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GeoPark Q3 revenue falls 19% on lower oil prices

By Reuters News


Overview

  • Latin America energy firm's Q3 revenue fell 19% quarter-over-quarter on lower realized prices

  • Adjusted EBITDA dropped 37% due to lower oil prices and higher operating costs

  • Company completed $550 mln senior notes issuance to support growth and refinancing


Outlook

  • Company expects full-year 2026 results to remain within market guidance

  • GeoPark is optimizing 4Q2026 hedge positions to offset weaker crude oil differentials

  • GeoPark has hedged about 22,500 bopd for 2027 at average strikes of $70/$50/$78.9 per boe


Result Drivers

  • LOWER REALIZED PRICES - Wider crude oil differentials reduced realized pricing, pressuring margins

  • HIGHER OPERATING COSTS - Operating costs rose due to higher energy expenses, more well interventions and local currency appreciation

  • LOWER SALES VOLUMES - Sales volumes declined due to lack of incremental pipeline inventory sales


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Revenue

$116.20 mln

Q3 Adjusted EBITDA

$45.80 mln

Q3 Capex

$72.20 mln

Q3 Operating Income

$11.60 mln


Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

  • The average consensus recommendation for the oil & gas exploration and production peer group is "buy"

  • Wall Street's median 12-month price target for GeoPark Ltd is $12.20, about 17.5% above its November 2 closing price of $10.38

  • The stock recently traded at 7 times the next 12-month earnings vs. a P/E of 5 three months ago


Reuters Recommended Reads

  • Nov 2 - GeoPark enters Venezuela under 25-year deal, Colombia's Gilinski takes control

  • Nov 2 - Kosmos Energy Q3 revenue falls short of estimates

  • Nov 2 - Diamondback Energy Q3 revenue beats on higher oil output


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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