Portfolio Strengthening: GeoPark Divests Non-Core Assets & Implements Cost Efficiency Initiatives
GeoPark (NYSE: GPRK) has announced strategic divestments of non-core assets and cost reduction initiatives to strengthen its portfolio. The company is divesting the non-operated Llanos 32 Block in Colombia and Manati gas field in Brazil for a total of $20 million. These assets had combined reserves of 2.9 mmboe and averaged 712 boepd in 2024.
The Llanos 32 Block is being sold to Parex Resources for $19 million (minus $3.7 million working capital adjustment), while the Manati gas field is being sold for $1 million plus adjustments and contingent payments. The company is also implementing cost reduction measures expected to save $5-7 million annually in OPEX/G&A costs through workforce reductions and other administrative expense cuts.
Additionally, GeoPark is exploring strategic options for its Ecuador assets. These initiatives align with the company's North Star growth strategy, focusing on high-impact, high materiality assets.
GeoPark (NYSE: GPRK) ha annunciato disinvestimenti strategici di beni non core e iniziative di riduzione dei costi per rafforzare il proprio portafoglio. L'azienda sta disinvestendo il Blocco Llanos 32 in Colombia e il giacimento di gas Manati in Brasile per un totale di 20 milioni di dollari. Questi beni avevano riserve combinate di 2,9 mmboe e una media di 712 boepd nel 2024.
Il Blocco Llanos 32 viene venduto a Parex Resources per 19 milioni di dollari (meno un aggiustamento del capitale circolante di 3,7 milioni di dollari), mentre il giacimento di gas Manati viene venduto per 1 milione di dollari più aggiustamenti e pagamenti contingenti. L'azienda sta anche implementando misure di riduzione dei costi che si prevede porteranno a risparmi annuali di 5-7 milioni di dollari nei costi OPEX/G&A attraverso riduzioni della forza lavoro e altri tagli alle spese amministrative.
Inoltre, GeoPark sta esplorando opzioni strategiche per i suoi beni in Ecuador. Queste iniziative sono in linea con la strategia di crescita North Star dell'azienda, che si concentra su beni ad alto impatto e alta materialità.
GeoPark (NYSE: GPRK) ha anunciado desinversiones estratégicas de activos no centrales e iniciativas de reducción de costos para fortalecer su cartera. La compañía está desinvirtiendo el Bloque Llanos 32 en Colombia y el campo de gas Manati en Brasil por un total de 20 millones de dólares. Estos activos tenían reservas combinadas de 2.9 mmboe y un promedio de 712 boepd en 2024.
El Bloque Llanos 32 se vende a Parex Resources por 19 millones de dólares (menos un ajuste de capital de trabajo de 3.7 millones de dólares), mientras que el campo de gas Manati se vende por 1 millón de dólares más ajustes y pagos contingentes. La compañía también está implementando medidas de reducción de costos que se espera ahorren entre 5 y 7 millones de dólares anuales en costos de OPEX/G&A a través de reducciones de personal y otros recortes de gastos administrativos.
Además, GeoPark está explorando opciones estratégicas para sus activos en Ecuador. Estas iniciativas están alineadas con la estrategia de crecimiento North Star de la compañía, que se enfoca en activos de alto impacto y alta materialidad.
GeoPark (NYSE: GPRK)는 포트폴리오 강화를 위한 비핵심 자산의 전략적 매각 및 비용 절감 이니셔티브를 발표했습니다. 회사는 총 2천만 달러에 콜롬비아의 Llanos 32 블록과 브라질의 Manati 가스전을 매각하고 있습니다. 이 자산들은 2.9 mmboe의 결합된 매장량을 가지고 있으며, 2024년에는 평균 712 boepd의 생산량을 기록할 것으로 예상됩니다.
Llanos 32 블록은 Parex Resources에 1천9백만 달러에 판매되며 (3.7백만 달러의 운영 자본 조정 제외), Manati 가스전은 1백만 달러에 조정 및 조건부 지급이 추가되어 판매됩니다. 또한, 회사는 인력 감축 및 기타 관리 비용 절감을 통해 연간 5-7백만 달러를 절감할 것으로 예상되는 비용 절감 조치를 시행하고 있습니다.
추가로, GeoPark는 에콰도르 자산에 대한 전략적 옵션을 탐색하고 있습니다. 이러한 이니셔티브는 회사의 North Star 성장 전략과 일치하며, 고임팩트 및 고물질 자산에 중점을 두고 있습니다.
GeoPark (NYSE: GPRK) a annoncé des désinvestissements stratégiques d'actifs non essentiels et des initiatives de réduction des coûts pour renforcer son portefeuille. L'entreprise se désinvestit du Bloc Llanos 32 en Colombie et du champ de gaz Manati au Brésil pour un total de 20 millions de dollars. Ces actifs avaient des réserves combinées de 2,9 mmboe et ont produit en moyenne 712 boepd en 2024.
Le Bloc Llanos 32 est vendu à Parex Resources pour 19 millions de dollars (moins un ajustement du fonds de roulement de 3,7 millions de dollars), tandis que le champ de gaz Manati est vendu pour 1 million de dollars plus ajustements et paiements conditionnels. L'entreprise met également en œuvre des mesures de réduction des coûts qui devraient permettre d'économiser entre 5 et 7 millions de dollars par an sur les coûts OPEX/G&A grâce à des réductions de personnel et d'autres coupes dans les dépenses administratives.
