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' ...

VAALCO Energy (EGY) , a U.S.-based independent exploration and production firm, has outlined its plans related to oil and gas development at Côte d’Ivoire and Gabon in Africa. During its first-quarter 2025 earnings release, the company mentioned multiple plans for oil and gas developments, including drilling activities at Block CI-40 in Côte d’Ivoire and an extensive drilling campaign in Gabon.EGY’s plans in Côte d’Ivoire involve the refurbishment of the floating production storage and offloading vessel (FP ...

[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)

VAALCO Energy (EGY) Q1 2025 Earnings Call May 09, 2025 10:00 AM ET Company Participants Chris Delange - Investor RelationsGeorge Maxwell - Chief Executive Officer and DirectorJeffrey Robertson - Managing DirectorStephane Foucaud - Founding PartnerChris Wheaton - Managing DirectorRonald Bain - Chief Financial Officer Operator Good morning, and welcome to VAALCO Energy's First Quarter twenty twenty five Conference Call. All participants will be in listen only mode. After today's presentation, there will be an ...

VAALCO Energy (EGY) Q1 2025 Earnings Call May 09, 2025 10:00 AM ET Company Participants Chris Delange - Investor RelationsGeorge Maxwell - Chief Executive Officer and DirectorJeffrey Robertson - Managing DirectorStephane Foucaud - Founding PartnerChris Wheaton - Managing DirectorRonald Bain - Chief Financial Officer Operator Good morning, and welcome to VAALCO Energy's First Quarter twenty twenty five Conference Call. All participants will be in listen only mode. After today's presentation, there will be an ...

Financial Data and Key Metrics Changes - In Q1 2025, the company reported a net income of $7.7 million or $0.7 per share, with adjusted EBITDAX of $57 million, driven by NRI production of 17,764 barrels of oil equivalent per day, exceeding guidance [5][6] - 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 [5][6] - The unrestricted cash balance as of March 31, 2025, was $40.9 million, down approximately $40 million from year-end 2024, primarily due to elevated capital spending and state lifting bond payments [20] Business Line Data and Key Metrics Changes - The company has reduced its capital budget for 2025 by 10%, from a range of $270 million to $330 million down to $250 million to $300 million, while maintaining production and sales guidance unchanged [8][21] - 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 [12][19] - In Gabon, production uptime has improved, and a drilling program is planned to begin in Q3 2025, with a focus on two wells to be drilled and one completed in 2025 [13][14] Market Data and Key Metrics Changes - The company is experiencing a decline in commodity pricing, prompting a reduction in discretionary capital spending and a delay of smaller projects [7][8] - The FPSO project in Cote D'Ivoire is on schedule, with significant development drilling expected to begin in 2026 [10][19] - The company has hedged 70,000 barrels of oil per month in Q2 with a floor price of $65, indicating a strategy to mitigate risks associated with commodity price fluctuations [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 expected to enhance production and reserves, contributing to future growth [9][10] - The company is focused on delivering sustainable growth and strong results to fund capital programs while returning value to shareholders through dividends [26] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the current macroeconomic environment's uncertainty due to softening commodity prices and emphasized the importance of maintaining operational excellence [6][7] - The company remains confident in its ability to execute plans and deliver on commitments, with a strong portfolio of organic projects expected to double its size and scale [24][25] - Management expressed optimism about the future, highlighting the diversified risk profile and multiple producing areas that will provide income for years to come [26] Other Important Information - The company has not had a lost time incident in 2024 and 2025, achieving over 4.3 million man hours without an incident, reflecting a strong commitment to safety [13] - The company plans to provide more details about its growth opportunities during the upcoming Capital Markets Day [24][60] 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] Question: Will the third quarter be the lowest quarter of the year for production? - Management confirmed that the third quarter is expected to be the lowest due to planned preventative maintenance downtime [30] Question: Can you discuss the development drilling campaign in Cote D'Ivoire for 2026? - Management stated that the Phase five drilling is scheduled to start mid-year 2026, with the operator actively working on securing a rig [32] Question: How would you prioritize projects if oil prices remain low? - Management explained that projects enhancing production through existing facilities are prioritized, with the Equatorial Guinea project being the most attractive due to its favorable terms [36][37] Question: How does the Aburi well's performance compare to expectations? - Management noted that the well's performance exceeded expectations, providing confidence in the redevelopment plans for Aburi [40][42] Question: Can you provide insights on working capital swings later in the year? - Management clarified that the state lift in February drove the working capital outflow in Q1, but future state lifts are not expected until 2026, indicating potential improvement in working capital [45][49] Question: Has the receivable issue in Egypt been resolved? - Management confirmed that the majority of the aged receivables have been collected, and the company is on track to meet its contractual requirements with the Egyptian government [51][55]

Q1 2025 Supplemental Information Profitably and Sustainably Growing Value May 2025 Q1 2025 Supplemental Information: Profitably and Sustainably Growing Value May 2025 Safe Harbor Statement Forward Looking Statements 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 ...

[Q1 2025 Performance Overview](index=1&type=section&id=Q1%202025%20Performance%20Overview) [Key Highlights](index=1&type=section&id=Key%20Highlights) In Q1 2025, Vaalco exceeded production guidance and met sales targets, resulting in a net income of $7.7 million ($0.07 per share) and Adjusted EBITDAX of $57.0 million Q1 2025 Key Financial and Operational Metrics | Metric | Value | | :--- | :--- | | Net Income | $7.7 million ($0.07 per diluted share) | | Adjusted Net Income | $6.3 million ($0.06 per diluted share) | | Adjusted EBITDAX | $57.0 million | | NRI Production | 17,764 BOEPD (above high end of guidance) | | WI Production | 22,402 BOEPD (toward high end of guidance) | | NRI Sales | 19,074 BOEPD (toward high end of guidance) | | Quarterly Dividend | $0.0625 per share | - Entered into a new reserves-based revolving credit facility with an initial commitment of **$190 million**, with the potential to increase to **$300 million**[3](index=3&type=chunk) - Reduced full-year 2025 capital expenditure guidance by approximately **10%** without impacting production or sales forecasts for the year[3](index=3&type=chunk) - Acquired a **70%** working interest in the CI-705 block offshore Côte D'Ivoire, where it will serve as the operator[3](index=3&type=chunk) [CEO Commentary](index=1&type=section&id=CEO%20Commentary) The CEO highlighted another successful quarter, meeting or exceeding guidance, which led to solid financial results and strategic achievements including a new credit facility and project advancements - The company delivered strong Q1 results with sales at the high end of guidance and NRI production above the high end, leading to solid net income and Adjusted EBITDAX[2](index=2&type=chunk) - Strategic execution in Q1 included initiating a new credit facility, commencing the FPSO refurbishment for Côte D'Ivoire, and preparing for the 2025/2026 drilling program in Gabon[2](index=2&type=chunk) - Decided to reduce the 2025 capital expenditure budget by about **10%** by delaying discretionary spending and deferring the capital program in Canada, which does not affect 2025 production or sales forecasts due to strong asset performance elsewhere[2](index=2&type=chunk) [Operational Update](index=3&type=section&id=Operational%20Update) [Egypt](index=3&type=section&id=Egypt) In Q1 2025, Vaalco completed five wells, with four brought online demonstrating an average initial 30-day production rate of approximately 135 BOPD, and discovered a new production zone in the Bakr formation - Completed five wells in Q1 2025; four were brought online with an average initial production rate of **~135 BOPD** over the first 30 days[4](index=4&type=chunk) - A new production zone was discovered in the Bakr formation, which contains heavier oil; the company is reviewing options to improve flow[4](index=4&type=chunk) [Canada](index=3&type=section&id=Canada) The company has decided to defer its 2025 drilling program in Canada as part of a strategy to reduce overall capital expenditures, while the four wells drilled in H1 2024 continue to perform as expected - Vaalco has deferred the drilling of additional wells in Canada for 2025 to lower the company's overall capital spending[6](index=6&type=chunk) [Gabon](index=3&type=section&id=Gabon) A drilling rig was secured for the 2025/2026 drilling program, set to begin in Q3 2025, and a successful extended flow test on the Ebouri 4-H well confirmed the effectiveness of chemical treatment for H2S - Secured a drilling rig for the 2025/2026 drilling program, scheduled to start in Q3 2025, targeting development, appraisal, and workover wells[7](index=7&type=chunk) - A successful four-month flow test on the Ebouri 4-H well demonstrated the ability to treat H2S-affected oil, adding to Q1 production[7](index=7&type=chunk) [Côte d'Ivoire](index=3&type=section&id=C%C3%B4te%20d%27Ivoire) The Baobab FPSO ceased production in January 2025 for refurbishment, with significant development drilling expected to start in 2026, and Vaalco expanded its presence by acquiring a 70% working interest in the offshore CI-705 block - The Baobab FPSO ceased production on January 31, 2025, for a planned dry dock refurbishment; development drilling is expected to begin in 2026 after the FPSO returns[8](index=8&type=chunk) - Acquired a **70%** working interest and operatorship of the CI-705 block for a **$3 million** investment, partnering with Ivory Coast Exploration