REG - Vaalco Energy Inc - THIRD QUARTER 2025 RESULTS
11/11/2025 07:00
For best results when printing this announcement, please click on link below:
https://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20251111:nRSK9603Ga&default-theme=true
RNS Number : 9603G Vaalco Energy Inc 11 November 2025
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION
VAALCO ENERGY, INC. ANNOUNCES THIRD QUARTER 2025 RESULTS
HOUSTON - November 11, 2025 - VAALCO Energy, Inc. (NYSE: EGY, LSE: EGY)
("Vaalco" or the "Company") today reported operational and financial results
for the third quarter of 2025.
Third Quarter 2025 Highlights and Recent Key Items:
• Reported net income of $1.1 million ($0.01 per diluted share),
Adjusted Net Loss((1)) of $10.3 million ($(0.10) per diluted share) and
Adjusted EBITDAX((1)) of $23.7 million;
• Produced 15,405 net revenue interest ("NRI")((2)) barrels of oil
equivalent per day ("BOEPD"), at the high end of guidance, or 19,887 working
interest ("WI")((3)) BOEPD, above the midpoint of guidance;
• Sold 12,831 NRI BOEPD, at the high end of guidance;
• Increased full year production and sales guidance midpoints due
to strong quarterly performance that has been near the high end of guidance
through the first nine months of 2025;
• Further decreased full year capital guidance midpoint by 19% or
$58 million from original 2025 guidance; and
• Declared quarterly cash dividend of $0.0625 per share of common
stock to be paid on December 24, 2025.
(1) Adjusted EBITDAX, Adjusted Net Income (Loss), Adjusted Working Capital
and Free Cash Flow are Non-GAAP financial measures and are described and
reconciled to the closest GAAP measure in the attached table under "Non-GAAP
Financial Measures."
(2) All NRI sales and production rates are Vaalco's working interest
volumes less royalty volumes, where applicable.
(3) All WI production rates and volumes are Vaalco's working interest
volumes, where applicable.
George Maxwell, Vaalco's Chief Executive Officer, commented, "We continue to
deliver consistent quarterly results that either meet or exceed our guidance.
Both our sales and NRI production for the third quarter of 2025 were above the
midpoint of guidance, leading to solid financial results. We have positively
adjusted our full year 2025 guidance taking into account the production and
sales results through the first nine months of the year. Additionally, we have
decreased the midpoint of our full year capital guidance twice this year, for
a total of $58 million, all while raising full year production expectations
driven by operational efficiency and well performance. We also have kept
absolute production expense in line with previous guidance and with the
increased sales, we are seeing a reduction on our per barrel costs against
original guidance. Our track record of success in delivering results at or
above expectations should provide our investors with assurance that we will
execute on the portfolio of opportunities we discussed in the Capital Markets
Day presentation back in May."
"We are well positioned to deliver growth as we prepare for multiple
production enhancing drilling campaigns across our diversified asset base. In
Côte d'Ivoire, the FPSO refurbishment project is well underway, with the
vessel at the shipyard in Dubai and we are preparing for a drilling campaign
in 2026 to augment the production and economic life of the Baobab field. In
Gabon, we have been waiting for the 2025/2026 drilling program to commence
once the contracted rig completes its current commitments. The rig is
completing its final well commitment and we expect it to arrive at Etame to
begin our drilling campaign in late November. In Egypt, we continue to
efficiently drill wells and the success of the program has benefitted our
production results. As a reminder, in the first quarter of 2025, we entered
into a new reserves-based credit facility to supplement our
internally-generated cash flow and cash balance to assist in funding our
robust organic growth projects. Shortly after the third quarter, we
successfully completed our semi-annual redetermination with the lenders and
have increased their commitments on the $300 million facility from $190
million to $240 million, increasing our available liquidity. This enhances our
ability to fund the significant growth and opportunities that we have planned
over the next few years as we seek to drive the next phase of growth and
generate meaningful value for our shareholders for the remainder of the
decade."
Operational Update
Gabon
The Company secured a drilling rig in December 2024 in conjunction with its
2025/2026 drilling program, which is expected to begin during the fourth
quarter of 2025, once the drilling rig completes its current commitments. The
program includes drilling multiple development wells, and appraisal or
exploration wells, and perform workovers, with options to drill additional
wells. Vaalco plan to drill wells at both the Etame platform and at its Seent
platform, as well as a re-drill and a number of workovers in the Ebouri field
to access production and reserves that were previously removed from proved
reserves due to the presence of hydrogen sulfide.
In July 2025, the Company performed planned, staged shutdowns of the Gabon
platforms to perform safety inspections and necessary maintenance to increase
the integrity and reliability of the assets. This is the first full field
maintenance shutdown that Vaalco has performed since the new Floating Storage
and Offloading vessel ("FSO") was brought online in 2022. All fields were
successfully brought back online and the planned turnaround was completed on
budget and with no safety or environmental incidents.
Egypt
The current drilling campaign in Egypt began in December 2024 and has
continued through the third quarter of 2025. During the third 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 October
2025. Also, during the third quarter of 2025, Vaalco drilled one exploration
well in the Western Desert which was completed in October 2025. Additionally,
continuous well interventions, workovers and optimization activities were
carried out throughout the third quarter of 2025 to enhance production levels.
Canada
In early 2025, the Company decided to defer the drilling of additional wells
in Canada based on a reassessment of capital allocation priorities across the
portfolio and to ensure that investment is directed toward projects with the
highest expected returns. Therefore, the Canadian division is looking towards
lower-cost optimization projects to enhance productivity by year-end.
Côte d'Ivoire
As part of the planned dry dock refurbishment, the Baobab Floating Production,
Storage and Offloading ("FPSO") vessel ceased hydrocarbon production on
January 31, 2025 and the final lifting of crude oil from the FPSO took place
in February 2025. The vessel departed from the field in late March 2025 and
arrived at the shipyard in Dubai ahead of schedule in mid-May 2025. The FPSO
refurbishment is progressing well and has now been underway for the last five
months in the shipyard. A rig has been secured for significant development
drilling which is expected to begin in 2026 after the FPSO returns to service,
potentially bringing meaningful additions to production from the main Baobab
field in CI-40. The Company is also evaluating the potential future
development of the Kossipo field, which is on the CI-40 license.
