NYSE:GPRK

Stock Analysis Report

Executive Summary

GeoPark Limited engages in the exploration, development, and production of oil and gas reserves in Chile, Colombia, Brazil, Argentina, and Peru.


Snowflake Analysis

Solid track record and fair value.


Similar Companies

Share Price & News

How has GeoPark's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: GPRK has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-2.3%

GPRK

-0.7%

US Oil and Gas

-1.1%

US Market


1 Year Return

-2.8%

GPRK

-18.9%

US Oil and Gas

17.9%

US Market

Return vs Industry: GPRK exceeded the US Oil and Gas industry which returned -18.9% over the past year.

Return vs Market: GPRK underperformed the US Market which returned 18% over the past year.


Shareholder returns

GPRKIndustryMarket
7 Day-2.3%-0.7%-1.1%
30 Day-2.7%-5.8%1.4%
90 Day1.5%-7.6%6.9%
1 Year-2.6%-2.8%-15.7%-18.9%20.3%17.9%
3 Year279.9%279.1%-12.1%-20.4%47.8%38.3%
5 Year344.0%343.0%-21.3%-32.9%71.9%53.0%

Price Volatility Vs. Market

How volatile is GeoPark's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is GeoPark undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: GPRK ($19.18) is trading below our estimate of fair value ($68.85)

Significantly Below Fair Value: GPRK is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: GPRK is poor value based on its PE Ratio (12.8x) compared to the Oil and Gas industry average (10x).

PE vs Market: GPRK is good value based on its PE Ratio (12.8x) compared to the US market (18.2x).


Price to Earnings Growth Ratio

PEG Ratio: GPRK is poor value based on its PEG Ratio (1.4x)


Price to Book Ratio

PB vs Industry: GPRK is overvalued based on its PB Ratio (8.7x) compared to the US Oil and Gas industry average (0.8x).


Next Steps

Future Growth

How is GeoPark forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

9.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GPRK's forecast earnings growth (9% per year) is above the savings rate (1.7%).

Earnings vs Market: GPRK's earnings (9% per year) are forecast to grow slower than the US market (14.2% per year).

High Growth Earnings: GPRK's earnings are forecast to grow, but not significantly.

Revenue vs Market: GPRK's revenue (6.7% per year) is forecast to grow slower than the US market (7.6% per year).

High Growth Revenue: GPRK's revenue (6.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if GPRK's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has GeoPark performed over the past 5 years?

44.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GPRK has high quality earnings.

Growing Profit Margin: GPRK's current net profit margins (14.7%) are higher than last year (6.2%).


Past Earnings Growth Analysis

Earnings Trend: GPRK has become profitable over the past 5 years, growing earnings by 44.2% per year.

Accelerating Growth: GPRK's earnings growth over the past year (162.8%) exceeds its 5-year average (44.2% per year).

Earnings vs Industry: GPRK earnings growth over the past year (162.8%) exceeded the Oil and Gas industry -13.3%.


Return on Equity

High ROE: Whilst GPRK's Return on Equity (76.56%) is outstanding, this metric is skewed due to their high level of debt.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is GeoPark's financial position?


Financial Position Analysis

Short Term Liabilities: GPRK's short term assets ($167.7M) exceed its short term liabilities ($158.3M).

Long Term Liabilities: GPRK's short term assets ($167.7M) do not cover its long term liabilities ($503.8M).


Debt to Equity History and Analysis

Debt Level: GPRK's debt to equity ratio (331.4%) is considered high.

Reducing Debt: GPRK's debt to equity ratio has increased from 74% to 331.4% over the past 5 years.


Balance Sheet

Inventory Level: GPRK has a high level of physical assets or inventory.

Debt Coverage by Assets: GPRK's debt is not covered by short term assets (assets are 0.4x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: GPRK is profitable, therefore cash runway is not a concern.

Forecast Cash Runway: GPRK is profitable, therefore cash runway is not a concern.


Next Steps

Dividend

What is GeoPark's current dividend yield, its reliability and sustainability?

0.86%

Current Dividend Yield


Dividend Yield vs Market

company0.9%marketbottom25%1.4%markettop25%3.7%industryaverage4.6%forecastin3Years1.1%

Current dividend yield vs market & industry

Notable Dividend: GPRK's dividend (0.86%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: GPRK's dividend (0.86%) is low compared to the top 25% of dividend payers in the US market (3.73%).


