Core Insights - Vaalco Energy, Inc. reported strong operational and financial results for Q2 2025, with net income of $8.4 million and Adjusted EBITDAX of $49.9 million, exceeding guidance expectations [3][6][11] Operational Update - The company is preparing for multiple drilling campaigns in Côte d'Ivoire, Gabon, and Egypt, with significant projects planned for 2026 and beyond [3][4][9] - In Gabon, a drilling rig has been secured for the 2025/2026 drilling program, expected to commence near the end of Q3 2025 [4] - The FPSO refurbishment project in Côte d'Ivoire is underway, with drilling planned to enhance production in the Baobab field starting in 2026 [3][9] - In Egypt, six wells were completed in Q2 2025, with further hydraulic fracturing planned for Q3 2025 [7] Financial Performance - Vaalco's Q2 2025 net income was $8.4 million ($0.08 per diluted share), an increase from $7.7 million in Q1 2025 but a decrease from $28.2 million in Q2 2024 [11][25] - Adjusted EBITDAX for Q2 2025 was $49.9 million, down 12% from Q1 2025 and down 31% from Q2 2024, primarily due to lower realized pricing [12][11] - The company produced 16,956 NRI BOEPD, exceeding guidance, and sold 19,393 NRI BOEPD, also above guidance [6][11] Capital Investments and Balance Sheet - Net capital expenditures for Q2 2025 totaled $45.9 million, primarily for projects in Gabon, Egypt, and Côte d'Ivoire [29] - As of June 30, 2025, Vaalco had an unrestricted cash balance of $67.9 million, with working capital increasing to $62.8 million from $56.2 million at the end of 2024 [30][31] - The company entered a new reserves-based revolving credit facility with an initial commitment of $190 million, aimed at supporting its growth initiatives [31] Dividend and Shareholder Returns - Vaalco declared a quarterly cash dividend of $0.0625 per share for Q2 2025, with the next dividend scheduled for September 19, 2025 [32] Hedging Strategy - The company continues to hedge a portion of its expected future production to secure cash flow for capital and shareholder return programs [33]

Core Viewpoint - Vaalco Energy, Inc. has declared a quarterly cash dividend of $0.0625 per share for Q3 2025, marking its 15th consecutive quarterly dividend, despite facing weaker commodity prices [1][2]. Company Overview - Vaalco Energy, founded in 1985 and incorporated in Delaware, is an independent energy company based in Houston, Texas, with a diverse portfolio of production, development, and exploration assets across multiple countries including Gabon, Egypt, Cote d'Ivoire, Equatorial Guinea, Nigeria, and Canada [3]. Dividend Information - The declared dividend of $0.0625 per share is annualized to $0.25 and will be payable on September 19, 2025, to stockholders of record as of August 22, 2025 [1]. - Future dividends are subject to approval by the Board of Directors and will depend on various factors including financial results, balance sheet strength, and commodity prices [6][7].

Core Viewpoint - The market anticipates a significant decline in Vaalco Energy's earnings due to lower revenues, with a consensus estimate indicating a year-over-year earnings drop of 95.5% and a revenue decrease of 21% [1][3]. Earnings Expectations - Vaalco Energy is expected to report earnings of $0.01 per share for the quarter ending June 2025, reflecting a substantial decline from the previous year [3]. - Revenues are projected to be $92.25 million, down from the same quarter last year [3]. Estimate Revisions - The consensus EPS estimate has remained unchanged over the last 30 days, indicating a stable outlook from covering analysts [4]. - The Most Accurate Estimate for Vaalco Energy is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -100.00%, suggesting a bearish sentiment among analysts [12]. Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that a positive or negative reading can predict the likelihood of actual earnings deviating from consensus estimates, with a strong predictive power for positive readings [9][10]. - Vaalco Energy's current Zacks Rank is 3, which complicates the prediction of an earnings beat given the negative Earnings ESP [12]. Historical Performance - In the last reported quarter, Vaalco Energy met the consensus EPS estimate of $0.06, resulting in no surprise [13]. - Over the past four quarters, the company has beaten consensus EPS estimates twice [14]. Conclusion - Vaalco Energy does not appear to be a strong candidate for an earnings beat based on current estimates and market sentiment, but other factors may influence stock performance around the earnings release [17].

