GeoPark Announces 2025 Work Program
GeoPark (NYSE: GPRK) has announced its 2025 Work Program, targeting production of 35,000 boepd (±2,500) with a capital expenditure of $275-310 million. The program focuses on operations across Colombia (26,000 boepd), Vaca Muerta (7,400 boepd), Ecuador (1,000 boepd), and Brazil (600 boepd).
The company plans to drill 23-31 gross wells, with 65% allocated to development and 35% to exploration. The production mix is expected to be 97% oil and 3% natural gas. The program aims to generate $350-430 million in Adjusted EBITDA at $70-80/bbl Brent prices, with a targeted ROACE above 30%.
GeoPark will maintain its annual dividend of $30 million, representing a 6-7% yield at current prices. The company expects to achieve a 35-40% reduction in GHG emissions intensity by 2025 compared to 2020 levels.
GeoPark (NYSE: GPRK) ha annunciato il suo Programma di Lavoro per il 2025, con l'obiettivo di produrre 35.000 boepd (±2.500) con un investimento in conto capitale compreso tra $275 e $310 milioni. Il programma si concentra sulle operazioni in Colombia (26.000 boepd), Vaca Muerta (7.400 boepd), Ecuador (1.000 boepd) e Brasile (600 boepd).
L'azienda prevede di perforare da 23 a 31 pozzi totali, con il 65% destinato allo sviluppo e il 35% all'esplorazione. Si prevede che il mix di produzione sarà composto al 97% da petrolio e al 3% da gas naturale. Il programma mira a generare $350-430 milioni in EBITDA aggiustato a prezzi del Brent di $70-80/bbl, con un ROACE mirato superiore al 30%.
GeoPark manterrà il suo dividendo annuale di $30 milioni, che rappresenta un rendimento del 6-7% ai prezzi attuali. L'azienda si aspetta di raggiungere una riduzione del 35-40% dell'intensità delle emissioni di gas serra entro il 2025 rispetto ai livelli del 2020.
GeoPark (NYSE: GPRK) ha anunciado su Programa de Trabajo 2025, con el objetivo de alcanzar una producción de 35,000 boepd (±2,500) con un gasto de capital entre $275 y $310 millones. El programa se centra en las operaciones en Colombia (26,000 boepd), Vaca Muerta (7,400 boepd), Ecuador (1,000 boepd) y Brasil (600 boepd).
La compañía planea perforar entre 23 y 31 pozos brutos, destinando el 65% al desarrollo y el 35% a la exploración. Se espera que la mezcla de producción sea 97% petróleo y 3% gas natural. El programa tiene como objetivo generar entre $350 y $430 millones en EBITDA Ajustado a precios del Brent de $70-80/bbl, con un ROACE objetivo superior al 30%.
GeoPark mantendrá su dividendo anual de $30 millones, que representa un rendimiento del 6-7% a los precios actuales. La compañía espera lograr una reducción del 35-40% en la intensidad de las emisiones de GEI para 2025 en comparación con los niveles de 2020.
GeoPark (NYSE: GPRK)는 2025년 작업 프로그램을 발표했으며, 35,000 boepd (±2,500)의 생산을 목표로 2억 7천5백만 달러에서 3억 1천만 달러의 자본 지출을 계획하고 있습니다. 이 프로그램은 콜롬비아(26,000 boepd), 바카 무에르타(7,400 boepd), 에콰도르(1,000 boepd) 및 브라질(600 boepd)에서의 운영에 초점을 맞추고 있습니다.
회사는 총 23~31개의 유정을 시추할 계획이며, 그 중 65%는 개발에, 35%는 탐사에 할당됩니다. 생산 믹스는 97%가 원유, 3%가 천연가스로 예상됩니다. 이 프로그램은 브렌트 가격이 배럴당 $70-80일 때, 조정 EBITDA에서 $350-430 백만 달러를 생성하는 것을 목표로 하며, ROACE는 30% 이상이어야 합니다.
GeoPark는 3천만 달러의 연간 배당금을 유지할 계획이며, 이는 현재 가격 기준으로 6-7%의 수익률을 나타냅니다. 회사는 2020년 대비 2025년까지 온실가스 배출 강도를 35-40% 줄일 것으로 예상하고 있습니다.
