From GlobeNewswire: 2025-03-13 20:25:00

Vaalco Energy, Inc. reported a net income of $11.7 million for the fourth quarter of 2024, with a total production of 20,775 net revenue interest barrels of oil equivalent per day. For the full year 2024, they reported a net income of $58.5 million, increased production by 7%, and grew reserves by 57%.

In 2025, Vaalco Energy, Inc. entered into a new revolving credit facility with an initial commitment of $190 million, acquired a 70% working interest in the CI-705 block in offshore Côte D’Ivoire, and planned a capital budget of $270 to $330 million for the year. The company aims to return over $25 million to shareholders through its dividend program.

Vaalco’s CEO, George Maxwell, highlighted the company’s successful performance in 2024, with record production and reserves growth. Looking ahead to 2025, major projects are planned to enhance organic growth, including drilling campaigns in key areas like Etame and Côte D’Ivoire. Financially, the company is well-positioned to fund growth opportunities and return value to shareholders.

In Egypt, Vaalco focused on enhancing production in 2024 through planned workovers and interventions using the OGS-10 rig. Two additional workover recompletions were completed in the fourth quarter of 2024, contributing to the company’s overall production and operational success. In the fourth quarter of 2024, Vaalco Egypt completed workovers on wells H-283 and Hoshia-101, with IP-30 rates of 50 BOPD and 300 BOPD, respectively. The drilling campaign in Canada saw the spud of well 1-32-28-3W, with an IP-30 rate yet to be determined. Vaalco transitioned to an FSO in Gabon, securing a rig for the 2025/26 drilling campaign and acquiring new exploration blocks in Gabon.

Vaalco’s drilling campaign in Egypt in Q4 2024 led to significant production increases in wells Arta-92 and Arta-93, with IP-30 rates of 428 BOPD and 95 BOPD, respectively. In Canada, a step-out well was drilled in Q4, while in Gabon, Vaalco secured a rig for the 2025/26 drilling campaign and acquired new exploration blocks. In Côte d’Ivoire, three liftings occurred in the fourth quarter. Vaalco also announced a farm-in into the CI-705 block offshore Côte d’Ivoire.

Vaalco’s reserves at the end of 2024 saw a 57% increase to 45.0 MMBOE, with 20.9 MMBOE in proved developed reserves and 24.1 MMBOE in proved undeveloped reserves. The increase was due to acquisitions and positive revisions, partially offset by production. NSAI and GLJ provided independent reserve estimates for Vaalco’s properties in Gabon, Ivory Coast, Egypt, and Canada. Vaalco’s reserve replacement ratio in 2024 was 324%, exceeding production of 7.3 MMBOE. SEC proved reserves rose to $379.4 million, up from $341.9 million in 2023, driven by Svenska acquisition. NSAI and GLJ estimated 2P WI CPR reserves at 96.1 MMBOE for 2024, with PV-10 value at $686.6 million, up 9% from 2023.

In Q4 2024, Vaalco’s net income was $11.7 million, up 6% from Q3 2024. Adjusted EBITDAX was $76.2 million, a decrease of 18% from Q3 2024. Sales volumes totaled 1,872,000 BOE, with net revenue at $121.7 million, down 13% from Q3 2024 due to lower sales volume and pricing.

Production expense in Q4 2024 was $36.5 million, down 14% from Q3 2024. Depreciation, depletion, and amortization expense was $37.0 million, lower than $47.0 million in Q3 2024. General and administrative expenses increased to $7.1 million, driven by higher professional service fees and salaries compared to Q3 2024. In Q4 2024, cash G&A was in line with the Company’s guidance. Non-cash stock-based compensation expense was $1.4 million, up from $0.9 million in Q4 2023. Other income (expense) was a $9.7 million expense, with a $6.4 million bargain purchase gain reduction due to Svenska acquisition. Q4 2024 income tax expense was $17.2 million, impacted by non-deductible items and market value changes.

For full year 2024, Vaalco reported a net income of $58.5 million, down from $60.4 million in 2023. NRI production volumes increased 6.8% to 7.3 MMBOE, driven by assets from Svenska acquisition. Average realized crude oil price for 2024 was $65.64 per barrel, a slight decrease from 2023.