HOUSTON, July 28, 2025 (GLOBE NEWSWIRE) -- VAALCO Energy, Inc. (NYSE: EGY; LSE: EGY) (“Vaalco” or the “Company”) today announced the timing of its second quarter 2025 earnings release and conference call. The Company will issue its second quarter 2025 earnings release on Thursday, August 7, 2025 after the close of trading on the New York Stock Exchange and host a conference call to discuss its financial and operational results on Friday morning, August 8, 2025 at 9:00 a.m. Central Time (10:00 a.m. Eastern T ...

Core Viewpoint - Vaalco Energy is an overlooked, debt-free oil producer with a unique production mix operating in offshore Africa, onshore Egypt, and Canada, offering a yield of 6.7% [1] Company Overview - Vaalco Energy operates in diverse geographical locations, including offshore Africa and onshore Egypt and Canada, which contributes to its unusual production mix [1] - The company is characterized as debt-free, which may enhance its financial stability and attractiveness to investors [1] Investment Potential - The company provides a yield of 6.7%, indicating potential for income generation for investors [1]

Unlocking Material Growth and Value Through Operational Excellence Significant Organic Catalysts for Re-Rating Capital Markets Day – 14 May 2025 Disclaimer Forward-Looking Statements Safe Harbor This presentation of Vaalco Energy, Inc. ("Vaalco") includes "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended (the "Securities Act") and Section 21E of the Securities Exchange Act of 1934, as amended, which are intended to be covered by the safe harbors created ...

VAALCO Energy (EGY) 2025 Capital Markets Day May 14, 2025 09:00 AM ET Speaker0 You may submit questions throughout the event by clicking the ask a question box on your screen and submitting your question. Questions will be addressed after the formal presentation has ended. Please note this event is also being recorded. I would now like to turn the conference over to Mr. George Maxwell, Chief Executive Officer. Please go ahead, sir. Speaker1 Good morning, ladies and gentlemen, and welcome to Valkyrie Energy' ...

Core Viewpoint - VAALCO Energy is actively pursuing oil and gas development projects in Côte d'Ivoire and Gabon, with significant plans for drilling and refurbishment of production facilities aimed at enhancing production efficiency and extending the economic life of its assets [1][5]. Côte d'Ivoire Developments - The company plans to refurbish the FPSO Baobab at the Baobab field in Block CI-40, which ceased production on January 31, 2025, and will undergo dry dock refurbishment in Dubai [2][3]. - The refurbishment is essential for extending the economic life of the Baobab field, allowing for continued oil production until at least 2038 [3]. - VAALCO Energy holds a 27.39% stake in the Baobab field, which is operated by Canadian Natural Resources International with a 57.61% interest [4]. - A significant development drilling campaign is scheduled for 2026, which is expected to increase hydrocarbon production from the Baobab field [5]. Expansion into Block CI-705 - In March 2025, VAALCO Energy entered a farm-in agreement for Block CI-705, acquiring a 70% working interest and a 100% paying interest through a commercial carry agreement [6]. Gabon Drilling Campaign - The company is preparing for a drilling program in Gabon for 2025/2026, expected to commence in the third quarter of 2025 [7]. - The Gabon drilling campaign will include development, appraisal, and exploration wells, as well as workovers for existing wells [8]. - A rig has been contracted from Borr Drilling for the drilling program, which will focus on the Etame and Southeast Etame North Tchibala platforms [8]. - Plans also include re-drilling existing wells and performing workovers at the Ebouri field to restore production and access previously removed reserves [9].

