Geopark Q2 2026 Earnings Call Transcript

Quartr
Provided by Quartr
August 5, 2026

Key Takeaways

  • Positive Sentiment: Second-quarter execution remained solid, with production averaging 27,271 boe/d, revenue rising 12% sequentially to $143.3 million, and adjusted EBITDA reaching $73.1 million, a 51% margin.
  • Positive Sentiment: Argentina development is accelerating, with five Vaca Muerta wells drilled and hydraulically fractured, a dedicated three-year rig secured, and first production beginning; GeoPark continues to target approximately 5,000–6,000 boe/d by year-end 2026.
  • Positive Sentiment: The company ended the quarter with $316 million in cash and reduced net leverage to 1.2x EBITDA, while maintaining financial flexibility through an extended contingent credit facility and disciplined hedging.
  • Negative Sentiment: Operating costs increased materially because of Colombian and Argentine currency appreciation and higher energy prices; full-year lifting costs are now expected at $17–$19 per barrel versus prior guidance of $13–$15.
  • Positive Sentiment: Management sees additional growth opportunities in Colombia, including potential conventional, unconventional, and gas assets under the incoming administration, as well as possible inorganic opportunities in Venezuela and Argentina.
AI Generated. May Contain Errors.
Earnings Conference Call
Geopark Q2 2026
00:00 / 00:00

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Operator

Good morning. Welcome to the GeoPark Limited conference call following the results announcement for the second quarter ended June 30, 2026. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question at this time, press star one on your telephone keypad. If you would like to withdraw your question, press star one again. If you do not have a copy of the press release, it is available at the Invest With Us section on the company's corporate website at www.geo-park.com. A replay of today's call may be accessed through this webcast in the Invest With Us section of the GeoPark corporate website.

Operator

Before we continue, please note that certain statements contained in the results press release and on this conference call are forward-looking statements rather than historical facts, are subject to risks and uncertainties that could cause actual results to differ materially from those described. With respect to such forward-looking statements, the company seeks protections afforded by the Private Securities Litigation Reform Act of 1995. These risks include a variety of factors, including competitive developments and risk factors listed from time to time in the company's SEC reports and public releases. Those lists are intended to identify certain principal factors that could cause actual results to differ materially from those described in the forward-looking statements, are not intended to represent a complete list of the company's business. All financial figures included herein were prepared in accordance with IFRS and are stated in US dollars unless otherwise noted.

Operator

Reserved figures correspond to PRMS standards. On the call today from GeoPark is Felipe Bayon, Chief Executive Officer, Jaime Caballero, Chief Financial Officer, Martín Terrado, Chief Operating Officer, Rodrigo Dalle Fiore, Chief Exploration and Development Officer, María Catalina Escobar, Shareholder Value and Capital Markets Director. Now I'll turn the call over to Mr. Felipe Bayon. Mr. Bayon, you may begin.

Felipe Bayon
Felipe Bayon
CEO at GeoPark

Good morning, everyone. Thank you for joining us for our second quarter 2026 results call. We delivered another quarter of consistent execution, demonstrating the resilience of our core business while continuing to advance in our strategic priorities. Colombia continues to provide resilient production and cash generation while Argentina is progressing well and becoming an increasingly important contributor to our future growth. During the second quarter, we achieved production on an average of 27,271 bbl of oil equivalent per day, performing within our full year guidance and broadly in line with the first quarter. This consistency reflects disciplined reservoir management and the operational capabilities of our teams. In Argentina, execution accelerated significantly during the quarter. We completed drilling on Pad 1030, advanced the hydraulic fracturing campaign, secured environmental approval for the next phase of drilling in Loma Jarillosa Este.

Felipe Bayon
Felipe Bayon
CEO at GeoPark

These milestones reinforce our confidence in the quality of the assets and in our ability to deliver the targeted exit production of approximately 5,000 to 6,000 bbl of oil equivalent per day by year-end 2026. Importantly, we also secured a dedicated drilling rig under a 3-year agreement, providing long-term execution certainty for the development of our Vaca Muerta program. In addition, together with Gas y Petróleo del Neuquén, we applied to Argentina's RIGI Investment Incentive Program, which supports the development of our unconventional oil hub and reinforces our long-term growth strategy. Argentina continues to evolve into a transformational growth platform for GeoPark. In Colombia, Llanos 34 continues benefiting from disciplined reservoir management and secondary recovery initiatives. CPO-5 remained a very stable contributor despite operational challenges experienced earlier in the year, while Llanos 123 continued to perform well through ongoing development activities.