Equatorial Guinea
Vaalco owns a 60% working interest in an undeveloped portion of Block P
offshore Equatorial Guinea where it is the designated operator. The Company
has an existing plan of development of the Venus field discovery on Block P,
which focuses on key areas of drilling evaluations, facilities design, market
inquiries and metocean review. Vaalco has completed the initial Front End
Engineering and Design study that confirmed the viability of the development
concept and is currently evaluating alternative technical solutions which may
deliver enhanced economic value.
Financial Update - Third Quarter of 2025
Vaalco reported net income of $1.1 million ($0.01 per diluted share) for Q3
2025 which was down compared with net income of $8.4 million ($0.08 per
diluted share) in Q2 2025 and net income of $11.0 million ($0.10 per diluted
share) in Q3 2024. The decrease in earnings compared with Q2 2025 was driven
by lower realized pricing and lower sales volume in Q3 2025 of 1,180 MBOE
compared to a sales volume of 1,765 MBOE in Q2 2025 partially offset by lower
production expense, depreciation, depletion and amortization ("DD&A"), and
lower income tax expense.
Adjusted EBITDAX totaled $23.7 million in Q3 2025, compared with $49.9 million
in Q2 2025. The decrease was primarily due to lower realized pricing and lower
sales volumes partially offset by lower production expense. Adjusted EBITDAX
was down from $92.8 million generated in Q3 2024 primarily due to lower
realized pricing and lower sales volumes.
Quarterly Summary - Sales and Net Revenue
$ in thousands Three Months Ended September 30, 2025 Three Months Ended June 30, 2025
Gabon Egypt Canada Côte d'Ivoire Total Gabon Egypt Canada Côte d'Ivoire Total
Oil Sales $ 24,287 $ 58,271 $ 3,278 $ - $ 85,836 $ 67,964 $ 55,188 $ 3,751 $ 354 $ 127,257
NGL Sales - - 1,418 - 1,418 - - 1,298 - 1,298
Gas Sales - - 196 - 196 - - 572 - 572
Gross Sales 24,287 58,271 4,892 - 87,450 67,964 55,188 5,621 354 129,127
Selling Costs & Carried Interest 495 (183) (187) - 125 65 (179) (240) - (354)
Royalties & Taxes (3,511) (22,392) (665) - (26,568) (9,462) (21,752) (666) - (31,880)
Net Revenue $ 21,271 $ 35,696 $ 4,040 $ - $ 61,007 $ 58,567 $ 33,257 $ 4,715 $ 354 $ 96,893
Oil Sales MMB (working interest) 383 995 52 - 1,430 1,034 995 62 - 2,091
Average Oil Price Received $ 63.46 $ 58.40 $ 62.75 $ - $ 60.04 $ 65.72 $ 55.31 $ 60.44 $ - $ 60.87
Change (1) %
Average Brent Price $ 69.04 $ 68.07
Change 1 %
Gas Sales MMCF (working interest) - - 429 - 429 - - 448 - 448
Average Gas Price Received - - $ 0.46 - $ 0.46 - - $ 1.28 - $ 1.28
Change (64) %
Average Aeco Price ($USD) - - $ 0.69 - $ 0.69 - - $ 1.35 - $ 1.35
Change (48) %
NGL Sales MMB (working interest) - - 56 - 56 - - 60 - 60
Average Liquids Price Received - - $ 25.17 - $ 25.17 - - $ 21.65 - $ 21.65
Change 16 %
Revenue and Sales Q3 2025 Q3 2024 % Change Q3 2025 vs. Q3 2024 Q2 2025 % Change Q3 2025 vs. Q2 2025
Production (NRI BOEPD) 15,405 21,770 (29) % 16,956 (9) %
Sales (NRI BOE) 1,180,000 2,134,000 (45) % 1,765,000 (33) %
Realized commodity price ($/BOE) $ 51.26 $ 65.41 (22) % $ 54.87 (7) %
Commodity (Per BOE including realized $ 50.96 $ 65.42 (22) % $ 54.92 (7) %
commodity derivatives)
Total commodity sales ($MM) $ 61.0 $ 140.3 (57) % $ 96.9 (37) %
In Q3 2025, Vaalco had a net revenue decrease of $35.9 million or 37% compared
to Q2 2025 primarily due to lower average realized price received of $51.26
per BOE in Q3 2025 compared to $54.87 per BOE in Q2 2025, a decrease in the
total NRI sales volumes of 1,180 MBOE which was 33% lower than the Q2 2025
volumes of 1,765 MBOE and was lower compared to 2,134 MBOE for Q3 2024. Q3
2025 NRI sales were at the high end of Vaalco's guidance. The lower sales and
production volumes in Q3 2025 compared to Q2 2025 was primarily a result of a
planned and successful full field maintenance shutdown in Gabon which occurred
in July 2025.
Costs and Expenses Q3 2025 Q3 2024 % Change Q3 2025 vs. Q3 2024 Q2 2025 % Change Q3 2025 vs. Q2 2025
Production expense, excluding offshore workovers and stock comp ($MM) $ 29.8 $ 42.2 (29) % $ 40.3 (26) %
Production expense, excluding offshore workovers ($/BOE) $ 25.24 $ 19.80 27 % $ 22.87 10 %
Offshore workover expense ($MM) $ 0.1 $ 0.1 - % $ - 100%
Depreciation, depletion and amortization ($MM) $ 20.6 $ 47.0 (56) % $ 28.3 (27) %
Depreciation, depletion and amortization ($/BOE) $ 17.41 $ 22.04 (21) % $ 16.02 9 %
General and administrative expense, excluding stock-based compensation ($MM) $ 7.2 $ 6.0 19 % $ 7.1 1 %
General and administrative expense, excluding stock-based compensation ($/BOE) $ 6.07 $ 2.80 117 % $ 4.04 50 %
Stock-based compensation expense ($MM) $ 1.7 $ 0.9 87 % $ 1.4 20%
Current income tax expense (benefit) ($MM) $ 8.6 $ 33.7 (75) % $ 12.8 (33) %
Deferred income tax expense (benefit) ($MM) $ (12.2) $ (1.1) 1006 % $ (5.8) 110%
Total production expense (excluding offshore workovers and stock compensation)
of $29.8 million in Q3 2025 decreased by 26% compared to Q2 2025 and 29%
compared to Q3 2024. The decrease in Q3 2025 compared to Q2 2025 and Q3 2024
was driven by a reduction in production expenses in the Côte d'Ivoire and
Gabon segments.
