VAALCO Energy, Inc. Announces First Quarter 2025 Results
- Secured a new revolving credit facility with $190 million initial commitment, expandable to $300 million - Reduced 2025 capital expenditure guidance by 10% without impacting production - Acquired 70% working interest in CI-705 block offshore Côte D'Ivoire - Declared $0.0625 quarterly dividend payable June 27, 2025
Q1 2025 financial highlights show total revenue of $110.3 million, down 9% from Q4 2024. Production expenses increased to $44.7 million, up 23% from previous quarter, primarily due to Gabon government audit settlements and higher chemical costs.
- Ottenuto un nuovo finanziamento revolving con un impegno iniziale di 190 milioni di dollari, espandibile fino a 300 milioni
- Ridotto del 10% la stima della spesa in conto capitale per il 2025 senza impattare la produzione
- Acquisito il 70% di interesse operativo nel blocco CI-705 al largo della Costa d'Avorio
- Dichiarato un dividendo trimestrale di 0,0625 dollari per azione, pagabile il 27 giugno 2025
I dati finanziari del primo trimestre 2025 evidenziano un fatturato totale di 110,3 milioni di dollari, in calo del 9% rispetto al quarto trimestre 2024. Le spese di produzione sono aumentate a 44,7 milioni di dollari, con un incremento del 23% rispetto al trimestre precedente, principalmente a causa di accordi derivanti da audit governativi in Gabon e maggiori costi per prodotti chimici.
- Aseguró una nueva línea de crédito revolvente con un compromiso inicial de 190 millones de dólares, ampliable a 300 millones
- Redujo la guía de gastos de capital para 2025 en un 10% sin afectar la producción
- Adquirió el 70% de interés operativo en el bloque CI-705 frente a la costa de Costa de Marfil
- Declaró un dividendo trimestral de 0,0625 dólares por acción, pagadero el 27 de junio de 2025
Los aspectos financieros destacados del primer trimestre de 2025 muestran ingresos totales de 110,3 millones de dólares, una disminución del 9% respecto al cuarto trimestre de 2024. Los gastos de producción aumentaron a 44,7 millones de dólares, un 23% más que el trimestre anterior, principalmente debido a acuerdos por auditorías gubernamentales en Gabón y mayores costos de productos químicos.
- 초기 약정액 1억 9,000만 달러, 최대 3억 달러까지 확장 가능한 신규 회전 신용 한도 확보
- 생산에 영향 없이 2025년 자본 지출 가이던스를 10% 감축
- 코트디부아르 해상 CI-705 블록의 70% 작업 지분 인수
- 2025년 6월 27일 지급 예정인 분기 배당금 주당 0.0625달러 선언
2025년 1분기 재무 하이라이트는 총 매출 1억 1,030만 달러로 2024년 4분기 대비 9% 감소했습니다. 생산 비용은 4,470만 달러로 전 분기 대비 23% 증가했으며, 이는 주로 가봉 정부 감사 합의와 화학 물질 비용 증가 때문입니다.
- Obtention d'une nouvelle facilité de crédit renouvelable avec un engagement initial de 190 millions de dollars, extensible à 300 millions
- Réduction de 10 % des dépenses d'investissement prévues pour 2025 sans impact sur la production
- Acquisition de 70 % d'intérêt opérationnel dans le bloc CI-705 au large de la Côte d'Ivoire
- Déclaration d'un dividende trimestriel de 0,0625 dollar par action, payable le 27 juin 2025
Les points financiers clés du premier trimestre 2025 montrent un chiffre d'affaires total de 110,3 millions de dollars, en baisse de 9 % par rapport au quatrième trimestre 2024. Les dépenses de production ont augmenté à 44,7 millions de dollars, soit une hausse de 23 % par rapport au trimestre précédent, principalement en raison de règlements liés à des audits gouvernementaux au Gabon et à des coûts chimiques plus élevés.
- Sicherung einer neuen revolvierenden Kreditfazilität mit einer anfänglichen Zusage von 190 Millionen US-Dollar, erweiterbar auf 300 Millionen
- Senkung der Kapitalausgabenprognose für 2025 um 10 % ohne Beeinträchtigung der Produktion
- Erwerb eines 70%igen Arbeitsanteils am Block CI-705 vor der Küste der Elfenbeinküste
- Ausschüttung einer vierteljährlichen Dividende von 0,0625 US-Dollar je Aktie, zahlbar am 27. Juni 2025
Die Finanzergebnisse des ersten Quartals 2025 zeigen einen Gesamtumsatz von 110,3 Millionen US-Dollar, ein Rückgang von 9 % gegenüber dem vierten Quartal 2024. Die Produktionskosten stiegen auf 44,7 Millionen US-Dollar, ein Anstieg von 23 % gegenüber dem Vorquartal, hauptsächlich aufgrund von Vereinbarungen im Zusammenhang mit Regierungsprüfungen in Gabun und höheren Chemiekosten.
- Net income of $7.7 million and Adjusted EBITDAX of $57.0 million in Q1 2025
- Production exceeded guidance at 17,764 NRI BOEPD
- Secured new credit facility with $190 million initial commitment, expandable to $300 million
- Successfully reduced capital expenditure by 10% while maintaining production guidance
- Strategic expansion with 70% working interest acquisition in CI-705 block
- Revenue decreased 9% quarter-over-quarter to $110.3 million
- Production expenses increased 23% to $44.7 million due to government audit settlements
- Deferred drilling campaign in Canada to reduce capital expenditures
- Production decreased 14% compared to Q4 2024
Insights
VAALCO exceeded production guidance but saw 34% sequential earnings decline amid higher costs; maintains dividend and reduces CAPEX by 10%.
