What is the estimated CapEx for the remainder of 2026 in Vaca Muerta, with a breakdown by quarter and main activities?

Estimated CapEx for H2 2026 in Vaca Muerta is $40 million to $50 million, with 70%-80% spent in Q3 and the remainder in Q4. Activities will focus on finishing facility upgrades, connecting to a neighboring operator, completing a water disposal well, and building the pad for drilling in early next year. “for the second half of the year, we expect in the order of $40 million to $50 million of capital investment. That is pretty much aligned with what we've done in the first half of the year, which was, like Felipe said, 2/3 of our capital program for the first half, around $55 million.”

Why increase hedging for 2027 given current favorable oil market and Q2 hedging losses? Are the wells planned for tie-in in Argentina in H2 '26 within the RIGI proposal, and will tie-ins wait for RIGI approval?

Hedging aims to deliver predictable cash flow and strong risk-adjusted returns, especially during increased capital deployment for Vaca Muerta and inorganic ambitions. Attractive floors ($75/bbl) and ceilings ($85-$86/bbl) for 2027 hedging provide comfort. Wells drilled in Vaca Muerta are being put into production immediately and will not wait for RIGI approval, which would cover future factory drilling and larger investments. “To give you an example, over the last few weeks, we have been able to attain positions where we're accessing floors of $75 per barrel and ceilings of $85, $86 per barrel.”

Will the strong uptick in costs normalize in H2 2026? Is unconventional development in Colombia possible in existing GeoPark blocks or would it require new biddings? Is GeoPark interested in new conventional oil biddings in Colombia?

Lifting costs are expected to remain high, guided at $17-$19/bbl for H2 2026, due to FX impacts and energy prices. GeoPark is interested in Colombia's unconventional potential, leveraging Vaca Muerta expertise, and would pursue new bidding rounds for both conventional and unconventional opportunities. They are committed to investing and growing in Colombia. “For the full year, we currently expect the lifting cost to pretty much stay within where they are. So our guidance for the second half and finishing the year is in the order of $17 to $19 per barrel now.”

GPRK

GeoPark (GPRK) Q2 FY26 earnings call: guidance and Q&A

Earnings call· Jun 2026 (Q2 FY26)· Energy· Aug 5, 2026

Source: earnings call transcript

Executive summary

GeoPark Q2 FY26 — Strong Operational Execution and Strategic Progress in Argentina

GeoPark delivered a quarter of consistent operational execution, with resilient production and cash generation from Colombia, while advancing its strategic priorities in Argentina's Vaca Muerta. The company is increasing its capital expenditure guidance for the year to accelerate accretive activities, maintaining a strong balance sheet and disciplined risk management through hedging, and is actively exploring inorganic growth opportunities in Colombia, Argentina, and Venezuela.

Highlights

Average production of 27,271 boe/d, performing within full-year guidance and broadly in line with Q1 FY26.
Revenue increased 12% sequentially to $143.3 million, supported by stable production and improved realized prices.
Adjusted EBITDA reached $73.1 million, representing a 51% margin.
Cash position increased to $316 million, and net leverage reduced to 1.2x EBITDA.
Secured a dedicated drilling rig under a 3-year agreement for Vaca Muerta, reinforcing long-term execution certainty.

Concerns

Lifting cost increased from $14.7/bbl in Q1 FY26 to $17.8/bbl in Q2 FY26, exceeding initial guidance of $13-$15/bbl.
Operating costs impacted by strong appreciation of Colombian and Argentine currencies, and higher energy costs.
Generated $41 million in hedging losses during the period.

Guidance & targets

Category	Target	Timeline	Confidence
Argentina Vaca Muerta Exit Production	5,000-6,000 boe/d high materiality	FY26	High
Full-Year Capital Expenditure	up to $250 million high materiality	FY26	High
Lifting Cost	$17-$19 per barrel medium materiality	H2 FY26	Medium

Segment performance

Segment	Revenue	YoY	QoQ	Margin
Colombia Colombia continues to provide resilient production and cash generation. Llanos 34 benefited from disciplined reservoir management and secondary recovery. CPO-5 remained stable, and Llanos 123 performed well. Production: 27,271 boe/d (company-wide, primarily Colombia)Llanos 34 production: 25% from waterflooding	—	—	—	—
Argentina Argentina is progressing well and becoming an increasingly important contributor to future growth. Execution accelerated significantly, with drilling completed on PAD-1030 and environmental approval for Loma Jarillosa Este. The first well started flowing, and a 3-year drilling rig agreement was secured for Vaca Muerta. Exit production target FY26: 5,000-6,000 boe/dCapital investment H1 FY26: ~$55 million (2/3 of total program)Capital investment H2 FY26: $40-$50 million	—	—	—	—

Deals & partnerships

Gas y Petróleo del Neuquén Application to RIGI investment incentive program

Application submitted to Argentina's RIGI investment incentive program to support the Vaca Muerta unconventional oil hub. Management is awaiting approval.

Unnamed drilling rig provider Dedicated drilling rig agreement 3-year

Secured a dedicated drilling rig under a 3-year agreement for the Vaca Muerta program, enabling factory mode drilling starting December this year.

Capital programs

Vaca Muerta Development Plan underway

Period spend: $55 million

Start: Q4 FY25

Benefit:5,000-6,000 boe/d exit production by year-end 2026

Capital investment in Vaca Muerta, with approximately two-thirds directed to Argentina in H1 FY26. Includes drilling, completion, and facility upgrades.

