[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)) Unaudited condensed consolidated financial statements and notes for VAALCO Energy, Inc. for Q2 2025 and FY2024 [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets%20June%2030%2C%202025%20and%20December%2031%2C%202024) | Metric | As of June 30, 2025 (in thousands) | As of December 31, 2024 (in thousands) | | :----------------------------------- | :---------------------------------- | :----------------------------------- | | **Assets** | | | | Total current assets | $223,729 | $237,927 | | Crude oil, natural gas and NGLs properties and equipment, net | $587,263 | $538,103 | | Total assets | $964,922 | $954,950 | | **Liabilities** | | | | Total current liabilities | $160,917 | $181,728 | | Long-term debt | $60,000 | $— | | Total liabilities | $453,363 | $453,367 | | **Shareholders' Equity** | | | | Total shareholders' equity | $511,559 | $501,583 | - Total assets increased by approximately **$10 million** from December 31, 2024, to June 30, 2025, primarily driven by an increase in crude oil, natural gas, and NGLs properties and equipment, net, which rose by **$49.16 million**[10](index=10&type=chunk) - Long-term debt increased significantly from **$0** at December 31, 2024, to **$60 million** at June 30, 2025, reflecting new borrowings under the 2025 RBL Facility[10](index=10&type=chunk) [Condensed Consolidated Statements of Operations and Comprehensive Income](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Income%20Three%20and%20Six%20Months%20Ended%20June%2030%2C%202025%20and%202024) | Metric | Three Months Ended June 30, 2025 (in thousands) | Three Months Ended June 30, 2024 (in thousands) | Six Months Ended June 30, 2025 (in thousands) | Six Months Ended June 30, 2024 (in thousands) | | :------------------------------------------ | :---------------------------------------------- | :---------------------------------------------- | :-------------------------------------------- | :-------------------------------------------- | | Crude oil, natural gas and NGLs sales | $96,893 | $116,778 | $207,222 | $216,933 | | Total operating costs and expenses | $79,711 | $96,510 | $163,846 | $162,993 | | Operating income | $17,182 | $20,400 | $43,376 | $53,906 | | Net income | $8,380 | $28,151 | $16,111 | $35,837 | | Basic net income per share | $0.08 | $0.27 | $0.15 | $0.34 | | Diluted net income per share | $0.08 | $0.27 | $0.15 | $0.34 | - Net income decreased significantly for both the three and six months ended June 30, 2025, compared to the same periods in 2024, primarily due to lower revenues and higher interest expenses[12](index=12&type=chunk) - Crude oil, natural gas, and NGLs sales decreased by **17%** for the three months and **4%** for the six months ended June 30, 2025, compared to the prior year, mainly due to lower realized prices and reduced sales volumes in certain segments[12](index=12&type=chunk) [Condensed Consolidated Statements of Shareholders' Equity](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Shareholders'%20Equity%20Three%20and%20Six%20Months%20Ended%20June%2030%2C%202025%20and%202024) | Metric | Balance at January 1, 2025 (in thousands) | Balance at June 30, 2025 (in thousands) | Balance at January 1, 2024 (in thousands) | Balance at June 30, 2024 (in thousands) | | :-------------------------------- | :---------------------------------------- | :-------------------------------------- | :---------------------------------------- | :---------------------------------------- | | Total Shareholders' Equity | $501,583 | $511,559 | $478,782 | $493,648 | | Net income (Q2 2025) | N/A | $8,380 | N/A | $28,151 | | Dividend distributions (Q2 2025) | N/A | $(6,557) | N/A | $(6,579) | | Other comprehensive loss (Q2 2025) | N/A | $4,759 | N/A | $(1,068) | - Total shareholders' equity increased from **$501.6 million** at January 1, 2025, to **$511.6 million** at June 30, 2025, driven by net income and other comprehensive income, partially offset by dividend distributions and treasury stock purchases[13](index=13&type=chunk) - Dividend distributions for the three months ended June 30, 2025, were **$6.56 million**, consistent with **$6.58 million** for the same period in 2024[13](index=13&type=chunk)[14](index=14&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows%20Six%20Months%20Ended%20June%2030%2C%202025%20and%202024) | Cash Flow Activity | Six Months Ended June 30, 2025 (in thousands) | Six Months Ended June 30, 2024 (in thousands) | | :----------------------------------- | :-------------------------------------------- | :-------------------------------------------- | | Net cash provided by operating activities | $51,049 | $21,394 | | Net cash used in investing activities | $(107,460) | $(48,687) | | Net cash provided by (used in) financing activities | $32,922 | $(23,567) | | Net change in cash, cash equivalents and restricted cash | $(23,393) | $(51,093) | | Cash, cash equivalents and restricted cash at end of period | $74,333 | $78,085 | - Net cash provided by operating activities increased significantly to **$51.05 million** for the six months ended June 30, 2025, from **$21.39 million** in the prior year, primarily due to changes in operating assets and liabilities, including increased collections from Egypt receivables[15](index=15&type=chunk)[96](index=96&type=chunk) - Net cash used in investing activities increased to **$107.46 million** in 2025 from **$48.69 million** in 2024, driven by development drilling programs in Egypt and project costs for Gabon and Côte d'Ivoire[15](index=15&type=chunk)[97](index=97&type=chunk) - Financing activities shifted from a net use of **$23.57 million** in 2024 to a net provision of **$32.92 million** in 2025, mainly due to **$60 million** in proceeds from borrowings under the 2025 RBL Facility[15](index=15&type=chunk)[98](index=98&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements%20(unaudited)) [1. Organization and Accounting Policies](index=10&type=section&id=1.%20ORGANIZATION%20AND%20ACCOUNTING%20POLICIES) - Vaalco Energy, Inc. is a Houston, Texas-based independent energy company focused on the acquisition, exploration, development, and production of crude oil, natural gas, and NGLs properties, with a diversified African-focused asset portfolio in Gabon, Egypt, Côte d'Ivoire, Nigeria, Equatorial Guinea, and producing properties in Canada[18](index=18&type=chunk) **Credit Loss Allowance Changes (in thousands):** | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :----------------------- | :------------------------------- | :------------------------------- | :------------------------------- | :------------------------------- | | Balance at beginning of period | $(2,527) | $(7,829) | $(2,554) | $(6,029) | | Credit losses and other | $(326) | $(3,341) | $(637) | $(5,153) | | Credit recoveries and other | $297 | $— | $635 | $— | | Foreign currency gain | $— | $(1,434) | $— | $(1,422) | | Balance at end of period | $(2,556) | $(12,604) | $(2,556) | $(12,604) | [2. New Accounting Standards](index=11&type=section&id=2.%20NEW%20ACCOUNTING%20STANDARDS) - The FASB issued new guidance in December 2023 to improve income tax disclosures, effective for annual periods beginning after December 15, 2024. The Company is evaluating its impact[25](index=25&type=chunk) - ASU 2024-03, issued in November 2024, requires disaggregation of income statement expenses, effective for annual periods beginning after December 15, 2026, and interim periods after December 15, 2027. Early adoption is permitted, and the Company is evaluating its impact[26](index=26&type=chunk) [3. Acquisitions](index=11&type=section&id=3.