Investment Thesis
GeoPark's (GPRK) 5.5% 2027 senior unsecured notes look attractive at current levels ($82c-$84c based on 06/05/2020 recent transaction prices), given the recovery estimates of $0.77 (bear), $0.97 (base) and $1.12 (bull) or full recovery. The assumptions are based on GeoPark's 1P reserves of 130mmboe over a 9-year reserve life. Brent pricing assumptions are $25 under bear-case, $35 under base-case and $45 under bull-case. The company has high-quality assets with a solid reserve replacement ratio, and it's one of the lowest cost independent producers operating abroad. GPRK has ample liquidity (cost cuttings,