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GeoPark (GPRK) Inks $200M Deal to Enhance Latin America Presence
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GeoPark Limited (GPRK - Free Report) , a key player in Latin America's oil and gas exploration sector, has made a significant move by offering to purchase a non-operated working interest in Argentina's Neuquen Basin's Vaca Muerta Formation.
The binding offer, amounting to $200 million, has been accepted by the seller, marking a pivotal step in GeoPark's acquisition journey. Additionally, a provision for another $110 million to $120 million over two years, designated for specific exploration activities, enhances the attractiveness of the deal.
Upon closing, this acquisition promises to contribute more than 5,000 barrels of oil equivalent per day to GeoPark's production portfolio. GPRK aims to finalize definitive agreements in the coming weeks, with the transaction slated for closure in the third quarter of 2024. Although the deal is subject to regulatory approvals and other contingencies, GeoPark remains optimistic about its successful completion.
Funding for the acquisition will be sourced from a combination of cash reserves, available credit facilities and new financing options. Despite the financial commitment, GeoPark expects its net debt to adjusted EBITDA ratio to remain below 1.1x post-acquisition, highlighting prudent financial management.
The company believes that the transaction will bolster its position in one of Latin America's most promising oil and gas basins.
Zacks Rank & Stock Picks
GeoPark carries a Zacks Rank #3 (Hold) at present. Meanwhile, investors interested in the energy sector might consider the operators mentioned below. These companies currently sport a Zacks Rank #1 (Strong Buy) each.
SM Energy Company (SM - Free Report) : SM beat the Zacks Consensus Estimate for earnings in each of the trailing four quarters. SM Energy has a trailing four-quarter earnings surprise of 14.2%, on average.
SM is valued at around $6.1 billion. SM Energy has seen its shares increase 67% in a year.
Murphy USA (MUSA - Free Report) : The 2024 Zacks Consensus Estimate for MUSA indicates 3.6% year-over-year earnings per share growth.
Murphy USA is valued at around $8.6 billion. MUSA has seen its stock rise 51.5% in a year.
Global Partners LP (GLP - Free Report) : Global Partners is valued at some $1.5 billion. The 2024 Zacks Consensus Estimate for GLP indicates 3.7% year-over-year earnings per unit growth.
Global Partners beat the Zacks Consensus Estimate for earnings in two of the trailing four quarters and missed in the other two, the average being 5.9%. GLP units have surged 56.4% in a year.
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GeoPark (GPRK) Inks $200M Deal to Enhance Latin America Presence
GeoPark Limited (GPRK - Free Report) , a key player in Latin America's oil and gas exploration sector, has made a significant move by offering to purchase a non-operated working interest in Argentina's Neuquen Basin's Vaca Muerta Formation.
The binding offer, amounting to $200 million, has been accepted by the seller, marking a pivotal step in GeoPark's acquisition journey. Additionally, a provision for another $110 million to $120 million over two years, designated for specific exploration activities, enhances the attractiveness of the deal.
Upon closing, this acquisition promises to contribute more than 5,000 barrels of oil equivalent per day to GeoPark's production portfolio. GPRK aims to finalize definitive agreements in the coming weeks, with the transaction slated for closure in the third quarter of 2024. Although the deal is subject to regulatory approvals and other contingencies, GeoPark remains optimistic about its successful completion.
Funding for the acquisition will be sourced from a combination of cash reserves, available credit facilities and new financing options. Despite the financial commitment, GeoPark expects its net debt to adjusted EBITDA ratio to remain below 1.1x post-acquisition, highlighting prudent financial management.
The company believes that the transaction will bolster its position in one of Latin America's most promising oil and gas basins.
Zacks Rank & Stock Picks
GeoPark carries a Zacks Rank #3 (Hold) at present. Meanwhile, investors interested in the energy sector might consider the operators mentioned below. These companies currently sport a Zacks Rank #1 (Strong Buy) each.
You can see the complete list of today’s Zacks #1 Rank stocks here.
SM Energy Company (SM - Free Report) : SM beat the Zacks Consensus Estimate for earnings in each of the trailing four quarters. SM Energy has a trailing four-quarter earnings surprise of 14.2%, on average.
SM is valued at around $6.1 billion. SM Energy has seen its shares increase 67% in a year.
Murphy USA (MUSA - Free Report) : The 2024 Zacks Consensus Estimate for MUSA indicates 3.6% year-over-year earnings per share growth.
Murphy USA is valued at around $8.6 billion. MUSA has seen its stock rise 51.5% in a year.
Global Partners LP (GLP - Free Report) : Global Partners is valued at some $1.5 billion. The 2024 Zacks Consensus Estimate for GLP indicates 3.7% year-over-year earnings per unit growth.
Global Partners beat the Zacks Consensus Estimate for earnings in two of the trailing four quarters and missed in the other two, the average being 5.9%. GLP units have surged 56.4% in a year.