Energy

Stock To Target: GeoPark Limited (NYSE: GPRK)

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Shares of GeoPark Limited  (NYSE: GPRK) closed the trading at a price of $20.20 with the negative change of -3.07%. In the past session approximately 358,125 shares were exchanged against the average daily trading volume of 391,588 shares. The stock touched to the maximum level of $21.39, and it reached the lower level of $20.09 in past session. The stock’s market capitalization has now valued at $1.224B . The stock’s low price in its 52 week is $7.45 per share while $21.88 as the 52 week high price. The last bid price was called at $0.00 x 800 and the ask price was stated at $22.47 x 1300.

GeoPark Limited (NYSE: GPRK) reported its consolidated financial results for the three-month period ended March 31, 2018 (“First Quarter” or “1Q2018”).

Stronger Oil and Gas Production Growth

Consolidated oil and gas production up 28% to 32,195 boepd (up 5% contrast to 4Q2017)

Oil production increased by 33% to 27,345 bopd (up 8% contrast to 4Q2017)

Colombian oil production increased by 37% to 26,303 bopd (up 8% contrast to 4Q2017)

Gas production increased by 3% to 29.1 mmcfpd (down 9% contrast to 4Q2017)

Current production of 35,000 boepd, including new production from Argentina acquisition

Operating three drilling rigs in the Llanos 34 block (GeoPark operated, 45% WI), and during May drilling Tigui 1, testing Chachalaca Sur 1 and drilling Yaguasito (GeoPark operated, Tiple acreage, 85% WI) exploration wells

Stronger Revenues, Adjusted EBITDA, Cash Flow and Net Income

Revenues increased by 86% to $123.9M

Adjusted EBITDA increased by 63% to $63.3M

Cash flow from operating activities of $60.7M

Net Income increased over four times to $24.9M

Stronger Capital and Cost Efficiencies

Operating costs of $7.2 per boe/Colombia $5.4 per boe /Llanos 34 $4.1 per boe

Operating netback/capital expenditure ratio of 3.7x

Stronger Balance Sheet and Credit Rating

GeoPark Limited’s (GPRK) stock price showed weak performance of -1.08% in last seven days, switched up 21.47% in last thirty days and it rose 167.90% in last one year.

 

It has 59.95 million of outstanding shares and its shares float measured at 33.90.

Cash in hand of $120.4M, and following payment of Argentina acquisition, interest payments and work program capital expenditures

Net debt to Adjusted EBITDA ratio reduced from 2.6x to 1.5x

Interest coverage ratio increased to 7.2x from 3.4x

Second credit upgrade to B+ from Fitch, following previous upgrade from S&P

Stronger Market Liquidity

Increased average daily stock trading volume to about $2.8M in the past three months and $4.7M per day in the past month.

Stronger 2018 Work Program

2018 work program increased to $140-150M, targeting increased organic production growth of 20-25%, in line with the November 2017 guidance under Brent oil prices above $60/bbl

Adding in production from the new acquisition in Argentina, 2018 consolidated production is predictable to further increase to an average 35,500-36,500 boepd, representing about 25-30% production growth, and targeting exit production of 38,000-39,000 boepd

Revenue: Consolidated revenues increased by 86% to $123.9M in 1Q2018, contrast to $66.7M in 1Q2017. The increase was mainly Because of the combination of higher realized prices and higher deliveries.

Sale of crude oil: Consolidated oil revenues increased by 104% to $111.0M in 1Q2018, driven mainly by a 41% increase in realized oil prices and a 43% in oil deliveries (contrast to 1Q2017). Oil revenues represented 90% of total revenues contrast to 82% in 1Q2017.

Colombia: In 1Q2018, oil revenues increased by 96% to $106.5M mainly Because of higher realized prices and increased deliveries. Realized oil prices increased by 41% to $48.2 per bbl, in line with higher Brent prices and to a lesser extent, to a smaller discount for the Vasconia marker. Oil deliveries increased by 39% to 25,523 bopd.

 

Colombian earn-out payments (deducted from Colombian oil revenues) increased to $4.3M in 1Q2018, contrast to $2.4M in 1Q2017, in line with higher oil revenues and increased production.

Chile: In 1Q2018, oil revenues amounted to $4.2M, resulting from a $57.5 per bbl realized prices and oil deliveries of 820 bopd. In 1Q2017, no oil revenues were recorded Because of negotiations with ENAP. As a result, Chilean oil production was recorded as inventories at March 31, 2017, and subsequently delivered to ENAP in May 2017.

Sale of gas: Consolidated gas revenues increased by 5% to $12.8M in 1Q2018 contrast to $12.2M in 1Q2017, following a 3% increase in gas prices and a 2% increase in gas deliveries.

 

Chile: In 1Q2018, gas revenues remained flat at $4.8M reflecting higher gas prices, offset by lower gas deliveries. Gas prices increased by 15% to $5.1 per mcf ($30.6 per boe) in 1Q2018, in line with increased methanol prices. Gas deliveries reduced by 14% to 10,437 mcfpd (1,740 boepd).

Brazil: In 1Q2018, gas revenues increased by 7% to $7.7M, mainly Because of higher gas deliveries as gas prices were lower. Gas deliveries increased by 11% to 15,100 mcfpd (2,517 boepd), Because of a recovery in industrial demand in the northeast of the country. Gas prices reduced by 4% to $5.7 per mcf ($33.9 per boe), in line with a 4% devaluation of the local currency.

GeoPark ,NYSE: GPRK, GPRK

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