Vaalco Energy, Inc. Announces First Quarter 2026 Results
Rhea-AI Summary
Vaalco Energy (NYSE: EGY) reported Q1 2026 results and 2026 guidance updates. Key metrics: $78.1M capital investment; net loss $93.8M (includes $94.2M derivative/exploration expense); Adjusted EBITDAX $11.6M; Q1 production 15,110 NRI BOEPD; divested Canadian assets for $25.5M; declared $0.0625 quarterly dividend; increased full‑year 2026 production and sales guidance (midpoint: +8% production, +12% sales).
Operationally, Etame 14H and 15H wells placed on production and Baobab FPSO dry dock work completed; Côte d’Ivoire restart expected Q2 2026.
Positive
- Capital expenditures of $78.1M invested in Q1 2026
- Etame 14H initial rate ~4,850 gross BOPD (325m net pay)
- Etame 15H initial rate ~2,000 gross BOPD
- Divested Canadian assets for $25.5M (closed Feb 19, 2026)
- Declared quarterly dividend of $0.0625 per share
- Increased full‑year 2026 production guidance (midpoint +8%)
Negative
- Reported net loss of $93.8M in Q1 2026
- Unrealized derivative loss portion ~$55.9M included
- Adjusted Net Loss $47.2M after adjustments
- Total NRI sales volumes down 36% vs Q4 2025
- Lower sales due to Gabon government lifting and Côte d’Ivoire FPSO downtime
News Market Reaction – EGY
In the May 8 session, EGY declined 6.20%, reflecting a notable negative market reaction. Argus tracked a peak move of +2.5% during that session. Our momentum scanner triggered 8 alerts that day, indicating moderate trading interest and price volatility.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Previous Earnings Reports
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| Mar 12 | Q4 & FY 2025 earnings | Neutral | -4.4% | Reported 2025 loss with strong reserves, RBL facility and 2026 capex plan. |
| Nov 10 | Q3 2025 earnings | Positive | -4.0% | Raised 2025 guidance, lowered capex and maintained dividend despite mixed profits. |
| Aug 07 | Q2 2025 earnings | Positive | +5.3% | Delivered net income, strong EBITDAX and production above guidance with solid cash. |
| May 08 | Q1 2025 earnings | Positive | -0.3% | Posted profit, higher production and new credit facility while trimming capex. |
| Mar 13 | Q4 & FY 2024 earnings | Positive | +14.3% | Record 2024 EBITDAX, higher reserves and growth-focused 2025 capex and returns. |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Earnings releases often brought volatile and sometimes negative reactions, even when operational metrics were strong or guidance improved.
Recent earnings history shows EGY pairing active drilling and expansion with uneven bottom-line results. Prior reports highlighted record 2024 performance, higher 2025 production and reserves, and consistent dividends of $0.0625 per share, but also net losses driven by impairments and non-cash items. Market reactions to earnings have been mixed: two notably positive moves around strong 2024 and Q2 2025 results, offset by several selloffs on later reports. Today’s Q1 2026 loss, hedging impacts and lower sales fit this pattern of financial volatility alongside continued operational growth.
Key Terms
floating production storage and offloading vessel technical
fpsO technical
net revenue interest financial
working interest financial
field development plan technical
adjusted ebitdax financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
HOUSTON, May 07, 2026 (GLOBE NEWSWIRE) -- VAALCO Energy, Inc. (NYSE: EGY, LSE: EGY) (“Vaalco” or the “Company”) today reported operational and financial results for the first quarter 2026. Additionally, the Company provided operational and financial guidance for the second quarter and full year of 2026.
First Quarter 2026 Highlights and Recent Key Items:
- Invested
$78.1 million in capital expenditures, which included the successful start to the Gabon Phase Three Drilling Program, continued Côte d’Ivoire Floating Production Storage and Offloading vessel (“FPSO”) Dry Dock refurbishment and key long leads for the upcoming 2026 drilling campaign in Côte d’Ivoire;- Successfully drilled, completed and placed on production the Etame 14H development well in April 2026 at an initial rate of 4,850 gross barrels of oil per day (“BOPD”), encountering 325 meters of net pay in high-quality Gamba sands;
- Successfully drilled, completed and placed on production the Etame 15H development well in February 2026 at an initial rate of 2,000 gross BOPD, confirming expectations from the ET-15P pilot well results;
- Baobab Ivoirien FPSO is now fully moored back on its original location and resumption of production at Côte d’Ivoire remains on track for Q2 2026;
- Confirmed as operator with a
60% WI in the Kossipo field on the CI-40 Block, located southwest of the Baobab field, with a field development plan (“FDP”) expected to be completed in the second half of 2026;- Further information on the Kossipo field can be found in the Q1 2026 supplemental deck posted on Vaalco’s website;
- Divested all Canadian properties for an adjusted purchase price of
$25.5 million with a closing date of February 19, 2026; - Sold 12,157 net revenue interest (“NRI”)(1) barrels of oil equivalent per day (“BOEPD”) and produced 15,110 NRI(1) BOEPD or 19,884 working interest (“WI”)(2) BOEPD, all of which were slightly above the midpoint of guidance;
- Expecting Q2 2026 sales volumes to range between 16,800 and 18,300 NRI BOPD, a
44% increase compared to Q1 2026 (at the midpoint of guidance); - Increasing full year 2026 production and sales NRI volumes by
8% and12% , respectively at the midpoint, while maintaining 2026 capital budget guidance unchanged even with additional drilling in Egypt included; - Reported a net loss of
$93.8 million ($0.90 per diluted share), which includes$94.2 million in expenses primarily due to a loss on derivative instruments and exploration expense;- Excluding primarily the
$55.9 million unrealized portion of the derivative loss, Adjusted Net Loss(3) totaled$47.2 million ($0.45 per diluted share);
- Excluding primarily the
- Generated Adjusted EBITDAX(3) of $11.6 million which included no partner liftings in Gabon and no sales in Côte d’Ivoire, Q2 2026 is expected to have two partner liftings in Gabon and Q3 2026 sales are expected to include Côte d’Ivoire;
- Reduced trade receivable in Egypt even further from
$31.6 million at December 31, 2025 to$24.2 million at March 31, 2026; and - Declared quarterly cash dividend of
$0.0625 per share of common stock to be paid on June 26, 2026.
