VAALCO Energy, Inc. Announces Fourth Quarter and Full Year 2025 Results
Rhea-AI Summary
VAALCO Energy (NYSE: EGY) reported Q4 and full-year 2025 results and 2026 guidance. Key 2025 metrics: sold 17,452 NRI BOEPD (FY sold), production 16,556 NRI BOEPD, FY net loss $41.4M (EPS -$0.40), Adjusted EBITDAX $173.4M, year-end proved reserves 43.0 MMBOE. Announced a $255M reserves-based lending facility (expandable to $300M), a 2026 capex plan of $290–360M, and a quarterly dividend of $0.0625 per share.
Positive
- Sales 17,452 NRI BOEPD, above increased guidance
- Adjusted EBITDAX of $173.4M for FY 2025
- Entered reserves-based lending facility with $255M commitment
- Returned $26.5M to shareholders in 2025
Negative
- Reported FY 2025 net loss of $41.4M
- Q4 2025 net loss driven by $67.2M impairment
- Year-end proved reserves decreased 5% to 43.0 MMBOE
- 2026 capital budget of $290–360M implies higher near-term spend
News Market Reaction – EGY
In the Mar 13 session, EGY declined 4.43%, reflecting a moderate negative market reaction. Argus tracked a trough of -10.7% from its starting point during tracking. Our momentum scanner triggered 12 alerts that day, indicating notable 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 |
|---|---|---|---|---|
| Nov 10 | Q3 2025 earnings | Neutral | -4.0% | Q3 2025 results with small net income and adjusted loss but guidance raised. |
| Aug 07 | Q2 2025 earnings | Positive | +5.3% | Q2 2025 beat guidance with solid net income and strong Adjusted EBITDAX. |
| May 08 | Q1 2025 earnings | Positive | -0.3% | Q1 2025 showed solid profit and EBITDAX but revenue down vs Q4 2024. |
| Mar 13 | FY 2024 earnings | Positive | +14.3% | Record 2024 EBITDAX, higher reserves and strong net income from growth. |
| Nov 11 | Q3 2024 earnings | Positive | -1.8% | Q3 2024 strong profit and EBITDAX with higher sales and lower costs. |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Earnings releases often trigger sizable moves for EGY, with both strong rallies and occasional selloffs, and reactions not always matching headline strength.
Over the last five earnings cycles, VAALCO shifted from record 2024 profitability to more mixed 2025 results as Côte d’Ivoire production remained offline and capital spending stayed elevated. Earlier quarters in 2025 still showed positive net income and solid Adjusted EBITDAX, but Q3 already reflected lower profitability versus 2024. The current full-year 2025 report, highlighting a net loss alongside strong cash generation and reserve updates, follows this transition phase while building on the operational themes previously signaled.
Key Terms
net revenue interest financial
working interest financial
adjusted ebitdax financial
floating production storage and offloading vessel technical
fpso technical
sec proved reserves regulatory
pv-10 financial
2p wi cpr reserves technical
AI-generated analysis. How Rhea-AI works. Not financial advice.
HOUSTON, March 12, 2026 (GLOBE NEWSWIRE) -- VAALCO Energy, Inc. (NYSE: EGY, LSE: EGY) (“Vaalco” or the “Company”) today reported operational and financial results for the fourth quarter and full year of 2025, including year-end 2025 reserves. Additionally, the Company provided operational and financial guidance for the first quarter and full year of 2026.
2025 Full Year Highlights:
- Sold 17,452 net revenue interest (“NRI”)(1) barrels of oil equivalent per day (“BOEPD”), above the high end of the Company's increased guidance, while delivering production of 16,556 NRI(1) BOEPD or 21,160 working interest (“WI”)(2) BOEPD, both above the midpoint of Vaalco's increased guidance;
- Reported full year (“FY”) 2025 net loss of
$41.4 million ($0.40 per diluted share) and Adjusted Net Loss(3) of$4.0 million ($0.04 per diluted share); - Generated Adjusted EBITDAX(3) of
$173.4 million and net cash from operating activities of$212.7 million in FY 2025; - Reported year-end 2025 SEC proved reserves of 43.0 million barrels of oil equivalent (“MMBOE”), which included 4 MMBOE of positive revisions, organic additions and extensions, replacing two-thirds of 2025 production;
- Entered into new reserves based lending facility with a current commitment level of
$255 million and the ability to grow to$300 million ; - Continued strong collection of receivables in Egypt and at year end 2025 this balance had fallen to
$31 million ; - Acquired
70% WI(3) in and will operate the CI-705 block in offshore Côte d’Ivoire, which covers approximately 2,300 square kilometers (“km2”) located in the prolific Tano basin and is approximately 70 km to the west of Vaalco’s CI-40 Block; and - Returned
$26.5 million to shareholders in 2025 through dividends and has returned over$115 million to shareholders since Q4 2021 through dividends and share buybacks.
Fourth Quarter 2025 Highlights:
- Sold 18,566 NRI BOEPD,
10% above the high end of guidance, while production was 16,128 NRI(2) BOEPD or 20,729 WI(2) BOEPD; - Reported net loss of
$58.6 million ($0.56 per diluted share), Adjusted Net Loss(3) of$2.3 million ($0.02 per diluted share) and Adjusted EBITDAX(3) of $42.9 million; and - Invested
$100.1 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 and drilling in Egypt.
2026 Recent Key Items and Outlook:
- 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 second half of 2026;- Further information on the Kossipo field can be found in the Q4 2025 supplemental deck posted on Vaalco’s website;
- Divested all Canadian properties for
$25.5 million with a closing date of February 19, 2026; - Successfully drilled, completed and placed on production the Etame 15H-ST development well, confirming expectations from the ET-15P pilot well results;
- Planning a 2026 capital budget of
$290 t o$360 million , including a drilling campaign at Etame, expected completion of the FPSO Refurbishment/Reconnection Project, initial Phase 5 Drilling Program at Baobab and continued field activity in Egypt; and - Declared quarterly cash dividend of
$0.0625 per share of common stock to be paid on March 27, 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, “In 2025, we successfully completed another year where we delivered consistent quarterly results that either met or exceeded our guidance. We repeatedly raised production and sales guidance in 2025 and continued to deliver on those increased guidance ranges. Operationally, we kicked off the Gabon Phase Three Drilling Campaign in Q4 2025, we continued to progress the FPSO project for Baobab and we successfully continued to drill in Egypt. Financially, we entered into a new reserves based lending facility with the ability to grow to
“In 2026, we began the year 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, “I am proud of all that we have accomplished in these past five years and would like to thank our hard-working employees for helping us to achieve so many milestones. We have successfully grown Vaalco from a single asset delivering around 5,000 BOPD to a diversified, multi country operator well on our way to achieving our goal of 50,000 BOEPD. I believe that we are well positioned to continue to execute operationally and financially to achieve all of our growth targets and continue to generate and return value to our shareholders for the rest of the decade. Our track record of success in delivering results should provide our investors with assurance that we can execute on our expanded portfolio of opportunities.”