Felipe Bayon
Felipe Bayon
CEO at GeoPark

Together, these assets continue to provide stable production and cash generation. Importantly, all operations were conducted with strong health and safety performance, with no injuries and no major process safety events. The quarter also benefit from a stronger commodity price environment. Brent averaged approximately $97/bbl, a narrower Vasconia differential supported higher realized prices, partly offset by hedging costs. This operational and commercial performance translated into solid financial results. 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 despite higher energy costs and the strong appreciation of the Colombian and Argentine currencies, which impacted our operating costs. Operating profit totaled $40.8 million.

Felipe Bayon
Felipe Bayon
CEO at GeoPark

Compared with the previous quarter, it is important to remember that the first quarter results included a non-recurring breakup fee associated with the Frontera acquisition. Net income for the quarter was $14 million. Capital allocation remained disciplined throughout the quarter. We invested approximately $76 million with nearly two-thirds directed to Argentina as we continue executing the Vaca Muerta development plan while maintaining a 19% return on average capital employed. Our balance sheet remains one of GeoPark's key competitive advantages. During the quarter, our cash position increased to $316 million, and we reduced net leverage to 1.2x EBITDA. We also renewed and extended a committed contingent credit facility throughout 2028, providing additional financial flexibility as we execute our investment program. Our disciplined risk management approach also remains unchanged.

Felipe Bayon
Felipe Bayon
CEO at GeoPark

We continue protecting cash flows through three-way collars covering approximately 19,000 bbl/day during 2026, while approximately 19,000 bbl/day of expected 2027 production has already been protected under similar structures. This approach provides downside protection while preserving upside participation. The board declared a quarterly dividend of $0.023 per share, representing the final payment under the dividend framework announced last year. As previously communicated, our capital allocation priorities are now on completing this peak investment phase while preserving balance sheet strength and positioning the company for the next stage of their free cash flow generation. Overall, we believe GeoPark is very well-positioned. Our Colombian portfolio continues generating resilient cash flows. Argentina is advancing, and our balance sheet provides the financial flexibility to continue with the disciplined pursuit of material inorganic options in Colombia, Argentina, and Venezuela.

Felipe Bayon
Felipe Bayon
CEO at GeoPark

I would like to recognize the continued commitment of our employees and contractors and their focus on safety, operational excellence, and efficiency to deliver these results. Before closing, I would like to take a moment to thank our shareholders for their continued support reflected in the successful outcome of our annual general meeting, where all resolutions were approved by more than 99% of votes cast. Following the strengthening of our long-term shareholder base earlier this year with a strategic investment from Grupo Gilinski, we have been glad to welcome a number of other long-term shareholders to our company. The AGM approved the appointment of new members to our board of directors. To this effect, I would like to sincerely thank Sylvia Escovar and Marcela Vaca for their dedication and valuable contributions to GeoPark over the years, and welcome Dorita Gilinski and Camilo Martinez to our board.

Felipe Bayon
Felipe Bayon
CEO at GeoPark

We look forward to their contributions. Thank you again for joining us. With that, let's open the floor to your questions.

Operator

If you would like to ask a question, please press star followed by the number 1 on your telephone keypad. To withdraw any questions, press star 1 again. Our first question comes from Alejandro Demichelis from Jefferies. Please go ahead. Your line is open.

Alejandro Demichelis
Alejandro Demichelis
Analyst at Jefferies

Good morning, gentlemen. Thank you very much for taking my questions, and congratulations on the results. Felipe, couple of questions if I may, please. First one is with the new Colombian administration coming in very shortly, what kind of changes from policies for the sector can you expect, and how do you see those benefiting GeoPark? Then the second question is, you just mentioned some opportunities in Venezuela. Maybe you can give us some indication of what are those kind of types and quality of the opportunities that you see in Venezuela, please. Thank you.

Felipe Bayon
Felipe Bayon
CEO at GeoPark

Thanks, Alejandro, good morning, thanks for joining the call, thanks for your congratulations on the results. First thing in terms of Colombia, I'll start there. We're very pleased with the incoming government. The incoming administration has been very vocal in terms of their support to oil and gas and mining and infrastructure and an overall private investment and creating good conditions for that investment to be received by Colombia. I think from that point of view, we're 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 and absolutely very little support for industry. From that point of view, I think we're very pleased. We've already had discussions with the incoming administration. As you know, GeoPark is a long-term investor in Colombia.