GeoPark (NYSE: GPRK) a annoncé son programme de travail pour 2025, visant une production de 35,000 boepd (±2,500) avec des dépenses d'investissement de 275 à 310 millions de dollars. Le programme met l'accent sur les opérations en Colombie (26,000 boepd), Vaca Muerta (7,400 boepd), Équateur (1,000 boepd) et Brésil (600 boepd).
L'entreprise prévoit de forer entre 23 et 31 puits bruts, avec 65% alloué au développement et 35% à l'exploration. Le mélange de production devrait être composé de 97% de pétrole et 3% de gaz naturel. Le programme vise à générer entre 350 et 430 millions de dollars d'EBITDA ajusté à des prix du Brent de 70 à 80 dollars/bbl, avec un ROACE ciblé au-dessus de 30 %.
GeoPark maintiendra son dividende annuel de 30 millions de dollars, ce qui représente un rendement de 6 à 7 % aux prix actuels. L'entreprise s'attend à réaliser une réduction de 35 à 40 % de l'intensité des émissions de GES d'ici 2025 par rapport aux niveaux de 2020.
GeoPark (NYSE: GPRK) hat sein Arbeitsprogramm für 2025 angekündigt, mit dem Ziel eine Produktion von 35.000 boepd (±2.500) und Investitionsausgaben von $275-310 Millionen zu erreichen. Das Programm konzentriert sich auf die Betriebe in Kolumbien (26.000 boepd), Vaca Muerta (7.400 boepd), Ecuador (1.000 boepd) und Brasilien (600 boepd).
Das Unternehmen plant, 23-31 Bohrungen vorzunehmen, wobei 65% für die Entwicklung und 35% für die Exploration vorgesehen sind. Die Produktionsmischung wird voraussichtlich zu 97% aus Öl und zu 3% aus Erdgas bestehen. Das Programm zielt darauf ab, bei Brent-Preisen von $70-80/bbl zwischen $350 und $430 Millionen EBITDA zu generieren, mit einer angestrebten ROACE von über 30%.
GeoPark wird seine jährliche Dividende von $30 Millionen beibehalten, was bei den aktuellen Preisen einer Rendite von 6-7% entspricht. Das Unternehmen erwartet, bis 2025 eine Reduzierung der Treibhausgasemissionsintensität um 35-40% im Vergleich zu den Werten von 2020 zu erreichen.
- Projected strong EBITDA of $350-430 million for 2025
- Healthy expected leverage ratio of 1.5-2.1x net debt to EBITDA
- Maintained annual dividend of $30 million (6-7% yield)
- Target ROACE above 30%
- Diversified production across multiple countries and assets
- High CAPEX requirement of $275-310 million
- Putanillo field shut-in due to high cost structure
- Relatively high lifting costs of $12-14/bbl for consolidated operations
Insights
The 2025 Work Program outlines a comprehensive operational strategy with substantial financial implications. The projected $350-430 million in Adjusted EBITDA at $70-80/bbl Brent demonstrates robust cash flow generation potential. The $275-310 million CAPEX program, primarily focused on Vaca Muerta ($195-220 million) and Colombia ($80-90 million), shows strategic capital allocation toward high-potential assets.
The financial metrics are particularly strong, with an EBITDA margin exceeding 50% and ROACE above 30%. The conservative leverage ratio target of 1.5-2.1x net debt to EBITDA and projected ending cash position of $120-180 million indicates prudent balance sheet management. The $30 million annual dividend commitment, yielding 6-7%, represents a balanced approach to shareholder returns while maintaining growth capital.
GeoPark's production strategy reflects a sophisticated portfolio optimization approach. The targeted production mix of 97% oil and 3% natural gas, with 22% unconventional and 78% conventional output, positions the company well in the current commodity price environment. The production guidance of 35,000 boepd demonstrates a focus on sustainable growth, with Colombia contributing 26,000 boepd and Vaca Muerta 7,400 boepd.
The operational efficiency is evident in the projected lifting costs of $12-14/bbl for consolidated operations and an impressive $7-9/bbl for Vaca Muerta. The balanced drilling program of 23-31 wells, split between development (65%) and exploration (35%), suggests a prudent approach to resource development while maintaining future growth potential.
The commitment to reduce Scope 1 and 2 GHG emissions intensity by 35-40% by 2025 compared to 2020 levels represents a significant environmental milestone. This target aligns with increasing investor focus on ESG metrics and could enhance the company's appeal to sustainability-focused investors. The comprehensive sustainability strategy, coupled with best-in-class HSE practices, positions GeoPark favorably in an industry facing increasing environmental scrutiny.