(1) All NRI sales and production rates are Vaalco's working interest volumes less royalty volumes, where applicable.
(2) All WI production rates and volumes are Vaalco's working interest volumes, where applicable.
(3) Adjusted EBITDAX, Adjusted Net Income (Loss), Adjusted Working Capital, Free Cash Flow and Net Debt are Non-GAAP financial measures and are described and reconciled to the closest GAAP measure in the attached table under “Non-GAAP Financial Measures.”
George Maxwell, Vaalco’s Chief Executive Officer, commented, “We began 2026 by divesting all of our Canadian assets, and increased our future growth potential in Côte d’Ivoire by being confirmed as operator with a
Mr. Maxwell concluded, “Operationally, we are delivering as expected, with strong results from our drilling programs and capital investments. Financially, the first quarter was difficult, driven by several factors including realized and unrealized hedging losses, exploration expense related to the Etame West ET 14-P well, our investment in seismic with our partners in the Niosi and Guduma blocks in offshore Gabon and the government lifting in Gabon. We have a pragmatic hedging program that we put into place in early 2025 to protect cash flow as we invest significant capital in 2026 across our portfolio to grow production. While this has reduced risk and protected cash flows, during the recent upswing in pricing it has caused us to recognize cash and non-cash derivative losses, but we are benefiting from unhedged sales at much higher prices. We believe that Q2 2026 will be much stronger financially with additional liftings and we will see continued improvement in the second half of 2026 and into 2027. We believe that the first quarter was an inflection point. With the continued operational successes we are delivering and as indicated by the increased full year 2026 production and sales guidance without increasing 2026 capital guidance, we are confident in our strategic vision. Vaalco remains well positioned to deliver on our forecasted
Operational Update
Gabon
The Company’s Phase Three Drilling Program in Gabon commenced in the fourth quarter of 2025 with the drilling of the ET-15H development well in the 1V block of Etame in December 2025. The well was completed and placed on production in February 2026 confirming expectations from the ET-15P pilot well results. The Company proceeded to drill the West Etame exploration well (ET-14) and although the well encountered 10 meters of high quality sands, the target zone was water-bearing. The lower portion of the well was plugged and abandoned but the well bore was utilized and sidetracked in the upper portion of the well to drill the ET-14H development well in the Main Fault Block of Etame.
The ET-14H well was successfully completed and placed on production in an attic position within the Main Fault Block of the Etame field, with a lateral of 325 meters of net pay in high-quality Gamba sands in April 2026. The well achieved an initial flow rate of approximately 4,850 gross BOPD or 2,850 net BOPD. Vaalco continued its drilling campaign in offshore Gabon by mobilizing the rig to the Ebouri platform and commenced drilling the EEBOM-5H development well in April 2026. The Company has several wells and workovers planned at the Ebouri and SEENT platforms to enhance production and potentially add reserves.
Vaalco and its partners completed the 3D seismic campaign across the jointly-owned Niosi and Guduma blocks in January 2026. The seismic acquisition was executed and satisfies the minimum commitments under the terms of the Niosi PSC as well as to inform the decision on proceeding into the second exploration period for the Guduma Block.
Egypt
The drilling campaign in Egypt began in December 2024 and continued throughout 2025 with the final well placed on production in January 2026. All wells drilled in the Eastern Desert successfully achieved their target.
During the first quarter of 2026, operations focused on interventions, workovers, and production optimization activities. A workover campaign to reactivate shut-in wells contributed to incremental production over the 2025 exit rate, while improved uptime supported increased average daily production rates.
With the success of the recent drilling campaign, captured efficiencies and accelerated technical subsurface evaluation, the Company decided to drill additional wells in Egypt in 2026. Vaalco contracted a rig and began drilling in early May targeting six additional wells to be drilled in Egypt, without increasing the total Company full year 2026 capital guidance range.
Côte d'Ivoire
The Baobab FPSO completed its planned dry dock refurbishment in February 2026 and arrived back in Côte d'Ivoire in early April 2026. Reconnection activities are now underway with four out of seven risers and umbilicals connected and field production is expected to restart during the second quarter of 2026. A rig has been secured for the planned development drilling program which is expected to begin at the end of the third quarter of 2026. The drilling campaign is expected to bring meaningful additions to production from the main Baobab field in block CI-40.
In February 2026, the Company was confirmed as the operator with a
Equatorial Guinea
Vaalco owns a
Canada
On February 5, 2026, Vaalco announced an agreement for the sale of all of its producing properties in Canada to a third party for approximately
Financial Update – First Quarter of 2026
Vaalco reported a net loss of
Adjusted EBITDAX totaled
| Quarterly Summary - Sales and Net Revenue | |||||||||||||||||||||||||||||||||||||
| $ in thousands | Three Months Ended March 31, 2026 | Three Months Ended December 31, 2025 | |||||||||||||||||||||||||||||||||||
| Gabon | Egypt | Canada(a) | Côte d'Ivoire | Total | Gabon | Egypt | Canada | Côte d'Ivoire | Total | ||||||||||||||||||||||||||||
| Oil Sales | $ | 24,368 | $ | 66,410 | $ | 1,744 | $ | — | $ | 92,522 | $ | 56,238 | $ | 54,842 | $ | 2,966 | $ | — | $ | 114,046 | |||||||||||||||||
| NGL Sales | — | — | 750 | — | 750 | — | — | 1,444 | — | 1,444 | |||||||||||||||||||||||||||
| Gas Sales | — | — | 368 | — | 368 | — | — | 648 | — | 648 | |||||||||||||||||||||||||||
| Gross Sales | 24,368 | 66,410 | 2,862 | — | 93,640 | 56,238 | 54,842 | 5,058 | — | 116,138 | |||||||||||||||||||||||||||
| Selling Costs & Carried Interest | — | (184 | ) | (143 | ) | — | (327 | ) | 1,305 | (232 | ) | (177 | ) | — | 896 | ||||||||||||||||||||||
| Royalties & Taxes | (2,967 | ) | (27,310 | ) | (437 | ) | — | (30,714 | ) | (7,830 | ) | (17,520 | ) | (642 | ) | — | (25,992 | ) | |||||||||||||||||||
| Net Revenue | $ | 21,401 | $ | 38,916 | $ | 2,282 | $ | — | $ | 62,599 | $ | 49,713 | $ | 37,090 | $ | 4,239 | $ | — | $ | 91,042 | |||||||||||||||||
| Oil Sales MMB (working interest) | 371 | 1,014 | 31 | — | 1,416 | 970 | 1,009 | 56 | — | 2,035 | |||||||||||||||||||||||||||
| Average Oil Price Received | $ | 65.70 | $ | 65.33 | $ | 56.99 | $ | — | $ | 65.33 | $ | 57.97 | $ | 54.14 | $ | 53.23 | $ | — | $ | 56.05 | |||||||||||||||||
| Change | 17 | % | |||||||||||||||||||||||||||||||||||
| Average Brent Price | $ | 80.72 | $ | 63.65 | |||||||||||||||||||||||||||||||||
| Change | 27 | % | |||||||||||||||||||||||||||||||||||
| Gas Sales MMCF (working interest) | — | — | 226 | — | 226 | — | — | 402 | — | 402 | |||||||||||||||||||||||||||
| Average Gas Price Received | — | — | $ | 1.63 | — | $ | 1.63 | — | — | $ | 1.62 | — | $ | 1.62 | |||||||||||||||||||||||
| Change | — | % | |||||||||||||||||||||||||||||||||||
| Average Aeco Price ($USD) | — | — | $ | 1.46 | — | $ | 1.46 | — | — | $ | 2.12 | — | $ | 2.12 | |||||||||||||||||||||||
| Change | (31)% | ||||||||||||||||||||||||||||||||||||
| NGL Sales MMB (working interest) | — | — | 31 | — | 31 | — | — | 63 | — | 63 | |||||||||||||||||||||||||||
| Average Liquids Price Received | — | — | $ | 24.07 | — | $ | 24.07 | — | — | $ | 22.78 | — | $ | 22.78 | |||||||||||||||||||||||
| Change | 6 | % | |||||||||||||||||||||||||||||||||||
(a) Reflects net revenues and sales volumes from January 1, 2026 through the closing date of the Canada Assets Divestment date on February 19, 2026.
