Brazil, Argentina, and Ecuador. As of December 31, 2021, the company had working and/or economic interests in 42 hydrocarbons blocks. It had net proved reserves of 87.8 million barrels of oil equivalent. GeoPark Limited has a strategic partnership with ONGC Videsh to jointly acquire, invest in, and create value from upstream oil and gas projects across Latin America. The company was formerly known as GeoPark Holdings Limited and changed its name to GeoPark Limited in July 2013. GeoPark Limited was founded in 2002 and is based in Bogotá, Colombia.
How the Company Makes MoneyGeoPark generates revenue primarily through the exploration, development, and production of oil and gas. The company monetizes its hydrocarbon reserves by selling crude oil, natural gas, and other related products to a variety of customers, including national oil companies, refineries, and other energy firms. GeoPark's key revenue streams come from the sale of these commodities, which are often influenced by global oil and gas prices. Additionally, the company may enter into joint ventures or strategic partnerships to enhance its operational capabilities and expand its market reach. Factors such as production volume, commodity prices, operational efficiency, and cost management significantly contribute to GeoPark's earnings.
GeoPark Financial Statement Overview
Summary
GeoPark shows strong operational efficiency with a robust cash flow, yet faces challenges with a declining revenue and high leverage. The debt-to-equity ratio is notably high, indicating financial risk, despite a strong return on equity driven by a low equity base.Income Statement
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.65
Positive
Balance Sheet
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.55
Neutral
Cash Flow
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.70
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 660.80M | 756.63M | 1.05B | 688.54M | 393.69M | Gross Profit |
| 496.80M | 403.37M | 593.10M | 386.78M | 150.55M | EBIT |
| 273.55M | 270.91M | 429.10M | 298.93M | 61.03M | EBITDA |
| 409.07M | 381.26M | 548.67M | 281.48M | -2.43M | Net Income Common Stockholders |
| 96.38M | 111.07M | 224.44M | 61.13M | -232.95M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 276.80M | 133.04M | 128.80M | 101.47M | 201.94M | Total Assets |
| 1.20B | 1.02B | 974.00M | 895.74M | 960.27M | Total Debt |
| 540.26M | 533.28M | 497.60M | 694.84M | 806.93M | Net Debt |
| 263.51M | 400.24M | 368.80M | 594.23M | 605.03M | Total Liabilities |
| 996.76M | 840.53M | 858.40M | 957.69M | 1.07B | Stockholders Equity |
| 203.29M | 176.02M | 115.60M | -61.95M | -109.19M |
| Cash Flow | Free Cash Flow | |||
| 279.70M | 101.90M | 298.69M | 87.52M | 93.40M | Operating Cash Flow |
| 471.00M | 300.94M | 467.50M | 216.78M | 168.70M | Investing Cash Flow |
| -226.85M | -198.59M | -153.70M | -126.56M | -347.63M | Financing Cash Flow |
| -99.20M | -98.72M | -286.55M | -190.44M | 271.14M |
GeoPark Technical Analysis
Negative
6.76
Price Trends
7.07
Negative
8.08
Negative
8.25
Negative
Market Momentum
-0.05
Negative
48.19
Neutral
45.45
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 6.76 is below the 20-day moving average (MA) of 6.80, below the 50-day MA of 7.07, and below the 200-day MA of 8.25, indicating a bearish trend. The MACD of -0.05 indicates Negative momentum. The RSI at 48.19 is Neutral, neither overbought nor oversold. The STOCH value of 45.45 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 (57)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
69 Neutral | $316.05M | 2.33 | 25.10% | ― | 38.46% | ― | |
66 Neutral | $356.60M | 4.53 | 38.79% | 8.46% | -14.94% | -25.19% | |
66 Neutral | $356.10M | 6.16 | 11.83% | 7.42% | 3.02% | -8.43% | |
65 Neutral | $312.19M | 8.78 | 28.43% | ― | 69.21% | 47.13% | |
61 Neutral | $364.67M | 5.69 | 14.68% | 4.41% | -15.94% | 2.90% | |
61 Neutral | $299.69M | 280.79 | 39.61% | 0.36% | -85.94% | -88.55% | |
57 Neutral | $7.14B | 3.33 | -3.45% | 5.75% | 0.66% | -50.76% |
* Energy Sector Average
Performance Comparison
GPRK
GeoPark
6.76
-2.60
-27.78%
PNRG
Primeenergy
187.20
74.24
65.72%
SD
SandRidge Energy
9.83
-3.33
-25.30%
EGY
Vaalco Energy
3.29
-2.49
-43.08%
SJT
San Juan Basin Royalty
6.78
2.45
56.58%
GFR
Greenfire Resources
4.38
-1.60
-26.76%
GeoPark Earnings Call Summary
Earnings Call Date:May 07, 2025
(Q1-2025)
| % Change Since: -0.59%|
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%.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.