Optimized Portfolio Focused on Maximizing Value
Differentiated Asset Base for Long-Term Sustainable Growth
The Program is designed to deliver increasing value to its shareholders through disciplined capital allocation, operational excellence, and sustainable growth. The Program integrates and responds to the following key principles of GeoPark’s “North Star” strategy:
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Highly Profitable, Dependable and Sustainable
- More than$400 million 50% ); ROACE1 >30%
- Underpinned by operational excellence and a comprehensive sustainability strategy
- Decreasing environmental footprint: 35-40% carbon intensity reduction vs 2020
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Focused on Growth Through Big Assets, Big Basins and Big Plays
- Distinctive Assets: Llanos 34, CPO-5, Vaca Muerta
- Differentiated Basins: Conventional and unconventional
- Diversified Footprint:Colombia ,Argentina ,Brazil
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Near Term Performance, Long Term Vision and Targets
- Target 70,000 boepd mid-term (2028), 100,000 boepd long-term (2030)
- Strong organic footprint leveraged by accretive inorganic opportunities
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Financial Flexibility and Stewardship
- Net Debt to EBITDA 1.5-2.1x @$70 -80
- Strong cashflow generation ($120 -180 million
- Diversified financing sources available; proactive hedging strategy
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Competitive Shareholder Returns while Driving Sustainable Growth
Maintain an annual dividend of$30 million
2025 Work Program Guidance (
The table below provides the main highlights of the 2025 work program:
2025 Work Program |
|
Average Production |
35,000 boepd (± 2,500 boepd)2 |
Capital Expenditures |
|
Adjusted EBITDA |
|
RRR Target |
|
Lifting Cost |
|
Total Wells (Gross) |
23 – 31 |
The
The activity set considers drilling 23-31 gross wells (including 10-15 gross exploration and appraisal wells), with approximately
-
Vaca Muerta - 10-12 wells,
$195 -220
- Mata Mora Norte Block: Focus on accelerating production and reserves growth through the continued development of the block and alignment with critical infrastructure requirements. 7-8 gross development wells plus necessary infrastructure and facilities expansion to continue optimizing operations and delivering increased volumes to market
- Confluencia Sur Block: Focus on the continued de-risking of the block through exploration drilling that continues the successful 2024 exploration campaign. CAPEX includes 3-4 gross exploration wells, as well as the net carry consideration of the committed exploratory activity, which will complete GeoPark’s obligation in full
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Colombia - 13-19 wells,$80 -90
- Llanos 34 Block: Focus on maximizing recovery factors in the fields, managing the decline through an optimization of base production (waterflooding, pilot polymer flooding project, pump upsizing projects and workovers) and maximizing economics. 5-7 gross development, appraisal and injector wells, plus infrastructure and facilities
- CPO-5 Block: Drilling campaign will focus exclusively on exploration activities, with 2-4 exploration wells expected. The Indico field has been fully developed, hence activities will concentrate on managing its production decline through a workover campaign
- Llanos Exploration: Focus on increasing production and reserves, through the delineation and development of the new discoveries in the Llanos 123 Block (Toritos, Saltador and Bisbita) and drilling the first exploration wells in the Llanos 104 Block. 5-6 gross wells
- Putumayo: The Platanillo field has been shut in due to a high cost structure, and has no production included in the 2025 guidance. Activities in the basin will focus on continuing the exploration campaign initiated in 4Q2024 in the PUT-8 Block. 1-2 gross wells
The North Star strategy envisions achieving an annual Reserves Replacement Ratio (RRR) ≥
Lifting Cost is expected to be
Financial Details
Assuming a
The Work Program will be funded primarily with internal cash generation and debt. At base case prices, the 2025 ending cash stands at
Oil hedging plays a crucial role in our financial strategy, ensuring competitive price realizations and downside price risk protection. As of December 31, 2024, GeoPark had hedged approximately
2025 Shareholder Returns
Supported by the Company’s robust balance sheet and operational strength, GeoPark expects to continue returning a reliable dividend payment of approximately
Dividend payments remain subject to Board approval and will depend on factors such as business performance, financial condition, and growth plans.
Comprehensive Sustainability Strategy
GeoPark remains committed to operational excellence while maintaining best-in-class health, safety, and environmental (HSE) practices.
