GeoPark Limited reported its consolidated financial results for the second quarter ended June 30, 2025. The company delivered an Adjusted EBITDA of $71.5 million, achieving a 60% margin, supported by stringent cost discipline and a $4.9 million gain from its commodity hedging program. Operating costs remained at $12.3 per barrel, aligning with the 2025 guidance.
GeoPark reported a net loss of $10.3 million for the quarter, primarily due to a non-recurring impairment charge from the Ecuador divestment; excluding this, net profit was $20.7 million. The company maintained a strong financial position with $266 million in cash and a net leverage ratio of 1.1x. The 2025 capital program was increased to $90 million to $120 million, reflecting newly identified high-return development and appraisal drilling opportunities.
The company's hedging program covered approximately 70% of its 2025 production with floors of $68 to $70 per barrel, providing downside protection. A $7.5 million dividend was approved for Q2 2025, and GeoPark opportunistically repurchased $54.5 million of its 2030 notes below par. Consolidated average production for Q2 2025 was 27,380 boepd, reflecting a 6% decline from the previous quarter due to the Llanos 32 divestment and CPO-5 block shut-in.
The new Vaca Muerta acquisition from Pluspetrol S.A. is expected to boost proforma consolidated production to approximately 30,000 boepd in 2025. These blocks hold estimated 2P reserves of 25.80 million barrels of oil equivalent and 2C contingent resources of 44.20 mmboe. The development plan includes 50-55 additional wells and a new central processing facility at Puesto Silva Oeste, with construction projected to start in 2026, aiming for plateau production of approximately 20,000 boepd by year-end 2028 from these acquired blocks.
For investors, the report presents a mixed picture with a net loss due to a specific charge, but strong underlying financial health, operational efficiency, and significant growth catalysts from the new Vaca Muerta acquisition. The increased capital program and shareholder returns demonstrate a forward-looking strategy.
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