| Revenue and Sales | Q1 2026 | Q1 2025 | % Change Q1 2026 vs. Q1 2025 | Q4 2025 | % Change Q1 2026 vs. Q4 2025 | |||||||||
| Production (NRI BOEPD) | 15,110 | 17,764 | (15 | )% | 16,128 | (6 | )% | |||||||
| Sales (NRI BOE) | 1,094,000 | 1,717,000 | (36 | )% | 1,708,000 | (36 | )% | |||||||
| Realized commodity price ($/BOE) | $ | 57.21 | $ | 64.27 | (11 | )% | $ | 52.54 | 9 | % | ||||
| Commodity (Per BOE including realized commodity derivatives) | $ | 43.84 | $ | 64.34 | (32 | )% | $ | 52.59 | (17 | )% | ||||
| Total commodity sales ($MM) | $ | 62.6 | $ | 110.3 | (43 | )% | $ | 91.0 | (31 | )% | ||||
In Q1 2026, Vaalco had a net revenue decrease of
| Costs and Expenses | Q1 2026 | Q1 2025 | % Change Q1 2026 vs. Q1 2025 | Q4 2025 | % Change Q1 2026 vs. Q4 2025 | ||||||||||||
| Production expense, excluding offshore workovers and stock comp ($MM) | $ | 28.3 | $ | 44.7 | (37 | )% | $ | 43.0 | (34 | )% | |||||||
| Production expense, excluding offshore workovers ($/BOE) | $ | 25.89 | $ | 26.08 | (1 | )% | $ | 25.21 | 3 | % | |||||||
| Offshore workover expense ($MM) | $ | — | $ | — | — | % | $ | 0.1 | — | % | |||||||
| Exploration expense ($MM) | $ | 22.4 | $ | — | — | % | $ | 6.0 | 273 | % | |||||||
| Depreciation, depletion and amortization ($MM) | $ | 18.2 | $ | 30.3 | (40 | )% | $ | 30.8 | (41 | )% | |||||||
| Depreciation, depletion and amortization ($/BOE) | $ | 16.65 | $ | 17.65 | (6 | )% | $ | 18.06 | (8 | )% | |||||||
| General and administrative expense, excluding stock-based compensation ($MM) | $ | 6.9 | $ | 7.8 | (11 | )% | $ | 5.2 | 33 | % | |||||||
| General and administrative expense, excluding stock-based compensation ($/BOE) | $ | 6.33 | $ | 4.51 | 40 | % | $ | 3.04 | 108 | % | |||||||
| Stock-based compensation expense ($MM) | $ | 1.4 | $ | 1.4 | — | % | $ | 1.5 | (10 | )% | |||||||
| Current income tax expense (benefit) ($MM) | $ | 14.9 | $ | 17.7 | (16 | )% | $ | 5.2 | 186 | % | |||||||
| Deferred income tax expense (benefit) ($MM) | $ | (10.6 | ) | $ | (1.6 | ) | 560 | % | $ | (9.8 | ) | 8 | % | ||||
Total production expense (excluding offshore workovers and stock compensation) of
Depreciation, depletion and amortization (“DD&A”) expense for Q1 2026 was
General and administrative (“G&A”) expense, excluding stock-based compensation, increased to
Non-cash stock-based compensation expense was
Exploration expense was
Total other income (expense), net, was an expense of
Vaalco reported an income tax expense for Q1 2026 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, 2026 | $ | 24,537 | $ | 7,370 | $ | — | $ | — | $ | — | $ | — | $ | 31,907 | |||||||
Capital Investments/Balance Sheet
For the first quarter of 2026, net capital expenditures totaled
As of March 31, 2026, Vaalco had an unrestricted cash balance of
At March 31, 2026, Vaalco had long-term debt of
During the first quarter of 2026, the Company borrowed an additional
Certain existing lenders under the new facility agreed to increase their commitments effective January 23, 2026 (the “Effective Increase Date”) so that the aggregate borrowing base under the 2025 RBL Facility as of the Effective Increase Date would increase from
Quarterly Cash Dividend
Vaalco paid a quarterly cash dividend of
Hedging
The Company continued to hedge a portion of its expected future production to protect 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 2026:
| Settlement Period | Index | Total volumes (Bbls) | Weighted average floor price ($/Bbl) | Weighted average ceiling price ($/Bbl) | ||||||
| Crude oil: | ||||||||||
| Call Option | ICE(a) Brent | |||||||||
| April 2026 to June 2026 | 211,000 | — | $ | 122.00 | ||||||
| Collars | Dated Brent | |||||||||
| 2026 | ||||||||||
| April 2026 to June 2026 | 698,000 | $ | 63.01 | $ | 69.01 | |||||
| July 2026 to September 2026 | 777,000 | $ | 63.85 | $ | 68.73 | |||||
| October 2026 to December 2026 | 692,000 | $ | 64.96 | $ | 68.33 | |||||
| 2027 | ||||||||||
| January 2027 to March 2027 | 673,000 | $ | 64.68 | $ | 72.63 | |||||
| April 2027 to June 2027 | 564,000 | $ | 70.99 | $ | 84.35 | |||||
(a) Intercontinental Exchange
2026 Guidance:
The Company has provided second quarter 2026 guidance and its full year 2026 guidance. All of the quarterly and annual guidance is detailed in the tables below.