Oil & Gas SAS and PETROCI[9](index=9&type=chunk) [Financial Performance](index=3&type=section&id=Financial%20Performance) [Financial Summary](index=3&type=section&id=Financial%20Summary) Vaalco reported Q1 2025 net income of $7.7 million, a 34% decrease from Q4 2024, primarily due to lower sales volumes and higher production expenses, with Adjusted EBITDAX at $57.0 million Quarterly Financial Comparison (in millions USD) | Metric | Q1 2025 | Q4 2024 | Q1 2024 | | :--- | :--- | :--- | :--- | | Net Income | $7.7 | $11.7 | $7.7 | | Adjusted EBITDAX | $57.0 | $76.2 | $61.7 | - The decrease in earnings compared to Q4 2024 was driven by lower sales volumes and higher production expense, partially offset by lower DD&A and income tax expense[10](index=10&type=chunk) [Revenue and Sales Analysis](index=4&type=section&id=Revenue%20and%20Sales%20Analysis) Net revenue for Q1 2025 was $110.3 million, down 9% from Q4 2024 due to an 8% decrease in NRI sales volumes, but up 10% year-over-year with a 15% increase in sales volumes Q1 2025 vs. Q4 2024 Sales Performance | Metric | Q1 2025 | Q4 2024 | % Change | | :--- | :--- | :--- | :--- | | Total Commodity Sales (Millions USD) | $110.3 | $121.7 | (9%) | | Sales (NRI MBOE) | 1,717 | 1,872 | (8%) | | Realized Price ($/BOE) | $64.27 | $64.77 | (1%) | Q1 2025 vs. Q1 2024 Sales Performance | Metric | Q1 2025 | Q1 2024 | % Change | | :--- | :--- | :--- | :--- | | Total Commodity Sales (Millions USD) | $110.3 | $100.2 | 10% | | Sales (NRI MBOE) | 1,717 | 1,490 | 15% | [Costs and Expenses](index=5&type=section&id=Costs%20and%20Expenses) Total production expense for Q1 2025 was $44.7 million, a 23% increase from Q4 2024 and a 39% increase from Q1 2024, mainly due to Gabon government audit settlements and higher chemical costs Quarterly Expense Comparison (in millions USD) | Expense Category | Q1 2025 | Q4 2024 | Q1 2024 | | :--- | :--- | :--- | :--- | | Production Expense | $44.7 | $36.5 | $32.1 | | DD&A | $30.3 | $37.0 | $25.8 | | G&A (ex. stock comp) | $7.8 | $7.1 | $5.9 | - The increase in production expense was primarily driven by higher costs in Gabon, including approximately **$4.7 million** (net) for government audit settlements and additional chemical costs for H2S treatment[13](index=13&type=chunk) [Capital Investments and Balance Sheet](index=6&type=section&id=Capital%20Investments%20and%20Balance%20Sheet) Net capital expenditures for Q1 2025 totaled $58.5 million, mainly for projects in Gabon, Côte d'Ivoire, and Egypt, with the company ending the quarter with $40.9 million in unrestricted cash and securing a new $190 million credit facility - Net capital expenditures were **$58.5 million** on a cash basis and **$51.3 million** on an accrual basis for Q1 2025[19](index=19&type=chunk) - Ended Q1 with an unrestricted cash balance of **$40.9 million** and Adjusted Working Capital of **$40.4 million**[20](index=20&type=chunk) - In March 2025, entered into a new reserves-based revolving credit facility with an initial commitment of **$190 million**, replacing the previous undrawn facility[21](index=21&type=chunk) [Shareholder Returns and Hedging](index=6&type=section&id=Shareholder%20Returns%20and%20Hedging) [Quarterly Cash Dividend](index=6&type=section&id=Quarterly%20Cash%20Dividend) Vaalco continues its commitment to shareholder returns, declaring a second-quarter 2025 cash dividend of $0.0625 per share ($0.25 annualized), payable on June 27, 2025 - Declared a Q2 2025 quarterly cash dividend of **$0.0625 per share**, to be paid on June 27, 2025[22](index=22&type=chunk) - This maintains the annualized dividend at **$0.25 per share**[22](index=22&type=chunk) [Hedging Activities](index=6&type=section&id=Hedging%20Activities) The company maintains a hedging program to secure cash flows, with Dated Brent collars in place for Q2 and Q3 2025, and additional AECO natural gas and Dated Brent swaps added post-quarter Hedges in Place as of March 31, 2025 | Settlement Period | Type | Avg. Volumes (Bbl) | Floor Price ($/Bbl) | Ceiling Price ($/Bbl) | | :--- | :--- | :--- | :--- | :--- | | Apr 2025 - Jun 2025 | Collar | 70,000 | $65.00 | $81.00 | | Jul 2025 - Sep 2025 | Collar | 60,000 | $65.00 | $80.00 | Hedges Added After March 31, 2025 | Settlement Period | Commodity | Type | Avg. Volumes | Hedge Price | | :--- | :--- | :--- | :--- | :--- | | May - Oct 2025 | Natural Gas | Swap | 114,000 (GJ) | $2.15 (CAD/GJ) | | July 2025 | Oil | Swap | 100,000 (Bbl) | $65.45 ($/Bbl) | [Outlook and Guidance](index=7&type=section&id=Outlook%20and%20Guidance) [2025 Full Year and Q2 Guidance](index=7&type=section&id=2025%20Full%20Year%20and%20Q2%20Guidance) Vaalco updated its full-year 2025 guidance, projecting NRI production at 14,500-16,710 BOEPD with capital expenditures of $250-$300 million, and provided Q2 2025 guidance for production and capital expenditures Full Year 2025 Guidance | Metric | Guidance | | :--- | :--- | | Production (NRI BOEPD) | 14,500 - 16,710 | | Sales Volume (NRI BOEPD) | 14,900 - 17,200 | | Production Expense | $148.5 - $161.5 MM | | CAPEX (ex. acquisitions) | $250 - $300 MM | Q2 2025 Guidance | Metric | Guidance | | :--- | :--- | | Production (NRI BOEPD) | 15,400 - 16,800 | | Sales Volume (NRI BOEPD) | 17,800 - 19,300 | | Production Expense | $39.5 - $48.0 MM | | CAPEX (ex. acquisitions) | $65 - $85 MM | [Financial Statements (Appendix)](index=10&type=section&id=Financial%20Statements%20(Appendix)) [Condensed Consolidated Balance Sheets](index=10&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of March 31, 2025, Vaalco's total assets stood at $927.1 million, down from $955.0 million at year-end 2024, with total liabilities decreasing to $423.0 million and cash and cash equivalents at $40.9 million Balance Sheet Summary (in thousands USD) | Account | March 31, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $40,914 | $82,650 | | Total current assets | $200,838 | $237,927 | | Total assets | $927,103 | $954,950 | | Total current liabilities | $177,675 | $181,728 | | Total liabilities | $423,009 | $453,367 | | Total shareholders' equity | $504,094 | $501,583 | [Consolidated Statements of Operations](index=11&type=section&id=Consolidated%20Statements%20of%20Operations) For the three months ended March 31, 2025, Vaalco reported total revenues of $110.3 million and operating income of $26.2 million, resulting in a net income of $7.7 million, or $0.07 per diluted share, consistent with Q1 2024 Statement of Operations Summary (in thousands USD, except per share data) | Account | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Revenues | $110,329 | $100,155 | | Operating Income | $26,194 | $32,193 | | Income before income taxes | $23,813 | $29,924 | | Net Income | $7,730 | $7,686 | | Diluted Net Income per share | $0.07 | $0.07 | [Condensed Consolidated Statements of Cash Flows](index=12&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) In Q1 2025, net cash provided by operating activities was $32.7 million, while $58.8 million was used in investing activities and $14.8 million in financing activities, leading to a net decrease in cash of $40.8 million Cash Flow Summary (in thousands USD) | Category | 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) | [Selected Financial and Operating Statistics](index=13&type=section&id=Selected%20Financial%20and%20Operating%20Statistics) For Q1 2025, total average daily production on a working interest (WI) basis was 22,402 BOEPD, and on a net revenue interest (NRI) basis was 17,764 BOEPD, representing a 5% year-over-year increase in NRI production Quarterly Production Comparison (Average Daily BOEPD) | Basis | Q1 2025 | Q4 2024 | Q1 2024 | | :--- | :--- | :--- | :--- | | WI Production | 22,402 | 25,300 | 21,804 | | NRI Production | 17,764 | 20,775 | 16,850 | Quarterly Sales and Price Comparison | Metric | Q1 2025 | Q4 2024 | Q1 2024 | | :--- | :--- | :--- | :--- | | NRI Sales (MBOE) | 1,717 | 1,872 | 1,490 | | Avg. Sales Price (NRI, $/BOE) | $64.27 | $64.77 | $66.43 | [Non-GAAP Financial Measures Reconciliation](index=14&type=section&id=Non-GAAP%20Financial%20Measures%20Reconciliation) Vaalco uses non-GAAP measures like Adjusted Net Income and Adjusted EBITDAX to better reflect underlying performance, with Q1 2025 net income of $7.7 million reconciling to an Adjusted Net Income of $6.3 million and Adjusted EBITDAX of $57.0 million Reconciliation of Net Income to Adjusted Net Income (in thousands USD) | Line Item | Q1 2025 | Q4 2024 | | :--- | :--- | :--- | | Net income | $7,730 | $11,664 | | Adjustments | ($1,390) | ($4,821) | | **Adjusted Net Income** | **$6,340** | **$6,843** | Reconciliation of Net Income to Adjusted EBITDAX (in thousands USD) | Line Item | Q1 2025 | Q4 2024 | | :--- | :--- | :--- | | Net income | $7,730 | $11,664 | | Adjustments | $49,228 | $64,569 | | **Adjusted EBITDAX** | **$56,958** | **$76,233** |