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Financial instruments by category
12 Months Ended
Dec. 31, 2025
Financial instruments by category  
Financial instruments by category

Note 23     Financial instruments by category

Assets as per statement

of financial position

Amounts in US$ '000

  ​ ​

2025

  ​ ​

2024

Financial assets at fair value through profit or loss

Derivative financial instrument assets

25,498

2,764

25,498

2,764

Other financial assets at amortized cost

Trade receivables (Note 22)

39,095

40,211

To be recovered from co-venturers (Note 33)

14,610

9,740

Other financial assets (a)

12

21,108

Cash and cash equivalents (b)

100,318

276,750

154,035

347,809

Total financial assets

179,533

350,573

(a)Current other financial assets in 2024 corresponded to the security deposit granted in relation to the proposed acquisition of certain Repsol exploration and production assets in Colombia which was fully recovered in January 2025 (see Note 34.6) and short-term investments with original maturities up to twelve months and over three months.
(b)Cash and cash equivalents in 2024 included US$ 152,000,000 drawn from Vitol (see Note 29.1).

Liabilities as per statement

of financial position

Amounts in US$ ‘000

  ​ ​

2025

  ​ ​

2024

Liabilities at fair value through profit and loss

Derivative financial instrument liabilities

620

464

620

464

Other financial liabilities at amortized cost

Trade payables (Note 28)

80,649

93,435

Customer advance payments (Note 28)

2,182

152,000

To be paid to co-venturers (Note 33)

708

1,829

Lease liabilities (Note 26)

25,995

25,923

Borrowings (Note 25)

553,547

514,333

663,081

787,520

Total financial liabilities

663,701

787,984

23.1 Credit quality of financial assets

The credit quality of financial assets that are neither past due nor impaired can be assessed by reference to external credit ratings (if available) or to historical information about counterparty default rates:

Amounts in US$ ‘000

  ​ ​

2025

  ​ ​

2024

Trade receivables

Counterparties with an external credit rating (Moody’s, S&P, Fitch)

A1

4,201

Baa3

178

Ba1

1,927

260

Ba2

16

Ba3

15

B1

1,215

Counterparties without an external credit rating

Group 1 (a)

31,721

39,773

Total trade receivables

39,095

40,211

(a)Group 1 – no existing balances with customers aged by more than 3 months. The receivables from counterparties without an external credit rating mainly correspond to Vitol, one of the world’s leading commodity trader, with whom GeoPark has offtake and prepayment agreements in place (see Note 29).

All trade receivables are denominated in U.S. Dollar, except in Brazil where they are denominated in Brazilian Real.

Cash at bank and other financial assets (a)

Amounts in US$ ‘000

  ​ ​

2025

  ​ ​

2024

Counterparties with an external credit rating (Moody’s, S&P, Fitch, BRC Investor Services)

Aaa

2,016

Aa1

46,188

Aa2

7,145

Aa3

3,315

153,330

A1

1,035

94,495

A3

93

9,765

Baa1

25,068

20,114

Baa2

3,312

9,017

Baa3

8,304

4,091

Ba1

389

234

Ba2

1

1

B1

930

B3

2,346

37

Caa1

3

Counterparties without an external credit rating

1,117

5,830

Total

100,329

297,847

(a)The remaining balance sheet item ‘cash and cash equivalents’ corresponds to cash on hand amounting to US$ 1,000 (US$ 11,000 in 2024).

23.2 Financial liabilities- contractual undiscounted cash flows

The table below analyses the Group’s financial liabilities into relevant maturity groupings based on the remaining period at the balance sheet to the contractual maturity date. The amounts disclosed in the table are the contractual undiscounted cash flows.

