GeoPark Streamlines Operations With Divestment of Non-core Assets

GeoPark Limited GPRK has announced the divestment of certain non-core assets in Colombia and Brazil to align with its goal of optimizing its portfolio, reducing costs and focusing on high-impact projects.In its 2025 plan, GeoPark had committed to disciplined capital allocation, operational excellence and sustainable growth through big assets, big basins and big plays. Therefore, in alignment with its guidance, the company has signed agreements to sell its non-operated working interests in the Llanos 32 Block (Colombia) and the 10% stake in the Manati gas field (Brazil). The total consideration for these divestments amounts to $20 million, net of liabilities related to decommissioning obligations at the Manati gas field. These assets collectively held net 1P PRMS reserves of 2.9 million barrels of oil equivalent (mmboe) at the end of 2024, with a production rate of 712 barrels of oil equivalent per day (boepd).In order to achieve its 2025 targeted guidance, GeoPark is also evaluating strategic options for its assets in Ecuador. The company’s focus remains on maximizing shareholder value while maintaining financial discipline.The deal is expected to close in the third quarter of 2025, subject to approvals from the regulatory authorities.GPRK’s Cost Reduction StrategyBeyond divestment of non-core assets, GeoPark is also considering implementing a cost reduction strategy that can deliver annual savings of up to $5-$7 million in operating, general and administrative expenses. These initiatives include workforce reductions, lower consultant and contractor expenses, administrative cost optimizations and structural cost reductions. These efforts align with the company’s strategy of disciplined capital allocation and long-term growth.An Insight Into GPRK’s Asset DivestmentIn March 2025, GeoPark transferred its non-operated working interest in the Llanos 32 Block located in Colombia to its joint venture partner, Parex Resources. The transaction was valued at $19 million, with a working capital adjustment of $3.7 million. The block had net reserves of 1.9 mmboe and an average production of 490 boepd in 2024.In the latter half of March 2025, the company again signed an agreement to sell its 10% non-operated working interest in the Manati gas field for $1 million, plus potential contingent payments. In accordance with the contract, GeoPark will also transfer all the obligations associated with the deal. In September 2024, it recovered $12 million related to these obligations in cash and replaced the same with a bank guarantee. The Manati field held 1.0 mmboe in reserves and produced 222 boepd in 2024.GPRK’s Zacks Rank and Key PicksBogota, Colombia-based GeoPark is an explorer, operator and consolidator of oil and gas. Currently, GPRK has a Zacks Rank #5 (Strong Sell).Investors interested in the energy sector might look at some top-ranked stocks like Expand Energy Corporation EXE, ARC Resources Ltd. AETUF and Diversified Energy Company PLC DEC.While Expand Energy and ARC Resources currently sport a Zacks Rank #1 (Strong Buy) each, Diversified Energy carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.The U.S.-based Expand Energy is a leading 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 422.70% year-over-year growth.Calgary-based ARC Resources is engaged in the exploration, acquisition and development of oil and natural gas properties in western Canada. The Zacks Consensus Estimate for AETUF’s 2025 earnings indicates 86.13% year-over-year growth.Birmingham, AL-based Diversified Energy is focused on natural gas and liquids production, transport, marketing and well retirement. The Zacks Consensus Estimate for DEC’s 2025 earnings indicates 65.13% year-over-year growth.5 Stocks Set to DoubleEach was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2024. While not all picks can be winners, previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.Today, See These 5 Potential Home Runs >>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 Diversified Energy Company PLC (DEC): Free Stock Analysis Report Arc Resources Ltd. (AETUF): Free Stock Analysis Report Geopark Ltd (GPRK): Free Stock Analysis Report Expand Energy Corporation (EXE): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks