John Leonard, CFA
Special situations, micro-cap, contrarian, CFA

Smaller IPO Creates Bigger Opportunity In GeoPark

Key takeaways

  • The cold reception for GeoPark (NYSE:GPRK) last week following a smaller than planned IPO provides an opportunity for long term investors to buy one of the fastest growing E&P companies in Latin America.
  • Moreover, GPRK should receive greater visibility after switching to the NYSE from the Alternative Investment Market (or "AIM") in the U.K. and as investors learn more about its unique and attractive growth story.
  • The downside is limited by the low absolute EBITDA multiple and high insider ownership while expected significant production growth provides upside potential.

Company overview

GPRK is an independent oil and gas E&P company operating in Chile, Colombia and Brazil.

Cold market reception creates "underpromise and overdeliver" opportunity

GPRK may be...

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