GeoPark Reports Second Quarter 2023 Results - GeoPark
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GeoPark Limited (“GeoPark” or the “Company”) (NYSE: GPRK), a leading independent Latin American oil and gas explorer, operator and consolidator reports its consolidated financial results for the three-month period ended June 30, 2023 (“Second Quarter” or “2Q2023”). A conference call to discuss 2Q2023 financial results will be held on August 10, 2023, at 10:00 am (Eastern Daylight Time).

All figures are expressed in US Dollars and growth comparisons refer to the same period of the prior year, except when specified. Definitions and terms used herein are provided in the Glossary at the end of this document. This release does not contain all of the Company’s financial information and should be read in conjunction with GeoPark’s consolidated financial statements and the notes to those statements for the period ended June 30, 2023, available on the Company’s website.


Oil and Gas Production and Operations

  • Consolidated average oil and gas production of 36,581 boepd, below production potential of approximately 39,500-40,500 boepd, as previously announced[1], mainly due to temporarily shut-in production in the CPO-5 block (GeoPark non-operated, 30% WI) in Colombia and to a lesser extent, in the Fell block (GeoPark operated, 100% WI) in Chile
  • 10 rigs currently in operation (6 drilling rigs and 4 workover rigs), adding 2 more rigs in 3Q2023 (one drilling rig and one workover rig)

Successful Exploration and Development Drilling Activities


  • Llanos 123 block (GeoPark operated, 50% WI):
    • First well drilled, Saltador 1, resulted in the first exploration discovery in the block
    • The Saltador 1 exploration well initiated testing in late July 2023 and is currently producing 880 bopd with 5% water cut from the Barco (Guadalupe) formation
    • Drilling rig moving to drill the Toritos 1 exploration well, expected to be spudded in August 2023
  • Llanos 34 block (GeoPark operated, 45% WI):
    • The second horizontal development well initiated testing in late July 2023 and is currently producing approximately 2,300 bopd from the Mirador formation
    • This second horizontal well was drilled within budget and ahead of time, 16% faster, with 10% lower drilling costs, and a 32% longer lateral length compared to the first horizontal well
    • Third horizontal well spudded in August 2023, with 2-3 additional horizontal wells expected in 2H2023


  • Perico block (GeoPark non-operated, 50% WI):
    • The Yin 2 well reached total depth in late July 2023. Preliminary logging information confirmed the development potential in the Hollin formation and also encountered a new zone with 40 feet of potential net pay in the U-sand formation
    • The well is being completed and will start testing in the U-sand formation by mid-August 2023

Revenue, Adjusted EBITDA and Net Profit

  • Revenue of $182.3 million
  • Adjusted EBITDA of $103.9 million (57% adjusted EBITDA margin)
  • Operating profit of $69.5 million (38% operating profit margin)
  • Net profit of $33.8 million ($0.59 basic and diluted earnings per share)

Sustained Capital Returns

  • Capital expenditures of $43.4 million
  • 2Q2023 adjusted EBITDA to capital expenditures ratio of 2.4x
  • Last twelve-month return on capital employed (ROCE) of 51%[2]

Lower Financial Expenses and Strengthened Balance Sheet

  • Financial expenses decreased to $11.2 million (from $16.6 million), after reducing gross debt by $275 million from April 2021 to December 2022
  • Net leverage of 0.8x and no principal debt maturities until 2027
  • Cash in hand of $86.4 million (after paying $88.2 million in cash taxes in 2Q2023)
  • New $80 million unsecured committed credit facility in place, with no amounts drawn

Accelerated Shareholder Returns

  • Returned $15 million in cash dividends in 1H2023 ($7.5 million on March 31 and May 31, respectively, or an annualized dividend of approximately $30 million, a 5% dividend yield[3])
  • Acquired 1.7 million shares for $18.7 million in 1H2023 ($7.5 million in 1Q2023 and $11.2 million in 2Q2023), representing approximately 3% of shares outstanding
  • Quarterly cash dividend of $0.132 per share, or approximately $7.5 million, payable on September 7, 2023