Operational Update
Gabon
The Company’s Phase Three Drilling Program in Gabon commenced in the fourth quarter of 2025 with the drilling of two pilot wells in the Etame field. Based on the results of the pilot wells, the Company proceeded with the drilling of the Etame 15H-ST1 development well in the 1V block of Etame in December 2025. The well was completed and placed on production in January 2026 confirming expectations from the ET-15P pilot well results. The Company recently announced that although the West Etame exploration well (ET-14P) encountered 10 meters of high quality sands, the target zone was water-bearing. The lower portion of the well will be plugged and abandoned but the well bore will be utilized and sidetracked in the upper portion of the well to drill the ET-14H development well in the Main Fault Block of Etame. Operations are expected to be completed in April.
After completing the program at the Etame platform, the Company expects to move the drill rig to the SEENT and Ebouri platforms where the Company has several wells and workovers planned to enhance production, lower costs and potentially add reserves.
In the Niosi and Guduma blocks, the partners initiated its 3D seismic campaign in November 2025 and was completed in January 2026. The seismic acquisition was executed to satisfy the minimum commitments under the terms of the Niosi PSC as well as to inform the decision on whether to proceed into the second exploration period for the Guduma Block.
Egypt
Vaalco conducted a drilling campaign in Egypt that began in December 2024 and concluded in the fourth quarter of 2025. During the fourth quarter of 2025, four development wells were drilled in the Eastern Desert, of which three were completed during the same period and the fourth well was completed in January 2026. The successful 2025 Egyptian drilling program included an exploration well in the H-Field, Eastern Desert, that opens a new development area with an initial flow rate of approximately 450 BOEPD. Additionally, continuous well interventions, workovers and optimization activities were carried out throughout the fourth quarter of 2025 to enhance production levels.
Côte d'Ivoire
In connection with the planned dry dock refurbishment, the Baobab FPSO ceased hydrocarbon production on January 31, 2025, with the final crude oil lifting in February 2025. The vessel departed the field in late March 2025 for Dubai for the refurbishment work, which was completed in February 2026. The Baobab FPSO has commenced mobilization back to Côte d’Ivoire and is expected to return to offshore Côte d’Ivoire by late March 2026. A rig has been secured for the planned development drilling program at Baobab which is expected to begin during the fourth quarter of 2026 after the FPSO returns to service. The drilling campaign is expected to bring meaningful additions to production from the main Baobab field in CI-40.
In February 2026, the Company was confirmed as the operator with a
Equatorial Guinea
The Company 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
Year-End 2025 Reserves
Vaalco’s SEC proved reserves at December 31, 2025 decreased by
The standardized measure of Vaalco’s SEC proved reserves, utilizing SEC pricing increased to
| MMBoe | |||
| Proved SEC Reserves at December 31, 2024 | 45.0 | ||
| 2025 Production | (6.0 | ) | |
| Revisions of Previous Estimates | 2.8 | ||
| Extensions and Additions | 1.2 | ||
| Proved SEC Reserves at December 31, 2025 | 43.0 | ||
At year-end 2025, NSAI provided the 2P WI CPR estimates of proven and probable reserves which were prepared in accordance with the definitions and guidelines set forth in the 2018 Petroleum Resources Management Systems approved by the Society of Petroleum Engineers as of December 31, 2025 using Vaalco’s management assumptions for future commodity pricing and costs shown below under “WI CPR Reserves”. The 2P WI CPR reserves attributable to Vaalco’s ownership are reported on a WI basis prior to deductions for government royalties. Management's year-end 2025 2P WI CPR estimate of reserves is 90.7 MMBOE to Vaalco’s WI, a decrease of
See “PV-10 Value and Probable Reserves” and “WI CPR Reserves” for additional information related to 2P WI CPR reserves and 2P PV-10.
Financial Update – Fourth Quarter of 2025
Vaalco reported a net loss of
Adjusted EBITDAX totaled
| Quarterly Summary - Sales and Net Revenue | |||||||||||||||||||||||||||||||||||||
| $ in thousands | Three Months Ended December 31, 2025 | Three Months Ended September 30, 2025 | |||||||||||||||||||||||||||||||||||
| Gabon | Egypt | Canada | Côte d'Ivoire | Total | Gabon | Egypt | Canada | Côte d'Ivoire | Total | ||||||||||||||||||||||||||||
| Oil Sales | $ | 56,238 | $ | 54,842 | $ | 2,966 | $ | — | $ | 114,046 | $ | 24,287 | $ | 58,271 | $ | 3,278 | $ | — | $ | 85,836 | |||||||||||||||||