De plus, GeoPark explore des options stratégiques pour ses actifs en Équateur. Ces initiatives s'alignent sur la stratégie de croissance North Star de l'entreprise, qui se concentre sur des actifs à fort impact et à haute matérialité.
GeoPark (NYSE: GPRK) hat strategische Desinvestitionen von Nicht-Kernvermögen und Kostenreduzierungsinitiativen angekündigt, um sein Portfolio zu stärken. Das Unternehmen veräußert das Llanos 32 Block in Kolumbien und das Manati-Gasfeld in Brasilien für insgesamt 20 Millionen Dollar. Diese Vermögenswerte hatten kombinierte Reserven von 2,9 mmboe und eine durchschnittliche Produktion von 712 boepd im Jahr 2024.
Das Llanos 32 Block wird für 19 Millionen Dollar (abzüglich einer Anpassung des Betriebskapitals in Höhe von 3,7 Millionen Dollar) an Parex Resources verkauft, während das Manati-Gasfeld für 1 Million Dollar zuzüglich Anpassungen und bedingten Zahlungen verkauft wird. Das Unternehmen implementiert auch Maßnahmen zur Kostenreduzierung, die voraussichtlich jährliche Einsparungen von 5-7 Millionen Dollar bei OPEX/G&A-Kosten durch Personalabbau und andere Einsparungen bei Verwaltungskosten bringen werden.
Darüber hinaus untersucht GeoPark strategische Optionen für seine Vermögenswerte in Ecuador. Diese Initiativen stehen im Einklang mit der Wachstumsstrategie North Star des Unternehmens, die sich auf hochwirksame und hochrelevante Vermögenswerte konzentriert.
- Cost reduction initiatives expected to save $5-7 million annually
- Recovery of $12 million restricted deposit from Manati field decommissioning obligations
- Strategic focus on high-impact, high materiality assets
- Divestment reduces production by approximately 1,500 boepd in 2025 plan
- Loss of $10-13 million in adjusted EBITDA at $70-80/bbl Brent
- Workforce reductions implemented
Insights
GeoPark's strategic divestiture of non-core assets combined with cost-cutting initiatives represents a measured portfolio optimization aimed at improving capital efficiency. The company is selling assets generating
The divested assets—the non-operated Llanos 32 Block in Colombia and Manati gas field in Brazil—contributed only 712 boepd in 2024 production (approximately
While the company loses some production and associated cash flow, the value received appears reasonable at roughly 1.7-2.0x EBITDA. The ongoing OPEX/G&A optimization through workforce reductions and contractor adjustments should partially offset the EBITDA loss from these divested assets.
This restructuring aligns with industry trends where smaller E&P companies are streamlining portfolios to focus capital on their highest-return opportunities. The mention of "evaluating strategic options for assets in Ecuador" suggests further portfolio refinement may be forthcoming. For GeoPark, with its relatively modest
This transaction exhibits the classic financial engineering maneuver of trading future cash flows for immediate balance sheet strengthening. GeoPark is effectively swapping
The
For a company with GeoPark's size (
The market should view this as a neutral transaction—GeoPark isn't receiving premium valuations for these assets, but the divestiture streamlines operations and provides capital that can potentially generate higher returns when redeployed to core assets. The workforce reductions signal management's commitment to maintaining margins in a volatile commodity price environment, though implementation costs may create a short-term drag before the
In line with its commitment to disciplined capital allocation, the Company will divest the non-core, non-operated Llanos 32 Block in
Furthermore, GeoPark is evaluating strategic options for its assets in
In addition to the timely monetization of the above non-core assets, GeoPark is currently implementing targeted cost reduction and cost efficiency measures that the Company expects will deliver annual savings of approximately
The above measures aim to focus activity and capital allocation on high-impact, high materiality assets, in alignment with GeoPark’s North Star growth strategy.
Further details on the divestments of the Llanos 32 Block and in the Manati gas field are provided in the annex below.
ANNEX
Llanos 32 Block (
On March 14, 2025, GeoPark agreed to transfer, subject to regulatory approval, its non-operated working interest in the Llanos 32 Block in
The Llanos 32 Block has net 1P PRMS reserves of 1.9 mmboe (
Manati Gas Field (
On March 27, 2025, GeoPark signed an agreement to sell its
Closing of the transaction is pending customary regulatory approvals and is expected to occur during 3Q2025.
The Manati gas field has net 1P PRMS reserves of 1.0 mmboe (
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, 2025 production and adjusted EBITDA guidance, potential OPEX and G&A savings, balance sheet strengthening, cost structure optimization, activity and capital allocation focus toward high impact and high materiality assets, and closing of the divestment of the Manati gas field. 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 Before working capital adjustments and contingent payments.
2 The Company is unable to present a quantitative reconciliation of the Adjusted EBITDA ratio which is a forward-looking non-GAAP measure, because the Company cannot reliably predict certain of its necessary components, such as is the case of Adjusted EBITDA, write-off of unsuccessful exploration efforts or impairment loss on non-financial assets, etc.
3 The 2024 reserves volumes will be officially reported to the ANH on April 1, 2025.
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For further information, please contact:
INVESTORS:
Maria Catalina Escobar
Shareholder Value and Capital Markets Director
mescobar@geo-park.com
Miguel Bello
Investor Relations Officer
mbello@geo-park.com
Maria Alejandra Velez
Investor Relations Leader
mvelez@geo-park.com
MEDIA:
Communications Department
communications@geo-park.com
Source: GeoPark Limited