GeoPark (NYSE:GPRK) Stock

GeoPark

GeoPark Ltd is a Latin American oil and gas exploration and production company with assets in Colombia, Ecuador, Chile, Brazil and Argentina. The company generates revenue from the sale of crude oil, condensate and natural gas net of value-added tax and discounts related to the sale and overriding royalties due to the ex-owners of oil and gas properties where the royalty arrangements represent a retained working interest in the property.

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GPRK

Geopark Ltd to acquire Repsol&#39;s oil and gas assets in Colombia for $530 million. Cash and debt will fund the deal. 

GeoPark Seals $530 Million Colombian Oil &amp; Gas Asset Acquisition Deal With Repsol

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Abbott, Integra LifeSciences And Other Big Stocks Moving Lower In Monday&#39;s Pre-Market Session

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Analyst Ratings

A bankruptcy judge has approved a crucial settlement between the joint venture behind Exxon Mobil Corporation&#39;s (NYSE: XOM) $10-billion Golden Pass liquefied natural gas project in Texas and the lead contractor, Zachry Holdings Inc.

ExxonMobil&#39;s GPX Project Set to Resume After Settlement

GeoPark Ltd

Offerings

GeoPark Announced The Pricing Of $550,000,000 Aggregate Principal Amount Of 8.750% Senior Notes Due 2030

Geopark Limited Announced Today Geopark And Repsol Have Mutually Agreed Not to Proceed With The Transaction Previously Announced On November 29, 2024, Which Included Repsol's 45% Working Interest In The Cpo-9 Block And Its 25% Interest In Sierracol Energy Arauca LLC.

Geopark Said Unable To Proceed With CPO-9 Block Acquisition

WIIM

GeoPark shares are trading higher after the company announced it acquired two respective stakes for oil projects in Colombia.

Geopark Ltd (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GPRK#NYSE">GPRK</a>) shares are trading higher premarket on Friday. The company disclosed that it has signed Sale and Purchase Agreements with Repsol Exploración S.A. and Repsol E&amp;P S.A.R.L to acquire Repsol&#8217;s <a target="_blank" href="https://www.benzinga.com/pressreleases/24/11/b42238963/geopark-announces-exclusive-binding-agreement-to-acquire-repsol-exploration-and-production-assets-" rel="noreferrer noopener">upstream oil and gas assets in Colombia</a>.
The total consideration for the potential acquisition is approximately $530 million, which will be funded through a mix of cash resources and debt.
This includes a non-recourse amortizing debt facility of up to $345 million, led and arranged by Macquarie Bank Limited, highlighting the assets&#8217; secure and strong cash generation profile.
The acquisition includes assets in Colombia&#8217;s Llanos Basin. It covers 100% of Repsol Colombia O&amp;G Limited, holding a 45% stake in the CPO-9 Block (operated by Ecopetrol), and a 25% interest in SierraCol Energy Arauca LLC.
Combined production from these assets was approximately 16,000 boepd net to Repsol as of September 2024.
This acquisition aligns with GeoPark&#8217;s &#8220;North Star&#8221; growth strategy, providing access to valuable, competitively advantaged assets in proven basins.
The transaction is contingent on the satisfaction of certain conditions and customary regulatory approvals, including the waiver or non-execution of preemptive rights by Repsol&#8217;s current partners.
GeoPark had a cash balance of $123.4 million <a target="_blank" href="https://www.benzinga.com/pressreleases/24/11/b41788517/geopark-reports-third-quarter-2024-results" rel="noreferrer noopener">at the end of September</a>.
Price Action: GPRK shares are up 2.20% at $9.29 premarket at the last check Friday.
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GeoPark Seals $530 Million Colombian Oil & Gas Asset Acquisition Deal With Repsol

GeoPark Inks Binding Agreement To Acquire Repsol's 45% Stake In CPO-9 And 25% In Llanos Norte Oil Projects In Colombia

The Confluencia Norte Block recently completed its first pad of three unconventional wells, which began production in mid-October. This development confirms the presence of the Vaca Muerta formation at the westernmost edge of the block. The pad includes a vertical pilot well, drilled specifically for data acquisition, along with three horizontal wells reaching a total measured depth of 6,300 meters, with 3,000 meters of lateral extension. A high intensity fracturing program was executed across 135 stages, resulting in a current gross production rate of 4,000 bopd during the ongoing flowback and well testing phase, with production currently being transported to and marketed through The Mata Mora Norte Block facility

GeoPark's Confluencia Norte Block Delivers 4,000 BOPD, Confirms High Potential In Vaca Muerta Exploration

GeoPark (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GPRK#NYSE">GPRK</a>) reported quarterly earnings of $0.48 per share which missed the analyst consensus estimate of $0.62 by 22.58 percent. This is a 9.09 percent increase over earnings of $0.44 per share from the same period last year. The company reported quarterly sales of $159.50 million which beat the analyst consensus estimate of $159.00 million by 0.32 percent. This is a 16.98 percent decrease over sales of $192.13 million the same period last year.