| FY 2026 | Gabon | Egypt | Canada | Côte d'Ivoire | |||||||
| Production (BOEPD) | WI | 22050 - 24500 | 9300 - 10300 | 10400 - 11500 | 250 - 300 | 2100 - 2400 | |||||
| Production (BOEPD) | NRI | 17400 - 19450 | 8100 - 9000 | 7000 - 7800 | 200 - 250 | 2100 - 2400 | |||||
| Sales Volume (BOEPD) | WI | 21350 - 25000 | 8300 - 10500 | 10400 - 11500 | 250 - 300 | 2400 - 2700 | |||||
| Sales Volume (BOEPD) | NRI | 16800 - 19950 | 7200 - 9200 | 7000 - 7800 | 200 - 250 | 2400 - 2700 | |||||
| Production Expense (millions) | WI & NRI | ||||||||||
| Production Expense per BOE | WI | ||||||||||
| Production Expense per BOE | NRI | ||||||||||
| Exploration Expense (millions) | WI & NRI | ||||||||||
| Offshore Workovers (millions) | WI & NRI | ||||||||||
| Cash G&A (millions) | WI & NRI | ||||||||||
| CAPEX Excluding Acquisitions (millions) | WI & NRI | ||||||||||
| DD&A ($/BOE) | NRI |
| Q2 2026 | Gabon | Egypt | Canada | Côte d'Ivoire | |||||||
| Production (BOEPD) | WI | 21600 - 23800 | 9900 - 10900 | 10400 - 11500 | — | 1300 - 1400 | |||||
| Production (BOEPD) | NRI | 16800 - 18700 | 8600 - 9500 | 6900 - 7800 | — | 1300 - 1400 | |||||
| Sales Volume (BOEPD) | WI | 21800 - 23600 | 11400 - 12100 | 10400 - 11500 | — | — | |||||
| Sales Volume (BOEPD) | NRI | 16800 - 18300 | 9900 - 10500 | 6900 - 7800 | — | — | |||||
| Production Expense (millions) | WI & NRI | ||||||||||
| Production Expense per BOE | WI | ||||||||||
| Production Expense per BOE | NRI | ||||||||||
| Exploration Expense (millions) | WI & NRI | ||||||||||
| Offshore Workovers (millions) | WI & NRI | ||||||||||
| Cash G&A (millions) | WI & NRI | ||||||||||
| CAPEX Excluding Acquisitions (millions) | WI & NRI | ||||||||||
| DD&A ($/BOE) | NRI | ||||||||||
Conference Call
As previously announced, the Company will hold a conference call to discuss its first quarter 2026 financial and operating results, Friday, May 8, 2026, at 8:00 a.m. Central Time (9:00 a.m. Eastern Time and 2:00 p.m. London Time). Interested parties may participate by dialing (833) 685-0907. Parties in the United Kingdom may participate toll-free by dialing 08002799489 and other international parties may dial (412) 317-5741. Participants should request to be joined to the “Vaalco Energy First Quarter 2026 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 2026 Supplemental Information” investor deck will be posted to Vaalco’s website prior to its conference call on May 8, 2026 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 and Nigeria.
Vaalco’s Legal Entity Identifier (LEI) is 549300CFHFVIWB8M6T24
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 | |
| Burson Buchanan (UK Financial PR) | +44 (0) 207 466 5000 |
| 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 (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 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; (iii) expectations regarding future acquisitions, investments or divestitures; (iv) expectations of future dividends; (v) expectations of future balance sheet strength; and (vi) 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; and the risks described under the caption “Risk Factors” in Vaalco’s most recent Annual Report on Form 10-K and any subsequent Quarterly Reports on Form 10-Q filed with the SEC.
Dividends beyond the second quarter of 2026 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 (Unaudited) | |||||
| As of March 31, 2026 | As of December 31, 2025 | ||||
| (in thousands) | |||||
| ASSETS | |||||
| Current assets: | |||||
| Cash and cash equivalents | $ | 48,044 | $ | 58,900 | |
| Receivables: | |||||
| Trade | 24,791 | 39,924 | |||
| Accounts with joint venture owners, net of allowance for credit losses of | 7,782 | 5,420 | |||
| Other | 2,197 | 2,277 | |||
| Other current assets | 33,304 | 26,280 | |||
| Current assets held for sale | — | 179 | |||
| Total current assets | 116,118 | 132,980 | |||
| Crude oil, natural gas and NGLs properties and equipment, net | 641,780 | 586,095 | |||
| Other noncurrent assets: | |||||
| Restricted cash | 1,659 | 1,659 | |||
| Value added tax and other receivables | 9,291 | 7,149 | |||
| Right of use lease assets | 87,575 | 85,211 | |||
| Deferred tax assets | 49,511 | 54,825 | |||
| Other long-term assets | 14,728 | 13,630 | |||
