GEOPARK ANNOUNCES FINAL RESULTS OF ITS TENDER OFFER

Rhea-AI Summary

GeoPark announces the final results of its tender offer to purchase its common shares, acquiring 4,369,181 shares at a price of U.S.$10.00 per share, totaling approximately U.S.$43.7 million. The tender offer represented 7.87% of the issued and outstanding common shares as of April 19, 2024.

Insights

Financial Analyst

GeoPark's recent completion of its tender offer, where it successfully repurchased 4,369,181 of its common shares at $10.00 per share, indicates a strategic move to consolidate ownership and potentially increase earnings per share (EPS). This buyback, costing the company about $43.7 million, reduces the number of shares outstanding by approximately 7.87%, which could be seen as a signal of self-confidence by management in the company’s intrinsic value.

An analysis of the funding method is also pertinent; GeoPark's decision to use its cash and investments to fund the buyback could suggest a strong liquidity position, but it raises questions about the opportunity costs of not investing this capital into potentially higher-yield projects or debt reduction. The market often views share repurchase programs as a positive sign, provided they're done below intrinsic value, as they can improve shareholder value. However, using internal cash reserves for repurchases during volatile oil and gas market conditions could be risky if the company faces unforeseen capital needs in the future.

Market Research Analyst

The buyback size of close to 8% of the outstanding shares is a significant percentage and it may have positive implications for the stock's liquidity and volatility. A buyback of this magnitude could lead to increased stock demand and possibly a higher share price in the short term. However, investors should consider whether the tender offer price of $10.00 per share is reflective of the underlying asset value of GeoPark, taking into account the volatile nature of oil and gas prices and the company's operational performance.

It's also interesting to note the role of BTG Pactual US Capital, LLC as the Dealer Manager and Georgeson LLC as the Information Agent, which may instill confidence in investors regarding the proficient handling of the offer. Nonetheless, this operation should be contextualized within broader market trends, including oil price dynamics, regional stability and the company's long-term strategy for growth and profitability.

BOGOTA, Columbia, April 22, 2024 /PRNewswire/ -- GeoPark Limited ("GeoPark" or the "Company") (NYSE: GPRK), a leading independent Latin American oil and gas explorer, operator and consolidator, today announced the final results of its tender offer to purchase its common shares, or the shares, at (i) prices specified by the tendering shareholders of not greater than U.S.$10.00 nor less than U.S.$9.00 per common share or (ii) at the purchase price determined in accordance with the tender offer. The tender offer expired at 5:00 p.m., New York City time, on April 17, 2024.

Based on the final count by Computershare Trust Company, N.A., the Depositary for the tender offer (the "Depositary"), a total of 4,369,181 common shares of GeoPark were properly tendered and not properly withdrawn at the final cash purchase price of U.S.$10.00 per share.

Accordingly, GeoPark acquired 4,369,181 shares at a purchase price of U.S.$10.00 per share, for a total cost of approximately U.S.$43.7 million, excluding fees and other expenses related to the tender offer. These shares represent 7.87% of the issued and outstanding common shares of GeoPark as of April 19, 2024. The Depositary will promptly pay for the shares accepted for purchase.

After giving effect to the purchase of the common shares, GeoPark will have 51,117,757 outstanding common shares.

GeoPark funded the share purchases in the tender offer from its cash and investments.

GeoPark's tender offer was made pursuant to an Offer to Purchase and Letter of Transmittal, each dated March 20, 2024 and as amended on April 11, 2024 and April 18, 2024.

The Dealer Manager for the Offer was BTG Pactual US Capital, LLC. The Information Agent for the tender offer was Georgeson LLC. The Depositary was Computershare Trust Company, N.A. Holders of shares who have questions or would like additional information about the Offer should contact the Information Agent toll free at (866) 356-2715.

NOTICE

THIS PRESS RELEASE IS FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSTITUTE AN OFFER TO BUY OR THE SOLICITATION OF AN OFFER TO SELL GEOPARK LIMITED'S COMMON SHARES. THE TENDER OFFER WAS MADE ONLY PURSUANT TO THE OFFER TO PURCHASE, LETTER OF TRANSMITTAL AND RELATED MATERIALS THAT GEOPARK DISTRIBUTED TO ITS SHAREHOLDERS AND FILED WITH THE SECURITIES AND EXCHANGE COMMISSION. SHAREHOLDERS AND INVESTORS SHOULD READ CAREFULLY THE OFFER TO PURCHASE, LETTER OF TRANSMITTAL AND RELATED MATERIALS BECAUSE THEY CONTAIN IMPORTANT INFORMATION, INCLUDING THE VARIOUS TERMS OF, AND CONDITIONS TO, THE TENDER OFFER. SHAREHOLDERS AND INVESTORS MAY OBTAIN A FREE COPY OF THE TENDER OFFER STATEMENT ON SCHEDULE TO, THE OFFER TO PURCHASE, LETTER OF TRANSMITTAL AND OTHER DOCUMENTS THAT GEOPARK FILED WITH THE SECURITIES AND EXCHANGE COMMISSION AT THE COMMISSION'S WEBSITE AT WWW.SEC.GOV.

CAUTIONARY STATEMENTS RELEVANT TO FORWARD-LOOKING INFORMATION

All statements contained in this press release, other than statements of historical fact, are forward-looking statements including those regarding the expected timing of the tender offer described in this press release. These statements speak only as of the date of this press release and are based on our current plans and expectations and involve risks and uncertainties that could cause actual future events or results to be different from those described in or implied by such forward-looking statements, including risks and uncertainties regarding: changes in financial markets; changes in economic, political or regulatory conditions or other trends affecting the ethanol, sugar and logistics industries; and changes in facts and circumstances and other uncertainties concerning the tender offer. Further information about these matters can be found in our Securities and Exchange Commission filings. Except as required by applicable law or regulation, we do not undertake any obligation to update our forward-looking statements to reflect future events or circumstances.

View original content:https://www.prnewswire.com/news-releases/geopark-announces-final-results-of-its-tender-offer-302122953.html

SOURCE GeoPark Limited

FAQ

What did GeoPark announce regarding its tender offer?

GeoPark announced the final results of its tender offer to purchase its common shares.

How many shares did GeoPark acquire in the tender offer?

GeoPark acquired 4,369,181 shares at a purchase price of U.S.$10.00 per share.

What percentage of the issued and outstanding common shares did the tender offer represent?

The tender offer represented 7.87% of the issued and outstanding common shares as of April 19, 2024.

Who was the Dealer Manager for the tender offer?

The Dealer Manager for the tender offer was BTG Pactual US Capital,

How was the tender offer funded by GeoPark?

GeoPark funded the share purchases in the tender offer from its cash and investments.