| NGL Sales | — | — | 1,444 | — | 1,444 | — | — | 1,418 | — | 1,418 | |||||||||||||||||||||||||||
| Gas Sales | — | — | 648 | — | 648 | — | — | 196 | — | 196 | |||||||||||||||||||||||||||
| Gross Sales | 56,238 | 54,842 | 5,058 | — | 116,138 | 24,287 | 58,271 | 4,892 | — | 87,450 | |||||||||||||||||||||||||||
| Selling Costs & Carried Interest | 1,305 | (232 | ) | (177 | ) | — | 896 | 495 | (183 | ) | (187 | ) | — | 125 | |||||||||||||||||||||||
| Royalties & Taxes | (7,830 | ) | (17,520 | ) | (642 | ) | — | (25,992 | ) | (3,511 | ) | (22,392 | ) | (665 | ) | — | (26,568 | ) | |||||||||||||||||||
| Net Revenue | $ | 49,713 | $ | 37,090 | $ | 4,239 | $ | — | $ | 91,042 | $ | 21,271 | $ | 35,696 | $ | 4,040 | $ | — | $ | 61,007 | |||||||||||||||||
| Oil Sales MMB (working interest) | 970 | 1,009 | 56 | — | 2,035 | 383 | 995 | 52 | — | 1,430 | |||||||||||||||||||||||||||
| Average Oil Price Received | $ | 57.97 | $ | 54.14 | $ | 53.23 | $ | — | $ | 56.05 | $ | 63.46 | $ | 58.40 | $ | 62.75 | $ | — | $ | 60.04 | |||||||||||||||||
| Change | (7)% | ||||||||||||||||||||||||||||||||||||
| Average Brent Price | $ | 63.65 | $ | 69.04 | |||||||||||||||||||||||||||||||||
| Change | (8)% | ||||||||||||||||||||||||||||||||||||
| Gas Sales MMCF (working interest) | — | — | 402 | — | 402 | — | — | 429 | — | 429 | |||||||||||||||||||||||||||
| Average Gas Price Received | — | — | $ | 1.62 | — | $ | 1.61 | — | — | $ | 0.46 | — | $ | 0.46 | |||||||||||||||||||||||
| Change | 250 | % | |||||||||||||||||||||||||||||||||||
| Average Aeco Price ($USD) | — | — | $ | 2.12 | — | $ | 2.12 | — | — | $ | 0.69 | — | $ | 0.69 | |||||||||||||||||||||||
| Change | 208 | % | |||||||||||||||||||||||||||||||||||
| NGL Sales MMB (working interest) | — | — | 63 | — | 63 | — | — | 56 | — | 56 | |||||||||||||||||||||||||||
| Average Liquids Price Received | — | — | $ | 22.78 | — | $ | 22.78 | — | — | $ | 25.17 | — | $ | 25.17 | |||||||||||||||||||||||
| Change | (9)% | ||||||||||||||||||||||||||||||||||||
| Revenue and Sales | Q4 2025 | Q4 2024 | % Change Q4 2025 vs. Q4 2024 | Q3 2025 | % Change Q4 2025 vs. Q3 2025 | ||||||||
| Production (NRI BOEPD) | 16,128 | 20,775 | (22)% | 15,405 | 5 | % | |||||||
| Sales (NRI BOE) | 1,708,000 | 1,872,000 | (9)% | 1,180,000 | 45 | % | |||||||
| Realized commodity price ($/BOE) | $ | 52.54 | $ | 64.77 | (19)% | $ | 51.26 | 2 | % | ||||
| Commodity (Per BOE including realized commodity derivatives) | $ | 52.59 | $ | 64.48 | (18)% | $ | 50.96 | 3 | % | ||||
| Total commodity sales ($MM) | $ | 91.0 | $ | 121.7 | (25)% | $ | 61.0 | 49 | % | ||||
In Q4 2025, Vaalco had a net revenue increase of
| Costs and Expenses | Q4 2025 | Q4 2024 | % Change Q4 2025 vs. Q4 2024 | Q3 2025 | % Change Q4 2025 vs. Q3 2025 | ||||||||||||
| Production expense, excluding offshore workovers and stock comp ($MM) | $ | 43.0 | $ | 36.5 | 18 | % | $ | 29.8 | 44 | % | |||||||
| Production expense, excluding offshore workovers ($/BOE) | $ | 25.21 | $ | 19.52 | 29 | % | $ | 25.24 | — | % | |||||||
| Offshore workover expense ($MM) | $ | 0.1 | $ | 0.1 | — | % | $ | 0.1 | — | % | |||||||
| Depreciation, depletion and amortization ($MM) | $ | 30.8 | $ | 37.0 | (17)% | $ | 20.6 | 50 | % | ||||||||
| Depreciation, depletion and amortization ($/BOE) | $ | 18.06 | $ | 19.79 | (9)% | $ | 17.41 | 4 | % | ||||||||
| General and administrative expense, excluding stock-based compensation ($MM) | $ | 5.2 | $ | 7.1 | (27)% | $ | 7.2 | (28)% | |||||||||
| General and administrative expense, excluding stock-based compensation ($/BOE) | $ | 3.04 | $ | 3.80 | (20)% | $ | 6.07 | (50)% | |||||||||
| Stock-based compensation expense ($MM) | $ | 1.5 | $ | 1.4 | 8 | % | $ | 1.7 | (11 | %) | |||||||
| Current income tax expense (benefit) ($MM) | $ | 5.2 | $ | 26.2 | (80)% | $ | 8.6 | (39)% | |||||||||
| Deferred income tax expense (benefit) ($MM) | $ | (9.8 | ) | $ | (9.0 | ) | 9 | % | $ | (12.2 | ) | (19 | %) | ||||
Total production expense (excluding offshore workovers and stock compensation) of
DD&A expense for Q4 2025 was
General and administrative (“G&A”) expense, excluding stock-based compensation, decreased to
Non-cash stock-based compensation expense was
Exploration expense was
Total other income (expense), net, was an income of
Vaalco reported an income tax benefit for Q4 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 December 31, 2025 | $ | 1,451 | $ | 8,430 | $ | — | $ | — | $ | — | $ | — | $ | 9,881 | |||||||
Financial Update - Full Year 2025
Net sales for the year ended December 31, 2025 decreased to 6,370 MBOE compared to 7,262 MBOE in the year ended December 31, 2024. The decrease was driven primarily by a reduction in sales volume from Côte d’Ivoire due to the FPSO refurbishment.
