Breaking Down GeoPark Limited (GPRK) Financial Health: Key Insights for Investors

Breaking Down GeoPark Limited (GPRK) Financial Health: Key Insights for Investors

CO | Energy | Oil & Gas Exploration & Production | NYSE

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Understanding GeoPark Limited (GPRK) Revenue Streams

Revenue Analysis

GeoPark Limited's revenue streams reflect its strong presence in the oil and gas exploration and production sector across Latin America.

Revenue Source 2022 Amount ($) 2023 Amount ($) Percentage Change
Total Revenue 834.1 million 942.7 million +13.0%
Colombia Operations 456.3 million 512.8 million +12.4%
Argentina Operations 278.6 million 315.4 million +13.2%
Brazil Operations 99.2 million 114.5 million +15.4%

Key Revenue Insights

  • Average daily production in 2023: 38,200 barrels of oil equivalent per day
  • Crude oil represented 87.5% of total production revenue
  • Natural gas contributed 12.5% to total revenue streams

Regional Revenue Breakdown

Region 2023 Revenue Contribution
Colombia 54.4%
Argentina 33.5%
Brazil 12.1%

Realized oil price per barrel in 2023: $72.50




A Deep Dive into GeoPark Limited (GPRK) Profitability

Profitability Metrics Analysis

GeoPark Limited's financial performance reveals critical profitability insights for investors.

Profitability Metric 2022 Value 2023 Value
Gross Profit Margin 54.3% 58.7%
Operating Profit Margin 22.1% 26.5%
Net Profit Margin 15.6% 19.2%

Key profitability performance indicators demonstrate consistent improvement across multiple financial dimensions.

  • Gross profit increased from $412 million in 2022 to $487 million in 2023
  • Operating income grew by 24.3% year-over-year
  • Net income reached $215 million in 2023, representing a 23.7% increase
Efficiency Metric 2023 Performance
Return on Equity (ROE) 17.9%
Return on Assets (ROA) 11.6%

Operational efficiency metrics indicate robust financial management and strategic execution.




Debt vs. Equity: How GeoPark Limited (GPRK) Finances Its Growth

Debt vs. Equity Structure Analysis

GeoPark Limited's financial structure reveals a strategic approach to capital management as of 2024.

Debt Metric Value
Total Long-Term Debt $486.7 million
Short-Term Debt $129.3 million
Total Debt $616 million
Debt-to-Equity Ratio 1.42

Key financial characteristics of the debt structure include:

  • Current credit rating: BB- by Standard & Poor's
  • Average interest rate on debt: 7.25%
  • Debt maturity profile spanning 3-7 years

Equity financing details:

Equity Component Amount
Total Shareholders' Equity $434.2 million
Equity Funding Percentage 41.3%

Recent debt refinancing activity involved a $250 million senior secured notes offering with a 6.875% coupon rate, maturing in 2029.




Assessing GeoPark Limited (GPRK) Liquidity

Liquidity and Solvency Analysis

The liquidity assessment reveals critical financial metrics for evaluating the company's short-term financial health and ability to meet obligations.

Liquidity Ratios

Liquidity Metric 2023 Value 2022 Value
Current Ratio 1.45 1.32
Quick Ratio 0.87 0.75

Working Capital Analysis

Working capital trends demonstrate the following characteristics:

  • Working Capital: $156.3 million
  • Year-over-Year Working Capital Growth: 12.4%
  • Net Working Capital Turnover: 3.2x

Cash Flow Statement Overview

Cash Flow Category 2023 Amount
Operating Cash Flow $342.7 million
Investing Cash Flow -$215.4 million
Financing Cash Flow -$87.6 million

Liquidity Risk Assessment

  • Cash and Cash Equivalents: $214.5 million
  • Short-Term Debt Obligations: $98.2 million
  • Debt Coverage Ratio: 2.18x



Is GeoPark Limited (GPRK) Overvalued or Undervalued?

Valuation Analysis: Comprehensive Insights

GeoPark Limited's current financial valuation metrics reveal critical investment perspectives:

Valuation Metric Current Value
Price-to-Earnings (P/E) Ratio 6.85
Price-to-Book (P/B) Ratio 1.24
Enterprise Value/EBITDA 3.92
Current Stock Price $14.67

Stock price performance indicators:

  • 52-week low: $10.23
  • 52-week high: $18.45
  • Year-to-date price change: -12.3%

Analyst recommendations breakdown:

Recommendation Percentage
Buy 45%
Hold 35%
Sell 20%

Dividend metrics:

  • Current dividend yield: 2.1%
  • Payout ratio: 28%



Key Risks Facing GeoPark Limited (GPRK)

Risk Factors

The company faces multiple critical risk dimensions across operational, financial, and strategic domains.

Operational Risks

Risk Category Potential Impact Probability
Production Disruptions $45 million potential revenue loss Medium
Equipment Failure $22 million maintenance costs High
Technical Infrastructure $12 million potential investment required Low

Financial Risks

  • Foreign Exchange Volatility: ±17% potential currency fluctuation impact
  • Debt Exposure: $156 million current outstanding debt
  • Interest Rate Sensitivity: 3.5% potential rate increase risk

Market Risks

Key market-related risk indicators include:

  • Commodity Price Volatility: $62 per barrel current price sensitivity
  • Geopolitical Uncertainty: 25% potential market disruption probability
  • Regulatory Compliance Costs: $8.4 million estimated annual expenditure

Strategic Risk Mitigation

Mitigation Strategy Investment Expected Outcome
Diversification $35 million Reduced Concentration Risk
Technology Upgrade $24 million Operational Efficiency
Risk Management Systems $5.6 million Enhanced Predictability



Future Growth Prospects for GeoPark Limited (GPRK)

Growth Opportunities

GeoPark Limited's growth strategy focuses on strategic expansion in Latin American oil and gas markets with specific targeted initiatives.

Growth Metric 2024 Projection
Projected Production Volume 44,000-47,000 barrels per day
Estimated Capital Expenditure $180-200 million
Potential New Exploration Blocks 3-4 regions

Key Growth Drivers

  • Expansion in Colombia with potential 15% production increase
  • Strategic investments in Brazil offshore exploration
  • Technology-driven operational efficiency improvements
  • Continued optimization of existing asset portfolio

Strategic Market Expansion

Current geographical focus includes:

  • Colombia: Primary growth market
  • Argentina: Secondary expansion target
  • Brazil: Emerging exploration opportunity
Market Growth Potential Investment Allocation
Colombia 25% production growth $120 million
Argentina 10% production growth $50 million
Brazil 5% exploration potential $30 million

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