Earnings Beats

Earnings Misses

GeoPark Q3 EPS $0.48 Misses $0.62 Estimate, Sales $159.50M Beat $159.00M Estimate

JP Morgan analyst Felipe Dos Santos maintains GeoPark (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GPRK#NYSE">GPRK</a>) with a Overweight and lowers the price target from $12 to $11.

Price Target

JP Morgan Maintains Overweight on GeoPark, Lowers Price Target to $11

GeoPark Receives Approval From The Argentinian Securities Regulator To Issue Up To $500M In Debt Securities Over Next Five Years

JP Morgan analyst Felipe Dos Santos maintains GeoPark (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GPRK#NYSE">GPRK</a>) with a Overweight and raises the price target from $11.5 to $12.

JP Morgan Maintains Overweight on GeoPark, Raises Price Target to $12

Guidance

GeoPark Maintains FY24 EBITDA $420M-$550M

GeoPark (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GPRK#NYSE">GPRK</a>) reported quarterly earnings of $0.48 per share which missed the analyst consensus estimate of $0.70 by 31.43 percent. The company reported quarterly sales of $190.20 million which missed the analyst consensus estimate of $194.50 million by 2.21 percent. This is a 4.33 percent increase over sales of $182.30 million the same period last year.

GeoPark Q2 2024 GAAP EPS $0.48 Misses $0.70 Estimate, Sales $190.20M Miss $194.50M Estimate

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Shares of oil and gas stocks are trading lower despite Middle East tensions. Weak US economic data may be weighing on demand outlook.

U.S. stock futures were higher this morning, with the Dow futures gaining around 150 points on Monday.
Shares of Abbott Laboratories (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ABT#NYSE">ABT</a>) fell in today&#8217;s pre-market trading after the company was ordered to pay $495 million in damages in its baby formula case.
Abbott shares lost 6.6% to $98.29 in pre-market trading
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<li>Integra LifeSciences Holdings Corporation (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/IART#NASDAQ">IART</a>) dipped 20.5% to $25.00 in pre-market trading after the company reported second-quarter results and lowered its FY24 outlook.</li>
<li>NewAmsterdam Pharma Company N.V. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NAMS#NASDAQ">NAMS</a>) fell 13.8% to $16.26 in pre-market trading as the company announced topline data from pivotal Phase 3 BROOKLYN clinical trial evaluating Obicetrapib in patients wth Heterozygous Familial Hypercholesterolemia.</li>
<li>EZCORP, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/EZPW#NASDAQ">EZPW</a>) shares declined 8.8% to $9.41 in pre-market trading.</li>
<li>GeoPark Limited (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GPRK#NYSE">GPRK</a>) shares fell 6.5% to $9.52 in pre-market trading. GeoPark, last week, issued second quarter operational update.</li>
<li>Immutep Limited (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/IMMP#NASDAQ">IMMP</a>) shares dipped 6.5% to $2.03 in pre-market trading. Immutep, last week, announced successful meeting with the FDA on Phase III design in non-small cell lung cancer.</li>
<li>Iovance Biotherapeutics, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/IOVA#NASDAQ">IOVA</a>) shares fell 5.4% to $8.75 in pre-market trading.</li>
<li>ICL Group Ltd (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ICL#NYSE">ICL</a>) shares fell 4.1% to $4.43 in pre-market trading. ICL will release second quarter results before the opening of the TASE market on Wednesday, Aug. 14.</li>
<li>PDD Holdings Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PDD#NASDAQ">PDD</a>) slipped 3% to $126.84 in pre-market trading.</li>
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Abbott, Integra LifeSciences And Other Big Stocks Moving Lower In Monday's Pre-Market Session

