Bogotá – GeoPark Limited (NYSE:), a Bermuda-registered company with an impressive 75% gross profit margin and “outstanding” financial health according to InvestingProToday it announced its intention to offer senior notes in a private offering targeting qualified institutional buyers, pursuant to Rule 144A and Regulation S under the Securities Exchange Act of 1933. The details of the offering, including prices and terms, will depend on prevailing market conditions. And other factors.

In a related move, GeoPark simultaneously announced a cash tender offer for the full redemption of its outstanding 5,500% notes due 2027. The company intends to trade at an attractive price-to-earnings ratio of 5.3 and generate a strong free cash flow yield of 32%. To allocate the net proceeds from the offering of the New Notes to the 2027 purchase of these Notes, repay up to $152 million of prepayments due under an existing purchase and prepayment agreement, and for general corporate purposes which may include capital expenditures.

The notes in question have not been registered under the Securities Act or any state securities laws. As such, it will only be available to qualified institutional buyers and non-U.S. persons outside the United States, with no plans for a public offering in any jurisdiction where doing so would be unlawful without registration or qualification under the relevant securities laws.

This press release contains forward-looking statements that involve risks and uncertainties, which could cause actual results to differ materially from those anticipated or projected by the Company. GeoPark has a policy of not updating forward-looking statements and emphasizes that such statements are based on current expectations and assumptions that may not prove accurate. To gain deeper insights into GeoPark’s financial health and growth potential, investors can access comprehensive analysis and 8 additional ProTips through InvestingPro Detailed research reports, available for over 1,400 US stocks.

The information in this news article is based on a press release issued by GeoPark Limited.

In other recent news, GeoPark Limited, an independent energy company in Latin America, recently unveiled its business program for 2025. The program aims to enhance shareholder value through disciplined capital allocation, operational excellence, and sustainable growth, with a production target of 70,000 barrels of oil equivalent per day by 2028 and 100,000 barrels by 2030. GeoPark’s 2025 capital expenditures are expected to range between $275 million and $310 million dollar. , which supports an average production estimated at 35 thousand barrels of oil equivalent per day.

GeoPark also expects adjusted EBITDA of $350 million to $430 million for 2025, assuming a price of $70 to $80 per barrel. The company plans to continue distributing annual dividends of about $30 million to shareholders. GeoPark is also committed to reducing its environmental footprint, and aims to reduce carbon intensity by 35-40% by 2025 compared to 2020 levels.

However, GeoPark’s acquisition of a 45% stake in the CPO-9 block in Colombia has been halted due to Ecopetrol’s decision to exercise its pre-emptive rights. At the same time, the possibility of acquiring Repsol’s (OTC:) 25% stake in SierraCol Energy Arauca LLC remains open. Both GeoPark and Parex Resources face a potential tax increase as the Colombian government considers increasing taxes on the oil and gas industries, according to Jefferies.

GeoPark reported mixed results for the third quarter, with a 16% decline in net revenue to $159 million, primarily due to lower oil prices and production. However, the company made a net profit of $25 million and saw a significant improvement in cash flow, with cash reserves rising to $140 million. These are recent developments that investors should be aware of as they evaluate the company’s future prospects.

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