Latest news with #GeoPark
Bloomberg
6 days ago
- Business
- Bloomberg
GeoPark's Shareholder Plan Creates Opening to Thwart Hostile Bid
Latin American oil and gas producer GeoPark looks to be making moves to defend itself form a hostile takeover after a rival energy firm took a large stake in the company. In a shareholder rights plan announced on Tuesday, Bogotá-based GeoPark adopted a mechanism for rights to become exercisable if an entity or person acquires ownership of 12% or more in the company. The move follows a recent SEC filing by Pampa Energy Inc., which reported a 10.17% holding in GeoPark.
Yahoo
7 days ago
- Business
- Yahoo
GeoPark Adopts Limited-Duration Shareholder Rights Plan
BOGOTA, Colombia, June 03, 2025--(BUSINESS WIRE)--GeoPark Limited ("GeoPark" or the "Company") (NYSE: GPRK), a leading independent energy company with over 20 years of successful operations across Latin America, today announced that its Board of Directors (the "Board") has unanimously adopted a limited-duration shareholder rights plan (the "Rights Plan"), effective immediately and that will expire in 364 days. The Company's Board, in consultation with its advisors, adopted the Rights Plan to protect value for GeoPark and all its stockholders given the unusually rapid and significant accumulation of the Company's common stock by a single stockholder. The Rights Plan is similar to plans adopted by other publicly traded companies and is intended to protect the long-term interests of GeoPark's shareholders and maximize the value of their investment. The Rights Plan is designed to reduce the likelihood that any shareholder gains undue influence or control of the Company through open market accumulation, without paying all shareholders an appropriate control premium or without providing the Board sufficient time to make informed judgments and take actions that are in the best interest of the Company and all of its shareholders. Key Terms of the Rights Plan Under the Rights Plan, the rights will become exercisable if an entity, person or group acquires beneficial ownership of 12% or more of GeoPark's outstanding common shares (including derivatives) in a transaction not approved by the Board. In the event that the rights become exercisable due to the triggering ownership threshold being crossed, each right will entitle its holder (other than the person, entity or group triggering the Rights Plan, whose rights will become void and will not be exercisable) to purchase, at the then-current exercise price, additional common shares having a then-current market value of twice the exercise price of the right. Additional Information Goldman Sachs & Co. LLC is serving as GeoPark's financial advisor and Davis Polk & Wardwell LLP is serving as legal counsel. NOTICE Additional information about GeoPark can be found in the "Invest with Us" section on the website at CAUTIONARY STATEMENTS RELEVANT TO FORWARD-LOOKING INFORMATION This press release contains statements that constitute forward-looking statements. Many of the forward-looking statements contained in this press release can be identified by the use of forward-looking words such as ''anticipate,'' ''believe'', ''could,'' ''expect,'' ''should,'' ''plan,'' ''intend,'' ''will,'' ''estimate'' and ''potential,'' among others. Forward-looking statements that appear in a number of places in this press release include, but are not limited to, statements regarding the intent, belief or current expectations, regarding various matters including the intended benefits of the Company's Rights Plan. Forward-looking statements are based on management's beliefs and assumptions, and on information currently available to the management. Such statements are subject to risks and uncertainties, and actual results may differ materially from those expressed or implied in the forward-looking statements due to various factors. Forward-looking statements speak only as of the date they are made, and the Company does not undertake any obligation to update them in light of new information or future developments or to release publicly any revisions to these statements in order to reflect later events or circumstances or to reflect the occurrence of unanticipated events. For a discussion of the risks facing the Company which could affect whether these forward-looking statements are realized, see the Company's filings with the U.S. Securities and Exchange Commission (SEC). View source version on Contacts For further information, please contact: INVESTOR RELATIONS: Maria Catalina Escobar Shareholder Value and Capital Markets Directormescobar@ Miguel Bello Investor Relations Officermbello@ Maria Alejandra Velez Investor Relations Leadermvelez@ MEDIA: Communications Departmentcommunications@ Kelsey Markovich / Ben SpicehandlerFGS GlobalGeoPark@