DD&A expense for Q3 2025 was $20.6 million, which was 27% lower than $28.3
million in Q2 2025 and 56% lower than $47.0 million in Q3 2024. The decrease
in Q3 2025 DD&A expense compared to Q2 2025 and Q3 2024 was due primarily
to a reduction in DD&A expenses in the Côte d'Ivoire segment.
General and administrative ("G&A") expense, excluding stock-based
compensation, increased to $7.2 million in Q3 2025, essentially flat with $7.1
million in Q2 2025. G&A expense increased from $6.0 million in Q3 2024
primarily due to higher professional service fees and salaries and wages. Q3
2025 cash G&A was at the midpoint of the Company's guidance.
Non-cash stock-based compensation expense increased to $1.7 million for Q3
2025 compared to $1.4 million for Q2 2025 and higher compared to $0.9
million for Q3 2024.
Exploration expense was $0.4 million for Q3 2025 compared to $2.5 million for
Q2 2025. This decrease was attributable to the purchase of seismic data to
be used in Block 705 in Cote d'Ivoire in Q2 2025. There were minimum
exploration costs incurred in Q3 2024.
Total other income (expense), net, was an expense of $3.4 million for Q3 2025
compared to an expense of $1.8 million for Q2 2025 and an expense of $0.5
million during Q3 2024. Other income (expense), net, includes gains or losses
on derivatives, interest expense and foreign currency losses.
Vaalco reported an income tax benefit for Q3 2025 of $3.6 million which was
comprised of a $8.6 million current tax expense, offset by a deferred tax
benefit of $12.2 million. Income tax benefit includes a $3.9 million
favorable oil price adjustment as a result of the change in value of the
government of Gabon's allocation of Profit Oil between the time it was
produced and the time it was taken in-kind. After excluding this impact,
income taxes were $0.3 million for the period. Income tax expense for Q3 2024
was $32.6 million which is comprised of current tax expense of $33.7 million
including a $1.8 million favorable oil price adjustment as a result of the
change in value of the government of Gabon's allocation of Profit Oil between
the time it was produced and the time it was taken in-kind. After excluding
this impact, current income taxes were $35.5 million for the period.
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 September 30, 2025 $ - $ 7,008 $ - $ - $ - $ - $ 7,008
Financial Update - First Nine Months of 2025
Net sales for the first nine months of 2025 decreased to 4,662 MBOE compared
to 5,388 MBOE in the first nine months of 2024. The decrease was driven
primarily by timing, number and size of crude oil liftings in each quarter and
do not always coincide with volumes produced in any given period.
The average realized price for the first nine months of 2025 was $57.42 per
BOE, representing a decrease of 13% from $65.99 realized in the first nine
months of 2024. This decrease in crude oil price reflects the softening of
commodity prices over the past year.
The Company reported net income for the first nine months of 2025 of $17.2
million, which compares to $46.8 million for the first nine months of 2024.
The decrease in net income for the nine months ended September 30, 2025
compared to the same period in 2024 was primarily due to the bargain purchase
gain related to the Svenska acquisition completed in April 2024 and lower
realized pricing in 2025.
Year to Date Summary - Sales and Net Revenue
$ in thousands Nine Months Ended September 30, 2025 Nine Months Ended September 30, 2024
Gabon Egypt Canada Côte d'Ivoire Total Gabon Egypt Canada Côte d'Ivoire Total
Oil Sales $ 152,116 $ 171,115 $ 12,354 $ 18,396 $ 353,981 $ 182,048 $ 191,938 $ 21,739 $ 67,035 $ 462,760
NGL Sales - - 4,523 - 4,523 - - 5,905 - 5,905
Gas Sales - - 1,404 - 1,404 - - 1,429 - 1,429
Gross Sales 152,116 171,115 18,281 18,396 359,908 182,048 191,938 29,073 67,035 470,094
Selling Costs & Carried Interest 561 (511) (659) - (609) 1,825 (401) (812) - 612
Royalties & Taxes (20,651) (67,731) (2,687) - (91,069) (25,088) (84,550) (3,801) - (113,439)
Net Revenue $ 132,026 $ 102,873 $ 14,935 $ 18,396 $ 268,230 $ 158,785 $ 106,987 $ 24,460 $ 67,035 $ 357,267
Oil Sales MMB (working interest) 2,174 2,910 195 238 5,517 2,238 2,867 303 844 6,252
Average Oil Price Received $ 69.98 $ 58.64 $ 63.43 $ 77.36 $ 64.16 $ 81.35 $ 66.94 $ 71.75 79.46 $ 74.02
Change (13) %
Average Brent Price $ 71.01 $ 82.50
Change (14) %
Gas Sales MMCF (working interest) - - 1,290 - 1,290 - - 1,341 - 1,341
Average Gas Price Received - - $ 1.09 - $ 1.09 - - $ 1.07 - $ 1.07
Change 2 %
Average Aeco Price ($USD) - - $ 1.16 - $ 1.16 - - $ 0.95 - $ 0.95
Change 22 %
NGL Sales MMB (working interest) - - 185 - 185 - - 234 - 234
Average Liquids Price Received - - $ 24.48 - $ 24.48 - - $ 25.26 - $ 25.26
Change (3) %
Capital Investments/Balance Sheet
For the third quarter of 2025, net capital expenditures totaled $48.3
million on a cash basis and $55.4 million on an accrual basis, well below its
third quarter guidance of $70 million to $90 million. These expenditures were
primarily related to project costs and long-lead items for Gabon, Egypt and
Côte d'Ivoire and the development drilling program in Egypt.
