Excessive Dividend 50: GeoPark Restricted – Positive Dividend

Revealed on October thirtieth, 2025 by Felix Martinez

Excessive-yield shares pay out dividends which are considerably increased than the market common. For instance, the S&P 500’s present yield is simply ~1.2%.

Excessive-yield shares might be notably helpful in supplementing revenue after retirement. A $120,000 funding in shares with a mean dividend yield of 5% creates a mean of $500 a month in dividends.

GeoPark Restricted (GPRK) is a part of our ‘Excessive Dividend 50’ collection, which covers the 50 highest-yielding shares within the Positive Evaluation Analysis Database.

We have now created a spreadsheet of shares (and carefully associated REITs, MLPs, and many others.) with dividend yields of 5% or extra.

You possibly can obtain your free full listing of all securities with 5%+ yields (together with essential monetary metrics equivalent to dividend yield and payout ratio) by clicking on the hyperlink beneath:

Subsequent on our listing of high-dividend shares to overview is GeoPark Restricted (GPRK).

Enterprise Overview

GeoPark Restricted, based mostly in Bogotá, Colombia, explores and produces oil and gasoline in Colombia, Ecuador, Argentina, and Brazil. Based in 2002, it has a market capitalization of $326 million and is thought for its excessive operational effectivity, together with an 81% drilling success charge and low working prices of $13 per barrel in 2023-2024. Round 90% of its manufacturing is money circulate constructive even at Brent costs of $25-$30, making it a low-cost, aggressive producer.

Nonetheless, GeoPark’s efficiency is very delicate to grease and gasoline value swings, leading to unstable outcomes and losses in 4 of the final 10 years. Its effectivity and low prices make it sturdy operationally, however market cycles drive monetary outcomes.

Supply: Investor Relations

The corporate reported Q2 2025 income of $119.8 million, barely above expectations, and a internet lack of $10.3 million, pushed by a one-time impairment in Ecuador. Excluding this cost, internet revenue was $20.7 million, pushed by price reductions, decrease depreciation, and tax advantages. Adjusted EBITDA was $71.5 million, with a 60% margin, reflecting disciplined capital and price administration.

Manufacturing averaged 27,380 boepd, supported by $23.9 million in capital expenditures centered on drilling and workovers in core blocks. The corporate captured $12.5 million in effectivity financial savings, divested non-core Ecuadorian belongings for $7.8 million, and maintained a powerful stability sheet with $266 million in money and a 1.1x leverage ratio.

GeoPark hedged 87% of anticipated 2025 manufacturing, incomes a $4.9 million achieve, and declared a quarterly dividend of $0.147 per share. Administration continues to give attention to price effectivity, strategic divestments, and disciplined capital allocation to drive long-term progress regardless of market volatility.

Supply: Investor Relations

Progress Prospects

Since its founding, GeoPark has steadily expanded manufacturing from zero to roughly 37,000 barrels per day, demonstrating a powerful operational monitor document. The corporate’s latest entry into Vaca Muerta, Argentina—a area with ~16 billion barrels of largely undeveloped reserves—positions it for vital future progress. GeoPark plans to greater than triple manufacturing on this space, growing output from 6,000 barrels per day in 2024 to 19,500 barrels per day by 2029.

Regardless of its progress potential, GeoPark stays extremely delicate to grease and gasoline value volatility, a problem frequent to most producers within the area. Previous efficiency has mirrored this cyclical publicity, with earnings fluctuating sharply in response to market circumstances. The corporate’s capacity to take care of low prices and disciplined capital allocation will probably be key to navigating these swings whereas pursuing enlargement.

Wanting forward, oil costs are anticipated to stay average as a result of OPEC’s output restoration and the worldwide shift towards clear vitality. Nonetheless, GeoPark is prone to profit from a low base impact in 2025, with projected manufacturing and income progress of round 8%, pushed by operational effectivity and the event of latest reserves in Vaca Muerta.

Aggressive Benefits & Recession Efficiency

GeoPark’s key aggressive benefit lies in its low-cost construction and excessive operational effectivity. With working prices of round $13 per barrel and a market-leading drilling success charge of 81%, the corporate can generate constructive money circulate even at low oil costs, giving it resilience in a extremely cyclical business. Its strategic give attention to core belongings, disciplined capital allocation, and cost-optimization applications additional strengthens its place relative to friends in Latin America.

Nonetheless, GeoPark stays delicate to the volatility of oil and gasoline markets, which might result in sharp swings in earnings during times of falling costs. Whereas its low-cost operations assist mitigate the impression of downturns, the corporate has skilled losses in 4 of the previous ten years. Regardless of this, its monetary self-discipline, hedging methods, and portfolio diversification permit it to navigate recessions and preserve long-term progress potential.

2008 earnings-per-share: $1.03
2009 earnings-per-share: -$0.20
2010 earnings-per-share: $0.11

Dividend Evaluation

The corporate has an annual dividend of $0.59 per share. At its latest share value, the inventory has a excessive yield of seven.3%.

Given the corporate’s 2025 earnings outlook, EPS is anticipated to be $0.90 per share. In consequence, the corporate is anticipated to pay out roughly 66% its EPS to shareholders in dividends.

Ultimate Ideas

GeoPark benefited in recent times from above-average oil costs pushed by the Ukrainian disaster and vital OPEC manufacturing cuts. Nonetheless, now quickly restoring output, which might restrict near-term good points. The inventory is projected to supply a mean annual return of 13.5% over the subsequent 5 years, supported by a 7%+ dividend yield and eight% earnings-per-share progress, partially offset by a modest -0.6% valuation headwind.

The inventory carries a maintain score and is appropriate just for traders who can tolerate intervals of low oil costs, which put strain on efficiency. Slowing oil demand from China might additional weigh on the inventory. GeoPark’s historic underperformance versus the S&P 500—–31% versus +87% over 5 years and +85% versus +219% over the previous decade—serves as a cautionary reminder of the dangers related to investing within the firm.

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