The average realized price for the year ended December 31, 2025 was
The Company reported a net loss for the year ended December 31, 2025 of
| Year to Date Summary - Sales and Net Revenue | |||||||||||||||||||||||||||||||||||||
| $ in thousands | Year Ended December 31, 2025 | Year Ended December 31, 2024 | |||||||||||||||||||||||||||||||||||
| Gabon | Egypt | Canada | Côte d'Ivoire | Total | Gabon | Egypt | Canada | Côte d'Ivoire | Total | ||||||||||||||||||||||||||||
| Oil Sales | $ | 208,353 | $ | 225,957 | $ | 15,319 | $ | 18,396 | $ | 468,025 | $ | 236,221 | $ | 250,946 | $ | 28,418 | $ | 95,082 | $ | 610,667 | |||||||||||||||||
| NGL Sales | — | — | 5,968 | — | 5,968 | — | — | 7,859 | — | 7,859 | |||||||||||||||||||||||||||
| Gas Sales | — | — | 2,052 | — | 2,052 | — | — | 1,849 | — | 1,849 | |||||||||||||||||||||||||||
| Gross Sales | 208,353 | 225,957 | 23,339 | 18,396 | 476,045 | 236,221 | 250,946 | 38,126 | 95,082 | 620,375 | |||||||||||||||||||||||||||
| Selling Costs & Carried Interest | 1,865 | (743 | ) | (835 | ) | — | 287 | 2,276 | (531 | ) | (1,131 | ) | — | 614 | |||||||||||||||||||||||
| Royalties & Taxes | (28,480 | ) | (85,250 | ) | (3,330 | ) | — | (117,060 | ) | (32,543 | ) | (104,449 | ) | (5,009 | ) | — | (142,001 | ) | |||||||||||||||||||
| Net Revenue | $ | 181,738 | $ | 139,964 | $ | 19,174 | $ | 18,396 | $ | 359,272 | $ | 205,954 | $ | 145,966 | $ | 31,986 | $ | 95,082 | $ | 478,988 | |||||||||||||||||
| Oil Sales MMB (working interest) | 3,144 | 3,918 | 250 | 238 | 7,550 | 2,971 | 3,791 | 402 | 1,223 | 8,387 | |||||||||||||||||||||||||||
| Average Oil Price Received | $ | 66.27 | $ | 57.48 | $ | 61.16 | $ | 77.36 | $ | 61.99 | $ | 79.52 | $ | 66.20 | $ | 70.66 | 77.74 | $ | 72.81 | ||||||||||||||||||
| Change | (15)% | ||||||||||||||||||||||||||||||||||||
| Average Brent Price | $ | 69.14 | $ | 80.52 | |||||||||||||||||||||||||||||||||
| Change | (14)% | ||||||||||||||||||||||||||||||||||||
| Gas Sales MMCF (working interest) | — | — | 1,692 | — | 1,692 | — | — | 1,772 | — | 1,772 | |||||||||||||||||||||||||||
| Average Gas Price Received | — | — | $ | 1.21 | — | $ | 1.21 | — | — | $ | 1.04 | — | $ | 1.04 | |||||||||||||||||||||||
| Change | 16 | % | |||||||||||||||||||||||||||||||||||
| Average Aeco Price ($USD) | — | — | $ | 1.40 | — | $ | 1.40 | — | — | $ | 1.05 | — | $ | 1.05 | |||||||||||||||||||||||
| Change | 33 | % | |||||||||||||||||||||||||||||||||||
| NGL Sales MMB (working interest) | — | — | 248 | — | 248 | — | — | 309 | — | 309 | |||||||||||||||||||||||||||
| Average Liquids Price Received | — | — | $ | 24.04 | — | $ | 24.04 | — | — | $ | 25.46 | — | $ | 25.46 | |||||||||||||||||||||||
| Change | (6)% | ||||||||||||||||||||||||||||||||||||
Capital Investments/Balance Sheet
For the fourth quarter of 2025, net capital expenditures totaled
As of December 31, 2025, Vaalco had an unrestricted cash balance of
In March 2025, Vaalco entered into a new reserves based lending facility (the “2025 RBL Facility”) that had initial aggregate commitments of
On February 4, 2026, the Company borrowed an additional
Effective October 17, 2025, the Lenders unanimously approved an increase in the Company’s borrowing base under the new facility from
In addition, on November 7, 2025, subject to certain conditions precedent, certain existing lenders under the new facility agreed to increase their initial commitment 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 lock in 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 fourth quarter of 2025:
| Settlement Period | ||||||||||||||
| Instrument | Index | January 2026 - March 2026 | April 2026 - June 2026 | July 2026 - September 2026 | October 2026 - December 2026 | |||||||||
| Crude oil: | ||||||||||||||
| Collars | Dated Brent | |||||||||||||
| Total volumes (Bbls) | 400,000 | 360,000 | 75,000 | — | ||||||||||
| Weighted average floor price ($/Bbl) | $ | 62.29 | $ | 61.88 | $ | 65.00 | $ | — | ||||||
| Weighted average ceiling price ($/Bbl) | $ | 68.63 | $ | 67.95 | $ | 71.00 | $ | — | ||||||
| Natural Gas(a): | ||||||||||||||
| Swaps | AECO 7A | |||||||||||||
| Total volumes (GJs)(b) | 225,000 | 150,000 | 150,000 | 50,000 | ||||||||||
| Weighted average fixed price (CAD/GJ) | $ | 2.99 | $ | 2.80 | $ | 2.80 | $ | 2.80 | ||||||
(a) Natural gas hedge contracts were assumed by the third-party purchaser upon closing of the sale pursuant to the Canada APA.
(b) One gigajoule (GJ) equals one billion joules (J). A gigajoule of natural gas is approximately 25.5 cubic meters standard conditions.