As of September 30, 2025, Vaalco had an unrestricted cash balance of $24.0
million. Working capital at September 30, 2025 was $7.5 million compared with
$56.2 million at December 31, 2024, while Adjusted Working Capital at
September 30, 2025 totaled $24.2 million.
In March 2025, Vaalco entered into a new reserves based revolving credit
facility (the "new facility") that had initial aggregate commitments of $190.0
million and the ability to grow to $300.0 million, led by The Standard Bank of
South Africa Limited, Isle of Man Branch with other participating banks and
financial partners. The new facility, which is subject to customary
administrative conditional precedents, replaces the Company's previously
undrawn revolving credit facility. The Company arranged the new facility
primarily to provide short-term funding that may be needed from time-to-time
to supplement its internally generated cash flow and cash balance as it
executes its planned investment programs across its diversified asset base
over the next few years. As of September 30, 2025, the Company had
$60.0 million outstanding borrowings.
Effective October 17, 2025, the Lenders unanimously approved an increase in
the Company's borrowing base under the new facility from $186.6 million to
$190.0 million after the Company completed its semi-annual borrowing base
redetermination process. In addition, the Lenders also approved to (i) extend
the first date on which the Initial Total Commitments will be reduced from
September 30, 2026 to March 31, 2027, and (ii) amend the semi-annual
commitment reduction amounts from $19.0 million to $10.0 million on March
31, 2027, and $22.5 million starting on September 30, 2027.
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 $190.0 million to
$240.0 million. The increase in commitments was undertaken with the existing
accordion feature included in the new facility.
Quarterly Cash Dividend
Vaalco paid a quarterly cash dividend of $0.0625 per share of common stock for
the third quarter of 2025 on September 19, 2025. The Company also recently
announced its next quarterly cash dividend of $0.0625 per share of common
stock for the fourth quarter of 2025 ($0.25 annualized), to be paid on
December 24, 2025 to stockholders of record at the close of business on
November 21, 2025. Future declarations of quarterly dividends and the
establishment of future record and payment dates are subject to approval by
the Vaalco Board of Directors.
Hedging
The Company continued to hedge a portion of its expected future production to
lock in cash flow generation to assist in funding its capital and shareholder
return programs.
The following includes hedges remaining in place as of the end of the third
quarter of 2025:
Settlement Period
Instrument Index October 2025 to December 2025 January 2026 to March 2026 April 2026 to June 2026 July 2026 to September 2026
Crude oil:
Collars Dated Brent
Total volumes (Bbls) 480,000 400,000 360,000 75,000
Weighted average floor price ($/Bbl) $ 60.83 $ 62.29 $ 61.88 $ 65.00
Weighted average ceiling price ($/Bbl) $ 67.81 $ 68.63 $ 67.95 $ 71.00
Natural Gas:
Swaps AECO 7A
Total volumes (GJs)((a)) 214,000 150,000 - -
Weighted average fixed price (CAD/GJ) $ 2.48 $ 2.86 $ - $ -
(a) One gigajoule (GJ) equals one billion joules (J). A gigajoule of natural
gas is approximately 25.5 cubic meters standard conditions.
The table below presents commodity swaps entered into subsequent to
September 30, 2025.
Settlement Period
Instrument Index October 2025 to December 2025 January 2026 to March 2026 April 2026 to June 2026 July 2026 to September 2026 October 2026 to December 2026
Natural Gas:
Swaps AECO 7A
Total volumes (GJs)((a)) 25,000 75,000 150,000 150,000 50,000
Weighted average fixed price (CAD/GJ) $ 3.26 $ 3.26 $ 2.80 $ 2.80 $ 2.80
a) One gigajoule (GJ) equals one billion joules (J). A gigajoule of natural
gas is approximately 25.5 cubic meters standard conditions.
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. The Company now has approximately 500 Mbls of the remaining 2025 oil
production hedged with an average floor price of approximately $61.00 per
barrel. In addition, the Company took advantage of periods of higher oil
prices during the third quarter to add more hedges for the 2026 hedging
program. The Company now has approximately 800 Mbls of oil production hedged
for the first half of 2026 with an average floor price of approximately $62.00
per barrel.
2025 Guidance:
The Company has provided fourth quarter 2025 guidance and updated its full
year 2025 guidance. All of the quarterly and annual guidance is detailed in
the tables below.
FY 2025 Gabon Egypt Canada Côte d'Ivoire
Production (BOEPD) WI 20600 - 22010 7900 - 8400 10400 - 11100 2000 - 2200 300 - 310
Production (BOEPD) NRI 15900 - 16910 6800 - 7200 7200 - 7600 1600 - 1800 300 - 310
Sales Volume (BOEPD) WI 20800 - 22200 7800 - 8200 10400 - 11100 2000 - 2200 600 - 700
Sales Volume (BOEPD) NRI 16100 - 17300 6700 - 7200 7200 - 7600 1600 - 1800 600 - 700
Production Expense (millions) WI & NRI $152.0 - $158.0 MM
Production Expense per BOE WI $18.00 - $21.00
Production Expense per BOE NRI $24.00 - $26.00
Offshore Workovers (millions) WI & NRI $0 - $0 MM
Cash G&A (millions) WI & NRI $28.0 - $32.0 MM
CAPEX Excluding Acquisitions (millions) WI & NRI $225 - $260 MM
DD&A ($/BOE) NRI $16.00 - $20.00
Q4 2025 Gabon Egypt Canada Côte d'Ivoire
Production (BOEPD) WI 20300 - 22200 8000 - 8800 10400 - 11300 1900 - 2100 -
Production (BOEPD) NRI 15600 - 17300 6900 - 7700 7200 - 7900 1500 - 1700 -
Sales Volume (BOEPD) WI 20000 - 21800 7700 - 8400 10400 - 11300 1900 - 2100 -
Sales Volume (BOEPD) NRI 15400 - 16900 6700 - 7300 7200 - 7900 1500 - 1700 -
Production Expense (millions) WI & NRI $36.0 - $44.5 MM
Production Expense per BOE WI $19.00 - $23.00
Production Expense per BOE NRI $25.00 - $29.00
Offshore Workovers (millions) WI & NRI $0 - $0 MM
Cash G&A (millions) WI & NRI $7.0 - $9.0 MM
CAPEX Excluding Acquisitions (millions) WI & NRI $90 - $110 MM
DD&A ($/BOE) NRI $16.00 - $20.00
Conference Call
As previously announced, the Company will hold a conference call to discuss
its third quarter 2025 financial and operating results, Tuesday, November 11,
2025, at 9:00 a.m. Central Time (10:00 a.m. Eastern Time and 3:00 p.m. London
Time). Interested parties may participate by dialing (833) 685-0907. Parties
in the United Kingdom may participate toll-free by dialing 08082389064 and
other international parties may dial (412) 317-5741. Participants should
request to be joined to the "Vaalco Energy Third 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 "Q3 2025 Supplemental Information" investor deck will be posted to Vaalco's
website prior to its conference call on November 11, 2025 that includes
additional financial and operational information.