Felipe Bayon
Felipe Bayon
CEO at GeoPark

Colombia is the source of our cash generation. It's where we're actually supporting the growth that we're seeing in Vaca Muerta in particular. We're very, very pleased with that. I'd say, Alejandro, one thing is, we do see some good opportunity set, a good opportunity set in Colombia, both in the conventional and the unconventional hydrocarbons. Also in oil and gas, or liquids and gas. You very well know, Colombia has a structural shortage of gas, where the country is importing 30%-35% of the gas it uses on a daily basis. Alejandro, I'd like to create a bridge to Argentina, which I think is very relevant. You well know, and I know it was not in the question, but I think it's relevant for context, we acquired the areas from Pluspetrol September of last year.

Felipe Bayon
Felipe Bayon
CEO at GeoPark

In October, we actually started operating, today we've already drilled our five initial horizontal wells, and we fracked those wells. In nine months, we've gone from entering into an area to fracking the wells. As a matter of fact, Alejandro, the first well started flowing yesterday, and it will take some time for the cleanup and everything else, and stabilizing that production. The bridge I want to make is, we've discussed this before in other calls, how do we bring that expertise from Argentina into Colombia? When I've spoken to some of the new members of Congress and new members of the incoming government, I'm saying, "Look, GeoPark is a company that has actually fracked, and we've had experience in fracking." I think that is sort of a differentiator as a company.

Felipe Bayon
Felipe Bayon
CEO at GeoPark

It's something that can play very well in terms of Colombia and opportunities. There's a massive opportunity set in unconventionals in Colombia. That's something that we're assessing, Alejandro. In terms of changes, because that's part of your question is, I think in terms of new licensing rounds, both conventional and unconventional oil and gas, there's a lot of discussion around environmental permitting, audiencias públicas, the public audiences with the communities and everything else. I do sense that there will be some changes. I would like to highlight, Alejandro, that having said all of that, it's not immediate. Inauguration is in a couple days. It's not going to happen on the next day or August 8th. It will take some time, but I do see a lot of the right signals from government. GeoPark is ready to do its part.

Felipe Bayon
Felipe Bayon
CEO at GeoPark

We're willing to invest, we're willing to grow in Colombia should there be opportunities, as you know, the technical teams have been looking at this and assessing opportunities. That's the first part. You ask about Venezuela, opportunities in Venezuela, the first thing I'd say is that our thoughts and prayers and support goes to the people that suffered or have suffered and are suffering after the earthquakes of June 24th. Over the last months, four to five months, myself, the team, we visited Venezuela numerous occasions. There's a lot of opportunities. The potential in terms of the oil in place in different licenses, in different basins, is very large. We're assessing several opportunities. I will not go into details.

Felipe Bayon
Felipe Bayon
CEO at GeoPark

We're very pleased in terms of the technical aspects of the licenses, some of the terms that are being discussed, the quality of the people in PDVSA. I would like to highlight that. There's some very good conversations going on, and hopefully we can get some of those opportunities across the finish line. Alejandro, lastly, we'll obviously inform the markets and share with the markets any updates when those happen. Thanks, Alejandro.

Alejandro Demichelis
Alejandro Demichelis
Analyst at Jefferies

Thank you very much for the answers. Thank you.

Operator

Our next question comes from the web. Andres Pratasso from Argentaria asks, "What is the estimated CapEx for the remainder of 2026 in Vaca Muerta? Could you provide a breakdown by quarter, along with the main activities driving the spend?