VAALCO Energy delivered a mixed financial performance in Q1 2025. The company reported net income of
On the operational front, VAALCO exceeded expectations with production of 17,764 NRI BOEPD surpassing the high end of guidance. Sales volumes of 19,074 NRI BOEPD approached the upper guidance range. However, these achievements were offset by a substantial
The company demonstrated prudent capital management by reducing its 2025 capital expenditure guidance by
VAALCO continues executing its multi-country strategy across its portfolio. In Egypt, the company completed five wells with four brought online in Q1, achieving average initial 30-day production rates of 135 BOPD per well. In Gabon, preparations continue for the 2025/2026 drilling program scheduled to begin in Q3 2025, with promising results from H2S treatment at the Ebouri 4-H well. In Côte d'Ivoire, while the Baobab FPSO undergoes planned refurbishment, VAALCO expanded its regional footprint by acquiring a
The maintained quarterly dividend of
HOUSTON, May 08, 2025 (GLOBE NEWSWIRE) -- VAALCO Energy, Inc. (NYSE: EGY, LSE: EGY) (“Vaalco” or the “Company”) today reported operational and financial results for the first quarter of 2025.
First Quarter 2025 Highlights and Recent Key Items:
- Reported net income of
$7.7 million ($0.07 per diluted share), Adjusted Net Income of$6.3 million ($0.06 per diluted share) and Adjusted EBITDAX(1) of$57.0 million; - Produced 17,764 net revenue interest (“NRI”)(2) barrels of oil equivalent per day (“BOEPD”), above the high end of guidance, or 22,402 working interest (“WI”)(3) BOEPD, toward the high end of guidance;
- Sold 19,074 NRI BOEPD, toward the high end of guidance;
- Entered into new reserves based revolving credit facility with an initial commitment of
$190 million with the ability to grow to$300 million , secured against certain Vaalco assets; - Reduced full year capital expenditure guidance by about
10% , without impacting full year production or sales guidance; - Acquired
70% WI(3) in and will operate the CI-705 block in offshore Côte D’Ivoire; - Declared quarterly cash dividend of
$0.06 25 per share of common stock to be paid on June 27, 2025; and - Announced that it will host a Capital Markets Day presentation on Wednesday, May 14, 2025.
| (1) | Adjusted EBITDAX, Adjusted Net Income, Adjusted Working Capital and Free Cash Flow are Non-GAAP financial measures and are described and reconciled to the closest GAAP measure in the attached table under “Non-GAAP Financial Measures.” |
| (2) | All NRI sales and production rates are Vaalco's working interest volumes less royalty volumes, where applicable. |
| (3) | All WI production rates and volumes are Vaalco's working interest volumes, where applicable. |
George Maxwell, Vaalco’s Chief Executive Officer commented, “We delivered another successful quarter, once again meeting or exceeding our guidance. Sales for the first quarter were toward the high end of guidance and our NRI production was above the high end of guidance, leading to solid net income of
“We believe that we are well positioned to fund the meaningful growth and opportunities that we have planned over the next few years which should lead to even greater growth and value for the remainder of the decade. We look forward to providing additional details at our Capital Markets Day next week describing our diversified asset portfolio and the upside that we believe is available to drive future organic growth.”
Operational Update
Egypt
The start of the 2024 drilling campaign was deferred until late 2024. In Q4 2024, we completed one well. In Q1 2025, we completed an additional five wells. Four of the five wells that were completed in Q1 2025 were brought online and had an average initial production rate for the first 30 days of approximately 135 barrels of oil per day (“BOPD”). The fifth well was brought online in early Q2 2025. In addition to all new wells successfully increasing production levels, new reserves and a new production zone were discovered in the Bakr formation. The Company is reviewing several options to improve flow as the reservoir contains heavier oil.
The Company continues to perform detailed technical reviews of its newly drilled and existing wells while also continuing to work on enhancing production through a series of planned workovers and recompletions.
Canada
In the first half of 2024, Vaalco drilled and completed four 2.75 mile lateral wells in Canada. These wells continue to meet production expectations and the Company is monitoring their longer-term performance for future drilling opportunities. In 2025, Vaalco has decided to defer the drilling of additional wells in Canada to reduce the Company's overall capital expenditures.
Gabon
The Company secured a drilling rig in December 2024 in conjunction with its 2025/2026 drilling program, which is planned to begin in Q3 2025 to drill multiple development wells, and appraisal or exploration wells, as well as to perform workovers, with options to drill additional wells. Vaalco plans to drill the wells at both the Etame platform and at the Seent platform, and perform a re-drill and several workovers in the Ebouri field to access production and reserves that were previously shut in and removed from proved reserves due to the presence of hydrogen sulfide (“H2S”).
In Q1 2025, Vaalco conducted an extended flow test on the Ebouri 4-H well to gather information on the H2S concentrations at this location to aid in equipment design and to evaluate Vaalco's chemical crude sweetening process. The well has flowed for over four months, and the H2S concentration is within modeling expectations, demonstrating Vaalco's ability to treat the oil. The well has provided additional production, with some additional operating costs associated with the chemical treatment, adding to the Company's strong first quarter results.
Côte d'Ivoire
As part of the planned dry dock refurbishment, the Baobab Floating Production Storage and Offloading vessel (“FPSO”) ceased hydrocarbon production on January 31, 2025 and the final lifting of crude oil from the FPSO took place in February 2025. The vessel departed from the field in late March 2025 and is now currently under tow to the shipyard in Dubai for the refurbishment. Significant development drilling is expected to begin in 2026 after the FPSO is expected to return to service with potential meaningful additions to production from the main Baobab field in CI-40, as well as a potential future development of the Kossipo field, which is also on the license.
In March 2025, Vaalco announced that it had farmed into the CI-705 block offshore Côte d’Ivoire. Vaalco is the operator of the block with a
Financial Update – First Quarter of 2025
Vaalco reported net income of
Adjusted EBITDAX totaled
Quarterly Summary - Sales and Net Revenue | |||||||||||||||||||||||||||||||||||||
| $ in thousands | Three Months Ended March 31, 2025 | Three Months Ended December 31, 2024 | |||||||||||||||||||||||||||||||||||
| Gabon | Egypt | Canada | Côte d'Ivoire | Total | Gabon | Egypt | Canada | Côte d'Ivoire | Total | ||||||||||||||||||||||||||||
| Oil Sales | 59,864 | 57,656 | 5,325 | 18,042 | $ | 140,887 | 54,172 | 59,010 | 6,685 | 28,045 | $ | 147,912 | |||||||||||||||||||||||||
| NGL Sales | — | — | 1,808 | — | 1,808 | — | — | 1,965 | — | 1,965 | |||||||||||||||||||||||||||
| Gas Sales | — | — | 636 | — | 636 | — | — | 421 | — | 421 | |||||||||||||||||||||||||||
| Gross Sales | 59,864 | 57,656 | 7,769 | 18,042 | 143,331 | 54,172 | 59,010 | 9,071 | 28,045 | 150,298 | |||||||||||||||||||||||||||
| Selling Costs & Carried Interest | — | (149 | ) | (232 | ) | — | (381 | ) | 450 | (130 | ) | (319 | ) | — | 1 | ||||||||||||||||||||||
| Royalties & Taxes | (7,677 | ) | (23,587 | ) | (1,357 | ) | — | (32,621 | ) | (7,455 | ) | (19,899 | ) | (1,224 | ) | — | (28,578 | ) | |||||||||||||||||||
| Net Revenue | 52,187 | 33,920 | 6,180 | 18,042 | 110,329 | 47,167 | 38,981 | 7,528 | 28,045 | 121,721 | |||||||||||||||||||||||||||
| Oil Sales MMB (working interest) | 757 | 920 | 80 | 238 | 1,995 | 733 | 923 | 99 | 379 | 2,134 | |||||||||||||||||||||||||||
| Average Oil Price Received | $ | 79.09 | $ | 62.49 | $ | 66.17 | $ | 75.87 | $ | 70.61 | $ | 73.92 | $ | 63.92 | $ | 67.68 | $ | 73.90 | $ | 69.30 | |||||||||||||||||
| Change | 2 | % | |||||||||||||||||||||||||||||||||||
| Average Brent Price | $ | 75.87 | $ | 74.66 | |||||||||||||||||||||||||||||||||
| Change | 2 | % | |||||||||||||||||||||||||||||||||||
| Gas Sales MMCF (working interest) | — | — | 413 | — | 413 | — | — | 431 | — | 431 | |||||||||||||||||||||||||||
| Average Gas Price Received | — | — | $ | 1.54 | — | $ | 1.54 | — | — | $ | 0.98 | — | $ | 0.98 | |||||||||||||||||||||||
| Change | 57 | % | |||||||||||||||||||||||||||||||||||
| Average Aeco Price ($USD) | — | — | $ | 1.43 | — | $ | 1.43 | — | — | $ | 1.36 | — | $ | 1.36 | |||||||||||||||||||||||
| Change | 5 | % | |||||||||||||||||||||||||||||||||||
| NGL Sales MMB (working interest) | — | — | 69 | — | 69 | — | — | 75 | — | 75 | |||||||||||||||||||||||||||
| Average Liquids Price Received | — | — | $ | 26.39 | — | $ | 26.39 | — | — | $ | 26.22 | — | $ | 26.22 | |||||||||||||||||||||||
| Change | 1 | % | |||||||||||||||||||||||||||||||||||
| Revenue and Sales | Q1 2025 | Q1 2024 | % Change Q1 2025 vs. Q1 2024 | Q4 2024 | % Change Q1 2025 vs. Q4 2024 | |||||||||
| Production (NRI BOEPD) | 17,764 | 16,848 | 5 | % | 20,775 | (14 | %) | |||||||
| Sales (NRI BOE) | 1,717,000 | 1,490,000 | 15 | % | 1,872,000 | (8 | %) | |||||||
| Realized commodity price ($/BOE) | $ | 64.27 | $ | 66.43 | (3 | %) | $ | 64.77 | (1)% | |||||
| Commodity (Per BOE including realized commodity derivatives) | $ | 64.34 | $ | 66.41 | (3 | %) | $ | 64.48 | — | % | ||||
| Total commodity sales ($MM) | $ | 110.3 | $ | 100.2 | 10 | % | $ | 121.7 | (9 | %) | ||||
In Q1 2025, Vaalco had a net revenue decrease of
| Costs and Expenses | Q1 2025 | Q1 2024 | % Change Q1 2025 vs. Q1 2024 | Q4 2024 | % Change Q1 2025 vs. Q4 2024 | ||||||||||||
| Production expense, excluding offshore workovers and stock comp ($MM) | $ | 44.7 | $ | 32.1 | 39 | % | $ | 36.5 | 23 | % | |||||||
| Production expense, excluding offshore workovers ($/BOE) | $ | 26.08 | $ | 21.58 | 21 | % | $ | 19.52 | 34 | % | |||||||
| Offshore workover expense ($MM) | $ | — | $ | (0.1 | ) | — | % | $ | 0.1 | — | % | ||||||
| Depreciation, depletion and amortization ($MM) | $ | 30.3 | $ | 25.8 | 17 | % | $ | 37.0 | (18 | %) | |||||||
| Depreciation, depletion and amortization ($/BOE) | $ | 17.65 | $ | 17.30 | 2 | % | $ | 19.79 | (11 | %) | |||||||
| General and administrative expense, excluding stock-based compensation ($MM) | $ | 7.8 | $ | 5.9 | 31 | % | $ | 7.1 | 9 | % | |||||||
| General and administrative expense, excluding stock-based compensation ($/BOE) | $ | 4.51 | $ | 3.90 | 16 | % | $ | 3.80 | 19 | % | |||||||
| Stock-based compensation expense ($MM) | $ | 1.4 | $ | 0.9 | 50 | % | $ | 1.4 | (3 | %) | |||||||
| Current income tax expense (benefit) ($MM) | $ | 17.7 | $ | 25.7 | (31 | %) | $ | 26.2 | (32)% | ||||||||
| Deferred income tax expense (benefit) ($MM) | $ | (1.6 | ) | $ | (3.4 | ) | (53 | %) | $ | (9.0 | ) | (82 | %) | ||||
Total production expense (excluding offshore workovers and stock compensation) of
DD&A expense for Q1 2025 was
General and administrative (“G&A”) expense, excluding stock-based compensation, increased slightly to
Non-cash stock-based compensation expense was
Other income (expense), net, was an expense of
Income tax expense (benefit) was an expense for Q1 2025 of
Taxes paid by jurisdiction are as follows:
| (in thousands) | Gabon | Egypt | Canada | Equatorial Guinea | Cote d'Ivoire | Corporate and Other | Total | |||||||||||
| Cash/In Kind Taxes Paid: | ||||||||||||||||||
| Three months ended March 31, 2025 | $ | 30,253 | 6,953 | — | — | $ | 790 | — | $ | 37,996 | ||||||||
Capital Investments/Balance Sheet
For the first quarter of 2025, net capital expenditures totaled
At the end of the first quarter of 2025, Vaalco had an unrestricted cash balance of
In March 2025, Vaalco entered into a new reserves based revolving credit facility (the “new facility”) with an initial commitment of
Quarterly Cash Dividend
Vaalco paid a quarterly cash dividend of
Hedging
The Company continued to opportunistically hedge a portion of its expected future production to lock in strong cash flow generation to assist in funding its capital and shareholder return programs.