Business Wire
7 days ago
- Business
- Business Wire
GeoPark Adopts Limited-Duration Shareholder Rights Plan
BOGOTA, Colombia--(BUSINESS WIRE)--GeoPark Limited ('GeoPark' or the 'Company') (NYSE: GPRK), a leading independent energy company with over 20 years of successful operations across Latin America, today announced that its Board of Directors (the 'Board') has unanimously adopted a limited-duration shareholder rights plan (the "Rights Plan"), effective immediately and that will expire in 364 days. The Company's Board, in consultation with its advisors, adopted the Rights Plan to protect value for GeoPark and all its stockholders given the unusually rapid and significant accumulation of the Company's common stock by a single stockholder. The Rights Plan is similar to plans adopted by other publicly traded companies and is intended to protect the long-term interests of GeoPark's shareholders and maximize the value of their investment. The Rights Plan is designed to reduce the likelihood that any shareholder gains undue influence or control of the Company through open market accumulation, without paying all shareholders an appropriate control premium or without providing the Board sufficient time to make informed judgments and take actions that are in the best interest of the Company and all of its shareholders. Key Terms of the Rights Plan Under the Rights Plan, the rights will become exercisable if an entity, person or group acquires beneficial ownership of 12% or more of GeoPark's outstanding common shares (including derivatives) in a transaction not approved by the Board. In the event that the rights become exercisable due to the triggering ownership threshold being crossed, each right will entitle its holder (other than the person, entity or group triggering the Rights Plan, whose rights will become void and will not be exercisable) to purchase, at the then-current exercise price, additional common shares having a then-current market value of twice the exercise price of the right. Additional Information Goldman Sachs & Co. LLC is serving as GeoPark's financial advisor and Davis Polk & Wardwell LLP is serving as legal counsel. NOTICE Additional information about GeoPark can be found in the 'Invest with Us' section on the website at CAUTIONARY STATEMENTS RELEVANT TO FORWARD-LOOKING INFORMATION This press release contains statements that constitute forward-looking statements. Many of the forward-looking statements contained in this press release can be identified by the use of forward-looking words such as ''anticipate,'' ''believe'', ''could,'' ''expect,'' ''should,'' ''plan,'' ''intend,'' ''will,'' ''estimate'' and ''potential,'' among others. Forward-looking statements that appear in a number of places in this press release include, but are not limited to, statements regarding the intent, belief or current expectations, regarding various matters including the intended benefits of the Company's Rights Plan. Forward-looking statements are based on management's beliefs and assumptions, and on information currently available to the management. Such statements are subject to risks and uncertainties, and actual results may differ materially from those expressed or implied in the forward-looking statements due to various factors. Forward-looking statements speak only as of the date they are made, and the Company does not undertake any obligation to update them in light of new information or future developments or to release publicly any revisions to these statements in order to reflect later events or circumstances or to reflect the occurrence of unanticipated events. For a discussion of the risks facing the Company which could affect whether these forward-looking statements are realized, see the Company's filings with the U.S. Securities and Exchange Commission (SEC).