About Vaalco
Vaalco, founded in 1985 and incorporated under the laws of Delaware, is a
Houston, Texas, USA based, independent energy company with a diverse portfolio
of production, development and exploration assets across Gabon, Egypt, Côte
d'Ivoire, Equatorial Guinea, Nigeria and Canada.
For Further Information
Vaalco Energy, Inc. (General and Investor Enquiries) +00 1 713 543 3422
Website: www.vaalco.com
Al Petrie Advisors (US Investor Relations) +00 1 713 543 3422
Al Petrie / Chris Delange
Burson Buchanan (UK Financial PR) +44 (0) 207 466 5000
Ben Romney / Barry Archer VAALCO@buchanan.uk.com
Forward Looking Statements
This press release includes "forward-looking statements" within the meaning of
Section 27A of the Securities Act of 1933, as amended and Section 21E of the
Securities Exchange Act of 1934, as amended, which are intended to be covered
by the safe harbors created by those laws and other applicable laws and
"forward-looking information" within the meaning of applicable Canadian
securities laws(collectively, "forward-looking statements"). Where a
forward-looking statement expresses or implies an expectation or belief as to
future events or results, such expectation or belief is expressed in good
faith and believed to have a reasonable basis. All statements other than
statements of historical fact may be forward-looking statements. The words
"anticipate," "believe," "estimate," "expect," "intend," "forecast,"
"outlook," "aim," "target," "will," "could," "should," "may," "likely," "plan"
and "probably" or similar words may identify forward-looking statements, but
the absence of these words does not mean that a statement is not
forward-looking. Forward-looking statements in this press release include, but
are not limited to, statements relating to (i) estimates of future drilling,
production, sales and costs of acquiring crude oil, natural gas and natural
gas liquids; (ii) expectations regarding Vaalco's ability to effectively
integrate assets and properties it has acquired as a result of the Svenska
acquisition into its operations; (iii) expectations regarding future
exploration and the development, growth and potential of Vaalco's operations,
project pipeline and investments, and schedule and anticipated benefits to be
derived therefrom; (iv) expectations regarding future acquisitions,
investments or divestitures; (v) expectations of future dividends; (vi)
expectations of future balance sheet strength; and (vii) expectations of
future equity and enterprise value.
Such forward-looking statements are subject to risks, uncertainties and other
factors, which could cause actual results to differ materially from future
results expressed, projected or implied by the forward-looking statements.
These risks and uncertainties include, but are not limited to: risks relating
to any unforeseen liabilities of Vaalco; the ability to generate cash flows
that, along with cash on hand, will be sufficient to support operations and
cash requirements; risks relating to the timing and costs of completion for
scheduled maintenance of the FPSO servicing the Baobab field; and the risks
described under the caption "Risk Factors" in Vaalco's most recent Annual
Report on Form 10-K.
Dividends beyond the fourth quarter of 2025 have not yet been approved or
declared by the Board of Directors for Vaalco. The declaration and payment of
future dividends remains at the discretion of the Board and will be determined
based on Vaalco's financial results, balance sheet strength, cash and
liquidity requirements, future prospects, crude oil and natural gas prices,
and other factors deemed relevant by the Board. The Board reserves all powers
related to the declaration and payment of dividends. Consequently, in
determining the dividend to be declared and paid on Vaalco common stock, the
Board may revise or terminate the payment level at any time without prior
notice.
Any forward-looking statement made by Vaalco in this press release is based
only on information currently available to Vaalco and speaks only as of the
date on which it is made. Except as may be required by applicable securities
laws, Vaalco undertakes no obligation to publicly update any forward-looking
statement, whether written or oral, that may be made from time to time,
whether as a result of new information, future developments or otherwise.
Other Oil and Gas Advisories
Investors are cautioned when viewing BOEs in isolation. BOE conversion ratio
is based on an energy equivalency conversion method primarily applicable at
the burner tip and does not represent a value equivalency at the wellhead.
Given that the value ratio based on the current price of crude oil as compared
to natural gas is significantly different from the energy equivalencies
described above, utilizing such equivalencies may be incomplete as an
indication of value.
Inside Information
This announcement contains inside information as defined in Regulation (EU)
No. 596/2014 on market abuse which is part of UK domestic law by virtue of the
European Union (Withdrawal) Act 2018 ("MAR") and is made in accordance with
the Company's obligations under article 17 of MAR. The person responsible for
arranging the release of this announcement on behalf of Vaalco is Matthew
Powers, Corporate Secretary of Vaalco.