The following includes hedges remaining in place as of the end of the first quarter of 2025:
| Weighted Average Hedge Price ($/Bbl) | ||||||||||||||
| Settlement Period | Commodity | Type of Contract | Index | Average Volumes Hedged (Bbl) | Floor | Ceiling | ||||||||
| April 2025 - June 2025 | Oil | Collars | Dated Brent | 70,000 | $ | 65.00 | $ | 81.00 | ||||||
| July 2025 - September 2025 | Oil | Collars | Dated Brent | 60,000 | $ | 65.00 | $ | 80.00 | ||||||
Subsequent to March 31, 2025, the Company entered into the following additional derivative contracts to cover its future anticipated production:
| Settlement Period | Commodity | Type of Contract | Index | Average Volumes Hedged (GJ)(a) | Weighted Average Hedge Price (CAD/GJ) | ||||||
| May 2025 - October 2025 | Natural Gas | Swap | AECO (7A) | 114,000 | $ | 2.15 | |||||
a) One gigajoule (GJ) equals one billion joules (J). A gigajoule of natural gas is approximately 25.5 cubic meters standard conditions.
| Settlement Period | Commodity | Type of Contract | Index | Average Volumes Hedged (Bbl) | Weighted Average Hedge Price ($/Bbl) | ||||||
| July 1, 2025 - July 31, 2025 | Oil | Swap | Dated Brent | 100,000 | $ | 65.45 | |||||
Capital Markets Day Presentation
Vaalco announced that it will host a Capital Markets Day presentation on Wednesday, May 14, 2025. The presentation will begin at 8 a.m. Central Time (2 p.m. London Time) and is expected to conclude around 10:00 a.m. Central Time. The agenda will include presentations by key members of management on Vaalco’s longer-term vision including growth across its diversified, multi-country asset base.
Participation in the Capital Markets Day is directed to Vaalco’s shareholders, buy side and sell side analysts, as well as large institutional investors and portfolio managers. The session will be web cast live along with related presentation materials through Vaalco’s web site at www.vaalco.com in the “Investors” section of the web site. A replay will be archived on the site shortly after the presentation concludes.
2025 Guidance:
The Company has provided second quarter 2025 guidance and updated its full year 2025 guidance. All of the quarterly and annual guidance is detailed in the tables below.
| FY 2025 | Gabon | Egypt | Canada | Côte d'Ivoire | |||||||
| Production (BOEPD) | WI | 19250 - 22310 | 7000 - 8300 | 9750 - 11100 | 2200 - 2600 | 300 - 310 | |||||
| Production (BOEPD) | NRI | 14500 - 16710 | 6200 - 7100 | 6200 - 7200 | 1800 - 2100 | 300 - 310 | |||||
| Sales Volume (BOEPD) | WI | 19850 - 22700 | 7300 - 8300 | 9750 - 11100 | 2200 - 2600 | 600 - 700 | |||||
| Sales Volume (BOEPD) | NRI | 14900 - 17200 | 6300 - 7200 | 6200 - 7200 | 1800 - 2100 | 600 - 700 | |||||
| Production Expense (millions) | WI & NRI | ||||||||||
| Production Expense per BOE | WI | ||||||||||
| Production Expense per BOE | NRI | ||||||||||
| Offshore Workovers (millions) | WI & NRI | ||||||||||
| Cash G&A (millions) | WI & NRI | ||||||||||
| CAPEX excluding acquisitions (millions) | WI & NRI | ||||||||||
| DD&A ($/BOE) | NRI |
| Q2 2025 | Gabon | Egypt | Canada | Côte d'Ivoire | |||||||
| Production (BOEPD) | WI | 20000 - 22100 | 7800 - 8600 | 10100 - 11200 | 2100 - 2300 | — | |||||
| Production (BOEPD) | NRI | 15400 - 16800 | 6800 - 7500 | 6900 - 7400 | 1700 - 1900 | — | |||||
| Sales Volume (BOEPD) | WI | 22800 - 24900 | 10600 - 11400 | 10100 - 11200 | 2100 - 2300 | — | |||||
| Sales Volume (BOEPD) | NRI | 17800 - 19300 | 9200 - 10000 | 6900 - 7400 | 1700 - 1900 | — | |||||
| Production Expense (millions) | WI & NRI | ||||||||||
| Production Expense per BOE | WI | ||||||||||
| Production Expense per BOE | NRI | ||||||||||
| Offshore Workovers (millions) | WI & NRI | ||||||||||
| Cash G&A (millions) | WI & NRI | ||||||||||
| CAPEX excluding acquisitions (millions) | WI & NRI | ||||||||||
| DD&A ($/BOE) | NRI |
Conference Call
As previously announced, the Company will hold a conference call to discuss its first quarter 2025 financial and operating results, Friday, May 9, 2025, at 9:00 a.m. Central Time (10:00 a.m. Eastern Time and 3:00 p.m. London Time). Interested parties may participate by dialing (833) 685-0907. Parties in the United Kingdom may participate toll-free by dialing 08082389064 and other international parties may dial (412) 317-5741. Participants should request to be joined to the “Vaalco Energy First Quarter 2025 Conference Call.” This call will also be webcast on Vaalco’s website at www.vaalco.com. An archived audio replay will be available on Vaalco’s website.