Subsequent to December 31, 2025, the Company entered into the following additional derivative contracts to cover its future anticipated production:
| Settlement Period | |||||||||||||||||
| Instrument | Index | January 2026 - March 2026 | April 2026 - June 2026 | July 2026 - September 2026 | October 2026 - December 2026 | January 2027 - March 2027 | |||||||||||
| Crude oil: | |||||||||||||||||
| Collars | Dated Brent | ||||||||||||||||
| Total volumes (Bbls) | 260,000 | 338,000 | 702,000 | 692,000 | 673,000 | ||||||||||||
| Weighted average floor price ($/Bbl) | $ | 62.00 | $ | 64.22 | $ | 63.72 | $ | 64.96 | $ | 64.68 | |||||||
| Weighted average ceiling price ($/Bbl) | $ | 67.80 | $ | 70.14 | $ | 68.49 | $ | 68.33 | $ | 72.63 | |||||||
| Swaps | Dated Brent | ||||||||||||||||
| Total volumes (Bbls) | 100,000 | ||||||||||||||||
| Weighted average fixed price ($/Bbl) | $ | 65.10 | |||||||||||||||
The Company has continued to add more hedges as part of a rolling hedging program to provide downside protection against a volatile commodity price backdrop. Taking advantage of higher oil prices in early 2026, the Company further secured the above additional hedge positions. As a result, approximately 2,900 MBbls of 2026 oil production is hedged at an average floor price of approximately
2026 Guidance:
The Company has provided first 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 | 20100 - 22400 | 8300 - 9200 | 9500 - 10500 | 200 - 300 | 2100 - 2400 | |||||
| Production (BOEPD) | NRI | 16100 - 17950 | 7300 - 8000 | 6500 - 7300 | 200 - 250 | 2100 - 2400 | |||||
| Sales Volume (BOEPD) | WI | 18800 - 22600 | 7200 - 9800 | 9500 - 10500 | 200 - 300 | 1900 - 2000 | |||||
| Sales Volume (BOEPD) | NRI | 14900 - 18050 | 6300 - 8500 | 6500 - 7300 | 200 - 250 | 1900 - 2000 | |||||
| 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 ($/BOE) | NRI |
| Q1 2026 | Gabon | Egypt | Canada | Côte d'Ivoire | |||||||
| Production (BOEPD) | WI | 18700 - 20600 | 7300 - 8000 | 10300 - 11400 | 1100 - 1200 | ||||||
| Production (BOEPD) | NRI | 14200 - 16000 | 6300 - 7000 | 7000 - 8000 | 900 - 1000 | ||||||
| Sales Volume (BOEPD) | WI | 15200 - 17000 | 3800 - 4400 | 10300 - 11400 | 1100 - 1200 | ||||||
| Sales Volume (BOEPD) | NRI | 11200 - 12900 | 3300 - 3900 | 7000 - 8000 | 900 - 1000 | ||||||
| Production Expense (millions) | WI & NRI | ||||||||||
| Production Expense per BOE | WI | ||||||||||
| Production Expense per BOE | NRI | ||||||||||
| Exploration Expense (millions) | WI & NRI | ||||||||||
| Offshore Workovers (millions) | WI & NRI | ||||||||||
| Cash G&A (millions) | WI & NRI | ||||||||||
| CAPEX Excluding Acquisitions (millions) | WI & NRI | ||||||||||
| DD&A ($/BOE) | NRI |
Conference Call
As previously announced, the Company will hold a conference call to discuss its fourth quarter 2025 financial and operating results, Friday, March 13, 2026, at 9:00 a.m. Central Time (10:00 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 Fourth 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 “Q4 2025 Supplemental Information” investor deck will be posted to Vaalco’s website prior to its conference call on March 13, 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 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 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; 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 and any subsequent Quarterly Reports on Form 10-Q filed with the SEC.
Dividends beyond the first 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.
PV-10 Value and Probable Reserves
PV-10 is a non-GAAP financial measure and represents the period-end present value of estimated future cash inflows from VAALCO’s reserves, less future development and production costs, discounted at
VAALCO has provided summations of its PV-10 for its proved and probable reserves on a 2P WI CPR basis in this press release. The SEC strictly prohibits companies from aggregating proved, probable and possible reserves in filings with the SEC due to the different levels of certainty associated with each reserve category. GAAP does not provide a measure of estimated future net cash flows for reserves other than proved reserves and accordingly it is not practicable to reconcile the PV-10 value of 2P WI CPR reserves to a GAAP measure, such as the standardized measure. Investors should be cautioned that estimates of PV-10 of probable reserves, as well as the underlying volumetric estimates, are inherently more uncertain of being recovered and realized than comparable measures for proved reserves. Further, because estimates of probable reserve volumes have not been adjusted for risk due to this uncertainty of recovery, their summation may be of limited use. Nonetheless, VAALCO believes that PV-10 estimates for probable reserves present useful information for investors about the future net cash flows of its reserves in the absence of a comparable GAAP measure such as standardized measure.
WI CPR Reserves
WI CPR reserves represent proved (“1P”) and proved plus probable (“2P”) estimates as reported by NSAI and prepared in accordance with the definitions and guidelines set forth in the 2018 Petroleum Resources Management Systems approved by the Society of Petroleum Engineers. The SEC definitions of proved and probable reserves are different from the definitions contained in the 2018 Petroleum Resources Management Systems approved by the Society of Petroleum Engineers. As a result, 1P and 2P WI CPR reserves may not be comparable to United States standards. The SEC requires United States oil and gas reporting companies, in their filings with the SEC, to disclose only proved reserves after the deduction of royalties and production due to others but permits the optional disclosure of probable and possible reserves in accordance with SEC definitions.
1P and 2P WI CPR reserves, as disclosed herein, may differ from the SEC definitions of proved and probable reserves because:
- Pricing for SEC is the average closing price on the first trading day of each month for the prior year which is then held flat in the future, while the 1P and 2P WI CPR pricing assumption was
$65.00 per barrel of oil beginning in 2026,$70.00 in 2027, and inflating2% thereafter; and - Lease operating expenses are typically not escalated under the SEC’s rules, while for the WI CPR reserves estimates, they are escalated at
2% annually beginning in 2027.
Management uses 1P and 2P WI CPR reserves as a measurement of operating performance because it assists management in strategic planning, budgeting and economic evaluations and in comparing the operating performance of the Company to other companies. Management believes that the presentation of 1P and 2P WI CPR reserves is useful to its international investors, particularly those that invest in companies trading on the London Stock Exchange, in order to better compare reserve information to other London Stock Exchange-traded companies that report similar measures. However, 1P and 2P WI CPR reserves should not be used as a substitute for proved reserves calculated in accordance with the definitions prescribed by the SEC. In evaluating Vaalco’s business, investors should rely on Vaalco’s SEC proved reserves and consider 1P and 2P WI CPR reserves only supplementally.
