GeoPark Limited GPRK recently released its operational update for the first quarter of 2025, showing signs of strong operational momentum and strategic discipline. The update underscores its resilience to survive in a volatile oil market, driven by both organic growth and smart portfolio management.
A standout was the Vaca Muerta basin in Argentina, where the company reported a record production of 17,358 boepd gross in February. While the acquisition of the Vaca Muerta assets is still pending regulatory approval, they’ve already contributed significantly to GeoPark’s pro forma numbers.
The company is set to report its first-quarter 2025 earnings on May 7, after the closing bell.Let us look into the recently released operational update of the company.
An Insight Into GPRK’s Q1 Operational Update
GepPark’s total pro forma production for the first quarter reached 36,279 boepd, exceeding the 2025 guidance of 35,000 boepd and reflecting strong output from both conventional and unconventional assets. The total production from the organic business was 8% lower than the fourth quarter due to the operational suspension of the Platanillo Block and the divestiture of the Llanos 32 Block, partially supported by an improved production in the CPO-5 Block.
The company also reported strong liquidity and an improved debt profile in the given quarter, with a cash position of $308 million and a well-hedged portfolio covering 70% of expected 2025 output at favorable floors.
Exploration Upside: Llanos and Putumayo Shine
GeoPark’s continued exploration success was evident with the Currucutu-1 discovery in the Llanos 123 block, which is currently producing 1,360 bopd gross. This, along with production records in the Llanos basin and promising early results in the Putumayo region, underscores the company’s ability to consistently unlock new reserves.
In the CPO-5 block, workovers at the Indico wells added an additional 2,279 bopd gross, while seismic surveys are opening new potential plays. Meanwhile, a modern rig introduced in the Llanos 34 block is improving efficiency by 20%, translating into $1.1 million saved per well.
Portfolio Optimization and Upcoming Projects
During the first quarter, GeoPark divested its non-core Llanos 32 Block (Colombia) and Manati gas field (Brazil), streamlining its portfolio and launching a cost-saving program to cut $5–$7 million annually through workforce and administrative expense reductions.
For the upcoming quarters, GPRK has plans to drill seven wells in Colombia and four wells in Argentina, with key drilling projects in its potential blocks like Llanos 34, Mata Mora Norte Block and Confluencia Sur Block.
GPRK’s Zacks Rank and Key Picks
Hamilton-based GeoPark is an explorer, operator and consolidator of oil and gas. Currently, GPRK has a Zacks Rank #5 (Strong Sell).
Investors interested in the energy sector might look at some top-ranked stocks like Expand Energy Corporation EXE, CrossAmerica Partners LP CAPL and Diversified Energy Company PLC DEC. While Expand Energy and CrossAmerica currently sport a Zacks Rank #1 (Strong Buy) each, Diversified Energy carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Expand Energy is a leading U.S.-based natural gas producer formed through the merger of Chesapeake Energy Corporation and Southwestern Energy Company. The Zacks Consensus Estimate for EXE’s 2025 earnings indicates 475.89% year-over-year growth.
CrossAmerica Partners LP engages in the wholesale distribution of motor fuels, consisting of gasoline and diesel fuel, and owns and leases real estate used in the retail distribution of motor fuels. CAPL’s expected EPS (earnings per share) growth rate for the next quarter is pegged at 44.74%, which compares favorably with the industry's growth rate of 17.80%.
Birmingham-based Diversified Energy is an energy company focused on natural gas and liquids production, transport, marketing and well retirement. The Zacks Consensus Estimate for DEC’s 2025 earnings indicates 70.77% year-over-year growth.
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Diversified Energy Company PLC (DEC): Free Stock Analysis Report Geopark Ltd (GPRK): Free Stock Analysis Report CrossAmerica Partners LP (CAPL): Free Stock Analysis Report Expand Energy Corporation (EXE): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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