A “Q1 2025 Supplemental Information” investor deck will be posted to Vaalco’s website prior to its conference call on May 9, 2025 that includes additional financial and operational information.
About Vaalco
Vaalco, founded in 1985 and incorporated under the laws of Delaware, is a Houston, Texas, USA based, independent energy company with a diverse portfolio of production, development and exploration assets across Gabon, Egypt, Côte d'Ivoire, Equatorial Guinea, Nigeria and Canada.
For Further Information
| Vaalco Energy, Inc. (General and Investor Enquiries) | +00 1 713 543 3422 |
| Website: | www.vaalco.com |
| Al Petrie Advisors (US Investor Relations) | +00 1 713 543 3422 |
| Al Petrie / Chris Delange | |
| Buchanan (UK Financial PR) | +44 (0) 207 466 5000 |
| Ben Romney / Barry Archer | VAALCO@buchanan.uk.com |
Forward Looking Statements
This press release includes “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended, which are intended to be covered by the safe harbors created by those laws and other applicable laws and “forward-looking information” within the meaning of applicable Canadian securities laws(collectively, “forward-looking statements”). Where a forward-looking statement expresses or implies an expectation or belief as to future events or results, such expectation or belief is expressed in good faith and believed to have a reasonable basis. All statements other than statements of historical fact may be forward-looking statements. The words “anticipate,” “believe,” “estimate,” “expect,” “intend,” “forecast,” “outlook,” “aim,” “target,” “will,” “could,” “should,” “may,” “likely,” “plan” and “probably” or similar words may identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking. Forward-looking statements in this press release include, but are not limited to, statements relating to (i) estimates of future drilling, production, sales and costs of acquiring crude oil, natural gas and natural gas liquids; (ii) expectations regarding Vaalco's ability to effectively integrate assets and properties it has acquired as a result of the Svenska acquisition into its operations; (iii) expectations regarding future exploration and the development, growth and potential of Vaalco’s operations, project pipeline and investments, and schedule and anticipated benefits to be derived therefrom; (iv) expectations regarding future acquisitions, investments or divestitures; (v) expectations of future dividends; (vi) expectations of future balance sheet strength; and (vii) expectations of future equity and enterprise value.
Such forward-looking statements are subject to risks, uncertainties and other factors, which could cause actual results to differ materially from future results expressed, projected or implied by the forward-looking statements. These risks and uncertainties include, but are not limited to: risks relating to any unforeseen liabilities of Vaalco; the ability to generate cash flows that, along with cash on hand, will be sufficient to support operations and cash requirements; risks relating to the timing and costs of completion for scheduled maintenance of the FPSO servicing the Baobab field; and the risks described under the caption “Risk Factors” in Vaalco’s most recent Annual Report on Form 10-K.
Dividends beyond the second quarter of 2025 have not yet been approved or declared by the Board of Directors for Vaalco. The declaration and payment of future dividends remains at the discretion of the Board and will be determined based on Vaalco’s financial results, balance sheet strength, cash and liquidity requirements, future prospects, crude oil and natural gas prices, and other factors deemed relevant by the Board. The Board reserves all powers related to the declaration and payment of dividends. Consequently, in determining the dividend to be declared and paid on Vaalco common stock, the Board may revise or terminate the payment level at any time without prior notice.
Any forward-looking statement made by Vaalco in this press release is based only on information currently available to Vaalco and speaks only as of the date on which it is made. Except as may be required by applicable securities laws, Vaalco undertakes no obligation to publicly update any forward-looking statement, whether written or oral, that may be made from time to time, whether as a result of new information, future developments or otherwise.
Other Oil and Gas Advisories
Investors are cautioned when viewing BOEs in isolation. BOE conversion ratio is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. Given that the value ratio based on the current price of crude oil as compared to natural gas is significantly different from the energy equivalencies described above, utilizing such equivalencies may be incomplete as an indication of value.
Inside Information
This announcement contains inside information as defined in Regulation (EU) No. 596/2014 on market abuse which is part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 (“MAR”) and is made in accordance with the Company’s obligations under article 17 of MAR. The person responsible for arranging the release of this announcement on behalf of Vaalco is Matthew Powers, Corporate Secretary of Vaalco.