[PART I. FINANCIAL INFORMATION](index=4&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) [Item 1. Condensed Consolidated Financial Statements (Unaudited)](index=4&type=section&id=ITEM%201.%20CONDENSED%20CONSOLIDATED%20FINANCIAL%20STATEMENTS%20(unaudited)) The company reported stable net income of $7.7 million in Q1 2025, with decreased assets and a new RBL facility [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets decreased to $927.1 million due to a significant drop in cash and cash equivalents Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $40,914 | $82,650 | | Total current assets | $200,838 | $237,927 | | Total assets | $927,103 | $954,950 | | **Liabilities & Equity** | | | | Total current liabilities | $177,675 | $181,728 | | Total liabilities | $423,009 | $453,367 | | Total shareholders' equity | $504,094 | $501,583 | | Total liabilities and shareholders' equity | $927,103 | $954,950 | [Condensed Consolidated Statements of Operations and Comprehensive Income](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Income) Revenues grew 10.2% to $110.3 million, but higher expenses led to lower operating income Statement of Operations Highlights (in thousands, except per share data) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Revenues | $110,329 | $100,155 | | Production expense | $44,806 | $32,089 | | Operating income | $26,194 | $32,193 | | Net income | $7,730 | $7,686 | | Diluted net income per share | $0.07 | $0.07 | [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Operating cash flow increased to $32.7 million, offset by a sharp rise in investing activities Cash Flow Summary (in thousands) | Activity | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $32,706 | $21,832 | | Net cash used in investing activities | ($58,774) | ($16,618) | | Net cash used in financing activities | ($14,786) | ($14,455) | | **Net change in cash** | **($40,827)** | **($9,449)** | [Notes to Condensed Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Notes detail recent acquisitions, a new $190 million RBL facility, and segment revenue contributions - In March 2025, the Company farmed into the CI-705 block offshore Côte d’Ivoire as operator with a **70% working interest** for approximately **$3.0 million**[31](index=31&type=chunk) - In February 2025, the company acquired the Baobab FPSO in Côte d'Ivoire for a total price of **$20.0 million** ($5.5 million net to Vaalco)[32](index=32&type=chunk) - On March 4, 2025, the company entered into a new senior secured reserve-based revolving credit facility (2025 RBL Facility) with aggregate commitments of **$190.0 million** and an initial borrowing base of **$182.0 million**[66](index=66&type=chunk)[75](index=75&type=chunk) - In April 2025, subsequent to the quarter's end, the company drew down **$60.0 million** under the new 2025 RBL Facility[83](index=83&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=24&type=section&id=ITEM%202.%20MANAGEMENT'S%20DISCUSSION%20AND%20ANALYSIS%20OF%20FINANCIAL%20CONDITION%20AND%20RESULTS%20OF%20OPERATIONS) Management discusses a 10% revenue increase driven by new assets, offset by higher production expenses and capital expenditures [Recent Developments and Operational Updates](index=25&type=section&id=Recent%20Developments%20and%20Operational%20Updates) The company maintained its dividend, advanced drilling programs, and progressed the Baobab FPSO refurbishment - Paid a Q1 2025 dividend of **$0.0625 per share** and declared the same for Q2 2025[91](index=91&type=chunk) - Secured a new **$190.0 million RBL facility** and terminated the prior Glencore facility[92](index=92&type=chunk)[94](index=94&type=chunk) - The Baobab FPSO in Côte d'Ivoire **ceased production on January 31, 2025**, for a planned dry dock refurbishment[102](index=102&type=chunk) - Targeting a **Final Investment Decision** for the Venus field development (Block P, Equatorial Guinea) by the end of Q2 2025[103](index=103&type=chunk) [Capital Resources and Liquidity](index=28&type=section&id=Capital%20Resources%20and%20Liquidity) Liquidity is supported by operating cash flow, $40.9 million in cash, and $182.0 million in available credit Capital Expenditures (Accrual Basis, in millions) | Period | Capital Expenditures | | :--- | :--- | | Q1 2025 | $51.3 | | Q1 2024 | $24.0 | - At March 31, 2025, the company had **$40.9 million in unrestricted cash** and **$182.0 million of available borrowing capacity** under its 2025 RBL Facility[93](index=93&type=chunk)[111](index=111&type=chunk) - Material cash requirements include FPSO refurbishment, capital projects (drilling in Gabon and Egypt), lease payments, and commitments under the Egyptian Merged Concession