VAALCO ENERGY, INC AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
(Unaudited)
| As of December 31, 2025 | As of December 31, 2024 | ||||
| (in thousands) | |||||
| ASSETS | |||||
| Current assets: | |||||
| Cash and cash equivalents | $ | 58,900 | $ | 82,650 | |
| Receivables: | |||||
| Trade, net of allowances for credit loss and other of | 39,924 | 94,778 | |||
| Accounts with joint venture owners, net of allowance for credit losses of | 5,420 | 179 | |||
| Egypt receivables and other | 2,277 | 35,763 | |||
| Other current assets | 26,280 | 24,557 | |||
| Current assets held for sale | 179 | — | |||
| Total current assets | 132,980 | 237,927 | |||
| Crude oil, natural gas and NGLs properties and equipment, net | 586,095 | 538,103 | |||
| Other noncurrent assets: | |||||
| Restricted cash | 1,659 | 8,665 | |||
| Value added tax and other receivables, net of allowances for credit loss and other of | 7,149 | 10,094 | |||
| Right of use operating lease assets | 16,596 | 17,254 | |||
| Right of use finance lease assets | 68,615 | 79,849 | |||
| Deferred tax assets | 54,825 | 55,581 | |||
| Other long-term assets | 13,630 | 7,477 | |||
| Noncurrent assets held for sale | 31,826 | — | |||
| Total assets | $ | 913,375 | $ | 954,950 | |
| LIABILITIES AND SHAREHOLDERS' EQUITY | |||||
| Current liabilities | 191,817 | $ | 181,728 | ||
| Current liabilities held for sale | 183 | — | |||
| Asset retirement obligations | 78,406 | 78,592 | |||
| Operating lease liabilities - net of current portion | 11,183 | 13,903 | |||
| Finance lease liabilities - net of current portion | 57,256 | 67,377 | |||
| Deferred tax liabilities | 63,630 | 93,904 | |||
| Long-term debt | 60,000 | — | |||
| Other long-term liabilities | — | 17,863 | |||
| Noncurrent liabilities held for sale | 7,403 | — | |||
| Total liabilities | 469,878 | 453,367 | |||
| Total shareholders’ equity | 443,497 | 501,583 | |||
| Total liabilities and shareholders’ equity | $ | 913,375 | $ | 954,950 | |
VAALCO ENERGY, INC AND SUBSIDIARIES
Consolidated Statements of Operations
(Unaudited)
| Three Months Ended | Year Ended | ||||||||||||||||||
| December 31, 2025 | December 31, 2024 | September 30, 2025 | December 31, 2025 | December 31, 2024 | |||||||||||||||
| (in thousands except per share amounts) | |||||||||||||||||||
| Revenues: | |||||||||||||||||||
| Crude oil, natural gas and natural gas liquids sales | $ | 91,042 | $ | 121,721 | $ | 61,007 | $ | 359,272 | $ | 478,988 | |||||||||
| Operating costs and expenses: | |||||||||||||||||||
| Production expense | 43,107 | 36,641 | 29,872 | 158,177 | 163,500 | ||||||||||||||
| Exploration expense | 6,040 | — | 353 | 8,914 | 48 | ||||||||||||||
| Depreciation, depletion and amortization | 30,845 | 37,047 | 20,555 | 109,978 | 143,034 | ||||||||||||||
| Impairment loss on assets held for sale | 67,224 | — | — | 67,224 | — | ||||||||||||||
| General and administrative expense | 6,696 | 8,454 | 8,845 | 33,089 | 29,684 | ||||||||||||||
| Credit losses and other | (379 | ) | 1,082 | 484 | 106 | 6,304 | |||||||||||||
| Total operating costs and expenses | 153,533 | 83,224 | 60,109 | 377,488 | 342,570 | ||||||||||||||
| Other operating income (expense), net | (2,391 | ) | 10 | — | (2,391 | ) | 78 | ||||||||||||
| Operating income (loss) | (64,882 | ) | 38,507 | 898 | (20,607 | ) | 136,496 | ||||||||||||
| Other income (expense): | |||||||||||||||||||
| Derivative instruments gain (loss), net | 3,643 | (365 | ) | (1,093 | ) | 2,876 | (745 | ) | |||||||||||
| Interest expense, net | (2,044 | ) | (1,092 | ) | (2,333 | ) | (8,243 | ) | (3,732 | ) | |||||||||
| Bargain purchase gain | — | (6,366 | ) | — | — | 13,532 | |||||||||||||
| Other income (expense), net | 32 | (1,828 | ) | 33 | (595 | ) | (5,754 | ) | |||||||||||
| Total other income (expense), net | 1,631 | (9,651 | ) | (3,393 | ) | (5,962 | ) | 3,301 | |||||||||||
| Income (loss) before income taxes | (63,251 | ) | 28,856 | (2,495 | ) | (26,569 | ) | 139,797 | |||||||||||
| Income tax expense (benefit) | (4,648 | ) | 17,192 | (3,596 | ) | 14,822 | 81,307 | ||||||||||||
| Net income (loss) | $ | (58,603 | ) | $ | 11,664 | $ | 1,101 | $ | (41,391 | ) | $ | 58,490 | |||||||
| Other comprehensive income (loss): | |||||||||||||||||||
| Currency translation adjustments | 1,387 | (5,975 | ) | (1,799 | ) | 4,464 | (7,842 | ) | |||||||||||
| Comprehensive income (loss) | $ | (57,216 | ) | $ | 5,689 | $ | (698 | ) | $ | (36,927 | ) | $ | 50,648 | ||||||
| Basic net income (loss) per share: | |||||||||||||||||||
| Net income (loss) per share | $ | (0.56 | ) | $ | 0.11 | $ | 0.01 | $ | (0.40 | ) | $ | 0.56 | |||||||
| Basic weighted average shares outstanding | 104,258 | 103,743 | 104,258 | 104,055 | 103,669 | ||||||||||||||
| Diluted net income (loss) per share: | |||||||||||||||||||
| Net income (loss) per share | $ | (0.56 | ) | $ | 0.11 | $ | 0.01 | $ | (0.40 | ) | $ | 0.56 | |||||||
| Diluted weighted average shares outstanding | 104,258 | 103,812 | 104,283 | 104,055 | 103,747 | ||||||||||||||
VAALCO ENERGY, INC AND SUBSIDIARIES
Condensed Consolidated Statements of Cash Flows
(Unaudited)
| Year Ended December 31, | |||||||
| 2025 | 2024 | ||||||
| (in thousands) | |||||||
| CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||
| Net income (loss) | $ | (41,391 | ) | $ | 58,490 | ||
| Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||||||
| Depreciation, depletion and amortization | 109,978 | 143,034 | |||||
| Bargain purchase gain and measurement period adjustment | — | (13,532 | ) | ||||
| Impairment loss on assets held for sale | 67,224 | — | |||||
| Deferred taxes | (29,427 | ) | (16,785 | ) | |||
| Non-cash exploration expense | 2,409 | 48 | |||||
| Stock-based compensation expense | 6,211 | 4,281 | |||||
| Derivative instruments loss, net | (2,876 | ) | 745 | ||||
| Cash settlements paid on matured derivative contracts, net | (48 | ) | (453 | ) | |||
| Credit losses and other | (389 | ) | 5,979 | ||||
| Equipment and other expensed in operations | 5,572 | 2,505 | |||||
| Change in operating assets and liabilities | 95,404 | (70,594 | ) | ||||
| Net cash provided by operating activities | 212,667 | 113,718 | |||||
| CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||
| Property and equipment expenditures, including exploration expense | (252,856 | ) | (102,996 | ) | |||
| Acquisition of crude oil and natural gas properties | (3,034 | ) | 877 | ||||
| Net cash used in investing activities | (255,890 | ) | (102,119 | ) | |||
| CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||
| Proceeds from the issuances of common stock | — | 447 | |||||
| Proceeds from borrowings | 60,000 | — | |||||
| Dividend distribution | (26,480 | ) | (26,216 | ) | |||
| Treasury shares | (709 | ) | (6,802 | ) | |||
| Deferred financing costs | (7,145 | ) | — | ||||
| Payments of finance lease | (13,289 | ) | (10,477 | ) | |||
| Net cash provided by (used in) in financing activities | 12,377 | (43,048 | ) | ||||
| Effects of exchange rate changes on cash | 83 | (3 | ) | ||||
| NET CHANGE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH | (30,763 | ) | (31,452 | ) | |||
| CASH, CASH EQUIVALENTS AND RESTRICTED CASH AT BEGINNING OF PERIOD | 97,726 | 129,178 | |||||
| CASH, CASH EQUIVALENTS AND RESTRICTED CASH AT END OF PERIOD | $ | 66,963 | $ | 97,726 | |||
VAALCO ENERGY, INC AND SUBSIDIARIES
Selected Financial and Operating Statistics
(Unaudited)
| Three Months Ended | Year Ended | ||||||||
| December 31, 2025 | December 31, 2024 | September 30, 2025 | December 31, 2025 | December 31, 2024 | |||||
| NRI SALES DATA | |||||||||
| Crude oil, natural gas and natural gas liquids sales (MBOE) | 1,708 | 1,872 | 1,180 | 6,370 | 7,262 | ||||
| Average daily sales volumes (BOE) | 18,566 | 20,352 | 12,831 | 17,452 | 19,843 | ||||
| WI PRODUCTION DATA | |||||||||
| Etame Crude oil (MBbl) | 712 | 791 | 655 | 2,913 | 3,199 | ||||
| Gabon Average daily production volumes (BOEPD) | 7,743 | 8,598 | 7,118 | 7,982 | 8,741 | ||||
| Egypt Crude oil (MBbl) | 1,009 | 923 | 995 | 3,918 | 3,791 | ||||
| Egypt Average daily production volumes (BOEPD) | 10,963 | 10,035 | 10,812 | 10,735 | 10,357 | ||||
| Canada Crude Oil (MBbl) | 56 | 99 | 52 | 250 | 402 | ||||
| Canada Natural Gas (MMcf) | 402 | 431 | 429 | 1,692 | 1,772 | ||||
| Canada Natural Gas Liquid (MBOE) | 63 | 75 | 56 | 248 | 309 | ||||
| Canada Crude oil, natural gas and natural gas liquids (MBOE) | 186 | 246 | 180 | 781 | 1,006 | ||||
| Canada Average daily production volumes (BOEPD) | 2,023 | 2,669 | 1,957 | 2,139 | 2,749 | ||||
| Côte d'Ivoire Crude oil (MBbl) | — | 368 | — | 111 | 1,058 | ||||
| Côte d'Ivoire Average daily production volumes (BOEPD) | — | 3,997 | — | 305 | 2,891 | ||||
| Total Crude oil, natural gas and natural gas liquids production (MBOE) | 1,907 | 2,328 | 1,830 | 7,723 | 9,054 | ||||
| Average daily production volumes (BOEPD) | 20,729 | 25,300 | 19,887 | 21,160 | 24,738 | ||||
| NRI PRODUCTION DATA | |||||||||
| Etame Crude oil (MBbl) | 620 | 688 | 570 | 2,535 | 2,783 | ||||
| Gabon Average daily production volumes (BOEPD) | 6,737 | 7,481 | 6,192 | 6,944 | 7,605 | ||||
| Egypt Crude oil (MBbl) | 702 | 644 | 693 | 2,730 | 2,585 | ||||
| Egypt Average daily production volumes (BOEPD) | 7,635 | 7,001 | 7,532 | 7,479 | 7,063 | ||||
| Canada Crude Oil (MBbl) | 48 | 85 | 45 | 214 | 350 | ||||
| Canada Natural Gas (MMcf) | 349 | 371 | 368 | 1,449 | 1,542 | ||||
| Canada Natural Gas Liquid (MBOE) | 55 | 64 | 48 | 212 | 269 | ||||
| Canada Crude oil, natural gas and natural gas liquids (MBOE) | 162 | 211 | 154 | 667 | 870 | ||||
| Canada Average daily production volumes (BOEPD) | 1,757 | 2,296 | 1,681 | 1,828 | 2,377 | ||||
| Côte d'Ivoire Crude oil (MBbl) | — | 368 | — | 111 | 1,058 | ||||
| Côte d'Ivoire Average daily production volumes (BOEPD) | — | 3,997 | — | 305 | 2,891 | ||||
| Total Crude oil, natural gas and natural gas liquids production (MBOE) | 1,484 | 1,911 | 1,417 | 6,043 | 7,296 | ||||
| Average daily production volumes (BOEPD) | 16,128 | 20,775 | 15,405 | 16,556 | 19,935 | ||||
| AVERAGE SALES PRICES: | ||||||||||||||
| Crude oil, natural gas and natural gas liquids sales (per BOE) - WI basis | $ | 53.46 | $ | 65.69 | $ | 55.91 | $ | 58.72 | $ | 68.63 | ||||
| Crude oil, natural gas and natural gas liquids sales (per BOE) - NRI basis | $ | 52.54 | $ | 64.77 | $ | 51.26 | $ | 56.11 | $ | 65.64 | ||||
| Crude oil, natural gas and natural gas liquids sales (Per BOE including realized commodity derivatives) - NRI basis | $ | 52.59 | $ | 64.48 | $ | 50.96 | $ | 56.10 | $ | 65.58 | ||||