For Q4 2024, net capital expenditures totaled $41.5 million on a cash basis. Vaalco had an unrestricted cash balance of $82.6 million at the end of Q4 2024. The Company entered into a new revolving credit facility in March 2025 with an initial commitment of $190 million, replacing the existing facility.

Vaalco paid a quarterly cash dividend of $0.0625 per share for Q4 2024, with the next quarterly dividend announced for Q1 2025. The Company continued to hedge a portion of its future production to secure cash flow. Remaining hedges include collars on Dated Brent and AECO with weighted average prices. A gigajoule of natural gas equals around 25.5 cubic meters. The company has entered into additional derivative contracts to cover future production post-2024. 2025 guidance includes production, sales volume, expenses, workovers, and more for various regions. A conference call on March 14, 2025, will discuss the fourth quarter 2024 results. Vaalco Energy is a Houston-based independent energy company with assets across multiple countries. Forward-looking statements in the press release discuss future expectations and risks. Dividends beyond Q1 2025 are not yet approved or declared by the Board of Directors. Vaalco provided a summary of its PV-10 value and probable reserves, reflecting the present value of estimated future cash inflows, discounted at 10% per annum. The PV-10 value includes income taxes and is widely used by analysts and credit rating agencies. The SEC prohibits aggregating proved, probable, and possible reserves due to varying certainty levels.

WI CPR reserves represent proved and probable estimates in accordance with petroleum guidelines. These reserves may differ from SEC definitions due to pricing and expense assumptions. Management uses WI CPR reserves for strategic planning and comparisons with other companies. Investors should rely on SEC proved reserves and use WI CPR reserves as supplementary information.

Investors should be cautious when viewing BOEs in isolation, as the conversion ratio may not accurately represent value. The announcement contains inside information under UK market abuse regulations. Vaalco is obligated to disclose this information in accordance with regulatory requirements. Vaalco Energy, Inc. reported its Condensed Consolidated Balance Sheets, showing assets totaling $954,950 as of December 31, 2024, with current assets at $237,927 and noncurrent assets at $604,023. Liabilities amounted to $453,367, with shareholders’ equity at $501,583.

In their Consolidated Statements of Operations, Vaalco Energy, Inc. disclosed a net income of $11,664 for the three months ended December 31, 2024, and $58,490 for the year ended. Revenue from crude oil, natural gas, and NGLs sales was $121,721 for the quarter and $478,988 for the year.

The company’s Condensed Consolidated Statements of Cash Flows for the year ended December 31, 2024, showed a net cash provided by operating activities of $113,718. Cash used in investing activities amounted to $102,119, while cash used in financing activities totaled $43,048. Cash, cash equivalents, and restricted cash at the end of the period were $97,726.

Vaalco Energy, Inc. also provided Selected Financial and Operating Statistics for the quarter and year ended December 31, 2024. The average daily production volumes for crude oil, natural gas, and NGLs were 24,738 BOEPD for the year. Average sales prices per BOE ranged from $64.48 to $69.30, with production expense per BOE ranging from $19.57 to $22.51.

Non-GAAP financial measures like Adjusted Net Income and Adjusted EBITDAX were used by management to assess performance and financial health. Adjusted Net Income eliminates non-cash items, while Adjusted EBITDAX indicates the company’s ability to fund activities and manage debt. These measures help investors evaluate Vaalco’s performance and compare it to industry standards. Adjusted EBITDAX is a non-GAAP financial measure representing net income plus various expenses. Adjusted Working Capital excludes lease obligations to assess the Company’s financial position. Free Cash Flow evaluates cash available for shareholder returns. These measures have limitations and should not replace GAAP measures. Reconciliations of these non-GAAP measures are provided. Adjusted Net Income and Adjusted EBITDAX have significant limitations, as they do not reflect the Company’s full cash requirements. Adjusted Working Capital and Free Cash Flow should not be substitutes for GAAP measures. Reconciliations of non-GAAP financial measures are provided.



Read more at GlobeNewswire:: VAALCO Energy, Inc. Announces Fourth Quarter and Record