Yahoo
22-05-2025
- Business
- Yahoo
GeoPark Exits Vaca Muerta Deal, Focuses on Strategic Growth Plans
GeoPark Limited GPRK recently announced the termination of its previously disclosed agreement with Phoenix Global Resources, which involved acquiring a non-operated working interest in four unconventional blocks in Argentina's Vaca Muerta. The deal, governed by a FarmOut Agreement, included an 'Outside Date' clause that allowed either party to withdraw by May 13, 2025. Phoenix exercised this option, leading to the transaction's cancellation. Despite the withdrawal, GeoPark remains undeterred and focused on its long-term strategy built around sustainable, profitable growth in Latin America's energy sector. In April 2024, GeoPark made a strategic move by offering to buy a non-operated working interest in Argentina's Neuquen Basin's Vaca Muerta Formation. The acquisition was expected to close in the third quarter of 2024, pending regulatory approval and would add over 5,000 barrels of oil equivalent per day to GeoPark's production. The $200 million deal, with an additional $110-$120 million earmarked for exploration over two years, was decided to be funded through cash, credit facilities and new financing while maintaining a net debt-to-adjusted EBITDA ratio below 1.1x. GeoPark reaffirmed its commitment to its "North Star" strategic pillars — developing big assets in prolific basins with a disciplined and dependable approach. With $330 million in cash, a net leverage ratio under 1.0x and a hedging program covering 87% of its 2025 volumes, the company is well-positioned to pursue other strategic avenues. GeoPark continues to strengthen its core by maximizing returns from high-value projects in its current portfolio, pursuing inorganic growth through carefully evaluated opportunities within its core geographies and maintaining strategic flexibility, considering options such as share buybacks, debt reduction or dividends based on prevailing market conditions. Hamilton, Bermuda-based GeoPark is an explorer, operator and consolidator of oil and gas. The company operates primarily in Chile, Colombia, Brazil and Argentina. Currently, GPRK has a Zacks Rank #5 (Strong Sell). Investors interested in the energy sector might look at some top-ranked stocks like Prairie Operating Co. PROP, Global Partners LP GLP and Expand Energy Corporation EXE. While Prairie Operating and Global Partners currently sport a Zacks Rank #1 (Strong Buy) each, Expand Energy carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank stocks here. Houston-based Prairie Operating is an independent energy company engaged in the development and acquisition of proven, producing oil and natural gas resources principally in the United States. The Zacks Consensus Estimate for PROP's 2025 earnings indicates 389.05% year-over-year growth. Global Partners is a Delaware limited partnership formed by affiliates of the Slifka family. Global Partners owns, controls or has access to one of the largest terminal networks of refined petroleum products in New England. The Zacks Consensus Estimate for GLP's 2025 earnings indicates 17.84% year-over-year growth. Expand Energy is a leading U.S.-based natural gas producer formed through the merger of Chesapeake Energy Corporation and Southwestern Energy Company. The Zacks Consensus Estimate for EXE's 2025 earnings indicates 444.68% year-over-year growth. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Global Partners LP (GLP) : Free Stock Analysis Report Geopark Ltd (GPRK) : Free Stock Analysis Report Prairie Operating Co. (PROP) : Free Stock Analysis Report Expand Energy Corporation (EXE) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Yahoo
21-05-2025
- Business
- Yahoo
Is GeoPark Limited (NYSE:GPRK) Trading At A 22% Discount?
GeoPark's estimated fair value is US$8.96 based on 2 Stage Free Cash Flow to Equity GeoPark's US$6.95 share price signals that it might be 22% undervalued The US$11.70 analyst price target for GPRK is 31% more than our estimate of fair value Today we'll do a simple run through of a valuation method used to estimate the attractiveness of GeoPark Limited (NYSE:GPRK) as an investment opportunity by taking the expected future cash flows and discounting them to their present value. We will take advantage of the Discounted Cash Flow (DCF) model for this purpose. Believe it or not, it's not too difficult to follow, as you'll see from our example! Remember though, that there are many ways to estimate a company's value, and a DCF is just one method. If you still have some burning questions about this type of valuation, take a look at the Simply Wall St analysis model. Our free stock report includes 3 warning signs investors should be aware of before investing in GeoPark. Read for free now. We use what is known as a 2-stage model, which simply means we have two different periods of growth rates for the company's cash flows. Generally the first stage is higher growth, and the second stage is a lower growth phase. To start off with, we need to estimate the next ten years of cash