Stability and Growth of Payments

Stable Dividend: Too early to tell whether GPRK's dividend payments have been stable as they only just started paying a dividend.

Growing Dividend: Too early to tell if GPRK's dividend payments are increasing as they only just started paying a dividend.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: GPRK's dividends in 3 years are forecast to be thoroughly covered by earnings (11.6% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

8.8yrs

Average management tenure


CEO

Jim Park (64yo)

18.1yrs

Tenure

US$2,295,506

Compensation

Mr. James Franklin Park, also known as Jim, has been Chief Executive Officer and Director of GeoPark Limited since 2002. Mr. Park has been a Director at Amerisur Resources plc since January 16, 2020. He co ...


CEO Compensation Analysis

Compensation vs Market: Jim's total compensation ($USD2.30M) is about average for companies of similar size in the US market ($USD2.50M).

Compensation vs Earnings: Jim's compensation has increased by more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Gerald O'Shaughnessy
Co-Founder & Chairman18.1yrsUS$400.00k1.39% $15.8m
James Park
Co-Founder18.1yrsUS$2.30m13.98% $158.8m
Pedro Enrique Aylwin Chiorrini
Legal Director & Executive Director6.6yrsUS$26.00k0.56% $6.4m
Andrés Ocampo
Chief Financial Officer6.3yrsno datano data
Augusto Zubillaga
Chief Operating Officer4.8yrsno datano data
Sabrina Garcia
Information Management Manager0yrsno datano data
Verónica Hayden
Corporate People Manager0yrsno datano data
Adriana La Rotta
Director of Connections0yrsno datano data

8.8yrs

Average Tenure

59yo

Average Age

Experienced Management: GPRK's management team is seasoned and experienced (8.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Gerald O'Shaughnessy
Co-Founder & Chairman18.1yrsUS$400.00k1.39% $15.8m
James Park
Co-Founder18.1yrsUS$2.30m13.98% $158.8m
Pedro Enrique Aylwin Chiorrini
Legal Director & Executive Director6.6yrsUS$26.00k0.56% $6.4m
Adriana La Rotta
Director of Connections0yrsno datano data
Jamie Coulter
Non-Executive Director2.8yrsUS$75.00k2.57% $29.2m
Constantine G. Papadimitriou
Non-Executive Director1.8yrsUS$45.00k0.038% $436.6k
Juan Cristóbal Pavez Recart
Non-Executive Director11.5yrsUS$110.00k5.03% $57.1m
Carlos A. Gulisano
Non-Executive Director9.7yrsUS$110.00k0.35% $3.9m
Robert Bedingfield
Non-Executive Director4.9yrsUS$110.00k0.16% $1.8m

6.6yrs

Average Tenure

66yo

Average Age

Experienced Board: GPRK's board of directors are considered experienced (6.6 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

GeoPark Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: GeoPark Limited
  • Ticker: GPRK
  • Exchange: NYSE
  • Founded: 2002
  • Industry: Oil and Gas Exploration and Production
  • Sector: Energy
  • Market Cap: US$1.135b
  • Shares outstanding: 59.20m
  • Website: https://www.geo-park.com

Number of Employees


Location

  • GeoPark Limited
  • Nuestra Señora de los Ángeles 179
  • Las Condes
  • Santiago
  • Region Metropolitana (Santiago)
  • Chile

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
0MDPLSE (London Stock Exchange)YesCommon SharesGBUSDMay 2006
GPRKNYSE (New York Stock Exchange)YesCommon SharesUSUSDMay 2006
G6ODB (Deutsche Boerse AG)YesCommon SharesDEEURMay 2006
GPKAIM (London Stock Exchange AIM Market)COM USD0.001GBGBPSep 2013
GPRK34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH REP 1 COM USD0.001BRBRLMay 2019

Biography

GeoPark Limited engages in the exploration, development, and production of oil and gas reserves in Chile, Colombia, Brazil, Argentina, and Peru. As of December 31, 2018, the company had working and/or economic interests in 25 hydrocarbons blocks, as well as shallow-offshore concession in Brazil that includes the Manati Field. It had net proved reserves of 108.4 million barrels of oil equivalent. GeoPark Limited has a strategic partnership with ONGC Videsh to jointly acquire, invest in, and create value from upstream oil and gas projects across Latin America. The company was formerly known as GeoPark Holdings Limited and changed its name to GeoPark Limited in July 2013. GeoPark Limited was founded in 2002 and is based in Santiago, Chile. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/23 01:27
End of Day Share Price2020/02/21 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.