%20ACQUISITIONS) - In March 2025, the Company farmed into the CI-705 block offshore Côte d'Ivoire, becoming the operator with a **70%** working interest and **100%** paying interest for approximately **$3.0 million**[27](index=27&type=chunk) - In February 2025, the Company acquired the Baobab FPSO in Côte d'Ivoire for a total purchase price of **$20.0 million**, with a net cost to the Company of approximately **$5.5 million**[28](index=28&type=chunk) - The Svenska Acquisition was completed on April 30, 2024, for a net adjusted purchase price of **$40.2 million**, resulting in an initial bargain purchase gain of **$19.9 million**, later reduced by **$6.4 million** due to purchase price allocation adjustments[29](index=29&type=chunk)[30](index=30&type=chunk) [4. Segment Information](index=13&type=section&id=4.%20SEGMENT%20INFORMATION) - The Company's operations are segmented geographically across Gabon, Egypt, Côte d'Ivoire, Canada, Nigeria, and Equatorial Guinea, with performance evaluated primarily based on Operating income (loss)[35](index=35&type=chunk) **Operating Income (Loss) by Segment (Three Months Ended June 30, 2025, in thousands):** | Segment | Operating Income (Loss) | | :---------------- | :---------------------- | | Gabon | $20,658 | | Egypt | $10,845 | | Canada | $(972) | | Equatorial Guinea | $(798) | | Côte d'Ivoire | $(4,428) | | Corporate and Other | $(8,123) | | **Total** | **$17,182** | **Operating Income (Loss) by Segment (Six Months Ended June 30, 2025, in thousands):** | Segment | Operating Income (Loss) | | :---------------- | :---------------------- | | Gabon | $37,194 | | Egypt | $24,672 | | Canada | $(297) | | Equatorial Guinea | $(1,473) | | Côte d'Ivoire | $(489) | | Corporate and Other | $(16,231) | | **Total** | **$43,376** | [5. Earnings Per Share](index=16&type=section&id=5.%20EARNINGS%20PER%20SHARE) **Net Income Per Share (Three Months Ended June 30):** | Metric | 2025 | 2024 | | :---------------------------------- | :--- | :--- | | Basic net income per share | $0.08 | $0.27 | | Diluted net income per share | $0.08 | $0.27 | **Net Income Per Share (Six Months Ended June 30):** | Metric | 2025 | 2024 | | :---------------------------------- | :--- | :--- | | Basic net income per share | $0.15 | $0.34 | | Diluted net income per share | $0.15 | $0.34 | **Weighted Average Shares Outstanding (in thousands):** | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :---------------------------------- | :------------------------------- | :------------------------------- | :------------------------------- | :------------------------------- | | Basic weighted average shares outstanding | 103,936 | 103,528 | 103,848 | 103,594 | | Diluted weighted average shares outstanding | 103,958 | 103,676 | 103,872 | 103,677 | [6. Revenue](index=16&type=section&id=6.%20REVENUE) - The Company's oil entitlement under Production Sharing Contracts (PSCs) in Gabon, Egypt, Côte d'Ivoire, and Equatorial Guinea is generally the sum of cost oil, profit oil, and excess cost oil, with royalties paid out of the government's share of production[44](index=44&type=chunk)[45](index=45&type=chunk)[46](index=46&type=chunk) **Net Revenues by Segment (Three Months Ended June 30, in thousands):** | Segment | 2025 | 2024 | | :-------------- | :----- | :----- | | Gabon | $58,567 | $53,674 | | Egypt | $33,257 | $35,481 | | Canada | $4,715 | $10,384 | | Côte d'Ivoire | $353 | $17,240 | **Net Revenues by Segment (Six Months Ended June 30, in thousands):** | Segment | 2025 | 2024 | | :-------------- | :----- | :----- | | Gabon | $110,754 | $111,178 | | Egypt | $67,177 | $72,442 | | Canada | $10,895 | $16,073 | | Côte d'Ivoire | $18,396 | $17,240 | [7. Crude Oil, Natural Gas and NGLs Properties and Equipment, Net](index=20&type=section&id=7.%20CRUDE%20OIL%2C%20NATURAL%20GAS%20AND%20NGLs%20PROPERTIES%20AND%20EQUIPMENT%2C%20NET) **Crude Oil, Natural Gas and NGLs Properties and Equipment, Net (in thousands):** | Category | As of June 30, 2025 | As of December 31, 2024 | | :------------------------------------------ | :------------------ | :-------------------- | | Wells, platforms and other production facilities | $1,617,365 | $1,593,243 | | Work-in-progress | $105,131 | $44,517 | | Unproved properties | $66,576 | $60,761 | | Capitalized equipment, spare parts and other | $90,165 | $75,581 | | **Total gross properties and equipment** | **$1,879,237** | **$1,774,102** | | Accumulated depreciation, depletion, amortization and impairment | $(1,291,974) | $(1,235,999) | | **Net properties and equipment** | **$587,263** | **$538,103** | - Net crude oil, natural gas, and NGLs properties and equipment increased by **$49.16 million** from December 31, 2024, to June 30, 2025, primarily due to an increase in work-in-progress and wells, platforms, and other production facilities[55](index=55&type=chunk) [8. Derivatives and Fair Value](index=20&type=section&id=8.%20DERIVATIVES%20AND%20FAIR%20VALUE) - The Company uses commodity derivative instruments (swaps, costless collars, put options) to hedge price risk for a portion of its anticipated oil and gas production, primarily with counterparties that are also lenders under the 2025 RBL Facility[56](index=56&type=chunk)[102](index=102&type=chunk) **Outstanding Derivative Contracts as of June 30, 2025:** | Instrument | Index | July-Sep 2025 | Oct-Dec 2025 | Jan-Mar 2026 | Apr-Jun 2026 | | :-------------------------- | :---------- | :------------ | :----------- | :----------- | :----------- | | **Crude oil Swaps** | Dated Brent | 100,000 Bbls | — | — | — | | Weighted avg fixed price ($/Bbl) | | $65.45 | — | — | — | | **Crude oil Collars** | Dated Brent | 405,000 Bbls | 480,000 Bbls | 400,000 Bbls | 360,000 Bbls | | Weighted avg floor price ($/Bbl) | | $63.02 | $60.83 | $62.29 | $61.88 | | Weighted avg ceiling price ($/Bbl) | | $74.36 | $67.81 | $68.63 | $67.95 | | **Natural Gas Swaps** | AECO 7A | 342,000 GJs | 114,000 GJs | — | — | | Weighted avg fixed price (CAD/GJ) | | $2.15 | $2.15 | — | — | **Derivative Instruments Gain (Loss), Net (in thousands):** | Period | 2025 | 2024 | | :-------------------------- | :----- | :----- | | Three Months Ended June 30, | $400 | $257 | | Six Months Ended June 30, | $326 | $(590) | [9. Current Accrued Liabilities and Other](index=22&type=section&id=9.%20CURRENT%20ACCRUED%20LIABILITIES%20AND%20OTHER) **Accrued Liabilities and Other Balances (in thousands):** | Category | As of June 30, 2025 | As of December 31, 2024 | | :------------------------------ | :------------------ | :-------------------- | | Accrued accounts payable invoices | $33,429 | $48,913 | | State oil liability | $18,244 | $19,616 | | Accrued capital expenditures | $14,763 | $8,923 | | Egypt modernization payable | $9,555 | $9,933 | | Gabon contractual obligations | $7,611 | $6,977 | | Accrued wages and other compensation | $4,496 | $4,956 | | Seismic data | $4,975 | $2,455 | | Asset retirement obligation, current portion | $183 | $1,174 | | Other | $6,637 | $4,763 | | **Total accrued liabilities and other** | **$99,893** | **$107,710** | - Total accrued liabilities and other decreased by **$7.82 million** from December 31, 2024, to June 30, 2025, primarily due to a reduction in accrued accounts payable invoices and the settlement of the Backdated Receivables[58](index=58&type=chunk)[147](index=147&type=chunk)[165](index=165&type=chunk) [10. Commitments and Contingencies](index=22&type=section&id=10.%20COMMITMENTS%20AND%20CONTINGENCIES) - The Company has a cash funding arrangement for abandonment of offshore wells, platforms, and facilities on the Etame Marin block in Gabon, with **$10.7 million** (**$6.3 million** net to Vaalco) funded as of June 30, 2025[59](index=59&type=chunk)[110](index=110&type=chunk) - The share buyback program, which allowed for up to **$30 million** in common stock purchases, was completed on March 12, 2024, with **6,797,711** shares purchased at an average price of **$4.41** per share[60](index=60&type=chunk) - Under the Merged Concession Agreement in Egypt, the Company is required to make a **$10.0 million** annual modernization payment to EGPC through February 1, 2026. The 2025 payment was offset against receivables, with one further payment due in 2026[61](index=61&type=chunk)[113](index=113&type=chunk) - The Company has exceeded its five-year minimum financial work commitments of **$50 million** in Egypt, with any excess carrying forward to offset against subsequent five-year commitments[61](index=61&type=chunk)[114](index=114&type=chunk) [11. Debt](index=23&type=section&id=11.