| COSTS AND EXPENSES (Per BOE of sales): | ||||||||||||||
| Production expense | $ | 25.24 | $ | 19.57 | $ | 25.30 | $ | 24.83 | $ | 22.51 | ||||
| Production expense, excluding offshore workovers and stock compensation* | $ | 25.20 | $ | 19.49 | $ | 25.23 | $ | 24.78 | $ | 22.48 | ||||
| Depreciation, depletion and amortization | $ | 18.06 | $ | 19.79 | $ | 17.41 | $ | 17.27 | $ | 19.69 | ||||
| General and administrative expense** | $ | 3.92 | $ | 4.52 | $ | 7.49 | $ | 5.19 | $ | 4.09 | ||||
| Property and equipment expenditures, cash basis (in thousands) | $ | 100,128 | $ | 41,466 | $ | 48,302 | $ | 252,856 | $ | 102,996 | ||||
*Offshore workover costs excluded for Q4 2025, Q4 2024, and Q3 2025 are
*Stock compensation associated with production expense excluded for Q4 2025, Q4 2024, and Q3 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 | Year Ended | ||||||||||||||||||
| Reconciliation of Net Income (Loss) to Adjusted Net Income (Loss) | December 31, 2025 | December 31, 2024 | September 30, 2025 | December 31, 2025 | December 31, 2024 | ||||||||||||||
| Net income (loss) | $ | (58,603 | ) | $ | 11,664 | $ | 1,101 | $ | (41,391 | ) | $ | 58,490 | |||||||
| Adjustment for discrete items: | |||||||||||||||||||
| Unrealized derivative instruments (gain) loss | (3,549 | ) | 96 | 737 | (2,923 | ) | 292 | ||||||||||||
| Impairment loss on assets held for sale | 67,224 | — | — | 67,224 | — | ||||||||||||||
| Bargain purchase gain and measurement period adjustment | — | 6,366 | — | — | (13,532 | ) | |||||||||||||
| Deferred income tax benefit | (9,858 | ) | (11,781 | ) | (12,171 | ) | (29,427 | ) | (20,332 | ) | |||||||||
| Non-cash purchase price adjustment | — | — | — | — | 14,981 | ||||||||||||||
| Transaction costs related to acquisition | 53 | 508 | 17 | 126 | 3,910 | ||||||||||||||
| Other operating (income) expense, net | 2,391 | (10 | ) | — | 2,391 | (78 | ) | ||||||||||||
| Adjusted Net Income (Loss) | $ | (2,342 | ) | $ | 6,843 | $ | (10,316 | ) | $ | (4,000 | ) | $ | 43,731 | ||||||
| Diluted Adjusted Net Income (Loss) per Share | $ | (0.02 | ) | $ | 0.07 | $ | (0.10 | ) | $ | (0.04 | ) | $ | 0.42 | ||||||
| Diluted weighted average shares outstanding(1) | 104,258 | 103,812 | 104,283 | 104,055 | 103,747 | ||||||||||||||
(1) No adjustments to weighted average shares outstanding
| Three Months Ended | Year Ended | ||||||||||||||||||
| Reconciliation of Net Income to Adjusted EBITDAX | December 31, 2025 | December 31, 2024 | September 30, 2025 | December 31, 2025 | December 31, 2024 | ||||||||||||||
| Net income (loss) | $ | (58,603 | ) | $ | 11,664 | $ | 1,101 | $ | (41,391 | ) | $ | 58,490 | |||||||
| Add back: | |||||||||||||||||||
| Interest expense, net | 2,044 | 1,092 | 2,333 | 8,243 | 3,732 | ||||||||||||||
| Income tax expense | (4,648 | ) | 17,192 | (3,596 | ) | 14,822 | 81,307 | ||||||||||||
| Depreciation, depletion and amortization | 30,845 | 37,047 | 20,555 | 109,978 | 143,034 | ||||||||||||||
| Impairment loss on assets held for sale | 67,224 | — | — | 67,224 | — | ||||||||||||||
| Exploration expense | 6,040 | — | 353 | 8,914 | 48 | ||||||||||||||
| Non-cash or unusual items: | |||||||||||||||||||
| Stock-based compensation | 1,508 | 1,196 | 1,685 | 5,956 | 4,558 | ||||||||||||||
| Unrealized derivative instruments (gain) loss | (3,549 | ) | 96 | 737 | (2,923 | ) | 292 | ||||||||||||
| Bargain purchase gain and measurement period adjustment | — | 6,366 | — | — | (13,532 | ) | |||||||||||||
| Other operating (income) expense, net | 2,391 | (10 | ) | — | 2,391 | (78 | ) | ||||||||||||
| Non-cash purchase price adjustment | — | — | — | — | 14,981 | ||||||||||||||
| Transaction costs related to acquisition | 53 | 508 | 17 | 126 | 3,910 | ||||||||||||||
| Credit losses (recovery) and other | (379 | ) | 1,082 | 484 | 106 | 6,304 | |||||||||||||
| Adjusted EBITDAX | $ | 42,926 | $ | 76,233 | $ | 23,669 | $ | 173,446 | $ | 303,046 | |||||||||
VAALCO ENERGY, INC AND SUBSIDIARIES
Reconciliations of Non-GAAP Financial Measures
(Unaudited)
(in thousands)
| Reconciliation of Working Capital to Adjusted Working Capital | December 31, 2025 | December 31, 2024 | Change | ||||||||
| Current assets | $ | 132,980 | $ | 237,927 | $ | (104,947 | ) | ||||
| Current liabilities | (192,000 | ) | (181,728 | ) | (10,272 | ) | |||||
| Working capital | (59,020 | ) | 56,199 | (115,219 | ) | ||||||
| Add: lease liabilities - current portion | 17,863 | 16,895 | 968 | ||||||||
| Adjusted Working Capital | $ | (41,157 | ) | $ | 73,094 | $ | (114,251 | ) | |||
| Year Ended December 31, 2025 | |||
| Reconciliation of Free Cash Flow | (in thousands) | ||
| Net cash provided by Operating activities | $ | 212,667 | |
| Net cash used in Investing activities | (255,890 | ) | |
| Net cash provided by Financing activities | 12,377 | ||
| Effects of exchange rate changes on cash | 83 | ||
| Total net cash change | (30,763 | ) | |
| Add back shareholder cash out: | |||
| Dividends paid | 26,480 | ||
| Total cash returned to shareholders | 26,480 | ||
| Free Cash Flow | $ | (4,283 | ) |
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 | December 31, 2025 | September 30, 2025 | |||||
| Long-term debt | $ | 60,000 | $ | 60,000 | |||
| Less: Cash and cash equivalents | (58,900 | ) | (32,114 | ) | |||
| Net debt | $ | 1,100 | $ | 27,886 | |||