Vaca Muerta H2 FY26 Capital Investment underway $40 million to $50 million

Period spend: $40 million to $50 million

Start: Q3 FY26

Benefit:Facility upgrades, connection to neighboring operator, water disposal well, pad building for future drilling

Capital investment for the second half of 2026 in Vaca Muerta, with 70-80% in Q3. Focus on infrastructure and preparing for factory mode drilling.

Risks & headwinds

Operating Cost Escalation H2 FY26

Lifting cost increased from $14.7/bbl in Q1 FY26 to $17.8/bbl in Q2 FY26; expected to be $17-$19/bbl for H2 FY26. FX impact of $2.1-$2.5/bbl and energy cost impact of $1.5/bbl.

Mitigation:Long-term initiatives include connections to electric grid and biomass energy contracts. Short-term focus on lower energy costs (fixed contracts, different sources like fuel), and improving energy efficiency (e.g., gas capture for power generation).

Hedging Losses Q2 FY26

$41 million in hedging losses

Mitigation:Hedging strategy is maintained to provide predictable cash flow and downside protection, with 2027 hedges secured at attractive floors ($75/bbl) and ceilings ($85-$86/bbl).

El Nino Phenomenon Upcoming period

Potential for higher energy prices due to droughts and very little rain.

Mitigation:Company has done a lot of work to prepare for it, including seeking lower energy costs, fixed contracts, and different energy sources.

Social Unrest in Colombia Ongoing

Discussed, not quantified.

Mitigation:GeoPark emphasizes long-term relationships with communities, social investment, and respectful engagement, building on its history as a safe and reliable operator.

What to watch in Q3 FY26

Argentina Vaca Muerta Production Ramp-up

Q3 FY26 / Q4 FY26

Current First well started flowing yesterday

Target Progress towards 5,000-6,000 boe/d exit production

Why it matters

This is a key growth driver for the company, and successful ramp-up validates the Vaca Muerta investment thesis.

the first well started flowing yesterday, and it will take some time for the cleanup and everything else and stabilizing that production.

Find out whether GPRK delivers this. Inve re-checks your case every morning.

Q&A highlights

What policy changes are expected from the new Colombian administration and how might they benefit GeoPark? What are the size and quality of opportunities seen in Venezuela?

Management expressed pleasure with the incoming Colombian government's support for oil, gas, and private investment, contrasting it with the previous administration. They see opportunities in conventional and unconventional hydrocarbons in Colombia, leveraging Vaca Muerta expertise. For Venezuela, they noted large oil-in-place potential, positive technical aspects, and good conversations with PDVSA, but did not provide specific details on size or quality of opportunities.

“I think from that point of view, we're very, very pleased, especially Alejandro with the backdrop of the current government that has been against industry quite publicly in terms of no new licensing for oil and gas.”

asked by Alejandro Anibal Demichelis · answered by Felipe Bayon Pardo

2 min read 6 chapters

Detailed narrative

Argentina Vaca Muerta Development Progress

GeoPark significantly accelerated execution in Argentina, completing drilling on the PAD-1030 advanced hydraulic fracturing campaign and securing environmental approval for the next phase of drilling in Loma Jarillosa Este. The company also secured a dedicated drilling rig under a 3-year agreement, providing long-term execution certainty for the Vaca Muerta program.

The first well from the recent drilling campaign started flowing, with expectations to reach 5,000-6,000 boe/d exit production by year-end 2026.

Colombian Operational Resilience and New Administration Outlook

Colombia's Llanos 34 continued to provide resilient production and cash generation through disciplined reservoir management and secondary recovery initiatives, including waterflooding and polymer injection. CPO-5 remained a stable contributor, and Llanos 123 performed well. Management expressed optimism regarding the incoming Colombian administration's support for oil and gas, mining, and private investment, anticipating potential new licensing rounds for conventional and unconventional hydrocarbons.

Financial Performance and Balance Sheet Strength

The company reported solid financial results with revenue up 12% sequentially to $143.3 million and Adjusted EBITDA of $73.1 million (51% margin). The balance sheet remains strong, with cash increasing to $316 million and net leverage reduced to 1.2x EBITDA. A committed contingent credit facility was renewed and extended through 2028, enhancing financial flexibility for investment programs.

Hedging Strategy and Cost Pressures

GeoPark maintains a disciplined risk management approach, protecting cash flows through 3-way collars. Approximately 19,000 bbl/d of 2026 production is hedged, and a similar volume for 2027 has been secured at attractive floors ($75/bbl) and ceilings ($85-$86/bbl). The company acknowledged upward pressure on operating costs, with lifting costs increasing to $17.8/bbl in Q2 FY26, driven by Colombian and Argentine currency appreciation and higher energy prices, and expects full-year lifting costs to be $17-$19/bbl.

Inorganic Growth Ambitions and Capital Allocation

The company is actively pursuing material inorganic options in Colombia, Argentina, and Venezuela, leveraging its strong balance sheet and operational expertise. Management highlighted the potential for gas opportunities in Colombia, given the structural shortage, and cross-border opportunities with Venezuela. Capital allocation priorities are focused on completing the current investment phase, preserving balance sheet strength, and positioning for future free cash flow generation.

Shareholder Engagement and Board Changes

Shareholders approved all resolutions at the Annual General Meeting with over 99% of votes. The company welcomed new long-term shareholders and appointed Dorita Gilinski and Camilo Martinez to its Board of Directors, following the departure of Sylvia Escovar and Marcela Vaca. This reflects a strengthening of the long-term shareholder base.

Summary of the company's earnings call; see how call summaries are prepared. Not investment advice.