A bankruptcy judge has approved a crucial settlement between the joint venture behind Exxon Mobil Corporation&#39;s (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/xom#NYSE">XOM</a>) $10-billion Golden Pass liquefied natural gas project in Texas and the lead contractor, Zachry Holdings Inc. The decision allows other companies to take over and complete the project, which had faced significant delays.
Located near the Louisiana border, the Golden Pass LNG facility&#39;s construction had been nearly halted after Zachry Holdings filed for Chapter 11 bankruptcy in March. The filing came after the project, known as GPX, experienced cost overruns totaling at least $2.4 billion beyond its original budget. Consequently, Zachry Holdings let go of thousands of workers, severely impacting the construction timeline.
QatarEnergy holds a 70% stake in the Golden Pass LNG venture, while ExxonMobil owns the rest. The approved settlement involves transferring Zachry&#39;s unfinished work to CB&amp;I LLC, a unit of McDermott International Inc., and Chiyoda International Corp. However, the timeline for restarting construction and completing the project remains uncertain. The first LNG cargoes were initially expected in the first half of 2025.
The settlement fully resolves the financial and legal disputes among the parties involved. Zachry Holdings stated that the agreement would expedite its bankruptcy restructuring process, allowing the company to emerge stronger and better positioned for growth.
The Golden Pass LNG project, situated at the Sabine Pass site of a former gas-import terminal, is designed to process natural gas for LNG exports. It is one of two significant U.S. LNG facilities slated to considerably boost the supply of superchilled fuel from the world&#39;s top exporter within the next 12 months.
The development marks a significant step forward for the Golden Pass LNG project, which has faced numerous challenges and delays. This ambitious project aligns with ExxonMobil&#39;s strategic vision to enhance the natural gas supply chain from the world&#39;s leading exporter.
<h3>Zacks Rank &amp; Stocks to Consider</h3>
ExxonMobil currently carries a Zack Rank #4 (Sell).
Investors interested in the&nbsp;energy&nbsp;sector may look at some better-ranked companies mentioned below. These three companies presently sport a Zacks Rank #1 (Strong Buy).
SM Energy&nbsp;Company&nbsp;(NYSE: <a class="ticker" href="https://www.benzinga.com/stock/sm#NYSE">SM</a>) is set to expand its oil-centered operations in the coming years, with an increasing focus on crude oil, especially in the Permian Basin and Eagle Ford regions. The company&#39;s attractive oil and gas investments should create long-term shareholder value.
The Zacks Consensus Estimate for SM&#39;s 2024 and 2025 earnings per unit is pegged at $7.09 and $8.66, respectively. The company has a Zacks Style Score of A for Value. It has witnessed upward earnings estimate revisions for 2024 and 2025 in the past 30 days.
Sunoco LP&nbsp;(NYSE: <a class="ticker" href="https://www.benzinga.com/stock/sun#NYSE">SUN</a>) is a leading wholesale motor fuel distributor in the United States, boasting a vast distribution network spanning 40 states. With long-term contracts servicing more than 10,000 convenience stores, it distributes more than 10 fuel brands, ensuring a stable revenue stream. SUN currently has a Value and Growth Score of A.
The Zacks Consensus Estimate for 2024 and 2025 earnings per unit is pegged at $7.29 and $7.26, respectively. The partnership has witnessed upward earnings estimate revisions for 2024 and 2025 in the past 60 days.
GeoPark Ltd.&nbsp;(NYSE: <a class="ticker" href="https://www.benzinga.com/stock/gprk#NYSE">GPRK</a>), based in Hamilton, Bermuda, is an explorer, operator and consolidator in the oil and gas sector. The company primarily operates in Chile, Colombia, Brazil and Argentina. It has a Zacks Style Score of A for Value and B for Growth.
The Zacks Consensus Estimate for 2024 and 2025 earnings per unit is pegged at $3.23 and $3.98, respectively. The company has witnessed upward earnings estimate revisions for 2024 and 2025 in the past 60 days.
<a href="https://www.zacks.com/stock/news/2310319/exxonmobil-s-xom-gpx-project-set-to-resume-after-settlement?cid=CS-BENZ-FT-analyst_blog|company_news_energy_sector-2310319">To read this article on Zacks.com click here.</a>