Agreement[116](index=116&type=chunk)[117](index=117&type=chunk)[118](index=118&type=chunk)[119](index=119&type=chunk)[120](index=120&type=chunk) [Results of Operations](index=32&type=section&id=Results%20of%20Operations) Revenue increased 10% to $110.3 million due to volume, while production expenses rose 40% from new operations and settlements Q1 2025 vs Q1 2024 Operations Summary | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net Sales (MBoe) | 1,599 | 1,533 | | Average Realized Price ($/Boe) | $64.27 | $66.43 | - Gabon revenue decreased by **$5.3 million** due to lower realized prices ($79.25/Bbl vs $84.14/Bbl)[138](index=138&type=chunk) - Côte d'Ivoire, acquired in April 2024, contributed **$18.0 million in revenue** in Q1 2025[141](index=141&type=chunk) - Production expenses increased by **$12.7 million (40%)**, primarily due to a $4.7 million government audit settlement in Gabon, chemical costs, and the inclusion of Côte d'Ivoire[142](index=142&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=35&type=section&id=ITEM%203.%20QUANTITATIVE%20AND%20QUALITATIVE%20DISCLOSURES%20ABOUT%20MARKET%20RISK) The company faces market risks from commodity prices, foreign exchange rates, and interest rates - The company's primary market risk is the price of **crude oil, natural gas, and NGLs**[156](index=156&type=chunk) Sensitivity to a $5/Bbl Decrease in Crude Oil Price (In Millions) | Country | Decrease in Revenues | Decrease in Operating Income | | :--- | :--- | :--- | | Gabon | $3.3 | $3.0 | | Egypt | $3.2 | $1.9 | | Côte d'Ivoire | $1.2 | $0.6 | | Canada | $0.9 | $0.7 | - As of March 31, 2025, the company had **derivative collars** to hedge oil production through September 2025[158](index=158&type=chunk) - The company has foreign exchange risk exposure to the Central African CFA Franc (XAF), Canadian Dollar (CAD), Egyptian Pound (EGP), and Swedish Krona (SEK)[150](index=150&type=chunk)[151](index=151&type=chunk)[152](index=152&type=chunk)[153](index=153&type=chunk) [Item 4. Controls and Procedures](index=37&type=section&id=ITEM%204.%20CONTROLS%20AND%20PROCEDURES) Management concluded that disclosure controls and procedures were not effective due to material weaknesses in IT controls - Disclosure controls and procedures were concluded to be **not effective** as of March 31, 2025[166](index=166&type=chunk) - The ineffectiveness is due to **material weaknesses** identified as of December 31, 2024, related to ineffective IT controls over the procure-to-pay system and ineffective process-level controls in the same area[167](index=167&type=chunk)[168](index=168&type=chunk) - A remediation plan is being implemented, but the material weaknesses will not be considered remediated until the new controls operate effectively for a sufficient period[169](index=169&type=chunk) [PART II. OTHER INFORMATION](index=38&type=section&id=PART%20II.%20OTHER%20INFORMATION) [Item 1. Legal Proceedings](index=38&type=section&id=ITEM%201.%20LEGAL%20PROCEEDINGS) The company is not subject to any material legal proceedings - Management opines that none of the current claims and litigation are **material** to the company's business[173](index=173&type=chunk) [Item 1A. Risk Factors](index=38&type=section&id=ITEM%201A.%20RISK%20FACTORS) A new risk factor was added concerning contract provisions that could deter a potential acquisition - A **new risk factor** was added concerning provisions in agreements (e.g., PSCs, JOAs) that could discourage a third-party acquisition of the company[176](index=176&type=chunk) - These provisions include restrictions on asset assignments, consent requirements, and preemption rights, which could deter potential acquirers and deprive shareholders of a potential sale premium[176](index=176&type=chunk)[177](index=177&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=39&type=section&id=ITEM%202.%20UNREGISTERED%20SALES%20OF%20EQUITY%20SECURITIES%20AND%20USE%20OF%20PROCEEDS) No unregistered equity securities were sold during the first quarter of 2025 - **No sales of unregistered securities** occurred during the quarter ended March 31, 2025[178](index=178&type=chunk) [Item 5. Other Information](index=39&type=section&id=ITEM%205.%20OTHER%20INFORMATION) No directors or officers adopted or modified Rule 10b5-1 trading arrangements in Q1 2025 - No directors or officers adopted, terminated, or modified a Rule 10b5-1 or non-Rule 10b5-1 trading arrangement in Q1 2025[179](index=179&type=chunk) [Item 6. Exhibits](index=40&type=section&id=ITEM%206.%20EXHIBITS) This section lists exhibits filed, including the new credit facility agreement and officer certifications - The exhibits include the new **Borrowing Base Facility Agreement** dated March 4, 2025, and Sarbanes-Oxley certifications[181](index=181&type=chunk)

