GeoPark Stock Is a Little-Known Name With Double-Digit Upside

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GPRK stock - GeoPark Stock Is a Little-Known Name With Double-Digit Upside

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GeoPark Ltd (NYSE:GPRK) isn’t likely the first name you think of when you think of energy companies. As a matter of fact, GPRK stock may not be on your list at all.

But that needs to change.

First, this exploration and production (E&P) firm has a market cap of $1.2 billion, so it’s not a small player in this space.

Second, it has built a unique niche that has allowed it to form interesting partnerships with very significant organizations that benefit from its success.

Third, GeoPark stock is up 108% year-to-date and 135% in the past 12 months, and there’s plenty more where that came from.

GPRK Stock Should Be On Your Radar

One thing to remember about “upstream” oil companies like GeoPark is that they’re highly cyclical. You can either latch onto one and ride out the good times and bad times and hope to come out a winner. Or, you can wait until the upcycle begins in earnest and take a ride for two or three years.

However you want to play it, GPRK stock is in a good place to get in now. The global economy is back on track, which means the demand for energy will be increasing.

With Iran falling under new U.S. sanctions in a couple of weeks and OPEC happy with high prices for oil, regions that can supply more oil and gas to make up for the shortfall will be very popular.

While both of these bode well for the entire industry, the one thing that sets GPRK apart is, it’s one of the few E&Ps that is based and focused on Latin American energy assets.

There are plenty of big integrated oil firms that have some operations in South America, but they sometimes have difficulty operating consistently because they’re seen as outsiders taking natural resources away from the local population.

Headquartered in Las Condes, Chile, GeoPark stock doesn’t have that kind of problem. And one of its top shareholders and lenders is the World Bank’s International Finance Corporation. As a development bank, its aspirations are much broader than say a U.S. investment bank. GPRK has a key lender that understands the challenging environment in operating in emerging economies.

Also, GPRK has another major strategic partner in its operations. The South Korean conglomerate LG is currently involved in GPRK’s Chilean and Colombian E&P operations.

This kind of patient back allows GeoPark to grow its operations — GeoPark currently operates in Chile, Colombia, Peru, Brazil and Argentina — when economies are weak and then cash in when economies recover. Furthermore, GPRK is the No. 3 player in Colombia and the No. 1 in Chile.

And these operations aren’t simply to produce oil and natural gas for local and regional markets. There is huge potential in exporting both oil and gas internationally.

GPRK stock isn’t beholden to vagaries of emerging Latin American markets. It’s a global player with a very bright future ahead of it.

Louis Navellier is a renowned growth investor. He is the editor of four investing newsletters: Growth Investor, Breakthrough StocksAccelerated Profits and Platinum Growth. His most popular service, Growth Investor, has a track record of beating the market 3:1 over the last 14 years. He uses a combination of quantitative and fundamental analysis to identify market-beating stocks. Mr. Navellier has made his proven formula accessible to investors via his free, online stock rating tool, PortfolioGrader.com. Louis Navellier may hold some of the aforementioned securities in one or more of his newsletters.


Article printed from InvestorPlace Media, https://investorplace.com/2018/10/geopark-stock-is-a-little-known-name-with-double-digit-upside/.

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