VAALCO ENERGY, INC AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
(Unaudited)
As of September 30, 2025 As of December 31, 2024
(in thousands)
ASSETS
Current assets:
Cash and cash equivalents $ 23,984 $ 82,650
Receivables:
Trade, net of allowances for credit loss and other of $0.2 million and $0.2 109,473 94,778
million, respectively
Accounts with joint venture owners, net of allowance for credit losses of $2.5 6,665 179
million and $1.5 million, respectively
Egypt receivables and other 2,726 35,763
Other current assets 30,890 24,557
Total current assets 173,738 237,927
Crude oil, natural gas and NGLs properties and equipment, net 623,736 538,103
Other noncurrent assets:
Restricted cash 1,659 8,665
Value added tax and other receivables, net of allowances for credit loss and 6,550 10,094
other of $0.4 million and $0.8 million, respectively
Right of use operating lease assets 14,364 17,254
Right of use finance lease assets 72,031 79,849
Deferred tax assets 44,304 55,581
Other long-term assets 14,051 7,477
Total assets $ 950,433 $ 954,950
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities $ 166,238 $ 181,728
Asset retirement obligations 84,259 78,592
Operating lease liabilities - net of current portion 10,862 13,903
Finance lease liabilities - net of current portion 60,235 67,377
Deferred tax liabilities 62,966 93,904
Long-term debt 60,000 -
Other long-term liabilities - 17,863
Total liabilities 444,560 453,367
Total shareholders' equity 505,873 501,583
Total liabilities and shareholders' equity $ 950,433 $ 954,950
VAALCO ENERGY, INC AND SUBSIDIARIES
Consolidated Statements of Operations
(Unaudited)
Three Months Ended Nine Months Ended
September 30, 2025 September 30, 2024 June 30, 2025 September 30, 2025 September 30, 2024
(in thousands except per share amounts)
Revenues:
Crude oil, natural gas and natural gas liquids sales $ 61,007 $ 140,334 $ 96,893 $ 268,230 $ 357,267
Operating costs and expenses:
Production expense 29,872 42,324 40,393 115,070 126,859
Exploration expense 353 - 2,520 2,873 48
Depreciation, depletion and amortization 20,555 47,031 28,273 79,133 105,987
General and administrative expense 8,845 6,929 8,496 26,393 21,230
Credit losses and other 484 69 29 485 5,222
Total operating costs and expenses 60,109 96,353 79,711 223,954 259,346
Other operating income, net - 102 - - 68
Operating income 898 44,083 17,182 44,276 97,989
Other income (expense):
Derivative instruments gain (loss), net (1,093) 210 400 (767) (380)
Interest expense, net (2,333) (588) (2,572) (6,199) (2,640)
Bargain purchase gain - - - - 19,898
Other income (expense), net 33 (141) 353 (628) (3,925)
Total other income (expense), net (3,393) (519) (1,819) (7,594) 12,953
Income (loss) before income taxes (2,495) 43,564 15,363 36,682 110,942
Income tax expense (benefit) (3,596) 32,574 6,983 19,470 64,115
Net income $ 1,101 $ 10,990 $ 8,380 $ 17,212 $ 46,827
Other comprehensive income (loss):
Currency translation adjustments (1,799) 1,655 4,759 3,077 (1,867)
Comprehensive income (loss) $ (698) $ 12,645 $ 13,139 $ 20,289 $ 44,960
Basic net income per share:
Net income per share $ 0.01 $ 0.10 $ 0.08 $ 0.16 $ 0.45
Basic weighted average shares outstanding 104,258 103,743 103,936 103,986 103,644
Diluted net income per share:
Net income per share $ 0.01 $ 0.10 $ 0.08 $ 0.16 $ 0.45
Diluted weighted average shares outstanding 104,283 103,842 103,958 104,010 103,728
VAALCO ENERGY, INC AND SUBSIDIARIES
Condensed Consolidated Statements of Cash Flows
(Unaudited)
Nine Months Ended September 30,
2025 2024
(in thousands)
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ 17,212 $ 46,827
Adjustments to reconcile net income to net cash provided by operating
activities:
Depreciation, depletion and amortization 79,133 105,987
Bargain purchase gain - (19,898)
Amortization of deferred financing costs 809 -
Deferred taxes (19,569) (7,762)
Unrealized foreign exchange gain (347) (613)
Stock-based compensation expense 4,683 3,208
Derivative instruments loss, net 767 209
Cash settlements paid on matured derivative contracts, net (141) (15)
Credit losses and other 485 5,304
Equipment and other expensed in operations 3,937 1,589
Change in operating assets and liabilities (19,475) (65,651)
Net cash provided by operating activities 67,494 69,185
CASH FLOWS FROM INVESTING ACTIVITIES:
Property and equipment expenditures (152,728) (61,530)
Acquisition of crude oil and natural gas properties (3,034) -
Cash acquired in business combination, net of cash paid - 412
Net cash used in investing activities (155,762) (61,118)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from the issuances of common stock - 447
Proceeds from borrowings 60,000 -
Dividend distribution (19,807) (19,647)
Treasury shares (709) (6,803)
Deferred financing costs (7,100) -
Payments of finance lease (9,781) (6,261)
Net cash provided by (used in) in financing activities 22,603 (32,264)
Effects of exchange rate changes on cash 53 (4)
NET CHANGE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH (65,612) (24,201)
CASH, CASH EQUIVALENTS AND RESTRICTED CASH AT BEGINNING OF PERIOD 97,726 129,178
CASH, CASH EQUIVALENTS AND RESTRICTED CASH AT END OF PERIOD $ 32,114 $ 104,977
VAALCO ENERGY, INC AND SUBSIDIARIES
Selected Financial and Operating Statistics
(Unaudited)
Three Months Ended Nine Months Ended
September 30, 2025 September 30, 2024 June 30, 2025 September 30, 2025 September 30, 2024
NRI SALES DATA
Crude oil, natural gas and natural gas liquids sales (MBOE) 1,180 2,134 1,765 4,662 5,388
Average daily sales volumes (BOE) 12,831 23,198 19,393 17,076 19,664
WI PRODUCTION DATA
Etame Crude oil (MBbl) 655 810 779 2,201 2,408
Gabon Average daily production volumes (BOEPD) 7,118 8,800 8,563 8,062 8,789
Egypt Crude oil (MBbl) 995 964 995 2,910 2,867
Egypt Average daily production volumes (BOEPD) 10,812 10,480 10,929 10,658 10,465
Canada Crude Oil (MBbl) 52 112 62 195 303
Canada Natural Gas (MMcf) 429 449 448 1,290 1,341
Canada Natural Gas Liquid (MBOE) 56 82 60 185 234
Canada Crude oil, natural gas and natural gas liquids (MBOE) 180 269 197 595 761