flows. Where possible we use analyst estimates, but when these aren't available we extrapolate the previous free cash flow (FCF) from the last estimate or reported value. We assume companies with shrinking free cash flow will slow their rate of shrinkage, and that companies with growing free cash flow will see their growth rate slow, over this period. We do this to reflect that growth tends to slow more in the early years than it does in later years. A DCF is all about the idea that a dollar in the future is less valuable than a dollar today, and so the sum of these future cash flows is then discounted to today's value: 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 Levered FCF ($, Millions) US$17.0m US$99.5m US$65.5m US$55.9m US$50.6m US$47.7m US$46.1m US$45.5m US$45.4m US$45.7m Growth Rate Estimate Source Analyst x1 Analyst x2 Analyst x2 Est @ -14.68% Est @ -9.45% Est @ -5.79% Est @ -3.23% Est @ -1.43% Est @ -0.18% Est @ 0.70% Present Value ($, Millions) Discounted @ 12% US$15.2 US$79.2 US$46.5 US$35.4 US$28.6 US$24.1 US$20.8 US$18.3 US$16.3 US$14.6 ("Est" = FCF growth rate estimated by Simply Wall St)Present Value of 10-year Cash Flow (PVCF) = US$299m The second stage is also known as Terminal Value, this is the business's cash flow after the first stage. For a number of reasons a very conservative growth rate is used that cannot exceed that of a country's GDP growth. In this case we have used the 5-year average of the 10-year government bond yield (2.8%) to estimate future growth. In the same way as with the 10-year 'growth' period, we discount future cash flows to today's value, using a cost of equity of 12%. Terminal Value (TV)= FCF2034 × (1 + g) ÷ (r – g) = US$46m× (1 + 2.8%) ÷ (12%– 2.8%) = US$504m Present Value of Terminal Value (PVTV)= TV / (1 + r)10= US$504m÷ ( 1 + 12%)10= US$161m The total value, or equity value, is then the sum of the present value of the future cash flows, which in this case is US$460m. In the final step we divide the equity value by the number of shares outstanding. Compared to the current share price of US$7.0, the company appears a touch undervalued at a 22% discount to where the stock price trades currently. Valuations are imprecise instruments though, rather like a telescope - move a few degrees and end up in a different galaxy. Do keep this in mind. We would point out that the most important inputs to a discounted cash flow are the discount rate and of course the actual cash flows. If you don't agree with these result, have a go at the calculation yourself and play with the assumptions. The DCF also does not consider the possible cyclicality of an industry, or a company's future capital requirements, so it does not give a full picture of a company's potential performance. Given that we are looking at GeoPark as potential shareholders, the cost of equity is used as the discount rate, rather than the cost of capital (or weighted average cost of capital, WACC) which accounts for debt. In this calculation we've used 12%, which is based on a levered beta of 1.358. Beta is a measure of a stock's volatility, compared to the market as a whole. We get our beta from the industry average beta of globally comparable companies, with an imposed limit between 0.8 and 2.0, which is a reasonable range for a stable business. See our latest analysis for GeoPark Strength Debt is well covered by earnings and cashflows. Dividends are covered by earnings and cash flows. Dividend is in the top 25% of dividend payers in the market. Weakness Earnings declined over the past year. Opportunity Good value based on P/E ratio and estimated fair value. Threat Annual earnings are forecast to decline for the next 3 years. Whilst important, the DCF calculation is only one of many factors that you need to assess for a company. The DCF model is not a perfect stock valuation tool. Rather it should be seen as a guide to "what assumptions need to be true for this stock to be under/overvalued?" For example, changes in the company's cost of equity or the risk free rate can significantly impact the valuation. Can we work out why the company is trading at a discount to intrinsic value? For GeoPark, there are three pertinent items you should further research: Risks: You should be aware of the 3 warning signs for GeoPark (1 is significant!) we've uncovered before considering an investment in the company. Future Earnings: How does GPRK's growth rate compare to its peers and the wider market? Dig deeper into the analyst consensus number for the upcoming years by interacting with our free analyst growth expectation chart. Other Solid Businesses: Low debt, high returns on equity and good past performance are fundamental to a strong business. Why not explore our interactive list of stocks with solid business fundamentals to see if there are other companies you may not have considered! PS. Simply Wall St updates its DCF calculation for every American stock every day, so if you want to find the intrinsic value of any other stock just search here. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
