GeoPark Limited's Vaca Muerta Acquisition Deal Falls Through

GeoPark Limited (GPRK) announced that Phoenix Global Resources will withdraw from the proposed acquisition in Vaca Muerta, Argentina. The deal to acquire a non-operated working interest in four unconventional blocks will not proceed. GeoPark remains committed to sustainable growth with a $330 million cash balance and a strategic focus on inorganic growth opportunities.

GeoPark Limited (GPRK), a leading independent energy company with over 20 years of successful operations across Latin America, has announced that Phoenix Global Resources (Phoenix) has decided to withdraw from the proposed acquisition of a non-operated working interest in four unconventional blocks in Vaca Muerta, Argentina. As a result, the acquisition will not proceed.

The withdrawal was made in accordance with the terms of the FarmOut Agreement, which included an "Outside Date" clause that allowed either party to withdraw by May 13, 2025. Phoenix exercised this option, leading to the termination of the transaction.

Despite this setback, GeoPark remains committed to its long-term strategy of sustainable and profitable growth. The company has a robust financial position with a cash balance of $330 million and a net leverage ratio below 1.0x. Additionally, GeoPark's hedging program covers approximately 87% of its 2025 volumes, providing flexibility to pursue other strategic opportunities.

GeoPark is focused on strengthening its core business by maximizing returns from high-value projects in its current portfolio. The company continues to evaluate inorganic growth opportunities within its defined geographies of interest, aiming to complement its existing portfolio and support long-term value creation. GeoPark also maintains strategic flexibility, considering options such as share buybacks, debt reduction, or dividends based on prevailing market conditions.

The withdrawal of the Vaca Muerta acquisition does not impact GeoPark's overall financial health or its commitment to its long-term strategy. The company remains open to pursuing other strategic opportunities that align with its growth objectives.

References:
[1] https://www.businesswire.com/news/home/20250514454380/en/GeoPark-Provides-Update-on-Transaction-in-Vaca-Muerta-Argentina
[2] https://seekingalpha.com/news/4448447-geoparks-planned-190m-acquisition-of-four-vaca-muerta-blocks-nixed-by-seller
[3] https://www.nasdaq.com/articles/geopark-exits-vaca-muerta-deal-focuses-strategic-growth-plans
[4] https://www.morningstar.com/news/business-wire/20250514454380/geopark-provides-update-on-transaction-in-vaca-muerta-argentina