VAALCO ENERGY, INC AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
| As of March 31, 2025 | As of December 31, 2024 | ||||
| (in thousands) | |||||
| ASSETS | |||||
| Current assets: | |||||
| Cash and cash equivalents | $ | 40,914 | $ | 82,650 | |
| Receivables: | |||||
| Trade, net of allowances for credit loss and other of | 120,252 | 94,778 | |||
| Accounts with joint venture owners, net of allowance for credit losses of | 2,847 | 179 | |||
| Egypt receivables and other | 3,235 | 35,763 | |||
| Other current assets | 33,590 | 24,557 | |||
| Total current assets | 200,838 | 237,927 | |||
| Crude oil, natural gas and NGLs properties and equipment, net | 562,926 | 538,103 | |||
| Other noncurrent assets: | |||||
| Right of use operating lease assets | 16,303 | 17,254 | |||
| Right of use finance lease assets | 78,862 | 79,849 | |||
| Deferred tax assets | 48,364 | 55,581 | |||
| Other long-term assets | 19,810 | 26,236 | |||
| Total assets | $ | 927,103 | $ | 954,950 | |
| LIABILITIES AND SHAREHOLDERS' EQUITY | |||||
| Current liabilities | $ | 177,675 | $ | 181,728 | |
| Asset retirement obligations | 81,053 | 78,592 | |||
| Operating lease liabilities - net of current portion | 12,915 | 13,903 | |||
| Finance lease liabilities - net of current portion | 66,198 | 67,377 | |||
| Deferred tax liabilities | 85,168 | 93,904 | |||
| Other long-term liabilities | — | 17,863 | |||
| Total liabilities | 423,009 | 453,367 | |||
| Total shareholders’ equity | 504,094 | 501,583 | |||
| Total liabilities and shareholders’ equity | $ | 927,103 | $ | 954,950 | |
VAALCO ENERGY, INC AND SUBSIDIARIES
Consolidated Statements of Operations
| Three Months Ended | |||||||||||
| March 31, 2025 | March 31, 2024 | December 31, 2024 | |||||||||
| (in thousands except per share amounts) | |||||||||||
| Revenues: | |||||||||||
| Crude oil, natural gas and natural gas liquids sales | $ | 110,329 | $ | 100,155 | $ | 121,721 | |||||
| Operating costs and expenses: | |||||||||||
| Production expense | 44,806 | 32,089 | 36,641 | ||||||||
| Exploration expense | — | 48 | — | ||||||||
| Depreciation, depletion and amortization | 30,305 | 25,824 | 37,047 | ||||||||
| Transaction costs related to acquisition | — | 1,313 | — | ||||||||
| General and administrative expense | 9,051 | 6,710 | 8,454 | ||||||||
| Credit losses and other | (27 | ) | 1,812 | 1,082 | |||||||
| Total operating costs and expenses | 84,135 | 67,796 | 83,224 | ||||||||
| Other operating income, net | — | (166 | ) | 10 | |||||||
| Operating income | 26,194 | 32,193 | 38,507 | ||||||||
| Other income (expense): | |||||||||||
| Derivative instruments gain (loss), net | (74 | ) | (847 | ) | (365 | ) | |||||
| Interest expense, net | (1,295 | ) | (935 | ) | (1,092 | ) | |||||
| Bargain purchase gain | — | — | (6,366 | ) | |||||||
| Other income (expense), net | (1,012 | ) | (487 | ) | (1,828 | ) | |||||
| Total other income (expense), net | (2,381 | ) | (2,269 | ) | (9,651 | ) | |||||
| Income before income taxes | 23,813 | 29,924 | 28,856 | ||||||||
| Income tax expense | 16,083 | 22,238 | 17,192 | ||||||||
| Net income | $ | 7,730 | $ | 7,686 | $ | 11,664 | |||||
| Other comprehensive income (loss): | |||||||||||
| Currency translation adjustments | 117 | (2,454 | ) | (5,975 | ) | ||||||
| Comprehensive income | $ | 7,847 | $ | 5,232 | $ | 5,689 | |||||
| Basic net income per share: | |||||||||||
| Net income per share | $ | 0.07 | $ | 0.07 | $ | 0.11 | |||||
| Basic weighted average shares outstanding | 103,758 | 103,659 | 103,743 | ||||||||
| Diluted net income per share: | |||||||||||
| Net income per share | $ | 0.07 | $ | 0.07 | $ | 0.11 | |||||
| Diluted weighted average shares outstanding | 103,785 | 104,541 | 103,812 | ||||||||
VAALCO ENERGY, INC AND SUBSIDIARIES
Condensed Consolidated Statements of Cash Flows
| Three Months Ended March 31, | |||||||
| 2025 | 2024 | ||||||
| (in thousands) | |||||||
| CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||
| Net income | $ | 7,730 | $ | 7,686 | |||
| Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
| Depreciation, depletion and amortization | 30,305 | 25,824 | |||||
| Exploration expense | 146 | — | |||||
| Deferred taxes | (1,519 | ) | (3,441 | ) | |||
| Unrealized foreign exchange loss | 1,673 | (102 | ) | ||||
| Stock-based compensation | 1,475 | 898 | |||||
| Cash settlements paid on exercised stock appreciation rights | — | (154 | ) | ||||
| Derivative instruments (gain) loss, net | 74 | 847 | |||||
| Cash settlements paid on matured derivative contracts, net | 123 | (24 | ) | ||||
| Cash settlements paid on asset retirement obligations | — | (29 | ) | ||||
| Credit losses and other | (27 | ) | 1,812 | ||||
| Other operating loss, net | — | 166 | |||||
| Equipment and other expensed in operations | 972 | 302 | |||||
| Change in operating assets and liabilities | (8,246 | ) | (11,953 | ) | |||
| Net cash provided by operating activities | 32,706 | 21,832 | |||||
| CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||
| Property and equipment expenditures | (58,527 | ) | (16,618 | ) | |||
| Acquisition of crude oil and natural gas properties | (247 | ) | — | ||||
| Net cash used in investing activities | (58,774 | ) | (16,618 | ) | |||
| CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||
| Proceeds from the issuances of common stock | — | 447 | |||||
| Dividend distribution | (6,570 | ) | (6,463 | ) | |||
| Treasury shares | (155 | ) | (6,344 | ) | |||
| Deferred financing costs | (5,118 | ) | — | ||||
| Payments of finance lease | (2,943 | ) | (2,095 | ) | |||
| Net cash used in in financing activities | (14,786 | ) | (14,455 | ) | |||
| Effects of exchange rate changes on cash | 27 | (208 | ) | ||||
| NET CHANGE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH | (40,827 | ) | (9,449 | ) | |||
| CASH, CASH EQUIVALENTS AND RESTRICTED CASH AT BEGINNING OF PERIOD | 97,726 | 129,178 | |||||
| CASH, CASH EQUIVALENTS AND RESTRICTED CASH AT END OF PERIOD | $ | 56,899 | $ | 119,729 | |||
VAALCO ENERGY, INC AND SUBSIDIARIES
Selected Financial and Operating Statistics
