GeoPark Limited Q1 FY2026 earnings call

• Safety Performance: The company recorded zero injuries and no major process safety events across all operations in Q1 2026.
• Operational Milestones: In Vaca Muerta, Argentina, GeoPark successfully initiated drilling activities on the Loma Jarillosa Este block, advanced key infrastructure upgrades, completed three horizontal well sections on budget and schedule, and is on track to ramp production. All core Colombian assets delivered resilient performance, with waterflooding and infill projects successfully mitigating natural decline and growing output at targeted fields.
• Financial Results: Q1 2026 revenues hit $128.4 million (+16% QoQ), adjusted EBITDA reached $71.3 million (+54% QoQ) with a 56% margin, operating profit rose to $58 million from $20.6 million QoQ, and net income was $20.2 million. Unit operating costs fell to $14.7 per boe from $15.8 QoQ, and structural unit costs dropped to $4 per boe from $5.6 QoQ, meeting full-year cost guidance and reflecting successful efficiency initiatives.
• Capital Structure and Liquidity: The company ended Q1 2026 with $274.9 million in cash, net debt of $333.1 million, and a leverage ratio of 1.3x, with no principal debt maturities until January 2027. Liquidity was enhanced by $65 million in local debt raised for the Frontera acquisition, $100.3 million in escrow/breakup fee recovery from the terminated Frontera deal, and a $107 million strategic equity investment from Grupo Gilinski, which joined as a long-term strategic shareholder.
• Dividend: The Board declared a quarterly dividend of $0.023 per share.
• Strategy Confirmation: Management reaffirmed the unchanged core strategy: protect and maximize value from core Colombian assets, advance Argentina as a key driver of transformational growth, and evaluate disciplined value-accretive growth opportunities across the region, including potential opportunities in Venezuela.

GeoPark operates across two core geographic/asset segments: Colombia and Argentina. For Q1 2026, total company revenue was $128.4 million, up 16% quarter-over-quarter. Average total company production was 27,249 boe/d, up from Q4 2025. The Colombia segment produces the vast majority of current output, with the following operational highlights: Llanos 34 benefited from water flooding secondary recovery that mitigated natural production decline and temporary operational disruptions; CPO-5 delivered production above plan despite social disruptions; Llanos 123 production increased 13% quarter-over-quarter, driven by strong base performance and progress on the Bisbita waterflooding project. The Argentina Vaca Muerta segment contributed an average of 1,430 boe/d in Q1 2026, equal to ~5.25% of total company production for the quarter.

• Production Guidance: Vaca Muerta Argentina production is projected to ramp from 1,430 boe/d in Q1 2026 to 5,000-6,000 boe/d by December 2026; the company targets 20,000 boe/d from Vaca Muerta by 2028. Q1 2026 average total production was in line with 2026 full-year guidance.
• Capital Expenditure Guidance: Full-year 2026 CapEx is maintained at the $190 million to $220 million range, with potential for limited upward revision to accelerate activity (pulling some 2027 Vaca Muerta spending forward to 2026, or adding year-end 2026 infill/waterflood activity in Colombia that would primarily impact 2027 production). Management has planned $1 billion total CapEx for Vaca Muerta across 2026-2028.
• Cost Guidance: Q1 2026 unit operating costs were within full-year 2026 guidance.
• Hedging Guidance: 19,000 boe/d of 2026 production is hedged via three-way collar structures with downside protection and retained upside, and 11,000 boe/d of 2027 production is already hedged under similar structures to support cash flow stability.

• Oil price volatility: Hedging structures will generate derivative losses in 2026 if Brent remains in the $80-$90/bbl range, with projected losses of $60 million to $120 million for the full year, though the company notes higher spot prices will lift overall EBITDA to the upper end of guidance even with these losses.
• Regulatory and political uncertainty in prospective expansion markets: including upcoming elections in Colombia, and ongoing regulatory and sanctions-related developments in Venezuela.
• Operational risks associated with the unconventional development ramp in Vaca Muerta: including water management, frac interference with existing producing wells, and construction timelines for new midstream infrastructure.
• Social disruption risk in Colombia, which has already impacted operations at the CPO-5 asset.

Q: What concrete milestones should investors watch over the next 6-12 months to validate GeoPark's Argentina Vaca Muerta growth story? / A: Management notes the company has already delivered on prior commitments, including taking over operations from Pluspetrol three weeks after deal signing, completing three horizontal well sections within budget and schedule, and conducting successful well workovers and facility upgrades. Upcoming milestones include fracking the five completed pad wells in June, completing water disposal well drilling ahead of production startup, signing a contract for a dedicated factory drilling rig by December 2026, and submitting an application for Argentina's RIGI investment incentive program in the coming weeks. Production is on track to ramp to 5,000-6,000 boe/d by year-end 2026, validating the growth plan. /

Q: If Brent prices remain near $90/bbl, what hedging losses would GeoPark incur in 2026, and will the company unwind its existing hedges? / A: CFO Jaime Caballero confirms that if 2026 average Brent falls in the $80-$90/bbl range, 2026 derivative hedge losses would total $60 million to $120 million. He notes that while derivative losses will be realized, higher spot prices will push overall EBITDA to the high end of original guidance, as unhedged barrels capture full market upside. Management does not plan to unwind existing 2026 hedges, as the core goal of the hedging program is cash flow stability to support Vaca Muerta growth commitments, and unwinding would amount to speculative price betting. The company is instead focusing on securing additional 2027 hedges to maintain cash flow visibility. /

Q: With a strengthened balance sheet and new strategic shareholder, what M&A and growth opportunities is GeoPark evaluating? / A: Management reaffirms that its core strategy remains unchanged: maximize value from existing core Colombian assets, and advance Vaca Muerta as a transformational growth driver. Inorganic growth is a long-term priority, and the company is currently evaluating opportunities in three core areas: selective opportunities in Colombia (where upcoming elections may create new options), bolt-on opportunities that complement its existing Vaca Muerta position in Argentina, and potential entry into Venezuela. Venezuela offers world-class resource base, a new 2025 hydrocarbon law that provides competitive regulatory terms, and progress on sanctions relief, and GeoPark's team is currently conducting thorough due diligence on potential opportunities there. All potential opportunities will be evaluated under strict capital discipline and value-accretion requirements. /

Q: Is GeoPark planning to raise 2026 CapEx guidance amid current high oil prices, and where would incremental spending go? / A: Management maintains the current 2026 CapEx guidance range of $190 million to $220 million, but is assessing potential incremental spending. Incremental spending would likely go toward two areas: accelerated activity in Vaca Muerta, pulling some planned 2027 spending into 2026 within the total 2026-2028 $1 billion Vaca Muerta CapEx plan, and additional infill drilling and waterflood projects in Colombia, where existing projects have outperformed expectations. Any incremental Colombian spending would be year-end 2026 activity, with production impacts largely felt in 2027. Management will provide an update once assessments are complete.