ExxonMobil's GPX Project Set to Resume After Settlement

GeoPark Limited (&quot;GeoPark&quot; or the &quot;Company&quot;) (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GPRK#NYSE">GPRK</a>), a leading independent Latin American oil and gas explorer, operator and consolidator, today announces its operational update for the three-month period ended June 30, 2024 (&quot;2Q2024&quot;).
Oil and Gas Production and Operations
<ul>
<li>2Q2024 consolidated average oil and gas production of 35,608 boepd, up slightly versus 1Q2024</li>
<li>Production increased&nbsp;11%&nbsp;in Ecuador and&nbsp;3%&nbsp;in Colombia, offsetting suspended production at the Manati gas field in Brazil (GeoPark non-operated,&nbsp;10%&nbsp;WI) due to unscheduled maintenance</li>
<li>As of July 1, 2024,1&nbsp;GeoPark is producing over 41,000 boepd, adding approximately 5,700 boepd on a proforma basis from the Mata Mora Norte Block (GeoPark non-operated,&nbsp;45%&nbsp;WI) in Argentina</li>
<li>11 rigs currently in operation (7 drilling rigs and 4 workover rigs), including one drilling rig in Argentina</li>
</ul>
Llanos 34 Block (GeoPark operated,&nbsp;45%&nbsp;WI): Secondary Recovery Underway
<ul>
<li>2Q2024 average production of 23,039 bopd net (51,198 boepd gross),&nbsp;3%&nbsp;lower than 1Q2024 due to sporadic blockades and weather-associated flooding</li>
<li>Three horizontal wells were drilled in 2Q2024, including the first two in the Jacana field which initiated testing in April and June 2024, respectively</li>
<li>Eight horizontal wells in aggregate have been put on production since the beginning of the horizontal well drilling program in early 2023, currently contributing&nbsp;16%&nbsp;of total production in the block</li>
<li>Waterflooding projects performing above plan, delivering around 3,700 bopd in 2Q2024,&nbsp;13%&nbsp;of total production in the block</li>
</ul>
CPO-5 Block (GeoPark non-operated,&nbsp;30%&nbsp;WI): Record High Quarterly Production
<ul>
<li>2Q2024 record average production of 7,921 boepd net (26,403 boepd gross) after putting the Indico-3 development well on production</li>
<li>The Lark 1 exploration well in the northern part of the block reached total depth in July 2024 and will delineate hydrocarbon potential in the Ubaque and the Guadalupe Formations, initiating testing by the end of July</li>
<li>Increased seismic coverage to&nbsp;85%&nbsp;after completing the acquisition of 232 sq. km of 3D seismic,2&nbsp;currently being processed</li>
</ul>
Llanos Exploration: Drilling Success Continues
<ul>
<li>Llanos 123 Block (GeoPark operated,&nbsp;50%&nbsp;WI):
<ul>
<li>Drilled the Toritos Norte 1 appraisal well during June 2024, testing the Barco Formation and currently producing 520 bopd gross</li>
<li>The Toritos 2 appraisal well reached total depth in July 2024, and will initiate testing in the Barco Formation in August 2024</li>
</ul>
</li>
<li>Llanos 86 and Llanos 104 Blocks (GeoPark operated,&nbsp;50%&nbsp;WI):
<ul>
<li>Processing 650+ sq. km of 3D seismic, targeting exploration drilling in 1Q2025</li>
</ul>
</li>
</ul>
Ecuador: Stepping up Production and Exploration
<ul>
<li>Perico Block (GeoPark non-operated,&nbsp;50%&nbsp;WI):
<ul>
<li>Production increased&nbsp;11%&nbsp;compared to 1Q2024, reaching 1,652 bopd net during the quarter due to the contribution from the Perico Centro 2 appraisal well in May 2024</li>
</ul>
</li>
<li>Espejo Block (GeoPark operated,&nbsp;50%&nbsp;WI):
<ul>
<li>Drilled the Espejo Sur 3 exploration well in June 2024, testing the U-Sand Formation, currently producing 400 bopd gross</li>
</ul>
</li>
</ul>
Argentina: Vaca Muerta Adds Pro forma Production
<ul>
<li>2Q2024 average production of 12,508 bopd gross from the Mata Mora Norte Block</li>
<li>Encouraging initial results of Mata Mora Norte 2223 well, producing an average of 2,136 boepd gross during 2Q2024, in line with the best producing well in the block</li>
<li>Transaction effective date July 1, 2024. Regulatory closing of acquisition is expected by end of 3Q2024</li>
</ul>
Upcoming Catalysts 3Q2024
<ul>
<li>Drilling 8-10 gross wells in 3Q2024 for the base business and 6-8 gross wells in Argentina, targeting conventional, unconventional, short-cycle development, injector, appraisal and exploration projects</li>
<li>Key projects include:
<ul>
<li>Llanos 34 Block: Drilling the first well with short radius design, the first horizontal well targeting the Guadalupe Formation and two additional waterflooding injection patterns</li>
<li>CPO-5 Block: Drilling one appraisal well</li>
<li>Llanos 123 Block: Drilling one appraisal well</li>
<li>Perico Block: Executing workover campaign</li>
<li>Espejo Block: Drilling one exploratory well</li>
<li>Mata Mora Norte Block: Drilling four unconventional horizontal wells</li>
<li>Confluencia Norte Block (GeoPark non-operated,&nbsp;50%&nbsp;WI): Drilling three unconventional exploration wells</li>
</ul>
</li>
</ul>