| Noncurrent assets held for sale | — | 31,826 | |||
| Total assets | $ | 920,662 | $ | 913,375 | |
| LIABILITIES AND SHAREHOLDERS' EQUITY | |||||
| Current liabilities | 226,201 | 191,817 | |||
| Current liabilities held for sale | — | 183 | |||
| Asset retirement obligations | 80,528 | 78,406 | |||
| Operating lease liabilities - net of current portion | 15,469 | 11,183 | |||
| Finance lease liabilities - net of current portion | 53,803 | 57,256 | |||
| Deferred tax liabilities | 47,757 | 63,630 | |||
| Long-term debt | 152,000 | 60,000 | |||
| Noncurrent liabilities held for sale | — | 7,403 | |||
| Total liabilities | 575,758 | 469,878 | |||
| Total shareholders’ equity | 344,904 | 443,497 | |||
| Total liabilities and shareholders’ equity | $ | 920,662 | $ | 913,375 | |
| VAALCO ENERGY, INC AND SUBSIDIARIES Consolidated Statements of Operations (Unaudited) | |||||||||||
| Three Months Ended | |||||||||||
| March 31, 2026 | March 31, 2025 | December 31, 2025 | |||||||||
| (in thousands except per share amounts) | |||||||||||
| Revenues: | |||||||||||
| Crude oil, natural gas and natural gas liquids sales | $ | 62,599 | $ | 110,329 | $ | 91,042 | |||||
| Operating costs and expenses: | |||||||||||
| Production expense | 28,379 | 44,806 | 43,107 | ||||||||
| Exploration expense | 22,394 | — | 6,040 | ||||||||
| Depreciation, depletion and amortization | 18,212 | 30,305 | 30,845 | ||||||||
| Loss on sale of assets | 1,202 | — | — | ||||||||
| Impairment loss on assets held for sale | — | — | 67,224 | ||||||||
| General and administrative expense | 8,276 | 9,051 | 6,696 | ||||||||
| Credit losses and other | 271 | (27 | ) | (379 | ) | ||||||
| Total operating costs and expenses | 78,734 | 84,135 | 153,533 | ||||||||
| Other operating expense, net | — | — | (2,391 | ) | |||||||
| Operating income (loss) | (16,135 | ) | 26,194 | (64,882 | ) | ||||||
| Other income (expense): | |||||||||||
| Derivative instruments gain (loss), net | (70,581 | ) | (74 | ) | 3,643 | ||||||
| Interest expense, net | (1,699 | ) | (1,295 | ) | (2,044 | ) | |||||
| Other income (expense), net | (1,034 | ) | (1,012 | ) | 32 | ||||||
| Total other income (expense), net | (73,314 | ) | (2,381 | ) | 1,631 | ||||||
| Income (loss) before income taxes | (89,449 | ) | 23,813 | (63,251 | ) | ||||||
| Income tax expense (benefit) | 4,315 | 16,083 | (4,648 | ) | |||||||
| Net income (loss) | $ | (93,764 | ) | $ | 7,730 | $ | (58,603 | ) | |||
| Other comprehensive income: | |||||||||||
| Currency translation adjustments | 112 | 117 | 1,387 | ||||||||
| Comprehensive income (loss) | $ | (93,652 | ) | $ | 7,847 | $ | (57,216 | ) | |||
| Basic net income (loss) per share: | |||||||||||
| Net income (loss) per share | $ | (0.90 | ) | $ | 0.07 | $ | (0.56 | ) | |||
| Basic weighted average shares outstanding | 104,258 | 103,758 | 104,258 | ||||||||
| Diluted net income (loss) per share: | |||||||||||
| Net income (loss) per share | $ | (0.90 | ) | $ | 0.07 | $ | (0.56 | ) | |||
| Diluted weighted average shares outstanding | 104,258 | 103,785 | 104,258 | ||||||||
| VAALCO ENERGY, INC AND SUBSIDIARIES Condensed Consolidated Statements of Cash Flows (Unaudited) | |||||||
| Three Months Ended March 31, | |||||||
| 2026 | 2025 | ||||||
| (in thousands) | |||||||
| CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||
| Net income (loss) | $ | (93,764 | ) | $ | 7,730 | ||
| Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||||||
| Depreciation, depletion and amortization | 18,212 | 30,305 | |||||
| Loss on Canada Assets Divestment | 1,202 | — | |||||
| Exploration expense | 13,801 | — | |||||
| Amortization of deferred financing costs | 392 | 146 | |||||
| Deferred taxes | (10,559 | ) | (1,519 | ) | |||
| Unrealized foreign exchange gain | 190 | 1,673 | |||||
| Stock-based compensation expense | 1,377 | 1,475 | |||||
| Derivative instruments loss, net | 70,581 | 74 | |||||
| Cash settlements paid on matured derivative contracts, net | (957 | ) | 123 | ||||
| Credit losses and other | 271 | (27 | ) | ||||
| Equipment and other expensed in operations | 1,890 | 972 | |||||
| Change in operating assets and liabilities | (41,862 | ) | (8,246 | ) | |||