(Unaudited)
| Three Months Ended | |||||
| March 31, 2025 | March 31, 2024 | December 31, 2024 | |||
| NRI SALES DATA | |||||
| Crude oil, natural gas and natural gas liquids sales (MBOE) | 1,717 | 1,490 | 1,872 | ||
| Average daily sales volumes (BOE) | 19,074 | 16,374 | 20,352 | ||
| WI PRODUCTION DATA | |||||
| Etame Crude oil (MBbl) | 767 | 819 | 791 | ||
| Gabon Average daily production volumes (BOEPD) | 8,522 | 9,001 | 8,598 | ||
| Egypt Crude oil (MBbl) | 920 | 950 | 923 | ||
| Egypt Average daily production volumes (BOEPD) | 10,225 | 10,440 | 10,035 | ||
| Canada Crude Oil (MBbl) | 80 | 61 | 99 | ||
| Canada Natural Gas (MMcf) | 413 | 469 | 431 | ||
| Canada Natural Gas Liquid (MBOE) | 69 | 76 | 75 | ||
| Canada Crude oil, natural gas and natural gas liquids (MBOE) | 218 | 215 | 246 | ||
| Canada Average daily production volumes (BOEPD) | 2,420 | 2,363 | 2,669 | ||
| Côte d'Ivoire Crude oil (MBbl) | 111 | — | 368 | ||
| Côte d'Ivoire Average daily production volumes (BOEPD) | 1,235 | — | 3,997 | ||
| Total Crude oil, natural gas and natural gas liquids production (MBOE) | 2,016 | 1,984 | 2,328 | ||
| Average daily production volumes (BOEPD) | 22,402 | 21,804 | 25,300 | ||
| NRI PRODUCTION DATA | |||||
| Etame Crude oil (MBbl) | 667 | 713 | 688 | ||
| Gabon Average daily production volumes (BOEPD) | 7,414 | 7,835 | 7,481 | ||
| Egypt Crude oil (MBbl) | 642 | 641 | 644 | ||
| Egypt Average daily production volumes (BOEPD) | 7,131 | 7,044 | 7,001 | ||
| Canada Crude Oil (MBbl) | 66 | 51 | 85 | ||
| Canada Natural Gas (MMcf) | 338 | 392 | 371 | ||
| Canada Natural Gas Liquid (MBOE) | 56 | 63 | 64 | ||
| Canada Crude oil, natural gas and natural gas liquids (MBOE) | 179 | 179 | 211 | ||
| Canada Average daily production volumes (BOEPD) | 1,984 | 1,971 | 2,296 | ||
| Côte d'Ivoire Crude oil (MBbl) | 111 | — | 368 | ||
| Côte d'Ivoire Average daily production volumes (BOEPD) | 1,235 | — | 3,997 | ||
| Total Crude oil, natural gas and natural gas liquids production (MBOE) | 1,599 | 1,533 | 1,911 | ||
| Average daily production volumes (BOEPD) | 17,764 | 16,850 | 20,775 | ||
| AVERAGE SALES PRICES: | ||||||||
| Crude oil, natural gas and natural gas liquids sales (per BOE) - WI basis | $ | 67.03 | $ | 69.62 | $ | 65.69 | ||
| Crude oil, natural gas and natural gas liquids sales (per BOE) - NRI basis | $ | 64.27 | $ | 66.43 | $ | 64.77 | ||
| Crude oil, natural gas and natural gas liquids sales (Per BOE including realized commodity derivatives) - NRI basis | $ | 64.34 | $ | 66.41 | $ | 64.48 | ||
| COSTS AND EXPENSES (Per BOE of sales): | ||||||||
| Production expense | 26.10 | $ | 21.54 | $ | 19.57 | |||
| Production expense, excluding offshore workovers and stock compensation* | 26.05 | $ | 21.56 | $ | 19.49 | |||
| Depreciation, depletion and amortization | 17.65 | $ | 17.33 | $ | 19.79 | |||
| General and administrative expense** | 5.27 | $ | 4.50 | $ | 4.52 | |||
| Property and equipment expenditures, cash basis (in thousands) | $ | 58,527 | $ | 16,618 | $ | 41,466 | ||
* Offshore workover costs excluded for the three months ended March 31, 2025 and 2024 and December 31, 2024 are
* Stock compensation associated with production expense excluded from the three months ended March 31, 2025 and 2024 and December 31, 2024 are immaterial.
** General and administrative expenses include
NON-GAAP FINANCIAL MEASURES
Management uses Adjusted Net Income to evaluate operating and financial performance and believes the measure is useful to investors because it eliminates the impact of certain non-cash and/or other items that management does not consider to be indicative of the Company’s performance from period to period. Management also believes this non-GAAP measure is useful to investors to evaluate and compare the Company’s operating and financial performance across periods, as well as to facilitate comparisons to others in the Company’s industry. Adjusted Net Income is a non-GAAP financial measure and as used herein represents net income, plus deferred income tax expense (benefit), unrealized derivative instrument loss (gain), bargain purchase gain on the Svenska Acquisition, FPSO demobilization, transaction costs related to the Svenska acquisition and non-cash and other items.
Adjusted EBITDAX is a supplemental non-GAAP financial measure used by Vaalco’s management and by external users of the Company’s financial statements, such as industry analysts, lenders, rating agencies, investors and others who follow the industry. Management believes the measure is useful to investors because it is as an indicator of the Company’s ability to internally fund exploration and development activities and to service or incur additional debt. Adjusted EBITDAX is a non-GAAP financial measure and as used herein represents net income, plus interest expense (income) net, income tax expense (benefit), depreciation, depletion and amortization, exploration expense, FPSO demobilization, non-cash and other items including stock compensation expense, bargain purchase gain on the Svenska Acquisition, other operating (income) expense, net, non-cash purchase price adjustment, transaction costs related to acquisition, credit losses and other and unrealized derivative instrument loss (gain).
Management uses Adjusted Working Capital as a transition tool to assess the working capital position of the Company’s continuing operations excluding leasing obligations because it eliminates the impact of discontinued operations as well as the impact of lease liabilities. Under the applicable lease accounting standards, lease liabilities related to assets used in joint operations include both the Company’s share of expenditures as well as the share of lease expenditures which its non-operator joint venture owners’ will be obligated to pay under joint operating agreements. Adjusted Working Capital is a non-GAAP financial measure and as used herein represents working capital excluding working capital attributable to discontinued operations and current liabilities associated with lease obligations.