%20DEBT) - In April 2025, the Company drew down **$60.0 million** under the 2025 RBL Facility, accruing interest at **10.8%** per annum (Term SOFR plus **6.5%** margin) and due within three months, with a rollover option[63](index=63&type=chunk) - As of June 30, 2025, **$60.0 million** was outstanding under the 2025 RBL Facility, compared to no outstanding borrowings at December 31, 2024[64](index=64&type=chunk) - The 2025 RBL Facility has aggregate commitments of **$190.0 million** and an initial borrowing base of **$184.0 million** (increased from **$182.0 million**), with **$126.6 million** of available borrowing capacity as of June 30, 2025[67](index=67&type=chunk) [12. Income Taxes](index=25&type=section&id=12.%20INCOME%20TAXES) **Effective Tax Rate (excluding discrete items):** | Period | 2025 | 2024 | | :-------------------------- | :----- | :----- | | Three Months Ended June 30, | 52.91% | 43.78% | | Six Months Ended June 30, | 58.36% | 54.58% | - The effective tax rate for both periods in 2025 was higher than in 2024, primarily due to higher tax rates in foreign jurisdictions and non-deductible items[77](index=77&type=chunk) - Income tax expense for the three months ended June 30, 2025, included a **$3.1 million** favorable oil price adjustment related to Gabon's Profit Oil allocation, reducing the expense to **$7.0 million**[78](index=78&type=chunk) [13. Other Comprehensive Income](index=25&type=section&id=13.%20OTHER%20COMPREHENSIVE%20INCOME) - The Company's other comprehensive loss was **$4.8 million** and **$4.9 million** for the three and six months ended June 30, 2025, respectively, arising entirely from currency translation adjustments of the Canadian segment to USD[80](index=80&type=chunk) **Accumulated Other Comprehensive Income (in thousands):** | Metric | Amount | | :------------------------------------------ | :----- | | Balance at December 31, 2024 | $(4,962) | | Amounts reclassified from accumulated other comprehensive income (Jan-Mar 2025) | $117 | | Balance at March 31, 2025 | $(4,845) | | Amounts reclassified from accumulated other comprehensive income (Apr-Jun 2025) | $4,759 | | Balance at June 30, 2025 | $(86) | [14. Subsequent Event](index=25&type=section&id=14.%20SUBSEQUENT%20EVENT) - On July 4, 2025, the One Big Beautiful Bill Act of 2025 (OBBBA) was signed into law, making permanent key elements of the Tax Cuts and Jobs Act of 2017. The Company is evaluating its potential effects but does not anticipate any material financial impact[82](index=82&type=chunk) [ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS](index=26&type=section&id=ITEM%202.%20MANAGEMENT'S%20DISCUSSION%20AND%20ANALYSIS%20OF%20FINANCIAL%20CONDITION%20AND%20RESULTS%20OF%20OPERATIONS) Management's discussion and analysis of financial condition, results of operations, and liquidity for Q2 2025 and 2024 [Cautionary Statement Regarding Forward-Looking Statements](index=26&type=section&id=CAUTIONARY%20STATEMENT%20REGARDING%20FORWARD-LOOKING%20STATEMENTS) - The report contains forward-looking statements regarding future operations, financial position, reserve quantities, market prices, and business strategy, which are subject to various risks and uncertainties[83](index=83&type=chunk) - Key risks include volatility in crude oil and natural gas prices, geopolitical events, ability to obtain financing, operating hazards, and compliance with governmental regulations[83](index=83&type=chunk)[88](index=88&type=chunk) - The Company disclaims any duty to update forward-looking statements to reflect events or circumstances occurring after the report date, except as required by law[86](index=86&type=chunk) [Introduction](index=27&type=section&id=INTRODUCTION) - Vaalco is a Houston, Texas-based, African-focused independent energy company engaged in the acquisition, exploration, development, and production of crude oil, natural gas, and NGLs, with assets in Gabon, Egypt, Equatorial Guinea, Nigeria, Côte d'Ivoire, and Canada[87](index=87&type=chunk) [Recent Developments](index=28&type=section&id=RECENT%20DEVELOPMENTS) - The Company paid a quarterly cash dividend of **$0.0625** per share for Q2 2025 and announced the same for Q3 2025, with future payments at the board's discretion[89](index=89&type=chunk) - Gabon's 2025/2026 drilling program is expected to begin near the end of Q3 2025, including development, appraisal/exploration wells, and workovers[90](index=90&type=chunk) - In Egypt, six wells were completed in Q2 2025 as part of a drilling campaign that began in December 2024, with three wells to be hydraulically fractured in Q3 2025[92](index=92&type=chunk) - The Baobab FPSO in Côte d'Ivoire ceased production on January 31, 2025, for planned dry dock refurbishment, with its return to service and significant development drilling expected in 2026[94](index=94&type=chunk) - The Company deferred additional drilling in Canada in 2025 to reallocate capital to projects with higher expected returns across its portfolio[93](index=93&type=chunk) [Capital Resources and Liquidity](index=29&type=section&id=CAPITAL%20RESOURCES%20AND%20LIQUIDITY) - Net cash provided by operating activities increased by **$29.7 million** to **$51.05 million** for the six months ended June 30, 2025, driven by changes in operating assets and liabilities, including increased collections from Egypt receivables[96](index=96&type=chunk) - Accrual basis capital expenditures for the six months ended June 30, 2025, were **$92.2 million**, up from **$46.5 million** in 2024, primarily for new wells in Egypt and FPSO dry dock preparation in Côte d'Ivoire[99](index=99&type=chunk) - The Company uses commodity derivative instruments to hedge price risk for a portion of its anticipated crude oil and gas production, as required by its 2025 RBL Facility[102](index=102&type=chunk) - As of June 30, 2025, the Company had **$67.9 million** in unrestricted cash and believes it has sufficient liquidity through existing cash, cash flow from operations, and the 2025 RBL Facility to support current cash requirements[103](index=103&type=chunk)[105](index=105&type=chunk) [Trends and Uncertainties](index=31&type=section&id=Trends%20and%20Uncertainties) - Geopolitical conflicts (Russia-Ukraine, Middle East) and Houthi attacks in the Red Sea have intensified volatility in oil/natural gas prices, lengthened material lead times, and increased prices, impacting global supply chains[116](index=116&type=chunk)[117](index=117&type=chunk)[118](index=118&type=chunk) - New U.S. trade legislation in 2025, including significant tariff increases, may lead to increased costs and longer lead times for equipment and materials sourced through the U.S. or U.S.-aligned routes[119](index=119&type=chunk) - Despite a deceleration in sustainability regulation in the U.S., the Company expects continued focus on ESG and climate change issues, potentially leading to demand shifts away from fossil fuels and higher compliance costs[125](index=125&type=chunk)[127](index=127&type=chunk) - The SEC ended its defense of climate-related disclosure rules in March 2025, signaling a potential shift in U.S. regulatory direction, but the Company remains committed to transparency and TCFD-aligned reporting[128](index=128&type=chunk)[129](index=129&type=chunk) [Critical Accounting Policies and Estimates](index=33&type=section&id=CRITICAL%20ACCOUNTING%20POLICIES%20AND%20ESTIMATES) - There have been no material changes to the Company's critical accounting policies and estimates since December 31, 2024[131](index=131&type=chunk) [New Accounting Standards](index=33&type=section&id=NEW%20ACCOUNTING%20STANDARDS) - Refer to Part I, Item 1, Note 2 for details on new accounting standards[132](index=132&type=chunk) [Results of Operations](index=33&type=section&id=RESULTS%20OF%20OPERATIONS) **Net Income (in thousands):** | Period | 2025 | 2024 | Change | | :-------------------------- | :----- | :----- | :------- | | Three Months Ended June 30, | $8,380 | $28,151 | $(19,771) | | Six Months Ended June 30, | $16,111 | $35,837 | $(19,726) | - Crude oil, natural gas, and NGLs revenues decreased by **$19.9 million** (**17%**) for the three months and **$9.7 million** (**4%**) for the six months ended June 30, 2025, primarily due to lower realized prices and reduced sales volumes in Côte d'Ivoire and Canada[134](index=134&type=chunk)[153](index=153&type=chunk) - Production expenses decreased by **$12.1 million** (**23%**) for the three months ended June 30, 2025, mainly due to reductions in Côte d'Ivoire, but increased by **$0.7 million** for the six months due to higher costs in Gabon[143](index=143&type=chunk)[161](index=161&type=chunk) - Exploration expense of **$2.5 million** for both periods in 2025 was attributable to seismic data purchase for Block 705 in Côte d'Ivoire, with minimal costs in 2024[144](index=144&type=chunk)[162](index=162&type=chunk) - Interest expense, net, increased to **$2.6 million** for the three months and **$3.9 million** for the six months ended June 30, 2025, primarily due to amortization of debt issue costs, commitment fees, and interest on the 2025 RBL Facility[149](index=149&type=chunk)[167](index=167&type=chunk) [ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK](index=41&type=section&id=ITEM%203.%20QUANTITATIVE%20AND%20QUALITATIVE%20DISCLOSURES%20ABOUT%20MARKET%20RISK) Details the Company's exposure to market risks, including foreign exchange, counterparty, commodity price, and interest rate risks [Foreign Exchange Risk](index=41&type=section&id=FOREIGN%20EXCHANGE%20RISK) - The Company is exposed to foreign exchange risk from costs and liabilities denominated in Central African CFA Franc (XAF) in Gabon, Canadian dollars (CAD) in Canada, Egyptian pounds (EGP) in Egypt, and Swedish Krona (SEK) in Côte d'Ivoire[172](index=172&type=chunk)[173](index=173&type=chunk)[174](index=174&type=chunk)[175](index=175&type=chunk) - A **10%** weakening of the CFA relative to the U.S. dollar would reduce the value of net XAF liabilities by **$13.2 million** as of June 30, 2025[172](index=172&type=chunk) - The Company does not use derivative instruments to manage foreign exchange risk[176](index=176&type=chunk) [Counterparty Risk](index=41&type=section&id=COUNTERPARTY%20RISK) - The Company is exposed to counterparty risk on its open derivative instruments due to potential nonperformance, mitigated by entering into contracts with creditworthy financial institutions[177](index=177&type=chunk) [Commodity Price Risk](index=41&type=section&id=COMMODITY%20PRICE%20RISK) - The Company's financial performance is highly sensitive to volatile crude oil, natural gas, and NGLs prices, which can significantly impact revenue, profitability, and liquidity[178](index=178&type=chunk)[179](index=179&type=chunk) **Impact of $5/Bbl Decrease in Crude Oil Price on Revenues and Operating Income (Six Months Ended June 30, 2025, in Millions):** | Segment | 2025 Sales Volumes (Mbls) | Decrease in Revenues | Decrease in Operating Income (Increase in Operating Loss) | | :-------------- | :------------------------ | :------------------- | :------------------------------------------------------ | | Gabon | 1,558 | $7.8 | $7.0 | | Egypt | 1,334 | $6.7 | $4.0 | | Côte d'Ivoire | 238 | $1.2 | $0.6 | | Canada | 351 | $1.8 | $1.4 | | **Consolidated** | **3,481** | | | - No impairment was recorded at June 30, 2025, despite commodity price volatility, but prolonged low prices or negative reserve revisions could lead to future impairment charges[184](index=184&type=chunk)[185](index=185&type=chunk) [Interest Rate Risk](index=43&type=section&id=INTEREST%20RATE%20RISK) - The Company's primary interest rate exposure as of June 30, 2025, was from its **$60.0 million** outstanding borrowings under the 2025 RBL Facility, which accrues interest at a variable rate of **10.8%** per annum (Term SOFR plus **6.5%**)[188](index=188&type=chunk) - A **10%** increase in applicable average interest rates would have resulted in an estimated **$0.06 million** increase in interest expense for the period from drawdown through June 30, 2025[188](index=188&type=chunk) - The Company currently does not hedge its interest rate exposure[188](index=188&type=chunk) [ITEM 4. CONTROLS AND PROCEDURES](index=43&type=section&id=ITEM%204.%20CONTROLS%20AND%20PROCEDURES) Addresses effectiveness of disclosure controls, internal control over financial reporting, material weaknesses, and remediation plans [Evaluation of Disclosure Controls and Procedures](index=43&type=section&id=EVALUATION%20OF%20DISCLOSURE%20CONTROLS%20AND%20PROCEDURES) - As of June 30, 2025, the Company's disclosure controls and procedures were not effective due to material weaknesses in internal control over financial reporting identified in the 2024 Annual Report on Form 10-K[189](index=189&type=chunk)[190](index=190&type=chunk) [Material Weakness in Internal Control Over Financial Reporting](index=44&type=section&id=MATERIAL%20WEAKNESS%20IN%20INTERNAL%20CONTROL%20OVER%20FINANCIAL%20REPORTING) - Material weaknesses include ineffective general information technology controls (GITCs) supporting the procure-to-pay system and ineffective design, implementation, or operation of process-level control activities related to the financial reporting process, specifically procure-to-pay[198](index=198&type=chunk) - Despite the material weaknesses, management concluded that the unaudited condensed consolidated financial statements for the period present fairly the Company's financial position, results of operations, and cash flows in accordance with GAAP[192](index=192&type=chunk) [Management's Plan for Remediation of the Material Weakness](index=44&type=section&id=MANAGEMENT'S%20PLAN%20FOR%20REMEDIATION%20OF%20THE%20MATERIAL%20WEAKNESS) - The Company is implementing a remediation plan to address the identified material weaknesses, but remediation will not be considered complete until controls operate effectively for a sufficient period and are tested[193](index=193&type=chunk) - Management is committed to investing significant time and resources to enhance the control environment and will continue to perform additional analyses to ensure financial statements comply with U.S. GAAP until remediation is complete[195](index=195&type=chunk) [Changes in Internal Control Over Financial Reporting](index=44&type=section&id=CHANGES%20IN%20INTERNAL%20CONTROL%20OVER%20FINANCIAL%20REPORTING) - No material changes in internal control over financial reporting occurred during the three months ended June 30, 2025, except for activities related to the remediation of the material weaknesses[196](index=196&type=chunk) [PART II. OTHER INFORMATION](index=44&type=section&id=PART%20II.%20OTHER%20INFORMATION) [ITEM 1. LEGAL PROCEEDINGS](index=44&type=section&id=ITEM%201.%20LEGAL%20PROCEEDINGS) Discusses ordinary course litigation and governmental proceedings, with no anticipated material adverse financial effect - The Company is subject to ordinary course litigation and governmental/regulatory proceedings[197](index=197&type=chunk) - Management believes current claims and litigation are not likely to have a material adverse effect on the Company's unaudited condensed consolidated financial position, cash flows, or results of operations[197](index=197&type=chunk) [ITEM 1A. RISK FACTORS](index=45&type=section&id=ITEM%201A.%20RISK%20FACTORS) Highlights business risks, referencing 2024 Form 10-K, and introduces a new risk factor on discouraging third-party acquisitions - The Company's business is exposed to many risks, as discussed in its 2024 Form 10-K[199](index=199&type=chunk)[200](index=200&type=chunk) - A new risk factor identifies that provisions in production sharing contracts, joint operating agreements, and other agreements could discourage or prevent third-party acquisitions of the Company or its assets[201](index=201&type=chunk) [ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS](index=45&type=section&id=ITEM%202.%20UNREGISTERED%20SALES%20OF%20EQUITY%20SECURITIES%20AND%20USE%20OF%20PROCEEDS) Confirms no previously unreported unregistered sales of equity securities during Q2 2025 - There were no unregistered sales of equity securities during the three months ended June 30, 2025, that were not previously reported on a Current Report on Form 8-K[202](index=202&type=chunk) [ITEM 5. OTHER INFORMATION](index=45&type=section&id=ITEM%205.%20OTHER%20INFORMATION) No directors or officers adopted, terminated, or modified Rule 10b5-1 trading arrangements during Q2 2025 - No directors or officers adopted, terminated, or modified a Rule 10b5-1 trading arrangement or non-Rule 10b5-1 trading arrangement during the three months ended June 30, 2025[203](index=203&type=chunk) [ITEM 6. EXHIBITS](index=46&type=section&id=ITEM%206.%20EXHIBITS) Lists exhibits filed with Form 10-Q, including organizational documents, stock awards, and SOX certifications - The exhibits include the Restated Certificate of Incorporation, Third Amended and Restated Bylaws, Form of Restricted Stock Award Agreement, Sarbanes-Oxley Section 302 and 906 certifications, and Inline XBRL documents[204](index=204&type=chunk)

Financial Data and Key Metrics Changes - In Q2 2025, the company reported net income of $8.4 million or $0.08 per share and adjusted EBITDAX of $49.9 million, driven by NRI production of 16,956 BOE per day, which exceeded guidance [5][18] - NRI sales for the quarter were 19,393 BOE per day, a slight increase from the first quarter, while pricing decreased by approximately 15% quarter over quarter [19] - Production costs for Q2 were $40.4 million, a 10% reduction quarter over quarter, with a per barrel cost of $22.87 [20] Business Line Data and Key Metrics Changes - The FPSO project in Cote D'Ivoire is ahead of schedule, with significant investments expected to yield production increases starting in 2026 [9][10] - Gabon has shown positive production results, with strong uptime and improved decline curves, and a drilling program is set to begin in late Q3 2025 [10][12] - In Egypt, the company has drilled multiple wells in 2025, with plans for an additional eight wells in the second half of the year [13][59] Market Data and Key Metrics Changes - The company has seen higher volatility in the commodity price environment in 2025, impacting pricing despite increased sales [19] - The company’s unrestricted cash at the end of Q2 was $67.9 million, not including approximately $24 million in receipts collected in July [21] Company Strategy and Development Direction - The company remains focused on operational efficiency, prudent investments, and maximizing asset value while returning cash to shareholders through dividends [7][26] - A new reserve-based revolving credit facility was established with an initial commitment of $190 million, allowing for growth to $300 million to fund organic growth initiatives [6][22] - The company is committed to returning over $100 million to shareholders through dividends and share buybacks since 2022 [7] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to execute on multiple major projects that are expected to significantly grow production and reserves [27] - The company anticipates a strong year in 2025, with continued focus on organic growth and shareholder returns [71] Other Important Information - The FPSO refurbishment in Cote D'Ivoire is underway, with the vessel expected to return to service in early 2026 [8][9] - The company has maintained its full-year guidance despite a 10% reduction in CapEx forecast [23] Q&A Session Summary Question: Update on Cote D'Ivoire project status - The FPSO project remains ahead of schedule, with projections for reconnection in March 2026 [32] Question: Working capital and cash flow expectations - Working capital is expected to show a positive inflow in Q3, with improvements in receivables anticipated [34] Question: Cote D'Ivoire FPSO critical path concerns - The bearing swivel assembly is on track for installation, with no delays expected [41] Question: Impact of Gabon drilling program on production - Minimal disruptions are expected during the drilling program, with planned downtime aligned with rig movements [51] Question: Equatorial Guinea final investment decision timeline - The FID for Equatorial Guinea is projected for 2026, with ongoing evaluations to optimize expenditures [46] Question: Planned drilling activity in Egypt - The company plans to drill eight additional wells in the second half of the year, which is expected to positively impact production [59]

Q2 2025 Performance Highlights - VAALCO reported strong operational results, exceeding high-end guidance with NRI production of 16,956 BOEPD and NRI sales of 19,393 BOEPD[9] - The company generated solid financial results, including net income of $84 million ($008 per diluted share) and adjusted EBITDAX of $499 million[9] - VAALCO reiterated its full-year 2025 guidance, which included reductions to capital expenditures through delaying Canada drilling and discretionary capital[10] Financial Position and Shareholder Returns - VAALCO's cash at the end of Q2 2025 was $68 million, with $127 million available under the credit facility[24] - The company has returned over ~$100 million to shareholders through dividends and share buybacks since 2022[9] - The current dividend yield is about ~7%[9] Operational Updates and Strategy - The MV-10 FPSO refurbishment project is progressing ahead of schedule, supporting a 2026 deployment timeline[10] - VAALCO secured a drilling rig for the 2026 development campaign following the FPSO return to service[10] - The company strategically expands its diversified African-focused portfolio, building scale and diversification with a full-cycle, low-risk, high-return portfolio[11] Asset-Specific Information - Gabon's WI production was 8,563 BOEPD in Q2 2025, with ~94% operational production uptime in 2025 through June[41, 43] - Egypt's WI production was 10,929 BOEPD in Q2 2025, with continued drilling program in 2025 and 10 wells completed in the first half of the year[48] - Canada's WI production was 2,162 BOEPD in Q2 2025, with a shift towards longer laterals to enhance returns[50]

Financial Performance - Vaalco Energy reported quarterly earnings of $0.02 per share, matching the Zacks Consensus Estimate, but down from $0.22 per share a year ago [1] - The company posted revenues of $96.89 million for the quarter ended June 2025, missing the Zacks Consensus Estimate by 0.46%, and down from $116.78 million year-over-year [2] - Over the last four quarters, Vaalco has surpassed consensus EPS estimates just once and topped consensus revenue estimates three times [2][3] Market Performance - Vaalco Energy shares have declined approximately 16.5% since the beginning of the year, contrasting with the S&P 500's gain of 7.9% [3] - The company's current Zacks Rank is 4 (Sell), indicating expected underperformance in the near future [6] Future Outlook - The current consensus EPS estimate for the upcoming quarter is -$0.01 on revenues of $73.54 million, and $0.04 on revenues of $352.03 million for the current fiscal year [7] - The outlook for the Oil and Gas - Exploration and Production - International industry is currently in the bottom 18% of Zacks industries, which may negatively impact Vaalco's stock performance [8]

