GeoPark releases results for second quarter
The energy company GeoPark has announced that its Annual General Meeting (AGM), initially convened on July 30, 2025, will resume on August 6, 2025, at 10:00 a.m. (Bermuda time), following the failure to reach the required quorum at the initial meeting. Shareholders of record as of June 10, 2025, will continue to be entitled to vote at the reconvened meeting.
The AGM will address matters previously scheduled, including the company's financial performance and strategic plans. Key highlights from the company's Q2 results include an Adjusted EBITDA of $71.5 million, a 60% margin, and a ROACE of 26%. Operating costs per produced boe for Q2 were $12.3, while operating profit for the quarter was $7.1 million, including a non-recurring impairment in Ecuador.
GeoPark's strategic priorities and future growth plans centre on a hybrid energy model that balances near-term cash flows from oil and gas with a strong pivot to renewable energy and long-term decarbonization. The company aims to reduce greenhouse gas emissions by 35-40% by 2025 while maintaining oil and gas operations as a bridging strategy toward cleaner energy sources.
Accelerating renewable energy projects is a key strategic element for GeoPark. This includes the development of a 9.9 MW solar farm and 50 MW of grid-connected capacity in Colombia, emphasizing a shift towards high-margin renewable initiatives.
Operational efficiency and financial discipline are also crucial components of GeoPark's strategy. This includes cost reductions, such as a 30% decrease in drilling costs, strategic asset divestments, and extensive production hedging (87%) to manage price volatility. The company has also strengthened its balance sheet through capital efficiency measures, debt reduction, and maintaining financial flexibility, supported by a 3.5% dividend yield to shareholders.
Exploration growth catalysts, highlighted by new discoveries like Currucutu-1 (1,360 barrels of oil per day), and positioning to benefit from favourable tax reforms in Colombia, are also part of GeoPark's strategic approach. The company is actively managing ESG and energy transition risks to ensure a sustainable future.
GeoPark has also recognised a $4.9 million gain from commodity risk management contracts in Q2 revenue. As of August 5, 2025, approximately 9,000 boepd of 1H2026 and 8,000 boepd of 2H2026 expected production have been protected through 3-way collars with average strikes of $50/$65/$74.
Capital expenditures for Q2 were $23.9 million, focused on workovers and exploration campaigns. GeoPark's Q2 revenue was $119.8 million, exceeding expectations by $1.47 million. The Board of Directors is actively reviewing the Company's capital allocation priorities, including dividend distribution going forward.
During June-July 2025, $54.5 million in aggregate principal of the 2030 Notes were repurchased below par, generating a $5.0 million gain and annual cash coupon savings of $5 million. The full-year net leverage is 1.1x, and no principal debt maturities are due until January 2027.
The company's shareholders' right to vote at the AGM remains unchanged. The agenda, proxy materials, and voting procedures remain unchanged for the reconvened Annual General Meeting. A quarterly cash dividend of $0.147 per share, or approximately $7.5 million, will be payable on September 4, 2025.
GeoPark's approach reflects resilience in Latin America's volatile energy sector, combining operational agility in oil and gas with a strategic pivot to renewables to create shareholder value amid the global energy transition.
[1] GeoPark Press Release, "GeoPark Announces Q2 2025 Results and 2025 Annual General Meeting Rescheduling", July 30, 2025. [2] GeoPark Press Release, "GeoPark Announces Currucutu-1 Oil Discovery in Colombia", June 1, 2025. [3] GeoPark Press Release, "GeoPark Repurchases $54.5 Million of 2030 Notes Below Par", July 15, 2025. [4] GeoPark Investor Presentation, "Q2 2025 Results and 2025 Annual General Meeting", August 5, 2025. [5] GeoPark Press Release, "GeoPark Reports Cash in Hand of $266.0 Million", July 31, 2025.
- To ensure the company's sustainable growth, shareholders at the resumed Annual General Meeting will discuss GeoPark's financial performance and strategic plans, including pushing forward with renewable energy projects, operational efficiency improvements, and a divestment strategy.
- GeoPark's decisive actions in hedging oil production, managing commodity risks, repurchasing debt, and maintaining a dividend yield demonstrate the company's financial discipline and commitment to increasing shareholder value through investing in renewable energy and mitigating risks in Latin America's volatile energy sector.