Canada Average daily production volumes (BOEPD) 1,957 2,923 2,162 2,178 2,776
Côte d'Ivoire Crude oil (MBbl) - 415 - 111 717
Côte d'Ivoire Average daily production volumes (BOEPD) - 4,506 - 407 2,619
Total Crude oil, natural gas and natural gas liquids production (MBOE) 1,830 2,458 1,971 5,816 6,753
Average daily production volumes (BOEPD) 19,887 26,709 21,654 21,305 24,649
NRI PRODUCTION DATA
Etame Crude oil (MBbl) 570 704 678 1,915 2,095
Gabon Average daily production volumes (BOEPD) 6,192 7,652 7,450 7,014 7,647
Egypt Crude oil (MBbl) 693 657 693 2,027 1,941
Egypt Average daily production volumes (BOEPD) 7,532 7,141 7,612 7,426 7,084
Canada Crude Oil (MBbl) 45 95 54 165 263
Canada Natural Gas (MMcf) 368 380 393 1,099 1,161
Canada Natural Gas Liquid (MBOE) 48 69 53 157 202
Canada Crude oil, natural gas and natural gas liquids (MBOE) 154 227 172 506 656
Canada Average daily production volumes (BOEPD) 1,681 2,471 1,894 1,852 2,395
Côte d'Ivoire Crude oil (MBbl) - 415 - 111 717
Côte d'Ivoire Average daily production volumes (BOEPD) - 4,506 - 407 2,619
Total Crude oil, natural gas and natural gas liquids production (MBOE) 1,417 2,003 1,543 4,559 5,410
Average daily production volumes (BOEPD) 15,405 21,770 16,956 16,700 19,745
AVERAGE SALES PRICES:
Crude oil, natural gas and natural gas liquids sales (per BOE) - WI basis $ 55.91 $ 69.07 $ 57.83 $ 60.64 $ 69.90
Crude oil, natural gas and natural gas liquids sales (per BOE) - NRI basis $ 51.26 $ 65.41 $ 54.87 $ 57.42 $ 65.99
Crude oil, natural gas and natural gas liquids sales (Per BOE including $ 50.96 $ 65.39 $ 54.92 $ 57.39 $ 65.98
realized commodity derivatives) - NRI basis
COSTS AND EXPENSES (Per BOE of sales):
Production expense 25.30 $ 19.83 $ 22.89 $ 24.68 $ 23.54
Production expense, excluding offshore workovers and stock compensation* 25.23 $ 19.80 $ 22.85 $ 24.63 $ 23.52
Depreciation, depletion and amortization 17.41 $ 22.04 $ 16.02 $ 16.97 $ 19.67
General and administrative expense** 7.49 $ 3.25 $ 4.81 $ 5.66 $ 3.94
Property and equipment expenditures, cash basis (in thousands) $ 48,302 $ 12,431 $ 45,899 $ 152,728 $ 61,530
* Offshore workover costs excluded for Q3 2025, Q3
2024, and Q2 2025 are $0.1 million, $0.1 million and $0.0 million,
respectively.
* Stock compensation associated with production
expense excluded for Q3 2025, Q3 2024, and Q2 2025 are immaterial.
** General and administrative expenses include $1.42,
$0.52 and $0.78 per barrel of oil related to stock-based compensation expense
for Q3 2025, Q3 2024, and Q2 2025, respectively.
NON-GAAP FINANCIAL MEASURES
Management uses Adjusted Net Income to evaluate operating and financial
performance and believes the measure is useful to investors because it
eliminates the impact of certain non-cash and/or other items that management
does not consider to be indicative of the Company's performance from period to
period. Management also believes this non-GAAP measure is useful to investors
to evaluate and compare the Company's operating and financial performance
across periods, as well as to facilitate comparisons to others in the
Company's industry. Adjusted Net Income is a non-GAAP financial measure and as
used herein represents net income, plus deferred income tax expense (benefit),
unrealized derivative instrument loss (gain), bargain purchase gain on the
Svenska Acquisition, FPSO demobilization, transaction costs related to the
Svenska acquisition and non-cash and other items.
Adjusted EBITDAX is a supplemental non-GAAP financial measure used by Vaalco's
management and by external users of the Company's financial statements, such
as industry analysts, lenders, rating agencies, investors and others who
follow the industry. Management believes the measure is useful to investors
because it is as an indicator of the Company's ability to internally fund
exploration and development activities and to service or incur additional
debt. Adjusted EBITDAX is a non-GAAP financial measure and as used herein
represents net income, plus interest expense (income) net, income tax expense
(benefit), depreciation, depletion and amortization, exploration expense, FPSO
demobilization, non-cash and other items including stock compensation expense,
bargain purchase gain on the Svenska Acquisition, other operating (income)
expense, net, non-cash purchase price adjustment, transaction costs related to
acquisition, credit losses and other and unrealized derivative instrument loss
(gain).
Management uses Adjusted Working Capital as a transition tool to assess the
working capital position of the Company's continuing operations excluding
leasing obligations because it eliminates the impact of discontinued
operations as well as the impact of lease liabilities. Under the applicable
lease accounting standards, lease liabilities related to assets used in joint
operations include both the Company's share of expenditures as well as the
share of lease expenditures which its non-operator joint venture owners' will
be obligated to pay under joint operating agreements. Adjusted Working Capital
is a non-GAAP financial measure and as used herein represents working capital
excluding working capital attributable to discontinued operations and current
liabilities associated with lease obligations.
Management uses Free Cash Flow to evaluate financial performance and to
determine the total amount of cash over a specified period available to be
used in connection with returning cash to shareholders, and believes the
measure is useful to investors because it provides the total amount of net
cash available for returning cash to shareholders by adding cash generated
from operating activities, subtracting amounts used in financing and investing
activities, effects of exchange rate changes on cash and adding back amounts
used for dividend payments and stock repurchases. Free Cash Flow is a non-GAAP
financial measure and as used herein represents net change in cash, cash
equivalents and restricted cash and adds the amounts paid under dividend
distributions and share repurchases over a specified period.