Martín Terrado
Martín Terrado
COO at GeoPark

Good morning, Andres. This is Martín Terrado. Thanks again for your interest in GeoPark. We're very proud of the accomplishments we had in Vaca Muerta. I'll go straight to your question, then I want to expand a little bit on the comments from Felipe. Basically, for the second half of the year, we're expecting the order of $40 million-$50 million of capital investment. That is pretty much in line with what we've done in the first half of the year, which was, like Felipe said, two-thirds of our capital program for the first half, around $55 million. What we've done in the first half on CapEx is mainly workovers, drilling, and completion, and a little bit of facilities upgrade. As we go into the second half of the year, it's going to switch, and it's going to go mainly to

Martín Terrado
Martín Terrado
COO at GeoPark

Finishing the facility upgrades, finishing a connection to a neighboring operator that has spare capacity, and also the completion of a water disposal well. On top of that, we're going to be building the pad, that will be the first pad to be drilled early next year, starting in December of this year with the rig that Felipe mentioned that has been awarded for our factory mode. That's a high level how the split you can think about it is going to be around 70%-80% of those $40 million-$50 million in the third quarter, and the remaining on the fourth quarter. I do want to reiterate one more time, how proud we are of our team accomplishments in Vaca Muerta during the past nine months that have been full of activity, drilling, completing, doing facilities work. We have fracked 180 stages incident-free.

Martín Terrado
Martín Terrado
COO at GeoPark

The efficiencies that we have seen with our team during the frack stages are amongst the top quartile. Some of those metrics, number of fracks per day, we have done several days with nine fracks per day. That's a benchmark. On our number of hours per day where the frack sets were working, again, several days with 20 hours per day, fully operational. That's a little bit of flavor of Vaca Muerta and the answer to your question.

Operator

Our next question also comes from the web. It comes from Alvaro Leyva from BTG Pactual. They ask, "Given the currently favorable oil market outlook and the fact that it generated $41 million in hedging losses, why would you increase your hedging position in 2027?" Secondly, they ask, "Are the wells you're planning to tie in Argentina in 2H 2026 within the RIGI proposal? If so, will you only tie in the wells until the RIGI application is approved?

Felipe Bayon
Felipe Bayon
CEO at GeoPark

Thanks, Alvaro. This is Felipe. I'll start with the second question, then I'll ask Jaime to take the first one, if that's all right. Just to continue with the conversation around Vaca Muerta. As I was mentioning earlier, the wells that we've drilled are being put into production as we speak. We're not going to wait. Actually, the first well, it started flowing yesterday. We have some facilities that we need to start in the pad of the wells. We will be seeing some increase in production, Vaca Muerta, at the end of the year from around 5,000 bbl/day-6,000 bbl/day. We're expecting a statement from the government around RIGI. We've had some very good discussions over the last few months. We will wait for that approval on the RIGI when it comes.

Felipe Bayon
Felipe Bayon
CEO at GeoPark

That will eventually, and if it's granted, will cover everything else, our factory drilling, and the big investments on the completion of one portion of the pipeline, full processing facilities, and the factory mode drilling. The wells that we've drilled will be connected and put into production in the next few days and weeks. Jaime?

Jaime Caballero
Jaime Caballero
CFO at GeoPark

Sure. Hi, Alvaro. Hi, everybody. In the matter of hedging, I think we need to start first with what is the purpose of hedging, right? Our goal at GeoPark is to deliver strong double digits, risk-adjusted returns under any market period. In that context, having the possibility of delivering predictable cash flow in a period where we're going to be having increased investment and where we have persistent volatility is key. That's what we're seeing. If we want to put color on that, we're going through a phase in the company where as we are growing our exposure to Vaca Muerta, there is increased capital deployment. As you all know, those who have been following us, we also have an inorganic ambition that would also require that.

Jaime Caballero
Jaime Caballero
CFO at GeoPark

That's why we believe that hedging needs to be part of the equation, and it will continue to be part of the equation. In that context, when we look at 2027, currently we see that we're under market conditions that allow us to obtain some very attractive floors for our pricing. To give you an example, over the last few weeks, we have been able to attain positions where we're accessing floors of $75/bbl and ceilings of $85/bbl, $86/bbl. In that price environment of $75 bbl/day-$86bbl/day, the company can deliver very attractive cash flow, very attractive returns, and that's good. It also gives us the comfortable position that we know as we engage in more investments in Vaca Muerta or elsewhere, that the balance sheet of the company is not going to be compromised. That's the rationale, Alvaro.

Felipe Bayon
Felipe Bayon
CEO at GeoPark

Thank you, Jaime.