GeoPark Reports 35,608 Barrels Of Oil Equivalent Per Day in Q2 with 11% Growth in Ecuador, 11 New Rigs

Phillips 66&nbsp;(NYSE: <a class="ticker" href="https://www.benzinga.com/stock/psx#NYSE">PSX</a>) has taken a significant step in modernizing its data protection operations by selecting Cohesity, a leader in AI-powered data security and management.
Before implementing Cohesity&#39;s innovative solutions, Phillips 66&#39;s data protection strategy relied on five disparate and siloed tools. This fragmented approach required backup teams to spend considerable time managing these tools, leading to inefficiencies, decreased productivity and escalating cloud costs.
After a thorough competitive evaluation, Phillips 66 selected Cohesity DataProtect to consolidate its data protection efforts into a single, unified platform. This strategic decision aimed to reduce management overhead, secure critical assets and lower cloud service expenses. By transitioning to Cohesity&#39;s platform, Phillips 66 anticipates significant reductions in the time spent managing multiple tools, enabling its backup team to concentrate on other value-adding business activities.
In addition to operational efficiencies, Cohesity has significantly strengthened Phillips 66&#39;s data security protocols. Leveraging powerful AI capabilities and advanced encryption methods, Cohesity ensures the protection of sensitive data from potential threats, both internal and external. This comprehensive security framework ensures that Phillips 66&#39;s valuable data is protected against unauthorized access.
PSX&#39;s decision to modernize its data protection operations with Cohesity will drive substantial cost savings over three years. Eliminating redundant tools and consolidating data protection processes into a single platform reduce cloud service costs and free up resources previously allocated to managing multiple tools.
This collaboration comes at a crucial time when businesses seek ways to optimize their data protection operations in a rapidly evolving digital landscape. With cyber threats on the rise, organizations must adopt advanced solutions that seamlessly integrate with their existing IT infrastructure while providing robust data security.
The collaboration marks a critical move for Phillips 66, aiming to enhance data security, streamline management processes and achieve substantial cost savings. The success of PSX in modernizing its data protection operations underscores Cohesity&#39;s expertise in the field.
<h3>Zacks Rank &amp; Stocks to Consider</h3>
Currently, Phillips 66 carries a Zack Rank #5 (Strong Sell).
Investors interested in the&nbsp;energy&nbsp;sector may look at some better-ranked companies mentioned below. The three companies presently sport a Zacks Rank #1 (Strong Buy).
SM Energy&nbsp;Company&nbsp;(NYSE: <a class="ticker" href="https://www.benzinga.com/stock/sm#NYSE">SM</a>) is set to expand its oil-centered operations in the coming years, with an increasing focus on crude oil, especially in the Permian Basin and Eagle Ford regions. The company&#39;s attractive oil and gas investments should create long-term shareholder value.
The Zacks Consensus Estimate for SM&#39;s 2024 and 2025 earnings per unit is pegged at $7.30 and $8.89, respectively. The company has a Zacks Style Score of A for Value, Growth and Momentum. It has witnessed upward earnings estimate revisions for 2024 and 2025 in the past 30 days.
Sunoco LP&nbsp;(NYSE: <a class="ticker" href="https://www.benzinga.com/stock/sun#NYSE">SUN</a>) is a leading wholesale motor fuel distributor in the United States, boasting a vast distribution network spanning 40 states. With long-term contracts servicing more than 10,000 convenience stores, it distributes more than 10 fuel brands, ensuring a stable revenue stream. SUN currently has a Value and Growth Score of A.
The Zacks Consensus Estimate for 2024 and 2025 earnings per unit is pegged at $7.29 and $7.26, respectively. The partnership has witnessed upward earnings estimate revisions for 2024 and 2025 in the past 60 days.
GeoPark Ltd.&nbsp;(NYSE: <a class="ticker" href="https://www.benzinga.com/stock/gprk#NYSE">GPRK</a>), based in Hamilton, Bermuda, is an explorer, operator and consolidator in the oil and gas sector. The company primarily operates in Chile, Colombia, Brazil and Argentina. It has a Zacks Style Score of A for Value and Growth.
The Zacks Consensus Estimate for 2024 and 2025 earnings per unit is pegged at $3.23 and $3.98, respectively. The company has witnessed upward earnings estimate revisions for 2024 and 2025 in the past 60 days.
<a href="https://www.zacks.com/stock/news/2305541/phillips-66-psx-modernizes-data-protection-operations?cid=CS-BENZ-FT-analyst_blog|company_news_energy_sector-2305541">To read this article on Zacks.com click here.</a>