| Net cash provided by (used in) operating activities | (39,226 | ) | 32,706 | ||||
| CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||
| Property and equipment expenditures, including exploration expense | (78,074 | ) | (58,527 | ) | |||
| Proceeds from the Canada Assets Divestment | 25,474 | — | |||||
| Acquisition of crude oil and natural gas properties | — | (247 | ) | ||||
| Net cash used in investing activities | (52,600 | ) | (58,774 | ) | |||
| CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||
| Proceeds from borrowings | 92,000 | — | |||||
| Dividend distribution | (6,687 | ) | (6,570 | ) | |||
| Treasury shares | — | (155 | ) | ||||
| Deferred financing costs | (1,160 | ) | (5,118 | ) | |||
| Payments of finance lease | (3,176 | ) | (2,943 | ) | |||
| Net cash provided by (used in) in financing activities | 80,977 | (14,786 | ) | ||||
| Effects of exchange rate changes on cash | (32 | ) | 27 | ||||
| NET CHANGE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH | (10,881 | ) | (40,827 | ) | |||
| CASH, CASH EQUIVALENTS AND RESTRICTED CASH AT BEGINNING OF PERIOD | 66,963 | 97,726 | |||||
| CASH, CASH EQUIVALENTS AND RESTRICTED CASH AT END OF PERIOD | $ | 56,082 | $ | 56,899 | |||
| VAALCO ENERGY, INC AND SUBSIDIARIES Selected Financial and Operating Statistics (Unaudited) | |||||
| Three Months Ended | |||||
| March 31, 2026 | March 31, 2025 | December 31, 2025 | |||
| NRI SALES DATA | |||||
| Crude oil, natural gas and natural gas liquids sales (MBOE) | 1,094 | 1,717 | 1,708 | ||
| Average daily sales volumes (BOE) | 12,157 | 19,074 | 18,566 | ||
| WI PRODUCTION DATA | |||||
| Etame Crude oil (MBbl) | 676 | 767 | 712 | ||
| Gabon Average daily production volumes (BOEPD) | 7,516 | 8,522 | 7,743 | ||
| Egypt Crude oil (MBbl) | 1,014 | 920 | 1,009 | ||
| Egypt Average daily production volumes (BOEPD) | 11,264 | 10,225 | 10,963 | ||
| Canada Crude Oil (MBbl) | 31 | 80 | 56 | ||
| Canada Natural Gas (MMcf) | 226 | 413 | 402 | ||
| Canada Natural Gas Liquid (MBOE) | 31 | 69 | 63 | ||
| Canada Crude oil, natural gas and natural gas liquids (MBOE) | 99 | 218 | 186 | ||
| Canada Average daily production volumes (BOEPD) | 1,105 | 2,420 | 2,023 | ||
| Côte d'Ivoire Crude oil (MBbl) | — | 111 | — | ||
| Côte d'Ivoire Average daily production volumes (BOEPD) | — | 1,235 | — | ||
| Total Crude oil, natural gas and natural gas liquids production (MBOE) | 1,790 | 2,016 | 1,907 | ||
| Average daily production volumes (BOEPD) | 19,884 | 22,402 | 20,729 | ||
| NRI PRODUCTION DATA | |||||
| Etame Crude oil (MBbl) | 588 | 667 | 620 | ||
| Gabon Average daily production volumes (BOEPD) | 6,539 | 7,414 | 6,737 | ||
| Egypt Crude oil (MBbl) | 688 | 642 | 702 | ||
| Egypt Average daily production volumes (BOEPD) | 7,644 | 7,131 | 7,635 | ||
| Canada Crude Oil (MBbl) | 26 | 66 | 48 | ||
| Canada Natural Gas (MMcf) | 190 | 338 | 349 | ||
| Canada Natural Gas Liquid (MBOE) | 26 | 56 | 55 | ||
| Canada Crude oil, natural gas and natural gas liquids (MBOE) | 83 | 179 | 162 | ||
| Canada Average daily production volumes (BOEPD) | 927 | 1,984 | 1,757 | ||
| Côte d'Ivoire Crude oil (MBbl) | — | 111 | — | ||
| Côte d'Ivoire Average daily production volumes (BOEPD) | — | 1,235 | — | ||
| Total Crude oil, natural gas and natural gas liquids production (MBOE) | 1,360 | 1,599 | 1,484 | ||
| Average daily production volumes (BOEPD) | 15,110 | 17,764 | 16,128 | ||
| AVERAGE SALES PRICES: | ||||||||
| Crude oil, natural gas and natural gas liquids sales (per BOE) - WI basis | $ | 62.87 | $ | 67.03 | $ | 53.46 | ||
| Crude oil, natural gas and natural gas liquids sales (per BOE) - NRI basis | $ | 57.21 | $ | 64.27 | $ | 52.54 | ||
| Crude oil, natural gas and natural gas liquids sales (Per BOE including realized commodity derivatives) - NRI basis | $ | 43.84 | $ | 64.34 | $ | 52.59 | ||
| COSTS AND EXPENSES (Per BOE of sales): | ||||||||
| Production expense | $ | 25.94 | $ | 26.10 | $ | 25.24 | ||
| Production expense, excluding offshore workovers and stock compensation* | $ | 25.89 | $ | 26.05 | $ | 25.20 | ||
| Depreciation, depletion and amortization | $ | 16.65 | $ | 17.65 | $ | 18.06 | ||
| General and administrative expense** | $ | 7.56 | $ | 5.27 | $ | 3.92 | ||