Operator

Our next question comes from [Gustavo Satka from TrideCo]. Please go ahead, your line is open

Analyst

Hello. Good morning, everyone. I have a couple of questions here. My first one's about cost. We saw a strong uptick in cost this quarter, which seems to be driven by the Colombian peso and Argentine peso appreciation and energy cost. Based on how these variables evolved recently, is it reasonable to expect normalization in the second half of the year, or we should expect cost to remain at this level? My second question is a follow-up from the Colombia question. This unconventional potential in Colombia seems to be now a possibility with this new government. This conventional development is something that we could see in already all GeoPark blocks, for GeoPark to do in conventional Colombia, which will require new biddings, and also unconventional oil in Colombia. Are new biddings something that could attract interest for GeoPark? These are my questions. Thank you.

Felipe Bayon
Felipe Bayon
CEO at GeoPark

Thanks, Gustavo, good morning, and thanks for being in the call today. Yes, you've mentioned, and we've reported, there's upward pressure on our operating costs from both the Colombian and Argentine currencies appreciation versus the dollar. Martín will give us a bit of flavor in terms of magnitudes and everything else. I think, also because of energy, we need to be sure that we've factored something that it's upcoming, which is El Niño, the phenomenon El Niño, with droughts and very little rain that will eventually take energy prices higher up. We've done a lot of work in terms of getting ready for that, Martín will take us through that. We do see, Gustavo, that from the initial guidance, that was $13/bbl-$15/bbl, we're outside of the guidance, and we're moving north, if you will.

Felipe Bayon
Felipe Bayon
CEO at GeoPark

We'll be higher up in terms of where we end up the year. Martín, why don't you give us a bit more details around that? I'll take the other question.

Martín Terrado
Martín Terrado
COO at GeoPark

Yes, Felipe. Hello, Gustavo. Thanks again for your question. The increase in operating cost, as was stated by Felipe, during the first half of the year, reflects basically the combination of the FX impacts and the higher energy demand and prices in Llanos 34. It's demand and prices for Llanos 34. When we look at a unit basis, the lifting cost increase in the first quarter of this year from $14.7/bbl to the quarter we just finished, $17.8/bbl. The average that we had for the first half was $16.2/bbl, and our guidance has been $13/bbl-$15/bbl, so it's outside of the guidance. For the full year, we currently expect the lifting cost to pretty much stay within where they are. Our guidance for the second half on finishing the year is in the order of $17/bbl-$19/bbl now.

Martín Terrado
Martín Terrado
COO at GeoPark

This is mainly, again, if you look at each of the effects, the effects of exchange rate is in the order of $2.1/bbl-$2.5/bbl in our OpEx, and the impact on the energy costs that are rising is about $1.5/bbl. What we're doing on this matter, we have some long-term initiatives, which is connections to the electric grid. We're already connected, but we have two initiatives which are already ongoing to have a greater flexibility. Those will be coming next year and the year after. We have already signed a contract on biomass energy. For short term, our focus is on getting the lower energy cost, looking at, instead of spot, what we can do on fixed contracts, and also on different sources. We're looking at different sources that could be available, such as fuel and others.

Martín Terrado
Martín Terrado
COO at GeoPark

We look inside, and what is it that we can do to improve our energy efficiency? I will give you one example so that I don't extend that much. One example is in the past year, we have captured all of our gas, and we're generating out of that gas around 1.5 MW, and our field consumes in the order of 65 MW. Those are things that we're looking, working internally and with our contractors to see, can we reduce the energy consumption of our pumps and so forth? Finally, one of the numbers that we've done so that you get a sense, we've done some sensitivity, and for each COP 100 per US dollars that the exchange rate changes, for the remaining of the year, it would mean around $2.5 million either above or below in our OPEX.

Martín Terrado
Martín Terrado
COO at GeoPark

It is considerable, and like I said, we're working on all those fronts.

Felipe Bayon
Felipe Bayon
CEO at GeoPark

Thanks, Gustavo, I would just add to Gustavo that obviously we're doing everything in terms of our own remit of responsibilities, in terms of ensuring that our operations are safe and efficient and reliable. We'll see where the exchange rate will go. Last week, the Central Bank intervened with purchasing of dollars. The dollars has gone up a bit, but we'll need to operate efficiently and reliably, and we'll continue to do what is within our own hands in terms of our operations. I'll move on to your question on Colombia. I don't want to repeat myself, but we're very excited with the incoming government. They've been supportive of industry overall, of investment, of rule of law, and they're very keen on trying to do things quickly.

