GeoPark Holds Q2 Output Steady, Vaca Muerta Deal Set to Lift Production
GeoPark's flat second-quarter production masks an impending 5,000-barrel uplift from a pending Argentine acquisition, offering investors a shift from mature-field stability to shale-driven growth.
GeoPark reported consolidated average production of 27,271 barrels of oil equivalent per day (boepd) in the second quarter, effectively flat compared to the first quarter's 27,249 boepd. However, the headline figure obscures an imminent shift in the Latin American producer's profile. Including a recently acquired Vaca Muerta asset, pro-forma consolidated output is already running 5,000 to 5,500 boepd higher than the reported figure.
Colombia remains the financial engine, contributing roughly 25,871 boepd. The flagship Llanos 34 block, operated with state-controlled Ecopetrol, yielded 15,697 net boepd. CPO-5 added 6,132 net boepd, while Llanos 123 posted a 57.9 percent year-on-year surge to 3,171 net boepd. These mature fields provide the reliable cash flow base needed to fund frontier expansion.
The growth catalyst lies in Argentina, where direct Vaca Muerta output reached a modest 1,400 boepd during the quarter. GeoPark drilled five wells and completed three horizontal sections at Loma Jarillosa Este, averaging 14.2 days per section. Hydraulic fracturing operations are underway, with 119 of 218 planned stages finished. Completion sets are scheduled for October, a milestone expected to unlock a step-change in flowing rates.
A separate acquisition, effective July 1, is expected to close by the end of the third quarter and add approximately 5,000 barrels per day. This will immediately transform the company's scale in the shale play. Management has set a full-year operated net production target of 13,000 to 14,000 bopd, though consolidated figures will run significantly higher once the deal formally integrates.
The company guided for full-year adjusted EBITDA between $220 million and $300 million, assuming a Brent price of $60 to $70 per barrel. With crude prices currently sitting within that band, GeoPark appears capable of funding its 27 to 36 well program—which includes six to eight exploration wells—entirely from operating cash flow. For investors, the strategic appeal is a dependable Colombian cash generator mitigating sovereign risk by building scale in one of the few non-US shale basins with meaningful growth potential.