Management uses Free Cash Flow to evaluate financial performance and to determine the total amount of cash over a specified period available to be used in connection with returning cash to shareholders, and believes the measure is useful to investors because it provides the total amount of net cash available for returning cash to shareholders by adding cash generated from operating activities, subtracting amounts used in financing and investing activities, effects of exchange rate changes on cash and adding back amounts used for dividend payments and stock repurchases. Free Cash Flow is a non-GAAP financial measure and as used herein represents net change in cash, cash equivalents and restricted cash and adds the amounts paid under dividend distributions and share repurchases over a specified period.
Free Cash Flow has significant limitations, including that it does not represent residual cash flows available for discretionary purposes and should not be used as a substitute for cash flow measures prepared in accordance with GAAP. Free Cash Flow should not be considered as a substitute for cashflows from operating activities before discontinued operations or any other liquidity measure presented in accordance with GAAP. Free Cash Flow may vary among other companies. Therefore, the Company’s Free Cash Flow may not be comparable to similarly titled measures used by other companies.
Adjusted EBITDAX and Adjusted Net Income have significant limitations, including that they do not reflect the Company’s cash requirements for capital expenditures, contractual commitments, working capital or debt service. Adjusted EBITDAX, Adjusted Net Income, Adjusted Working Capital and Free Cash Flow should not be considered as substitutes for net income (loss), operating income (loss), cash flows from operating activities or any other measure of financial performance or liquidity presented in accordance with GAAP. Adjusted EBITDAX and Adjusted Net Income exclude some, but not all, items that affect net income (loss) and operating income (loss), and the calculation of these measures may vary among other companies. Therefore, the Company’s Adjusted EBITDAX, Adjusted Net Income, Adjusted Working Capital and Free Cash Flow may not be comparable to similarly titled measures used by other companies.
The tables below reconcile the most directly comparable GAAP financial measures to Adjusted Net Income, Adjusted EBITDAX, Adjusted Working Capital and Free Cash Flow.
VAALCO ENERGY, INC AND SUBSIDIARIES
Reconciliations of Non-GAAP Financial Measures
(Unaudited)
(in thousands)
| Three Months Ended | |||||||||||
| Reconciliation of Net Income to Adjusted Net Income | March 31, 2025 | March 31, 2024 | December 31, 2024 | ||||||||
| Net income | $ | 7,730 | $ | 7,686 | $ | 11,664 | |||||
| Adjustment for discrete items: | |||||||||||
| Unrealized derivative instruments loss (gain) | 198 | 823 | 96 | ||||||||
| Bargain purchase gain | — | — | 6,366 | ||||||||
| Deferred income tax expense (benefit) | (1,610 | ) | (3,441 | ) | (11,781 | ) | |||||
| Transaction costs related to acquisition | 22 | 1,313 | 508 | ||||||||
| Other operating (income) expense, net | — | 166 | (10 | ) | |||||||
| Adjusted Net Income | $ | 6,340 | $ | 6,547 | $ | 6,843 | |||||
| Diluted Adjusted Net Income per Share | $ | 0.06 | $ | 0.06 | $ | 0.07 | |||||
| Diluted weighted average shares outstanding (1) | 103,785 | 104,541 | 103,812 | ||||||||
(1) No adjustments to weighted average shares outstanding
| Three Months Ended | ||||||||||
| Reconciliation of Net Income to Adjusted EBITDAX | March 31, 2025 | March 31, 2024 | December 31, 2024 | |||||||
| Net income | $ | 7,730 | $ | 7,686 | $ | 11,664 | ||||
| Add back: | ||||||||||
| Interest expense, net | 1,295 | 935 | 1,092 | |||||||
| Income tax expense | 16,083 | 22,238 | 17,192 | |||||||
| Depreciation, depletion and amortization | 30,305 | 25,824 | 37,047 | |||||||
| Exploration expense | — | 48 | — | |||||||
| Non-cash or unusual items: | ||||||||||
| Stock-based compensation | 1,352 | 899 | 1,196 | |||||||
| Unrealized derivative instruments loss | 198 | 823 | 96 | |||||||
| Bargain purchase gain | — | — | 6,366 | |||||||
| Other operating (income) expense, net | — | 166 | (10 | ) | ||||||
| Transaction costs related to acquisition | 22 | 1,313 | 508 | |||||||
| Credit losses and other | (27 | ) | 1,812 | 1,082 | ||||||
| Adjusted EBITDAX | $ | 56,958 | $ | 61,744 | $ | 76,233 | ||||
VAALCO ENERGY, INC AND SUBSIDIARIES
Reconciliations of Non-GAAP Financial Measures
(Unaudited)
(in thousands)
| Reconciliation of Working Capital to Adjusted Working Capital | March 31, 2025 | December 31, 2024 | Change | ||||||||
| Current assets | $ | 200,838 | $ | 237,927 | $ | (37,089 | ) | ||||
| Current liabilities | (177,675 | ) | (181,728 | ) | 4,053 | ||||||
| Working capital | 23,163 | 56,199 | (33,036 | ) | |||||||
| Add: lease liabilities - current portion | 17,249 | 16,895 | 354 | ||||||||
| Adjusted Working Capital | $ | 40,412 | $ | 73,094 | $ | (32,682 | ) | ||||
| Three Months Ended March 31, 2025 | |||
| Reconciliation of Free Cash Flow | (in thousands) | ||
| Net cash provided by Operating activities | $ | 32,706 | |
| Net cash used in Investing activities | (58,774 | ) | |
| Net cash used in Financing activities | (14,786 | ) | |
| Effects of exchange rate changes on cash | 27 | ||
| Total net cash change | (40,827 | ) | |
| Add back shareholder cash out: | |||
| Dividends paid | 6,570 | ||
| Total cash returned to shareholders | 6,570 | ||
| Free Cash Flow | $ | (34,257 | ) |
FAQ
What were VAALCO Energy's (EGY) Q1 2025 earnings per share?
How much did VAALCO Energy (EGY) produce in Q1 2025?
What is the size of VAALCO's new credit facility?
How much is VAALCO's quarterly dividend for Q1 2025?
What percentage working interest did VAALCO acquire in CI-705 block?