[Company Overview & Highlights](index=1&type=section&id=Company%20Overview%20%26%20Highlights) [Second Quarter 2025 Highlights and Recent Key Items](index=1&type=section&id=Second%20Quarter%202025%20Highlights%20and%20Recent%20Key%20Items) VAALCO Energy, Inc. achieved better-than-expected operational and financial results in Q2 2025, with robust net income and Adjusted EBITDAX, and NRI production and sales exceeding the upper end of guidance. The company continues to advance its drilling program across a diversified asset base and maintains its full-year guidance and quarterly cash dividend | Metric | Q2 2025 | Q1 2025 | Q2 2024 | | :-------------------------------- | :------ | :------ | :------ | | Net Income (Million USD) | 8.4 | 7.7 | 28.2 | | Diluted Net Income Per Share (USD) | 0.08 | 0.07 | 0.27 | | Adjusted Net Income (Million USD) | 2.3 | - | - | | Adjusted Diluted Net Income Per Share (USD) | 0.02 | - | - | | Adjusted EBITDAX (Million USD) | 49.9 | - | - | | NRI Production (BOEPD) | 16,956 | - | - | | WI Production (BOEPD) | 21,654 | - | - | | NRI Sales (BOEPD) | 19,393 | - | - | | Net Cash Position (Million USD) | 7.9 | - | - | | Quarterly Cash Dividend (USD Per Share) | 0.0625 | - | - | - Second quarter 2025 NRI production reached **16,956 barrels of oil equivalent per day**, exceeding the upper end of guidance[4](index=4&type=chunk) - Second quarter 2025 NRI sales reached **19,393 barrels of oil equivalent per day**, exceeding the upper end of guidance[4](index=4&type=chunk) - The company secured a new reserve-based credit facility in the first quarter of 2025 to support organic growth projects[3](index=3&type=chunk) - The company reaffirmed its full-year guidance, including an approximate **10% reduction in Q1 capital expenditures** without impacting full-year production or sales guidance[4](index=4&type=chunk) [CEO Commentary](index=1&type=section&id=CEO%20Commentary) CEO George Maxwell highlighted consistent quarterly performance exceeding guidance and active advancement of production-enhancing drilling across a diversified asset base, positioning the company for significant growth funded by internal cash flow and a new credit facility, committed to continuous shareholder value creation - The company consistently met or exceeded quarterly guidance, with **Q2 2025 sales and NRI production both above the upper end of guidance**[3](index=3&type=chunk) - In Côte d'Ivoire, the FPSO refurbishment project is progressing well, with drilling activities expected in **2026** to increase Baobab field production and economic life[3](index=3&type=chunk) - In Gabon, the **2025/2026 drilling program** is anticipated to commence by the end of **Q3 2025**[3](index=3&type=chunk) - In Egypt, successful drilling projects are expected to deliver incremental production in the **second half of 2025**[3](index=3&type=chunk) - The company secured a new reserve-based credit facility to supplement internal cash flow and cash balances, supporting robust organic growth projects[3](index=3&type=chunk) [Operational Update](index=2&type=section&id=Operational%20Update) [Gabon Operations](index=2&type=section&id=Gabon%20Operations) The company secured a drilling rig for its **2025/2026 Gabon drilling program**, expected to start by late Q3 2025, including development, appraisal/exploration, and workover operations, following a planned platform shutdown in July 2025 for safety and maintenance - The **2025/2026 drilling program** is expected to commence by the end of **Q3 2025**, including drilling at the Etame and Seent platforms, and re-drilling and workovers at the Ebouri field[5](index=5&type=chunk) - In July 2025, the company conducted a planned shutdown of its Gabon platforms for safety inspections and necessary maintenance to enhance asset integrity and reliability[6](index=6&type=chunk) [Egypt Operations](index=2&type=section&id=Egypt%20Operations) Drilling activities in Egypt continued in Q2 2025, completing six wells, with three scheduled for hydraulic fracturing in Q3, alongside incremental production achieved through workover completions, reactivations, and well optimizations - Egyptian drilling activities in **Q2 2025** completed **six wells**, with **three wells** scheduled for hydraulic fracturing in **Q3 2025**[7](index=7&type=chunk) - Incremental production was achieved through workover completions, reactivations, and well optimizations[7](index=7&type=chunk) [Canada Operations](index=2&type=section&id=Canada%20Operations) Five horizontal wells drilled and completed in Canada in **2024** continued to meet production expectations, but the company decided to defer further drilling in Canada in **2025** to reduce overall capital expenditures - Five horizontal wells drilled and completed in Canada in **2024** continue to meet production expectations[8](index=8&type=chunk) - In **2025**, the company decided to defer further drilling in Canada to reduce overall capital expenditures[8](index=8&type=chunk) [Côte d'Ivoire Operations](index=2&type=section&id=C%C3%B4te%20d%27Ivoire%20Operations) The Baobab FPSO ceased production on January 31, 2025, arriving at a Dubai shipyard in mid-May for refurbishment, with a drilling rig secured for a significant development drilling campaign in **2026** to substantially increase Baobab field production after FPSO recommissioning - The Baobab FPSO ceased hydrocarbon production on **January 31, 2025**, and arrived early at a Dubai shipyard in mid-May **2025** for refurbishment[9](index=9&type=chunk) - A drilling rig has been secured, with a significant development drilling campaign expected to commence in **2026** after the FPSO returns to service, aiming for substantial production increases at the Baobab main field in CI-40[9](index=9&type=chunk) - The company is evaluating the potential impact of future development at the Kossipo field[9](index=9&type=chunk) [Equatorial Guinea Operations](index=2&type=section&id=Equatorial%20Guinea%20Operations) Vaalco holds a **60% working interest** in the undeveloped portion of Block P offshore Equatorial Guinea, planning to develop the Venus field, with Front End Engineering Design studies completed and a Final Investment Decision targeted by the end of **2025** - Vaalco holds a **60% working interest** in the undeveloped portion of Block P offshore Equatorial Guinea, with plans to develop the Venus field[10](index=10&type=chunk) - Front End Engineering Design (FEED) studies have been completed, with a Final Investment Decision (FID) targeted by the end of **2025**[10](index=10&type=chunk) [Financial Performance - Second Quarter 2025](index=2&type=section&id=Financial%20Performance%20-%20Second%20Quarter%202025) [Net Income and Adjusted EBITDAX](index=2&type=section&id=Net%20Income%20and%20Adjusted%20EBITDAX) Net income for Q2 2025 was **$8.4 million**, an increase quarter-over-quarter but a decrease year-over-year, while Adjusted EBITDAX was **$49.9 million**, declining both sequentially and annually, primarily due to lower oil prices | Metric | Q2 2025 (Million USD) | Q1 2025 (Million USD) | Q2 2024 (Million USD) | QoQ Change | YoY Change | | :------------------- | :-------------------- | :-------------------- | :-------------------- | :--------- | :--------- | | Net Income | 8.4 | 7.7 | 28.2 | +9.1% | -70.2% | | Diluted Net Income Per Share | 0.08 | 0.07 | 0.27 | +14.3% | -70.4% | | Adjusted EBITDAX | 49.9 | 57.0 | 72.5 | -12.5% | -31.2% | - The sequential increase in net income was primarily driven by higher sales volumes, lower production expenses, DD&A, and income tax expense, partially offset by lower realized prices due to decreased oil prices[11](index=11&type=chunk) - The decrease in Adjusted EBITDAX was primarily due to lower realized prices, partially offset by higher sales volumes and lower production expenses[12](index=12&type=chunk) [Sales and Net Revenue](index=3&type=section&id=Sales%20and%20Net%20Revenue) Q2 2025 net revenue decreased **12%** sequentially, mainly due to a decline in average realized prices despite an increase in NRI sales volume, with average crude oil prices significantly lower both year-over-year and quarter-over-quarter | Metric | Q2 2025 | Q1 2025 | Q2 2024 | Q2 2025 vs Q1 2025 (%) | Q2 2025 vs Q2 2024 (%) | | :------------------------------------ | :------ | :------ | :------ | :--------------------- | :--------------------- | | Net Revenue (Million USD) | 96.893 | 110.329 | - | -12% | - | | NRI Sales (MBOE) | 1,765 | 1,717 | 1,764 | +3% | 0% | | Average Realized Commodity Price (USD/BOE) | 54.87 | 64.27 | 66.05 | -15% | -17% | | Total Commodity Sales (Million USD) | 96.9 | 110.3 | 116.5 | -12% | -17% | | NRI Production (BOEPD) | 16,956 | 17,764 | 20,588 | -5% | -18% | - Q2 2025 net revenue was **$96.9 million**, a **12% sequential decrease**, primarily due to a decline in average realized prices from **$64.27/barrel in Q1 2025 to $54.87/barrel in Q2 2025**[13](index=13&type=chunk) - Q2 2025 NRI sales volume was **1,765 MBOE**, a **3% sequential increase**, but flat compared to Q2 2024[13](index=13&type=chunk) - The average Brent crude oil price in Q2 2025 was **$68.07**, a **10% sequential decrease** from **$75.87 in Q1 2025**[13](index=13&type=chunk) [Costs and Expenses](index=4&type=section&id=Costs%20and%20Expenses) Q2 2025 production, DD&A, and G&A expenses (excluding stock-based compensation) all decreased sequentially, mainly due to reduced costs in Côte d'Ivoire operations, with exploration expenses at **$2.5 million** primarily for seismic data acquisition in Côte d'Ivoire | Metric | Q2 2025 (Million USD) | Q1 2025 (Million USD) | Q2 2024 (Million USD) | Q2 2025 vs Q1 2025 (%) | Q2 2025 vs Q2 2024 (%) | | :---------------------------------------------------- | :-------------------- | :-------------------- | :-------------------- | :--------------------- | :--------------------- | | Production Expenses (Excluding Offshore Workovers and Stock-Based Compensation) | 40.3 | 44.7 | 52.4 | -10% | -23% | | Production Expenses (Excluding Offshore Workovers) (USD/BOE) | 22.87 | 26.08 | 29.70 | -12% | -23% | | DD&A (Million USD) | 28.3 | 30.3 | 33.1 | -7% | -15% | | DD&A (USD/BOE) | 16.02 | 17.65 | 18.78 | -9% | -15% | | G&A (Excluding Stock-Based Compensation) (Million USD) | 7.1 | 7.8 | 6.6 | -9% | +8% | | Stock-Based Compensation Expense (Million USD) | 1.4 | 1.4 | 0.9 | 0% | +57% | | Current Income Tax Expense (Million USD) | 12.8 | 17.7 | 13.3 | -28% | -4% | | Deferred Income Tax Expense (Million USD) | -5.8 | -1.6 | -4.0 | +262% | +45% | | Exploration Expenses (Million USD) | 2.5 | 0 | 0 | - | - | - The decrease in production expenses (excluding offshore workovers and stock-based compensation) was primarily due to reduced production expenses from Côte d'Ivoire operations[14](index=14&type=chunk) - The decrease in DD&A expense was primarily due to reduced DD&A expense from Côte d'Ivoire operations[15](index=15&type=chunk) - G&A expenses (excluding stock-based compensation) decreased sequentially due to lower salaries, IT, and other expenses, but increased year-over-year due to higher professional services, salaries, and accounting and legal fees[16](index=16&type=chunk) - Q2 2025 exploration expenses were **$2.5 million**, incurred for seismic data acquisition in Block 705, Côte d'Ivoire[17](index=17&type=chunk) - Q2 2025 income tax expense was **$7.0 million**, including a **$3.1 million favorable oil price adjustment**[19](index=19&type=chunk) [Financial Performance - First Six Months of 2025](index=5&type=section&id=Financial%20Performance%20-%20First%20Six%20Months%20of%202025) [Sales and Net Revenue (Year-to-Date)](index=5&type=section&id=Sales%20and%20Net%20Revenue%20(YTD)) Year-to-date **2025 WI sales volume** increased year-over-year, influenced by crude oil lifting timing, volume, and size, while the average realized crude oil price decreased **12%** year-over-year, reflecting weaker commodity prices | Metric | H1 2025 | H1 2024 | YoY Change (%) | | :------------------------------------ | :------ | :------ | :------------- | | WI Sales (MBOE) | 4,358 | 4,134 | +5.4% | | Average Realized Crude Oil Price (USD/Barrel) | 65.62 | 74.75 | -12% | | Average Brent Crude Oil Price (USD/Barrel) | 72.03 | 83.83 | -14% | | Net Revenue (Million USD) | 207.222 | 216.933 | -4.5% | | Total Commodity Sales (Million USD) | 272.458 | 291.664 | -6.6% | - The increase in WI sales volume was primarily influenced by the timing, volume, and size of crude oil liftings in each quarter[21](index=21&type=chunk) - The decrease in average realized crude oil price reflects the weaker commodity prices over the past year[22](index=22&type=chunk) [Net Income (Year-to-Date)](index=5&type=section&id=Net%20Income%20(YTD)) Year-to-date **2025 net income** was **$16.1 million**, a significant decrease from **$35.8 million** in the same period of **2024**, primarily due to a bargain purchase gain related to the Svenska acquisition in **2024** and lower realized prices in **2025** | Metric | H1 2025 (Million USD) | H1 2024 (Million USD) | YoY Change (%) | | :------- | :-------------------- | :-------------------- | :------------- | | Net Income | 16.1 | 35.8 | -55.0% | - The decrease in net income was primarily due to a bargain purchase gain related to the Svenska acquisition in **2024** and lower realized prices in **2025**[23](index=23&type=chunk) [Capital Structure & Shareholder Returns](index=6&type=section&id=Capital%20Structure%20%26%20Shareholder%20Returns) [Capital Investments and Balance Sheet](index=6&type=section&id=Capital%20Investments%20and%20Balance%20Sheet) Q2 2025 net capital expenditures were **$45.9 million** (cash basis), primarily for project costs and development drilling in Gabon, Egypt, and Côte d'Ivoire; as of June 30, 2025, the company held **$67.9 million** in unrestricted cash and drew **$60.0 million** from a new **$190 million** revolving credit facility | Metric | Q2 2025 (Million USD) | H1 2025 (Million USD) | | :-------------------------------- | :-------------------- | :-------------------- | | Net Capital Expenditures (Cash Basis) | 45.9 | 104.426 | | Net Capital Expenditures (Accrual Basis) | 40.9 | - | | Unrestricted Cash Balance (As of June 30, 2025) | 67.9 | - | | Working Capital (As of June 30, 2025) | 62.8 | - | | Adjusted Working Capital (As of June 30, 2025) | 79.9 | - | | Outstanding Borrowings from New Credit Facility (As of June 30, 2025) | 60.0 | - | - Capital expenditures were primarily for project costs and development drilling programs in Gabon, Egypt, and Côte d'Ivoire[25](index=25&type=chunk) - In July 2025, the company received approximately **$24.0 million** in cash receivables, primarily from Gabon and EGPC[26](index=26&type=chunk) - The company entered into a new **$190 million** (expandable to **$300 million**) reserve-based revolving credit facility in March 2025 to supplement cash flow and cash balances, supporting its investment program[27](index=27&type=chunk) [Quarterly Cash Dividend](index=6&type=section&id=Quarterly%20Cash%20Dividend) Vaalco paid a **Q2 2025 quarterly cash dividend of $0.0625 per share** and declared the same amount for Q3 2025, payable on September 19 - A quarterly cash dividend of **$0.0625 per share** was paid for **Q2 2025**[28](index=28&type=chunk) - A quarterly cash dividend of **$0.0625 per share** was declared for **Q3 2025**, payable on **September 19, 2025**[28](index=28&type=chunk) [Hedging Activities](index=6&type=section&id=Hedging%20Activities) The company continues to hedge a portion of its future anticipated production to lock in strong cash flows, supporting its capital and shareholder return programs, holding crude oil swaps and call options, and natural gas swap contracts as of the end of Q2 2025 - The company hedges a portion of its future anticipated production to lock in strong cash flows, supporting its capital and shareholder return programs[29](index=29&type=chunk) Hedging Position as of End of Q2 2025 | Instrument | Index | Settlement Period (July-Sept 2025) | Settlement Period (Oct-Dec 2025) | Settlement Period (Jan-Mar 2026) | Settlement Period (Apr-Jun 2026) | | :-------------------- | :---------- | :--------------------- | :--------------------- | :--------------------- | :--------------------- | | **Crude Oil:** | | | | | | | Swaps (Total Barrels) | Dated Brent | 100,000 | — | — | — | | Swaps (Weighted Average Fixed Price USD/Barrel) | Dated Brent | 65.45 | — | — | — | | Call Options (Total Barrels) | Dated Brent | 405,000 | 480,000 | 400,000 | 360,000 | | Call Options (Weighted Average Floor Price