Felipe Bayon
Felipe Bayon
CEO at GeoPark

That's why I was mentioning our experience in Vaca Muerta, from receiving the operation to fracking in nine months, with drilling wells in the middle of that. We can be very agile, we can be very nimble, and we can operate safely. We're definitely interested in the unconventional potential in Colombia. Absolutely. A lot of our team members have a lot of experience in unconventionals. One of the strategic reasons behind Vaca Muerta, which is a great investment for the company, and even better with the RIGI opportunity or possibility, is to bring some of that expertise and know-how back to Colombia. Doing the fracking and doing the unconventional development and bringing some of that experience back to Colombia. If there's new bidding in unconventionals, we'll obviously look at that. We have a strong foothold in Colombia. We like operating here.

Felipe Bayon
Felipe Bayon
CEO at GeoPark

We're committed to the country, so we will definitely look at the opportunities as they come and be very proactive in terms of capturing some of those opportunities. Thanks, Gustavo. Thanks for the questions.

Operator

Our next question comes from the web. It's from Joaquin Robet from Balanz. Their first question reads: "Water flooding has helped support production at LLA-34. How do you plan to keep output stable going forward? Secondly, with a strong hedge position in place for 2H 2026, how should we think about expected hedging results over the next two quarters?

Felipe Bayon
Felipe Bayon
CEO at GeoPark

Thanks, Joaquin. I'll ask Rodrigo to take the first one, Jaime, if you can take the second one. Rodrigo?

Rodrigo Dalle Fiore
Rodrigo Dalle Fiore
Chief Exploration and Development Officer at GeoPark

Hello, Joaquin. Thank you for your question. Actually, water flooding is key, not only in production, that represents 25% of the production of the Llanos 34 today. It's also key in the development plan. Water flood is not the only thing that we are executing and doing in the fields. We are executing an infield drilling program, with very successful last year with six wells. We started this year with all the seven, and we are moving to the north of the field with another seven wells in that area. Actually, we are executing a work program where we expect to finish the year with more than 25 workovers in the field, and we have four wells injecting polymer today.

Rodrigo Dalle Fiore
Rodrigo Dalle Fiore
Chief Exploration and Development Officer at GeoPark

We expect to finish the year in nine injectors, and for the beginning of next year, we want to add another nine wells for a total of 18 wells in polymer flood. We are doing a lot of things to keep production stable. This is impossible to do it if we are not very detailed in the surveillance, disciplined operation, and also have a very strong alignment with our partner. That's key also in this relationship that we have. If you ask about the future, what we are thinking about the future, most of the activity in water flooding and polymer are located in the southwest of the field. What we expect is to move to the northeast of the field with new injector wells, the water flooding is not there yet. That's the plan for the rest of this year and next year.

Rodrigo Dalle Fiore
Rodrigo Dalle Fiore
Chief Exploration and Development Officer at GeoPark

With more infield drilling wells, injector wells in terms of water and polymer as well. That's the plan that we have to keep production stable in Llanos 34.

Felipe Bayon
Felipe Bayon
CEO at GeoPark

Very well, Rodrigo.

Rodrigo Dalle Fiore
Rodrigo Dalle Fiore
Chief Exploration and Development Officer at GeoPark

Thank you.

Felipe Bayon
Felipe Bayon
CEO at GeoPark

Thank you. Jaime?

Jaime Caballero
Jaime Caballero
CFO at GeoPark

Yes, Joaquin, moving on to the question around hedging. Our 2026 position has remained unchanged since the last call that we had. It was a position that was acquired probably at the back end of last year or early first Q of this year. To do a quick recap on that, essentially what we're seeing is we are at around 20,000 bbl/day of barrels that we have hedged currently. We have a growing set of volumes in 3Q and 4Q that can get to about 25,000bbl/day as the Vaca Muerta production ramps up. That's remained unchanged since the last call. The floors and ceilings associated to that production are $65/bbl on the floor end, and ceilings of about $72/bbl, $73/bbl.

Jaime Caballero
Jaime Caballero
CFO at GeoPark

That position provides price support for a full year EBITDA that is in excess of $250 million, despite the cost escalation that we have been talking about today. Even in these scenarios of when you think about the ranges that Martín spoke about, the $17/bbl to $19/bbl potentially of OpEx cost escalation, we are expecting to have an EBITDA that is strong and competitive. Thanks.

Felipe Bayon
Felipe Bayon
CEO at GeoPark

Thank you, Jaime, thanks, Joaquin.

