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GeoPark (GPRK)
:GPRK
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GeoPark
(NYSE:GPRK)
65Neutral
GeoPark (GPRK) vs. S&P 500 (SPY)
Market Cap
$406.74M
Dividend Yield7.26%
Average Volume (3M)758.18K
Price to Earnings (P/E)4.3
Beta (1Y)0.52
Revenue Growth-12.66%
EPS Growth-7.12%
CountryUS
Employees470
SectorEnergy
Sector Strength85
IndustryOil & Gas Exploration & Production
Share Statistics
EPS (TTM)1.82
Shares Outstanding51,162,533
10 Day Avg. Volume604,512
30 Day Avg. Volume758,185
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)2.15
Price to Cash Flow (P/CF)1.00
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$14.50Price Target Upside79.46% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
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 exhibits operational efficiencies and strong cash flow generation. However, challenges in revenue decline and high leverage are significant concerns. The financial stability is compromised by high debt levels and a low equity base, which pose risks during downturns.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 |
| 273.50M | 270.91M | 429.10M | 298.93M | 61.03M | EBITDA |
| 419.00M | 381.26M | 548.67M | 281.48M | -2.43M | Net Income Common Stockholders |
| 96.40M | 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 |
| 514.30M | 533.28M | 497.60M | 694.84M | 806.93M | Net Debt |
| 237.50M | 400.24M | 368.80M | 594.23M | 605.03M | Total Liabilities |
| 996.80M | 840.53M | 858.40M | 957.69M | 1.07B | Stockholders Equity |
| 203.30M | 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 |
| -226.90M | -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
8.08
Price Trends
8.52
Negative
8.93
Negative
8.83
Negative
Market Momentum
-0.14
Negative
46.46
Neutral
50.60
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 8.08 is above the 20-day moving average (MA) of 7.82, below the 50-day MA of 8.52, and below the 200-day MA of 8.83, indicating a neutral trend. The MACD of -0.14 indicates Negative momentum. The RSI at 46.46 is Neutral, neither overbought nor oversold. The STOCH value of 50.60 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 (58)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | $21.29B | 5.73 | 18.70% | 15.37% | -1.24% | -16.75% | |
78 Outperform | $17.18B | 5.84 | 22.65% | ― | 7.35% | ― | |
76 Outperform | $87.53B | 13.66 | 10.52% | 18.36% | -10.81% | -70.65% | |
74 Outperform | $4.14B | 10.52 | 7.77% | 4.32% | -12.48% | -36.47% | |
71 Outperform | $3.37B | 4.41 | 19.62% | 2.58% | 13.33% | -2.72% | |
65 Neutral | $406.74M | 4.33 | 50.79% | 7.26% | -12.66% | -7.12% | |
58 Neutral | $9.08B | 5.25 | -7.99% | 7.51% | 0.47% | -64.07% |
* Energy Sector Average
Performance Comparison
GPRK
GeoPark
8.08
-0.95
-10.52%
EC
Ecopetrol SA
10.44
-0.18
-1.69%
MUR
Murphy Oil
28.40
-16.39
-36.59%
PBR
Petroleo Brasileiro SA- Petrobras
14.34
1.66
13.09%
SM
SM Energy
29.95
-19.77
-39.76%
YPF
YPF Sociedad Anonima
35.04
15.41
78.50%
GeoPark Earnings Call Summary
Earnings Call Date: Mar 5, 2025 | % Change Since: 7.59% | Next Earnings Date: May 14, 2025
Earnings Call Sentiment Neutral
The earnings call reflected a mix of achievements and challenges for GeoPark in 2024. The company achieved significant milestones with a record shareholder return, strategic acquisitions, and sustainability recognitions. However, these were tempered by production declines, delayed acquisition closures, and decreased financial performance. The sentiment is balanced, reflecting both positive strategic advancements and operational challenges.Highlights
Record Shareholder Cash Return
GeoPark delivered the highest annual shareholder cash return in the company's history with almost $74 million through dividends and buyback, representing a record annual shareholder cash return of around 14% yield.
Strategic Acquisition in Vaca Muerta
GeoPark made a significant acquisition in Vaca Muerta, which extended reserves life and increased production by 19% in the fourth quarter of 2024 compared to the third quarter.
Sustainability Achievements
GeoPark was included in the S&P Sustainability Yearbook for the first time and maintained its AA rating in the MSC Index, highlighting its position as a global sustainability leader.
Financial Stability and Flexibility
GeoPark ended the year with $276.8 million in cash and maintained a net leverage of 0.9 times, well below its long-term target, with no material debt commitments due until 2030.
Exploration Success
A transformational discovery in the Confluencia block in Vaca Muerta, with two out of three wells ranking in the top eight producing wells in the entire basin over the last 90 days.
Strong Reserve Growth
Pro forma 2P reserves increased by 41% year-on-year to nearly over 160 million barrels, driven by the addition of 74.6 million barrels from the Vaca Muerta assets.
Lowlights
Production Decline
Total oil and gas production for 2024 averaged almost 34,000 barrels a day, 7% less than 2023, due to temporary production disruptions and a natural decline in main fields in Colombia.
Delayed Acquisition Closure
The closing of the acquisition in Argentina is taking longer than expected, impacting the ability to report consolidated production and financial figures for 2024.
Lower Financial Performance
Full-year 2024 adjusted EBITDA decreased by 8% compared to 2023, and net income was 13% lower than 2023 due to lower production, lower revenues, and a higher effective tax rate.
Company Guidance
During the GeoPark Limited conference call, CEO Andres Ocampo reported notable achievements for fiscal year 2024, including a game-changing acquisition in Vaca Muerta, which extended reserves life and increased production significantly. The company's total oil and gas production averaged nearly 34,000 barrels per day, a 7% decrease from 2023 due to temporary disruptions and natural declines in Colombia. However, Vaca Muerta assets alone delivered over 15,000 barrels per day in Q4, a 19% increase from Q3. The acquisition added 74.6 million barrels to their 2P reserves, resulting in a 41% year-on-year increase and extending the reserve life index to 13 years. GeoPark's full-year adjusted EBITDA reached $416 million, an 8% drop from 2023, attributed to lower production and one-off financial expenses. The company maintained a strong capital efficiency ratio of 2.2 times adjusted EBITDA, with net income at $96.4 million. GeoPark ended the year with $276.8 million in cash and a net leverage of 0.9 times, well below their long-term target. They achieved a record shareholder cash return of $74 million, reflecting a 14% yield, and declared a quarterly dividend of $0.15 per share. Looking ahead to 2025, GeoPark plans to enhance recovery and productivity in Colombia and continue development in Vaca Muerta, aiming for a gross plateau production of 40,000 barrels per day.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.