Tech

Phillips 66 Modernizes Data Protection Operations

Enbridge&nbsp;(NYSE: <a class="ticker" href="https://www.benzinga.com/stock/enb#NYSE">ENB</a>) is once again under scrutiny as the U.S. Department of Justice (&quot;DOJ&quot;) has proposed amendments to a 2016 consent decree. This change could mandate Enbridge to address previously identified cracks in its extensive Lakehead pipeline system, including the controversial Line 5.
The backdrop to this development dates back to 2010 when two significant oil spills from ENB&#39;s pipelines near Marshall, MI, and Romeoville, IL, resulted in severe environmental damage. These spills led to the unlawful discharge of oil into U.S. waters, triggering a lawsuit by the United States under the Clean Water Act and the Oil Pollution Act. The legal action sought civil penalties, recovery of cleanup costs and injunctive relief to prevent future incidents.
In 2017, a Consent Decree approved by the United States District Court for the Western District of Michigan established stringent requirements for Enbridge&#39;s network of 14 pipelines, collectively known as the Lakehead System. This decree included specific criteria for selecting and repairing pipeline sections, imposing interim pressure restrictions, and monitoring for features such as cracks detected through In-Line Inspections.
The latest proposed modifications specifically target how Enbridge handles circumferential cracks that encircle the pipeline rather than running lengthwise. These changes would require Enbridge to reassess such cracks using new methodologies tailored to the unique threats posed by circumferential cracks. This reassessment would consider all potential stresses that could cause these cracks to grow and ultimately fail, obligating ENB to schedule any necessary repairs promptly.
The impetus for these proposed changes can be traced back to the catastrophic 2010 oil spill from Enbridge&#39;s Line 6b near Marshall, MI. This rupture released more than a million gallons of oil into Talmadge Creek and the Kalamazoo River, going undetected for several hours and causing extensive environmental damage.
The DOJ and Enbridge reached a settlement agreement in 2016 to resolve the lawsuits stemming from the Marshall and Romeoville spills. Now, with the proposed amendments, the DOJ aims to ensure that ENB takes more proactive and comprehensive measures to address pipeline integrity issues, particularly focusing on circumferential cracks.
The Lakehead System, which spans the Midwest, includes Line 5, a 71-year-old pipeline that runs beneath the ecologically sensitive Straits of Mackinac. This segment of the pipeline has been a focal point of environmental concerns and legal battles, with advocates calling for its shutdown due to the potential risk of an oil spill in the Great Lakes.
Once approved, the proposed changes to the consent decree could significantly impact Enbridge&#39;s operations, compelling the company to adopt enhanced safety measures and ensure the long-term integrity of its pipeline network. This move underscores the ongoing efforts by federal authorities to mitigate environmental risks and hold energy companies accountable for the safe operation of their infrastructure.
<h3>Zacks Rank &amp; Key Picks</h3>
Currently, Enbridge carries a Zack Rank #3 (Hold).
Investors interested in the&nbsp;energy&nbsp;sector may look at some better-ranked stocks like&nbsp;GeoPark Ltd.&nbsp;(NYSE: <a class="ticker" href="https://www.benzinga.com/stock/gprk#NYSE">GPRK</a>),&nbsp;Sunoco LP&nbsp;(NYSE: <a class="ticker" href="https://www.benzinga.com/stock/sun#NYSE">SUN</a>) and&nbsp;The Williams Companies, Inc.&nbsp;(NYSE: <a class="ticker" href="https://www.benzinga.com/stock/wmb#NYSE">WMB</a>). GeoPark and Sunoco currently sport a Zacks Rank #1 (Strong Buy), whereas Williams Companies carries a Zacks Rank #2 (Buy).
GeoPark, based in Hamilton, Bermuda, is an explorer, operator and consolidator in the oil and gas sector. The company primarily operates in Chile, Colombia, Brazil and Argentina. It has a Zacks Style Score of A for Value and Growth.
The Zacks Consensus Estimate for 2024 and 2025 earnings per unit is pegged at $3.23 and $3.98, respectively. The company has witnessed upward earnings estimate revisions for 2024 and 2025 in the past 60 days.
Sunoco is a leading wholesale motor fuel distributor in the United States, boasting a vast distribution network spanning 40 states. With long-term contracts servicing more than 10,000 convenience stores, it distributes more than 10 fuel brands, ensuring a stable revenue stream. SUN currently has a Value Score of A.
The Zacks Consensus Estimate for 2024 and 2025 earnings per unit is pegged at $7.29 and $7.17, respectively. The partnership has witnessed upward earnings estimate revisions for 2024 and 2025 in the past 60 days.
Williams Companies is a premier energy infrastructure provider in North America. The company&#39;s core operations include finding, producing, gathering, processing and transportation of natural gas and natural gas liquids.WMB is paying out its shareholders an attractive dividend yielding around 5%.&nbsp;
The Zacks Consensus Estimate for WMB&#39;s 2024 and 2025 EPS is pegged at $1.79 and $2.03, respectively. The company has a Zacks Style Score of B for Growth. It has witnessed upward earnings estimate revisions for 2024 and 2025 in the past 30 days.
<a href="https://www.zacks.com/stock/news/2300176/enbridge-enb-faces-doj-pressure-for-pipeline-crack-repairs?cid=CS-BENZ-FT-analyst_blog|company_news_energy_sector-2300176">To read this article on Zacks.com click here.</a>