Operator

Our next question comes from the web as well. It comes from Isabella Pacheco from Bank of America. It reads, "What are your expectations on social unrest under the new administration in Colombia? Can GeoPark do anything to work around it?

Felipe Bayon
Felipe Bayon
CEO at GeoPark

Thanks, Isabella, and thanks for the question. One of the things that in GeoPark we value, it's part of our core values, is this long-term relationships with the communities, and the overall environment in which we operate. I'll probably share something with you, Isabella. I've joined just over a year ago, the company, and one of the key reasons why I joined GeoPark is the way in which GeoPark conducted its businesses in terms of being a safe operator, a reliable operator, and an operator that in terms of both the environment and the communities, did things very well. I think, in its history, GeoPark has built very strong relationships with the local communities in terms of some of them providing goods and works, and actually working in some of our fields with the authorities and the likes. That's not going to change.

Felipe Bayon
Felipe Bayon
CEO at GeoPark

With the incoming administration, I think we'll just continue to strengthen how we do things in terms of our activities, working with those communities, our social investment, and a long-term view. We'll be watchful. We'll be very proactive, and always sort of approaching this in a manner that's respectful, and that actually has this long-term view in mind. Thanks, Isabella.

Operator

Our last question from the web comes from Peter Bowley from Jefferies. "On inorganic growth opportunities, is GeoPark considering only oil-focused assets or gas assets a possibility as well, particularly in Colombia, where natural gas looks to be experiencing a multi-year supply-demand imbalance? Thank you.

Felipe Bayon
Felipe Bayon
CEO at GeoPark

Thanks, Peter. Thanks for the question. We have been indeed focused on oil. We produce some gas, and we do some self power generation in the field. Gas and gas plays and gas opportunities is something that we've looked throughout the years. We are not closed to gas opportunities. As you rightly point out, there's a deficit in terms of demand of gas in Colombia. I would probably just add that we firmly believe there's gas opportunities in Colombia. Some of them associated with unconventionals that we've already mentioned in the call. If through fracking of unconventionals and developing the unconventionals, we can get some gas to the market, that's something that we're ready to pursue. There's bigger opportunities around gas, but those are outside of the remit of the company, things like the offshore.

Felipe Bayon
Felipe Bayon
CEO at GeoPark

Probably the other thing, I'll tie it back to a question that was made earlier, is there could be some cross-border opportunities with Venezuela around gas. That's something else that we've looked at, and we're not closed to that. Definitely gas is something that we, should the right opportunity come, we want to be involved, and we will continue to be proactive in that space. Thanks, Peter.

Operator

We have no further questions. I would like to turn the call back over to the company's CEO, Felipe Bayon, for closing remarks.

Felipe Bayon
Felipe Bayon
CEO at GeoPark

Thank you. Thanks a lot. Again, thanks for participating this morning and this afternoon in this call for our 2Q results. Very thrilled with what's going on in terms of how we've managed to implement strategy, which is absolutely, as we've discussed before, two main things, protecting what we have, and we have some good operating results in Colombia and in Argentina in Vaca Muerta. Going back to a path of growth with Vaca Muerta has actually delivered to us so far, and we're very happy with that. Going forward, we've talked about opportunities in Colombia. We will continue to work on those opportunities in Venezuela. I just want to highlight that there's some potential opportunities in Argentina as well.

Felipe Bayon
Felipe Bayon
CEO at GeoPark

There's an upcoming round before the end of the month, we should be participating in that round as we want to grow our presence in Argentina. One last thing I'd say, given where we are with the current environment, the incoming government, before we've said that we wanted to be probably around $190 million-$220 million of CapEx. We see an opportunity of accelerating some activities that are accretive in value, and we see that the CapEx number could go all the way to $250 million. I think that just reinforces our commitment to the geographies and countries in which we operate and our willingness to continue to provide value to shareholders. Thanks again for your interest in the company and for joining today's call. Have a great day, stay safe.

Operator

This concludes today's conference call. Thank you for your participation. You may now disconnect.

Analysts
    • Felipe Bayon
      CEO at GeoPark
    • Alejandro Demichelis
      Analyst at Jefferies
    • Martín Terrado
      COO at GeoPark
    • Jaime Caballero
      CFO at GeoPark
    • Analyst
    • Rodrigo Dalle Fiore
      Chief Exploration and Development Officer at GeoPark
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