VAALCO Energy posts Q4 net loss on impairment charge

VAALCO Energy

12/03/2026 21:00

Overview

U.S. oil and gas producer's posts Q4 net loss of $58.6 mln vs net income of $11.7 mln yr ago

Q4 net loss driven by impairment charge for Canadian assets held for sale

Company invested $100.1 mln in capital expenditures, including Gabon and Egypt drilling

Outlook

Company plans 2026 capital budget of $290 mln to $360 mln

Company expects Baobab field to restart in Q2 2026 after FPSO returns

Vaalco targets 225% organic production growth by 2030

Result Drivers

IMPAIRMENT CHARGE - Q4 net loss was primarily driven by a non-cash impairment charge for Canadian assets held for sale

HIGHER SALES VOLUMES - Q4 sales volumes rose 45% from Q3, supporting higher net revenue

INCREASED PRODUCTION EXPENSES - Production expenses rose in Q4, reflecting higher volumes and increased costs in Gabon

Company press release: ID:nGNX8vBbnQ

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q4 Adjusted Net Income
-$2.3 mln
Q4 Net Income
-$58.6 mln
Q4 Adjusted EBITDAX
$42.9 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

The average consensus recommendation for the oil & gas exploration and production peer group is "buy"

Wall Street's median 12-month price target for VAALCO Energy Inc is $7.30, about 29.4% above its March 12 closing price of $5.64

The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 9 three months ago

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)