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After all major indexes ended the first half of the year in the green, more gains are anticipated in the second half. The resilient economy, robust job market, upward-trending sales and earnings estimates, and near-record household incomes provide strong support for continued market growth. Fed Chair Jerome Powell mentioned that the country is returning to a disinflationary path, though more data is needed before rate cuts can be confidently implemented. The Fed currently plans for just one rate cut by the end of the year, but the timing remains uncertain, and analysts believe the Fed will proceed cautiously.
In this elevated interest rate environment, value investing could be an effective approach. Value investing seeks to profit from investing in stocks that appear to be trading at a discount to their intrinsic values and eventually make handsome returns when the stock price rises toward that value, reflecting the actual fundamentals.
One interesting ratio that you can consider for ferreting out attractively valued stocks is earnings yield. Stocks like&nbsp;Harmony Biosciences (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/hrmy#NASDAQ">HRMY</a>),&nbsp;GeoPark Ltd. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/gprk#NYSE">GPRK</a>),&nbsp;GigaCloud Technology Inc. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/gct#NASDAQ">GCT</a>), Costamare Inc. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/cmre#NYSE">CMRE</a>) and&nbsp;Arko Corp.&nbsp;ARKO boast impressive earnings yield to help you fetch handsome long-term rewards.
<h3>Earnings Yield Strength</h3>
Earnings yield, expressed in percentage, is calculated as annual earnings per share divided by market price. This metric measures the anticipated yield (or return) from earnings for each dollar invested in a stock today. While comparing stocks, if other factors are similar, the ones with higher earnings yield are considered undervalued, while those with lower earnings yield are seen as overpriced.
While earnings yield is nothing but the reciprocal of the P/E ratio, it is a little more illuminating than the traditional P/E ratio as it also facilitates the comparison of stocks with fixed-income securities. Investors often compare the earnings yield of a stock to the prevailing interest rates, such as the current 10-year Treasury yield, to get a sense of the return on investment it offers compared to virtually risk-free returns.
If the yield on a stock is lower than the 10-year Treasury yield, it would be considered overvalued relative to bonds. Conversely, if the yield on the stock is higher, it would be considered undervalued. In this situation, investing in the stock market would be a better option for a value investor.
<h3>The Winning Strategy</h3>
We have set&nbsp;an&nbsp;Earnings Yield greater than 10%&nbsp;as our primary screening criterion but it alone cannot be used for picking stocks that have the potential to generate solid returns. So, we have added the following parameters to the screen:
Estimated EPS growth for the next 12 months greater than or equal to the S&amp;P 500: This metric compares the 12-month forward EPS estimate with the 12-month actual EPS.
Average Daily Volume (20 Day) greater than or equal to 100,000: High trading volume implies that a stock has adequate liquidity.
Current Price greater than or equal to $5.
Buy-Rated Stocks: Stocks with a Zacks Rank #1 (Strong Buy) or 2 (Buy) have been known to outperform peers in any type of market environment.