  ​ ​

Less than 1

  ​ ​

Between 1

  ​ ​

Between 2

  ​ ​

Over 5

Amounts in US$ ‘000

year

and 2 years

and 5 years

years

As of December 31, 2025

Borrowings

44,019

136,082

541,503

Lease liabilities

7,371

3,784

11,351

20,681

Trade payables (Note 28)

80,649

Customer advance payments (Note 29.1)

2,182

To be paid to co-venturers (Note 33)

708

134,929

139,866

552,854

20,681

As of December 31, 2024

Borrowings

37,500

27,500

513,750

Lease liabilities

8,933

3,752

10,032

18,558

Trade payables

93,435

Customer advance payments (Note 29.1)

152,000

To be paid to co-venturers (Note 33)

1,829

293,697

31,252

523,782

18,558

A portion of the Group’s trade payables in Colombia is included under supplier finance arrangements. As a result, these payables are managed with specific counterparties rather than individual suppliers. This requires the Group to settle certain amounts with a limited number of counterparties instead of smaller amounts with multiple suppliers. However, the payment terms for trade payables under these arrangements are identical to those for other trade payables.

Management considers that these arrangements do not create excessive concentrations of liquidity risk. The primary purpose of the arrangements is to streamline administrative processes associated with managing a high volume of invoices from numerous suppliers and to provide local suppliers with access to favorable financial terms. These arrangements are not intended to secure financing for the Group.

23.3 Fair value measurement of financial instruments

Accounting policies for financial instruments have been applied to classify as either: amortized cost, financial assets at fair value through profit or loss and fair value through other comprehensive income. For financial instruments that are measured in the statement of financial position at fair value, IFRS 13 requires a disclosure of fair value measurements by level according to the following fair value measurement hierarchy:

Level 1 - Quoted prices (unadjusted) in active markets for identical assets or liabilities.

Level 2 - Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (that is, as prices) or indirectly (that is, derived from prices).

Level 3 - Inputs for the asset or liability that are not based on observable market data (that is, unobservable inputs).

23.3.1 Fair value hierarchy

The following table presents the Group’s financial assets and financial liabilities measured and recognized at fair value as of December 31, 2025 and 2024, on a recurring basis:

  ​ ​

  ​ ​

  ​ ​

As of December 31,

Amounts in US$ ‘000

Level 1

Level 2

2025

Assets

Derivative financial instrument assets

Commodity risk management contracts

25,474

25,474

Energy cost risk management contracts

24

24

Total Assets

25,498

25,498

Liabilities

Derivative financial instrument liabilities

Energy cost risk management contracts

620

620

Total Liabilities

620

620

As of December 31,

Amounts in US$ ‘000

Level 1

Level 2

2024

Assets

Derivative financial instrument assets

Commodity risk management contracts

2,764

2,764

Total Assets

2,764

2,764

Liabilities

Derivative financial instrument liabilities

Commodity risk management contracts

20

20

Currency risk management contracts

444

444

Total Liabilities

464

464

There were no transfers between Level 2 and 3 during the period.

The Group did not measure any financial assets or financial liabilities at fair value on a non-recurring basis as of December 31, 2025.

23.3.2 Valuation techniques used to determine fair values

Specific valuation techniques used to value financial instruments include:

The use of quoted market prices or dealer quotes for similar instruments.
The mark-to-market fair value of the Group’s outstanding derivative instruments is based on independently provided market rates and determined using standard valuation techniques, including the impact of counterparty credit risk and are within level 2 of the fair value hierarchy.
The fair value of the remaining financial instruments is determined using discounted cash flow analysis. All of the resulting fair value estimates are included in level 2.

23.3.3 Fair values of other financial instruments (unrecognized)

The Group also has a number of financial instruments which are not measured at fair value in the balance sheet. For the majority of these instruments, the fair values are not materially different to their carrying amounts, since the interest receivable/payable is either close to current market rates or the instruments are short-term in nature.

Borrowings are comprised primarily of fixed rate debt and variable rate debt with a short-term portion where interest has already been fixed. They are classified under other financial liabilities and measured at their amortized cost.

The fair value of these financial instruments as of December 31, 2025, amounts to US$ 506,809,000 (US$ 490,980,000 in 2024). The fair values are based on market price for the Notes and cash flows discounted for other borrowings using a rate based on the borrowing rate and are within level 1 and level 2 of the fair value hierarchy, respectively.