Within its Greenhouse Gas (GHG) emissions reduction strategy, GeoPark expects a 35
RECONCILIATION OF ADJUSTED EBITDA
Adjusted EBITDA is defined as profit for the period before net finance costs, income tax, depreciation, amortization, the effect of IFRS 16, certain non-cash items such as impairments and write-offs of unsuccessful efforts, accrual of share-based payments, unrealized results on commodity risk management contracts and other non-recurring events.
The Company is unable to present a quantitative reconciliation of the 2025 Adjusted EBITDA which is a forward-looking non-GAAP measure, because the Company cannot reliably predict certain of the necessary components, such as write-off of unsuccessful exploration efforts or impairment loss on non-financial assets, etc. Since free cash flow is calculated based on Adjusted EBITDA, for similar reasons, the Company does not provide a quantitative reconciliation of the 2025 free cash flow forecast.
NOTICE
Additional information about GeoPark can be found in the “Invest with Us” section on the website at www.geo-park.com.
Rounding amounts and percentages: Certain amounts and percentages included in this press release have been rounded for ease of presentation. Percentages included in this press release have not in all cases been calculated on the basis of such rounded amounts, but on the basis of such amounts prior to rounding. For this reason, certain percentages in this press release may vary from those obtained by performing the same calculations on the basis of the amounts in the financial statements. Similarly, certain other amounts included in this press release may not sum due to rounding.
CAUTIONARY STATEMENTS RELEVANT TO FORWARD-LOOKING INFORMATION
This press release contains statements that constitute forward-looking statements. Many of the forward-looking statements contained in this press release can be identified by the use of forward-looking words such as ‘‘anticipate,’’ ‘‘believe,’’ ‘‘could,’’ ‘‘expect,’’ ‘‘should,’’ ‘‘plan,’’ ‘‘intend,’’ ‘‘will,’’ ‘‘estimate’’ and ‘‘potential,’’ among others.
Forward-looking statements that appear in a number of places in this press release include, but are not limited to, statements regarding the intent, belief or current expectations, regarding various matters, including, drilling campaign, production guidance, closing of acquisition transaction and production consolidation. Forward-looking statements are based on management’s beliefs and assumptions, and on information currently available to the management. Such statements are subject to risks and uncertainties, and actual results may differ materially from those expressed or implied in the forward-looking statements due to various factors.
Forward-looking statements speak only as of the date they are made, and the Company does not undertake any obligation to update them in light of new information or future developments or to release publicly any revisions to these statements in order to reflect later events or circumstances, or to reflect the occurrence of unanticipated events. For a discussion of the risks facing the Company which could affect whether these forward-looking statements are realized, see filings with the
Oil and gas production figures included in this release are stated before the effect of royalties paid in kind, consumption and losses. Annual production per day is obtained by dividing total production by 365 days.
1 |
Return on Average Capital Employed. |
|
2 |
This guidance is subject to the regulatory closing of the Vaca Muerta acquisition, expected in 1Q2025. For reference purposes, a delay in the closing impacts the guidance by approximately 4 |
|
3 |
The Company is unable to present a quantitative reconciliation of the 2024 Adjusted EBITDA which is a forward-looking non-GAAP measure, because the Company cannot reliably predict certain of the necessary components, such as write-off of unsuccessful exploration efforts or impairment loss on non-financial assets, etc. Since free cash flow is calculated based on Adjusted EBITDA, for similar reasons, the Company does not provide a quantitative reconciliation of the 2025 free cash flow forecast. |
|
4 |
Assuming a |
|
5 |
Net average production after economic rights and royalties. GeoPark monitors market conditions on a continuous basis and may enter into additional commodity risk management contracts to secure minimum oil prices for its 2025 production and beyond. |
|
6 |
Calculated as expected shareholder returns (dividends), divided by GeoPark’s average market capitalization as of December 31, 2024. |
View source version on businesswire.com: https://www.businesswire.com/news/home/20250117034618/en/
For further information, please contact:
INVESTORS:
Maria Catalina Escobar mescobar@geo-park.com
Shareholder Value and Capital Markets Director
Miguel Bello mbello@geo-park.com
Investor Relations Officer
Maria Alejandra Velez mvelez@geo-park.com
Investor Relations Leader
MEDIA:
Communications Department
communications@geo-park.com
Source: GeoPark Limited
FAQ
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