Financial Data and Key Metrics Changes - In Q1 2025, the company reported a net income of $7.7 million or $0.7 per share and adjusted EBITDAX of $57 million, driven by NRI production of 17,764 barrels of oil equivalent per day, exceeding guidance [6][20] - Working interest production was 22,402 barrels of oil equivalent, also at the high end of guidance, while NRI sales were 19,074 barrels of oil equivalent per day, matching guidance [6][20] - The unrestricted cash balance as of March 31, 2025, was $40.9 million, down approximately $40 million from year-end 2024 due to elevated capital spending and state lifting bond payments [21] Business Line Data and Key Metrics Changes - In Egypt, five wells were drilled in Q1 2025, with an average initial production rate of about 120 barrels of oil per day, and further drilling is expected in Q2 2025 [13] - In Gabon, production results were positive despite no drilling for over two years, with a drilling program planned to begin in Q3 2025 [14][15] - The FPSO project in Cote D'Ivoire is on schedule, with significant development drilling expected to begin in 2026 [11][12] Market Data and Key Metrics Changes - The company has observed a decline in commodity pricing, particularly oil, leading to a 10% reduction in the capital budget for 2025 [9][10] - The company expects to spend between $65 million and $85 million in capital expenditures for Q2 2025, with production guidance remaining unchanged [22][23] Company Strategy and Development Direction - The company aims to operate efficiently, invest prudently, and maximize its asset base while seeking accretive opportunities [25] - Long-term projects like the FPSO in Cote D'Ivoire and drilling campaigns in Gabon are continuing as planned, with a focus on enhancing production and reserves [10][11] - The company is also exploring opportunities in Equatorial Guinea, with a FEED study anticipated to lead to a final investment decision in 2025 [20] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the current macroeconomic environment's uncertainty due to softening commodity prices and is taking measures to reduce discretionary capital spending [9][10] - The company remains confident in its operational and financial performance, with a strong start to 2025 and a commitment to delivering shareholder returns [25][26] Other Important Information - The company paid a quarterly cash dividend of $6.25 per common share in Q1 2025, with plans for a second dividend payment later in June [26] - The company has a track record of delivering strong operational and financial results, with a focus on organic growth opportunities [24][25] Q&A Session Summary Question: Can you comment on the production profile at Gabon over the back half of 2025? - Management indicated no significant planned downtime related to the drilling program for 2025, with a slight uptick in production expected towards the end of Q4 [29][30] Question: How would you prioritize projects if oil prices remain low? - Management stated that projects enhancing production through existing facilities would be prioritized, with the Equatorial Guinea project being attractive even at lower oil prices [36][37] Question: Can you clarify the working capital swing later in the year? - Management explained that the state lift in February drove the outflow in working capital, but no further state lifts are expected until 2026, which should improve working capital [48][49] Question: Does the resolution of receivables in Egypt mean more CapEx will be put back into Egypt? - Management clarified that while receivables have improved, current receivables still present challenges, and the company is meeting its contractual requirements with the Egyptian government [50][52]