GeoPark Q3 revenue falls 19% on lower oil prices

GeoPark

Tue 21:37

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: ID:nBw4prkRra

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.)