<h3>Our Picks</h3>
Here we highlight five of the 30 stocks that qualified the screening:
Harmony Biosciences engages in developing and commercializing therapies for rare neurological disorders.&nbsp;The Zacks Consensus Estimate for HRMY&#39;s 2024 and 2025 earnings implies year-over-year growth of 15% and 66%, respectively. Estimates for 2024 EPS have moved up by 4 cents over the past seven days. Harmony Biosciences currently sports a Zacks Rank #1 and has a Value Score of B.&nbsp;
GeoPark is engaged in the exploration, development, and production of oil and gas reserves in Chile, Colombia, Brazil, Argentina and Ecuador. The Zacks Consensus Estimate for GPRK&#39;s 2024 and 2025 earnings implies year-over-year growth of 51% and 23%, respectively. Estimates for 2024 EPS have moved up by 7 cents over the past 60 days. GeoPark currently sports a Zacks Rank #1 and has a Value Score of A.&nbsp;
GigaCloud offers comprehensive B2B e-commerce solutions for large parcel merchandise both in the United States and globally. The Zacks Consensus Estimate for GCT&#39;s 2024 and 2025 earnings implies year-over-year growth of 41% and 24%, respectively. Estimates for 2024 EPS have moved up by 27 cents over the past 60 days. GigaCloud currently sports a Zacks Rank #1 and has a Value Score of A.&nbsp;
Costamare&nbsp;operates as a containership owner, chartering its vessels to liner companies.&nbsp;The Zacks Consensus Estimate for CMRE&#39;s 2024 earnings implies year-over-year growth of 49%. EPS Estimates for 2024 and 2025 have moved up by 35 cents and 24 cents over the past 60 days. Costamare currently sports a Zacks Rank #1 and has a Value Score of A.&nbsp;
Arko operates convenience stores in the United States. The Zacks Consensus Estimate for ARKO&#39;s 2024 earnings implies year-over-year growth of 125%. Estimates for 2024 and 2025 earnings per share have moved up by 45 cents and 42 cents, respectively, over the past 60 days. ARKO currently sports a Zacks Rank #1 and has a Value Score of A.&nbsp;
Disclosure:&nbsp;Officers, directors and/or employees of Zacks Investment Research may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. An affiliated investment advisory firm may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material.
<a href="https://www.zacks.com/stock/news/2297567/5-high-earnings-yield-value-stocks-that-you-shouldn-t-ignore?cid=CS-BENZ-FT-analyst_blog|rw-2297567">To read this article on Zacks.com click here.</a>

CMRE

HRMY

5 High Earnings Yield Value Stocks That You Shouldn't Ignore

Press Releases

GeoPark Announces Exclusive Binding Agreement to Acquire Repsol Exploration and Production Assets in Colombia

GeoPark Provides Update on Proposed Acquisition of Repsol Exploration and Production Assets in Colombia

GeoPark Announces 2025 Work Program

GeoPark Announces Fourth Quarter 2024 Operational Update

GEOPARK ANNOUNCES COMMENCEMENT OF CASH TENDER OFFER FOR ANY AND ALL OF ITS OUTSTANDING 5.500% SENIOR NOTES DUE 2027

GeoPark Announces Proposed Offering of Senior Notes

GEOPARK ANNOUNCES TENDER RESULTS OF CASH TENDER OFFER FOR ANY AND ALL OF ITS OUTSTANDING 5.500% SENIOR NOTES DUE 2027 (CUSIP NOS. 37255B AB5; G38327 AB1 / ISIN NOS. US37255BAB53; USG38327AB13)

GeoPark Limited Prices Offering of U.S.$550,000,000 8.750% Senior Notes Due 2030

GeoPark Successfully Completes a $550 Million Notes Offering and Refinances More Than 80% of its Outstanding Notes Due 2027

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