Enhanced ESG Performance and Reporting

  • Installed a photovoltaic solar system in the OBA export pipeline (running from the Platanillo block) that will allow GeoPark to reduce both its GHG emissions and energy and maintenance costs
  • Participated in the Carbon Disclosure Project in both Water and Climate, reinforcing GeoPark’s sustainability disclosures

2023 Work Program: Strong Free Cash Flow Generation

  • 2023 annual production guidance of 38,000-40,000 boepd
  • Fully-funded 2023 capital expenditures program of $180-200 million
  • At $80-90 per bbl Brent[4], GeoPark expects to generate an adjusted EBITDA of $450-520 million and a free cash flow of $90-120 million[5]
  • Targeting to return approximately 40-50% of free cash flow after taxes to shareholders

Upcoming Catalysts

  • Drilling 20-25 gross wells in 2H2023, targeting attractive conventional, short-cycle exploration projects
  • Key projects include:
    • Llanos 34 block: Drilling 3-4 horizontal wells (including a third horizontal well already spudded)
    • CPO-5 block: Resuming production in the Indico 6 and Indico 7 development wells (expected in August 2023) and drilling two wells (the Halcon 1 exploration well and the Indico 3 development well)
    • Perico block: Testing the Yin 2 well and drilling one additional exploration well
    • Llanos 87 block (GeoPark operated, 50% WI): Drilling the Zorzal Este 1 well (subject to joint venture approval)
    • Llanos 123 block: Drilling the Toritos 1 exploration well
    • Llanos 124 block (GeoPark operated, 50% WI): Reaching total depth in the Cucarachero 1 exploration well, expected in August 2023
    • Llanos 86 and Llanos 104 blocks (GeoPark operated, 50% WI): Preliminary activities underway targeting the acquisition of over 650 square kilometers of 3D seismic to expand the inventory of exploration prospects

Andrés Ocampo, Chief Executive Officer of GeoPark, said: “Congratulations to our exploration team for a new discovery in the Llanos basin, as well as a promising new pay zone in the Oriente basin. Our operations team is also bringing great results from our horizontal drilling campaign in our core Llanos 34 block and we are excited about more wells to come. We look forward to accelerating activities in the second half of the year with more rigs to grow our production and drill low-cost, low-risk exploration targets while continuing to develop our reserves and to return value to our shareholders.”


→ Read the full press release.


[1] See press releases dated March 8, April 11, May 3 and July 17, 2023.

[2] ROCE is defined as last twelve-month operating profit divided by average total assets minus current liabilities.

[3] Based on GeoPark’s average market capitalization from July 1 to July 31, 2023.

[4] From July to December 2023.

[5] Free cash flow is used here as Adjusted EBITDA less capital expenditures, mandatory interest payments and cash taxes. The Company is unable to present a quantitative reconciliation of the 2023 adjusted EBITDA which is a forward-looking non-GAAP measure, because the Company cannot reliably predict certain of its necessary components, such as write-off of unsuccessful exploration efforts or impairment loss on non-financial assets, etc. Since free cash flow is calculated based on adjusted EBITDA, for similar reasons, the Company does not provide a quantitative reconciliation of the 2023 free cash flow forecast. Adjusted EBITDA assumes a Brent to Vasconia differential averaging $4-5 per bbl from July to December 2023.


Reporting Date and Conference Call for 2Q2023 Financial Results

In conjunction with the 2Q2023 results press release, GeoPark management will host a conference call on August 10, 2023, at 10:00 am (Eastern Daylight Time).

To listen to the call, participants can access the webcast located in the Invest with Us section of the Company’s website at, or by clicking below:

Interested parties may participate in the conference call by dialing the numbers provided below:

United States Participants: +1 404 975 4839

International Participants: +1 929-526-1599

Passcode: 931988

Please allow extra time prior to the call to visit the website and download any streaming media software that might be required to listen to the webcast.

An archive of the webcast replay will be made available in the Invest with Us section of the Company’s website at after the conclusion of the live call.

For further information, please contact:


Stacy Steimel
Shareholder Value Director
T: +562 2242 9600

Miguel Bello
Market Access Director
T: +562 2242 9600

Diego Gully
Investor Relations Director
T: +5411 4312 9400

Communications Department