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GeoPark's 2025 Plan Focuses on Higher Production and Increasing Value
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GeoPark Limited (GPRK - Free Report) recently announced its 2025 guidance approved by its board of directors where the company plans to enhance its shareholder value through disciplined capital allocation, operational excellence and sustainable growth. The guidance program aligns favorably with the key principles of GeoPark’s “North Star” strategy.
GPRK’s Production Target
GeoPark targets growth through big assets, big basins and big plays. Per its 2025 guidance, the company aims to achieve a mid-term production target of 70,000 barrels of oil equivalent per day (boepd) by 2028 and 100,000 boepd by 2030. For 2025, the company’s production target is 35,000 boepd, supported by anticipated capital expenditure (Capex) of $275-$310 million. The company expects a diversified footprint across Colombia, Argentina, Ecuador and Brazil, with the majority of production coming from Colombia (26,000 boepd) and the Vaca Muerta shale formation in Argentina (7,400 boepd). The company aims to deliver a production mix of 97% oil and 3% natural gas, focusing on unconventional (22%) and conventional (78%) resources.
GPRK’s 2025 Drilling Targets
Following GPRK’s 2025 guidance, the company expects to drill 23-32 wells in the coming years, including 10-15 gross exploration wells and the remaining appraisal wells. In Colombia, the Llanos 34 and CPO-5 blocks are key focus areas where 13-19 wells are expected to be drilled with Capex allocation of $80-$90 million, while in Argentina, the Mata Mora Norte and Confluencia Sur blocks in Vaca Muerta are highlighted for development and exploration where 10-12 wells are expected to be drilled with capital allocation of about $195-$220 million.
GPRK’s 2025 Financial Targets
For 2025, GPRK projects an adjusted EBITDA of $350 million to $430 million, assuming a Brent crude price of $70 to $80 per barrel. The company expects to maintain a net debt to EBITDA ratio of 1.5-2.1, with 2025 ending cash standing at $120-$180 million. The company also intends to fund its 2025 targets via internal cash generation and debt.About 50% of the company’s estimated average production of 2025 is also hedged to protect against downside price risk.
2025 Shareholder Returns
Since GPRK is supported by its strong balance sheet, the company expects to return about $30 million to its shareholders via dividend payment in 2025, representing a yield of 6-7% based on current market prices.
GPRK’s 2025 Sustainability Strategy
The company aims to reduce its environmental footprint in the coming years and has committed to a 35-40% reduction in carbon intensity by 2025 compared to 2020 levels. GeoPark aims to achieve operational excellence while maintaining the best health, safety and environmental practices.
GPRK’s Zacks Rank and Key Picks
Colombia-based GeoPark is an explorer, operator and consolidator of oil and gas. Currently, GPRK has a Zacks Rank #4 (Sell).
Investors interested in the energy sector might look at some top-ranked stocks like ARC Resources Ltd. (AETUF - Free Report) ,Gulfport Energy Corporation (GPOR - Free Report) and Cheniere Energy, Inc. (LNG - Free Report) .While ARC Resources and Gulfport Energy currently sport a Zacks Rank #1 (Strong Buy) each, Cheniere Energy carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Calgary, Canada-based ARC Resources is engaged in the exploration, acquisition and development of oil and natural gas properties. AETUF’s expected EPS growth rate for next year is 50.78%, which aligns favorably with the industry growth rate of 10.50%.
Gulfport Energy is an independent natural gas and oil company focused on the exploration and development of natural gas and oil properties in North America. The Zacks Consensus Estimate for GPOR’s 2024 earnings indicates 108.53% year-over-year growth.
Houston, TX-based Cheniere Energy is primarily engaged in businesses related to liquefied natural gas through its two business segments: LNG terminal, and LNG and natural gas marketing. LNG’s expected EPS (earnings per share) growth rate for the next quarter is 34.27%.
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GeoPark's 2025 Plan Focuses on Higher Production and Increasing Value
GeoPark Limited (GPRK - Free Report) recently announced its 2025 guidance approved by its board of directors where the company plans to enhance its shareholder value through disciplined capital allocation, operational excellence and sustainable growth. The guidance program aligns favorably with the key principles of GeoPark’s “North Star” strategy.
GPRK’s Production Target
GeoPark targets growth through big assets, big basins and big plays. Per its 2025 guidance, the company aims to achieve a mid-term production target of 70,000 barrels of oil equivalent per day (boepd) by 2028 and 100,000 boepd by 2030. For 2025, the company’s production target is 35,000 boepd, supported by anticipated capital expenditure (Capex) of $275-$310 million. The company expects a diversified footprint across Colombia, Argentina, Ecuador and Brazil, with the majority of production coming from Colombia (26,000 boepd) and the Vaca Muerta shale formation in Argentina (7,400 boepd). The company aims to deliver a production mix of 97% oil and 3% natural gas, focusing on unconventional (22%) and conventional (78%) resources.
GPRK’s 2025 Drilling Targets
Following GPRK’s 2025 guidance, the company expects to drill 23-32 wells in the coming years, including 10-15 gross exploration wells and the remaining appraisal wells. In Colombia, the Llanos 34 and CPO-5 blocks are key focus areas where 13-19 wells are expected to be drilled with Capex allocation of $80-$90 million, while in Argentina, the Mata Mora Norte and Confluencia Sur blocks in Vaca Muerta are highlighted for development and exploration where 10-12 wells are expected to be drilled with capital allocation of about $195-$220 million.
GPRK’s 2025 Financial Targets
For 2025, GPRK projects an adjusted EBITDA of $350 million to $430 million, assuming a Brent crude price of $70 to $80 per barrel. The company expects to maintain a net debt to EBITDA ratio of 1.5-2.1, with 2025 ending cash standing at $120-$180 million. The company also intends to fund its 2025 targets via internal cash generation and debt.About 50% of the company’s estimated average production of 2025 is also hedged to protect against downside price risk.
2025 Shareholder Returns
Since GPRK is supported by its strong balance sheet, the company expects to return about $30 million to its shareholders via dividend payment in 2025, representing a yield of 6-7% based on current market prices.
GPRK’s 2025 Sustainability Strategy
The company aims to reduce its environmental footprint in the coming years and has committed to a 35-40% reduction in carbon intensity by 2025 compared to 2020 levels. GeoPark aims to achieve operational excellence while maintaining the best health, safety and environmental practices.
GPRK’s Zacks Rank and Key Picks
Colombia-based GeoPark is an explorer, operator and consolidator of oil and gas. Currently, GPRK has a Zacks Rank #4 (Sell).
Investors interested in the energy sector might look at some top-ranked stocks like ARC Resources Ltd. (AETUF - Free Report) , Gulfport Energy Corporation (GPOR - Free Report) and Cheniere Energy, Inc. (LNG - Free Report) .While ARC Resources and Gulfport Energy currently sport a Zacks Rank #1 (Strong Buy) each, Cheniere Energy carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Calgary, Canada-based ARC Resources is engaged in the exploration, acquisition and development of oil and natural gas properties. AETUF’s expected EPS growth rate for next year is 50.78%, which aligns favorably with the industry growth rate of 10.50%.
Gulfport Energy is an independent natural gas and oil company focused on the exploration and development of natural gas and oil properties in North America. The Zacks Consensus Estimate for GPOR’s 2024 earnings indicates 108.53% year-over-year growth.
Houston, TX-based Cheniere Energy is primarily engaged in businesses related to liquefied natural gas through its two business segments: LNG terminal, and LNG and natural gas marketing. LNG’s expected EPS (earnings per share) growth rate for the next quarter is 34.27%.