Geopark Q2 Earnings Call Highlights

Geopark NYSE: GPRK reported second-quarter 2026 production of 27,271 barrels of oil equivalent per day and said stable Colombian operations and accelerating development activity in Argentina supported sequential revenue growth and continued investment in its Vaca Muerta program. Chief Executive Officer Felipe Bayon said production was within the company’s full-year guidance and broadly consistent with the first quarter, citing disciplined reservoir management and operating execution. Revenue rose 12% from the prior quarter to $143.3 million, while adjusted EBITDA reached $73.1 million, representing a 51% margin. Operating profit was $40.8 million and net income totaled $14 million. Bayon said the quarter benefited from a stronger commodity-price environment, with Brent averaging about $97 per barrel and a narrower Vasconia differential supporting realized prices. Higher energy costs and appreciation in the Colombian and Argentine currencies increased operating costs, however. GeoPark said it completed drilling on Pad 1030 in Argentina, advanced its hydraulic fracturing campaign and obtained environmental approval for the next drilling phase at Loma Jarillosa Este. The company has secured a dedicated drilling rig through a three-year agreement for its Vaca Muerta development program. Bayon said the company’s first well in the recently drilled group began flowing the day before the call, though it will require cleanup and time to stabilize production. GeoPark expects Vaca Muerta production to reach approximately 5,000 to 6,000 barrels of oil equivalent per day by the end of 2026. The company and Gas y Petróleo del Neuquén also applied to Argentina’s RIGI Investment Incentive Program. Bayon said the wells already drilled will be connected and put into production in the coming days and weeks and will not wait for a decision on the RIGI application. If approved, the program would cover future factory-mode drilling and larger investments, including pipeline and processing infrastructure, he said. Chief Operating Officer Martín Terrado said GeoPark expects to invest $40 million to $50 million in Vaca Muerta during the second half of 2026, following roughly $55 million of spending in the first half. About 70% to 80% of the second-half investment is expected in the third quarter, with the remainder in the fourth quarter. Second-half work is expected to focus on completing facility upgrades, connecting to a neighboring operator with spare capacity, completing a water-disposal well and building a pad for drilling expected to begin early next year. Terrado said the company completed 180 fracture stages without incidents and recorded several days with nine fracture stages per day. In Colombia, Bayon said Llanos 34 continued to benefit from reservoir management and secondary recovery work, while CPO-5 remained stable.