| Property and equipment expenditures, cash basis (in thousands) | $ | 78,074 | $ | 58,527 | $ | 100,128 | ||
*Offshore workover costs excluded for Q1 2026, Q1 2025, and Q4 2025 are
*Stock compensation associated with production expense excluded for Q1 2026, Q1 2025, and Q4 2025 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 Baobab Acquisition, FPSO demobilization, transaction costs related to the Baobab 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 Baobab 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 (Loss) to Adjusted Net Income (Loss) | March 31, 2026 | March 31, 2025 | December 31, 2025 | ||||||||
| Net income (loss) | $ | (93,764 | ) | $ | 7,730 | $ | (58,603 | ) | |||
| Adjustment for discrete items: | |||||||||||
| Unrealized derivative instruments (gain) loss | 55,948 | 198 | (3,549 | ) | |||||||
| Loss on sale of assets | 1,202 | — | — | ||||||||
| Impairment loss on assets held for sale | — | — | 67,224 | ||||||||
| Deferred income tax benefit | (10,559 | ) | (1,610 | ) | (9,858 | ) | |||||
| Transaction costs related to acquisition | — | 22 | 53 | ||||||||
| Other operating expense, net | — | — | 2,391 | ||||||||
| Adjusted Net Income (Loss) | $ | (47,173 | ) | $ | 6,340 | $ | (2,342 | ) | |||
| Diluted Adjusted Net Income (Loss) per Share | $ | (0.45 | ) | $ | 0.06 | $ | (0.02 | ) | |||
| Diluted weighted average shares outstanding (1) | 104,258 | 103,785 | 104,258 | ||||||||
(1) No adjustments to weighted average shares outstanding
| Three Months Ended | |||||||||||
| Reconciliation of Net Income (Loss) to Adjusted EBITDAX | March 31, 2026 | March 31, 2025 | December 31, 2025 | ||||||||
| Net income (loss) | $ | (93,764 | ) | $ | 7,730 | $ | (58,603 | ) | |||
| Add back: | |||||||||||
| Interest expense, net | 1,699 | 1,295 | 2,044 | ||||||||
| Income tax expense (benefit) | 4,315 | 16,083 | (4,648 | ) | |||||||
| Depreciation, depletion and amortization | 18,212 | 30,305 | 30,845 | ||||||||
| Loss on sale of assets | 1,202 | — | — | ||||||||
| Impairment loss on assets held for sale | — | — | 67,224 | ||||||||
| Exploration expense | 22,394 | — | 6,040 | ||||||||
| Non-cash or unusual items: | |||||||||||
| Stock-based compensation | 1,355 | 1,352 | 1,508 | ||||||||
| Unrealized derivative instruments (gain) loss | 55,948 | 198 | (3,549 | ) | |||||||
| Other operating expense, net | — | — | 2,391 | ||||||||
| Transaction costs related to acquisition | — | 22 | 53 | ||||||||
| Credit losses (recovery) and other | 271 | (27 | ) | (379 | ) | ||||||
| Adjusted EBITDAX | $ | 11,631 | $ | 56,958 | $ | 42,926 | |||||
| VAALCO ENERGY, INC AND SUBSIDIARIES Reconciliations of Non-GAAP Financial Measures (Unaudited) (in thousands) | |||||||||||
| Reconciliation of Working Capital to Adjusted Working Capital | March 31, 2026 | December 31, 2025 | Change | ||||||||
| Current assets | $ | 116,118 | $ | 132,980 | $ | (16,862 | ) | ||||
| Current liabilities | (226,201 | ) | (192,000 | ) | (34,201 | ) | |||||
| Working capital | (110,083 | ) | (59,020 | ) | (51,063 | ) | |||||
| Add: lease liabilities - current portion | 19,062 | 17,863 | 1,199 | ||||||||
| Adjusted Working Capital | $ | (91,021 | ) | $ | (41,157 | ) | $ | (49,864 | ) | ||
| Three Months Ended March 31, 2026 | |||
| Reconciliation of Free Cash Flow | (in thousands) | ||
| Net cash provided by Operating activities | $ | (39,226 | ) |
| Net cash used in Investing activities | (52,600 | ) | |
| Net cash provided by Financing activities | 80,977 | ||
| Effects of exchange rate changes on cash | (32 | ) | |
| Total net cash change | (10,881 | ) | |
| Add back shareholder cash out: | |||
| Dividends paid | 6,688 | ||
| Total cash returned to shareholders | 6,688 | ||
| Free Cash Flow | $ | (4,193 | ) |
Reconciliation of Debt to Net Debt
Net debt, or outstanding debt obligations less cash and cash equivalents, is a non-GAAP financial measure. Management uses net debt as a measure of the Company’s outstanding debt obligations that would not be readily satisfied by its cash and cash equivalents on hand.
| Reconciliation of Debt to Net Debt | March 31, 2026 | December 31, 2025 | |||||
| Long-term debt | $ | 152,000 | $ | 60,000 | |||
| Less: Cash and cash equivalents | (48,044 | ) | (58,900 | ) | |||
| Net debt | $ | 103,956 | $ | 1,100 | |||
