GeoPark Expects Adjusted EBITDA to Double by 2028
GeoParks expects Adjusted EBITDA to more than double by 2028, driving a larger enterprise value supported by increased cash flow, lower leverage, and a broader, more diversified asset base. GeoPark will continue to focus on its operational strengths, financial discipline, and portfolio of high-quality assets, including executing its two-pronged strategy in Colombia and Argentina: Maximizing Core Production and Cash Generation in Colombia: The Company is focused on sustaining and improving the performance of its flagship Llanos 34 block and other key operated and non-operated assets. Following a strong 2025 and positive developments since GeoPark's 2025 Investor Day, Colombian production has reached a positive inflection point earlier than expected. Production is set to grow, supported by disciplined development, base optimization, enhanced recovery techniques, and strong results from recent wells. Colombia will continue to provide a solid foundation to generate sustainable free cash flow, balance sheet strength, and shareholder returns. Returning to Growth with Vaca Muerta, Argentina: With the successful integration of the Loma Jarillosa Este and Puesto Silva Oeste blocks, GeoPark is confident it can unlock material long-term growth from its position in the unconventional Neuquen Basin. The team is focusing on accelerating drilling activity to deliver a step-change in production and cash flow. Vaca Muerta is expected to become a core growth platform in GeoPark's portfolio by year-end 2028. GeoPark remains open to considering offers that appropriately value the Company
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GeoPark Acquires Frontera Energy, Doubling Production and Reserves
- Transaction Scale Expansion: GeoPark's acquisition of Frontera Petroleum International Holdings B.V. for $375 million is set to boost its projected 2028 production to over 90,000 boepd, with EBITDA expected to reach approximately $950 million, significantly enhancing the company's cash flow generation capacity.
- Reserves Doubling: The acquisition adds approximately 99 million barrels of 1P reserves and 147 million barrels of 2P reserves, more than doubling GeoPark's reserves, which will support sustained development activity and long-term cash flow visibility, ensuring robust growth of its independent E&P platform in Latin America.
- Improved Financial Health: Post-transaction, GeoPark's net leverage is expected to drop to about 2.0x EBITDA, with continued free cash flow generation and ramp-up of Vaca Muerta development projected to further reduce it to 1.4x by 2028, enhancing the company's financial flexibility and debt servicing capacity.
- Significant Synergies: The transaction is expected to deliver annual synergies of $30-50 million by 2027, with a structured transition plan agreed upon between GeoPark and Frontera Energy to ensure operational continuity and support timely integration, further enhancing asset value.
GeoPark Acquires Frontera International Oil Assets for $375 Million
- Transaction Overview: GeoPark has entered into a definitive agreement with Frontera Energy to acquire Frontera International's oil and gas assets for $375 million, significantly enhancing GeoPark's position as the largest private operator in Colombia.
- Financial Impact: This acquisition is expected to materially increase GeoPark's scale, reserves, and cash flow generation, strengthening its independent E&P platform in Latin America and supporting disciplined growth through economic cycles.
- Strategic Significance: By integrating Frontera's assets, GeoPark can implement a full-field development approach, extending production plateaus and improving investment efficiency, which will benefit regional economies by creating more jobs.
- Future Outlook: Post-transaction, GeoPark will leverage its operational experience and local relationships in Colombia to drive efficient integration and operation of the acquired assets, ensuring long-term value creation and sustainable development.