Free Cash Flow has significant limitations, including that it does not
represent residual cash flows available for discretionary purposes and should
not be used as a substitute for cash flow measures prepared in accordance with
GAAP. Free Cash Flow should not be considered as a substitute for cashflows
from operating activities before discontinued operations or any other
liquidity measure presented in accordance with GAAP. Free Cash Flow may vary
among other companies. Therefore, the Company's Free Cash Flow may not be
comparable to similarly titled measures used by other companies.
Adjusted EBITDAX and Adjusted Net Income have significant limitations,
including that they do not reflect the Company's cash requirements for capital
expenditures, contractual commitments, working capital or debt service.
Adjusted EBITDAX, Adjusted Net Income, Adjusted Working Capital and Free Cash
Flow should not be considered as substitutes for net income (loss), operating
income (loss), cash flows from operating activities or any other measure of
financial performance or liquidity presented in accordance with GAAP. Adjusted
EBITDAX and Adjusted Net Income exclude some, but not all, items that affect
net income (loss) and operating income (loss), and the calculation of these
measures may vary among other companies. Therefore, the Company's Adjusted
EBITDAX, Adjusted Net Income, Adjusted Working Capital and Free Cash Flow may
not be comparable to similarly titled measures used by other companies.
The tables below reconcile the most directly comparable GAAP financial
measures to Adjusted Net Income, Adjusted EBITDAX, Adjusted Working Capital
and Free Cash Flow.
VAALCO ENERGY, INC AND SUBSIDIARIES
Reconciliations of Non-GAAP Financial Measures
(Unaudited)
(in thousands)
Three Months Ended Nine Months Ended
Reconciliation of Net Income to Adjusted Net Income (Loss) September 30, 2025 September 30, 2024 June 30, 2025 September 30, 2025 September 30, 2024
Net income $ 1,101 $ 10,990 $ 8,380 $ 17,212 $ 46,827
Adjustment for discrete items:
Unrealized derivative instruments loss (gain) 737 (192) (309) 626 365
Bargain purchase gain - - - - (19,898)
Deferred income tax benefit (12,171) (3,089) (5,788) (19,569) (8,551)
Non-cash purchase price adjustment - - - - 14,981
Transaction costs related to acquisition 17 327 34 73 3,402
Other operating income, net - (102) - - (68)
Adjusted Net Income (Loss) $ (10,316) $ 7,934 $ 2,317 $ (1,658) $ 37,058
Diluted Adjusted Net Income (Loss) per Share $ (0.10) $ 0.08 $ 0.02 $ (0.02) $ 0.36
Diluted weighted average shares outstanding ((1)) 104,283 103,842 103,958 104,010 103,728
((1) ) No adjustments to weighted average shares outstanding
Three Months Ended Nine Months Ended
Reconciliation of Net Income to Adjusted EBITDAX September 30, 2025 September 30, 2024 June 30, 2025 September 30, 2025 September 30, 2024
Net income $ 1,101 $ 10,990 $ 8,380 $ 17,212 $ 46,827
Add back:
Interest expense, net 2,333 588 2,572 6,199 2,640
Income tax expense (3,596) 32,574 6,983 19,470 64,115
Depreciation, depletion and amortization 20,555 47,031 28,273 79,133 105,987
Exploration expense 353 - 2,520 2,873 48
Non-cash or unusual items:
Stock-based compensation 1,685 1,479 1,411 4,448 3,362
Unrealized derivative instruments loss 737 (192) (309) 626 365
Bargain purchase gain - - - - (19,898)
Other operating income, net - (102) - - (68)
Non-cash purchase price adjustment - - - - 14,981
Transaction costs related to acquisition 17 327 34 73 3,402
Credit losses and other 484 69 29 485 5,222
Adjusted EBITDAX $ 23,669 $ 92,764 $ 49,893 $ 130,519 $ 226,983
( )
(
)
VAALCO ENERGY, INC AND SUBSIDIARIES
Reconciliations of Non-GAAP Financial Measures
(Unaudited)
(in thousands)
Reconciliation of Working Capital to Adjusted Working Capital September 30, 2025 December 31, 2024 Change
Current assets $ 173,738 $ 237,927 $ (64,189)
Current liabilities (166,238) (181,728) 15,490
Working capital 7,500 56,199 (48,699)
Add: lease liabilities - current portion 16,651 16,895 (244)
Adjusted Working Capital $ 24,151 $ 73,094 $ (48,943)
Nine Months Ended September 30, 2025
Reconciliation of Free Cash Flow (in thousands)
Net cash provided by Operating activities $ 67,494
Net cash used in Investing activities (155,762)
Net cash provided by Financing activities 22,603
Effects of exchange rate changes on cash 53
Total net cash change (65,612)
Add back shareholder cash out:
Dividends paid 19,807
Total cash returned to shareholders 19,807
Free Cash Flow $ (45,805)
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 September 30, 2025 June 30, 2025
Long-term debt $ 60,000 $ 60,000
Less: Cash and cash equivalents (32,114) (74,333)
Net debt $ 27,886 $ (14,333)
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
or visit
www.rns.com (http://www.rns.com/)
.
RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
. END QRTFFDESSEISEIF
Copyright 2019 Regulatory News Service, all rights reservedRecent news on VAALCO Energy
See all newsREG - Vaalco Energy Inc - Commencement of Drilling Program Offshore Gabon
AnnouncementRCS - Vaalco Energy Inc - Vaalco Energy & Water Tower Research
AnnouncementREG - Vaalco Energy Inc - FOURTH QUARTER 2025 DIVIDEND
AnnouncementREG - Vaalco Energy Inc - THIRD QUARTER 2025 RESULTS
AnnouncementREG - Vaalco Energy Inc - Q3'25 Earnings Release & Conference Call
Announcement