Parex Resources, which holds an 11.8% stake in GeoPark Limited, terminated negotiations over a proposed acquisition at US$9.00 per share. The decision followed a review of information provided by GeoPark and a series of virtual and in‑person meetings with GeoPark management.
The $9.00 offer was first submitted to GeoPark’s board on September 4. GeoPark had previously rejected the proposal, arguing it undervalued the company and did not reflect the growth potential from its expansion into Argentina’s Vaca Muerta shale basin. Parex found no basis to increase its valuation view and concluded further discussions were unlikely to lead to an agreement.
GeoPark’s strategy centers on optimizing its Colombian assets while pursuing significant development in the Vaca Muerta basin. During the negotiation period, GeoPark released updated guidance for 2026‑2028, underscoring its valuation expectations and reinforcing the company’s confidence in the value of its new assets.
Prior financial performance provides context for the valuation dispute. GeoPark reported Q2 2025 Adjusted EBITDA of US$71.5 million (60% margin) and a net loss of US$10.3 million. In Q3 2025, Adjusted EBITDA was US$71.4 million (57% margin) with a net income of US$15.9 million. Parex reported Q3 2025 funds flow from operations of US$105 million, indicating its financial capacity to pursue the acquisition.
Management commentary highlights the reasons behind the split. Parex stated that there was no basis to increase its view on GeoPark’s value and that further discussions were unlikely to result in an agreement. GeoPark’s board reiterated that the offer undervalued the company and did not account for its growth prospects, particularly the Vaca Muerta expansion.
The announcement was met with a negative market reaction, reflecting investors’ reassessment of a potential exit scenario and the valuation gap between the two parties.
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