Is Geopark Ltd (NYSE:GPRK) in Overbought Territory?

Geopark Ltd (NYSE:GPRK)

GeoPark is an independent Latin oil and gas explorer, operator and consolidator with oil and gas assets and growth platforms in Chile, Colombia, Brazil, Peru and Argentina. GeoPark Ltd (NYSE:GPRK) is currently ranked as the third largest private oil and gas operator in Colombia, the first private oil and gas producer in Chile, and owns a non-operating working interest in the largest non-associated producing gas field in Brazil.

GeoPark Ltd (NYSE:GPRK) released their Q4 2016 earnings report this evening. Q4 revenues were $60.3 million – up 32.8% YoY. That figure beat expectations by $2.2 million. However GPRK had a net loss of $26 million. Consolidated net revenues increased by 33% to $60.3 million in Q4 2016, compared to $45.4 million in Q4 2015. Their consolidated 2P reserves increased by 14% in 2016 to 142.8 mmboe compared to 2015. The increase in reserves mainly results from new discoveries in the Llanos 34 Block (GeoPark operated with 45% WI) in Colombia. Consolidated oil and gas production increased 2% to 23,593 boepd in Q4 2016 compared to 23,062 boepd in Q4 2015. The increase was mainly attributed to higher production in Colombia (with six new wells put into production in 2016), partially offset by lower production in Chile and Brazil.

Despite a drop in sales from 2014 ($428.7 million) to 2015 ($209.7 million), GPRK shares have performed well over the past year – gaining over 128%. YTD, GeoPark Ltd (NYSE:GPRK) is up over 43%. Some analysts believe that GPRK is overbought and point to an RSI figure of 78+ as an indicator of such. However GPRK is still about 1% lower than its 52-week high.

I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 96 hours. All information, or data, is provided with no guarantees of accuracy.

About the author: Marc has a degree in economics and a MSc. in Finance. Over his 20-year career, Marc has worked for global investment firms in Europe and the United States as an analyst, fund manager, and consultant.

Author: Marcus Anderson

Marc has a degree in economics and a MSc. in Finance. Marc worked for global investment firms in Europe and the United States as an analyst, fund manager, and consultant.

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