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 inEgypt .
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 ofFebruary 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 to$360 million , including a drilling campaign at Etame, expected completion of theFPSO Refurbishment/Reconnection Project , initial Phase 5 Drilling Program at Baobab and continued field activity inEgypt ; and - Declared quarterly cash dividend of
$0.0625 per share of common stock to be paid onMarch 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), |
“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 60% WI in the Kossipo field. The Kossipo field is a discovery with material oil in place, located in close proximity to our highly productive Baobab field on the CI-40 Block. We also have had a positive start to our
Operational Update
The Company’s Phase Three Drilling Program in
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
Vaalco conducted a drilling campaign in
Côte d'Ivoire
In connection with the planned dry dock refurbishment, the Baobab FPSO ceased hydrocarbon production on
In
The Company owns a 60% WI in an undeveloped portion of Block P offshore
On
Year-End 2025 Reserves
Vaalco’s
The standardized measure of Vaalco’s
| MMBoe | |||
| Proved SEC Reserves at | 45.0 | ||
| 2025 Production | (6.0 | ) | |
| Revisions of Previous Estimates | 2.8 | ||
| Extensions and Additions | 1.2 | ||
| Proved SEC Reserves at | 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
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 | Three Months Ended | |||||||||||||||||||||||||||||||||||
| Côte d'Ivoire | Total | 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 | $ | 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 ( | 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) | Corporate and Other | Total | |||||||||||||||||||
| Cash/In Kind Taxes Paid: | |||||||||||||||||||||
| Three Months Ended | $ | 1,451 | $ | 8,430 | $ | — | $ | — | $ | — | $ | — | $ | 9,881 | |||||||
Financial Update - Full Year 2025
Net sales for the year ended
The average realized price for the year ended
The Company reported a net loss for the year ended
| Year to Date Summary - Sales and Net Revenue | |||||||||||||||||||||||||||||||||||||
| $ in thousands | Year Ended | Year Ended | |||||||||||||||||||||||||||||||||||
| Côte d'Ivoire | Total | 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 | $ | 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
In
On
Effective
In addition, on
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 | |||||||||||||
| 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
| Settlement Period | |||||||||||||||||
| Instrument | Index | ||||||||||||||||
| 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 | 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 ($/BOE) | NRI |
| Q1 2026 | Côte d'Ivoire | ||||||||||
| Production (BOEPD) | WI | 18700 - 20600 | 7300 - 8000 | 10300 - 11400 | 1100 - 1200 | ||||||
| Production (BOEPD) | NRI | 14200 - 16000 | 6300 - 7000 | 7000 - 8000 | 900 - 1000 | ||||||
| Sales Volume (BOEPD) | WI | 15200 - 17000 | 3800 - 4400 | 10300 - 11400 | 1100 - 1200 | ||||||
| Sales Volume (BOEPD) | NRI | 11200 - 12900 | 3300 - 3900 | 7000 - 8000 | 900 - 1000 | ||||||
| Production Expense (millions) | WI & NRI | ||||||||||
| Production Expense per BOE | WI | ||||||||||
| Production Expense per BOE | NRI | ||||||||||
| Exploration Expense (millions) | WI & NRI | ||||||||||
| Offshore Workovers (millions) | WI & NRI | ||||||||||
| Cash G&A (millions) | WI & NRI | ||||||||||
| CAPEX Excluding Acquisitions (millions) | WI & NRI | ||||||||||
| DD&A ($/BOE) | NRI |
Conference Call
As previously announced, the Company will hold a conference call to discuss its fourth quarter 2025 financial and operating results,
A “Q4 2025 Supplemental Information” investor deck will be posted to Vaalco’s website prior to its conference call on
About Vaalco
Vaalco, founded in 1985 and incorporated under the laws of
Vaalco’s Legal Entity Identifier (LEI) is 549300CFHFVIWB8M6T24
For Further Information
| +00 1 713 543 3422 | |
| Website: | www.vaalco.com |
| Al | +00 1 713 543 3422 |
| +44 (0) 207 466 5000 | |
| 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
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
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 10% per annum to reflect timing of future cash flows. PV-10 values for 2P WI CPR reserves have been calculated using VAALCO’s management assumptions for timing, escalated crude oil price and cost in the case of 2P WI CPR reserves. PV-10 generally differs from standardized measure, the most directly comparable GAAP financial measure, because it generally does not include the effects of income taxes; however, VAALCO’s PV-10 does include the effect of income taxes. PV-10 is a widely used measure within the industry and is commonly used by securities analysts, banks and credit rating agencies to evaluate the estimated future net cash flows from proved reserves on a comparative basis across companies or specific properties. VAALCO’s PV-10 includes the effect of income taxes. Neither PV-10 nor the standardized measure purports to represent the fair value of the Company’s crude oil and natural gas reserves.
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
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
1P and 2P WI CPR reserves, as disclosed herein, may differ from the
- 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 inflating 2% 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
Condensed Consolidated Balance Sheets
(Unaudited)
| As of | As of | ||||
| (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 | |||
| 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 | |
Consolidated Statements of Operations
(Unaudited)
| Three Months Ended | Year Ended | ||||||||||||||||||
| (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 | ||||||||||||||
Condensed Consolidated Statements of Cash Flows
(Unaudited)
| Year Ended | |||||||
| 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 | ) | |||
| (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 | |||
Selected Financial and Operating Statistics
(Unaudited)
| Three Months Ended | Year Ended | ||||||||
| 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 | ||||
| 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 | ||||
| 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
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,
The tables below reconcile the most directly comparable GAAP financial measures to Adjusted Net Income, Adjusted EBITDAX,
Reconciliations of Non-GAAP Financial Measures
(Unaudited)
(in thousands)
| Three Months Ended | Year Ended | ||||||||||||||||||
| Reconciliation of Net Income (Loss) to Adjusted Net Income (Loss) | |||||||||||||||||||
| 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 | |||||||||||||||||||
| 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 | |||||||||
Reconciliations of Non-GAAP Financial Measures
(Unaudited)
(in thousands)
| Reconciliation of Working Capital to | 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 | ||||||||
| $ | (41,157 | ) | $ | 73,094 | $ | (114,251 | ) | ||||
| Year Ended | |||
| 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 | |||||||
| Long-term debt | $ | 60,000 | $ | 60,000 | |||
| Less: Cash and cash equivalents | (58,900 | ) | (32,114 | ) | |||
| Net debt | $ | 1,100 | $ | 27,886 | |||