USD/Barrel) | Dated Brent | 63.02 | 60.83 | 62.29 | 61.88 | | Call Options (Weighted Average Cap Price USD/Barrel) | Dated Brent | 74.36 | 67.81 | 68.63 | 67.95 | | **Natural Gas:** | | | | | | | Swaps (Total GJ) | AECO 7A | 342,000 | 114,000 | — | — | | Swaps (Weighted Average Fixed Price CAD/GJ) | AECO 7A | 2.15 | 2.15 | — | — | Commodity Swap Contracts Entered into After June 30, 2025 | Instrument | Index | Settlement Period (Oct-Dec 2025) | Settlement Period (Jan-Mar 2026) | Settlement Period (July 2026) | | :-------------------- | :---------- | :--------------------- | :--------------------- | :---------------- | | **Crude Oil:** | | | | | | Call Options (Total Barrels) | Dated Brent | — | — | 75,000 | | Call Options (Weighted Average Floor Price USD/Barrel) | Dated Brent | — | — | 65.00 | | Call Options (Weighted Average Cap Price USD/Barrel) | Dated Brent | — | — | 71.00 | | **Natural Gas:** | | | | | | Swaps (Total GJ) | AECO 7A | 100,000 | 150,000 | — | | Swaps (Weighted Average Fixed Price CAD/GJ) | AECO 7A | 2.86 | 2.86 | — | [Outlook and Guidance](index=7&type=section&id=Outlook%20and%20Guidance) [Full Year 2025 Guidance](index=7&type=section&id=Full%20Year%202025%20Guidance) The company reaffirmed its **full-year 2025 guidance**, projecting WI production between **19,250-22,310 BOEPD** and NRI production between **14,500-16,710 BOEPD**, with capital expenditures (excluding acquisitions) estimated at **$250-300 million** | Metric | FY 2025 Guidance Range | | :------------------------------------ | :--------------------- | | WI Production (BOEPD) | 19,250 - 22,310 | | NRI Production (BOEPD) | 14,500 - 16,710 | | WI Sales (BOEPD) | 19,850 - 22,700 | | NRI Sales (BOEPD) | 14,900 - 17,200 | | Production Expenses (Million USD) | $148.5 - $161.5 MM | | Production Expenses (USD/BOE, WI) | $18.00 - $21.50 | | Production Expenses (USD/BOE, NRI) | $24.00 - $28.00 | | Offshore Workover Expenses (Million USD) | $0 - $10 MM | | Cash G&A (Million USD) | $25.0 - $31.0 MM | | Capital Expenditures (Excluding Acquisitions) (Million USD) | $250 - $300 MM | | DD&A (USD/BOE, NRI) | $16.00 - $20.00 | [Third Quarter 2025 Guidance](index=8&type=section&id=Third%20Quarter%202025%20Guidance) The company provided **Q3 2025 guidance**, forecasting WI production between **18,900-20,800 BOEPD** and NRI production between **14,400-15,600 BOEPD**, with capital expenditures (excluding acquisitions) projected at **$70-90 million** | Metric | Q3 2025 Guidance Range | | :------------------------------------ | :--------------------- | | WI Production (BOEPD) | 18,900 - 20,800 | | NRI Production (BOEPD) | 14,400 - 15,600 | | WI Sales (BOEPD) | 16,000 - 17,900 | | NRI Sales (BOEPD) | 11,900 - 13,100 | | Production Expenses (Million USD) | $26.5 - $35.0 MM | | Production Expenses (USD/BOE, WI) | $18.00 - $22.00 | | Production Expenses (USD/BOE, NRI) | $25.00 - $29.00 | | Offshore Workover Expenses (Million USD) | $0 - $0 MM | | Cash G&A (Million USD) | $6.0 - $8.0 MM | | Capital Expenditures (Excluding Acquisitions) (Million USD) | $70 - $90 MM | | DD&A (USD/BOE, NRI) | $16.00 - $20.00 | [Additional Information](index=8&type=section&id=Additional%20Information) [Conference Call Details](index=8&type=section&id=Conference%20Call%20Details) The company will host a conference call on **August 8, 2025**, to discuss its **Q2 2025 financial and operational results**, with details and webcast information provided - The company will host a conference call on **August 8, 2025**, to discuss its **Q2 2025 financial and operational results**[35](index=35&type=chunk) - The call will be accessible via telephone and webcast on the company's website, www.vaalco.com[35](index=35&type=chunk) - A 'Q2 2025 Supplemental Information' investor presentation will be posted on the company's website prior to the conference call[36](index=36&type=chunk) [About Vaalco](index=8&type=section&id=About%20Vaalco) Vaalco Energy, Inc., founded in **1985** and headquartered in Houston, Texas, is an independent energy company with a diversified portfolio of production, development, and exploration assets across Gabon, Egypt, Côte d'Ivoire, Equatorial Guinea, Nigeria, and Canada - Vaalco Energy, Inc. was founded in **1985** and is headquartered in Houston, Texas, USA[37](index=37&type=chunk) - The company holds a diversified portfolio of production, development, and exploration assets in Gabon, Egypt, Côte d'Ivoire, Equatorial Guinea, Nigeria, and Canada[37](index=37&type=chunk) [Forward Looking Statements](index=8&type=section&id=Forward%20Looking%20Statements) This press release contains forward-looking statements regarding expectations for future events or results, including drilling, production, sales, costs, acquisition integration, dividends, balance sheet strength, and enterprise value, which are subject to risks and uncertainties that could cause actual results to differ materially - Forward-looking statements include estimates of future drilling, production, sales, and acquisition costs for crude oil, natural gas, and natural gas liquids[40](index=40&type=chunk) - Forward-looking statements also include expectations regarding Vaalco's ability to effectively integrate the Svenska acquisition assets, future exploration and operational developments, future dividends, and future balance sheet strength[40](index=40&type=chunk) - These statements are subject to risks, uncertainties, and other factors that could cause actual results to differ materially from forward-looking statements, including risks related to FPSO maintenance timing and costs[41](index=41&type=chunk) - Dividends beyond Q3 2025 have not been approved or declared by the Board, and future dividend declarations and payments will be at the discretion of the Board based on financial performance, balance sheet strength, and other factors[42](index=42&type=chunk) [Other Oil and Gas Advisories](index=9&type=section&id=Other%20Oil%20and%20Gas%20Advisories) Investors should note that the barrel of oil equivalent (BOE) conversion ratio is primarily applicable at the burner tip and does not represent a wellhead value equivalent, thus using BOE alone may not fully reflect value - The barrel of oil equivalent (BOE) conversion ratio is primarily applicable at the burner tip and does not represent a wellhead value equivalent[44](index=44&type=chunk) - Given the current price ratio of crude oil to natural gas is significantly different from the energy equivalent ratio, using BOE alone may not fully reflect value[44](index=44&type=chunk) [Inside Information](index=9&type=section&id=Inside%20Information) This announcement contains inside information as defined in the Market Abuse Regulation (EU) No. 596/2014 and is disclosed in accordance with the company's obligations under Article 17 of the Market Abuse Regulation - This announcement contains inside information as defined in the Market Abuse Regulation (EU) No. 596/2014[45](index=45&type=chunk) - This announcement is disclosed in accordance with the company's obligations under Article 17 of the Market Abuse Regulation[45](index=45&type=chunk) [Financial Statements](index=10&type=section&id=Financial%20Statements) [Condensed Consolidated Balance Sheets](index=10&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of June 30, 2025, total assets were **$964.9 million**, slightly up from **$954.9 million** at December 31, 2024, with cash and cash equivalents decreasing, trade receivables increasing, and long-term debt rising from zero to **$60.0 million** | Metric (Thousand USD) | June 30, 2025 | December 31, 2024 | | :------------------------------------------------------------------------------------------------ | :------------- | :---------------- | | **Assets:** | | | | Cash and Cash Equivalents | 67,871 | 82,650 | | Net Trade Receivables | 132,879 | 94,778 | | Egyptian Receivables and Other | 3,991 | 35,763 | | Total Current Assets | 223,729 | 237,927 | | Net Oil, Gas, and NGLs Properties | 587,263 | 538,103 | | Deferred Tax Assets | 43,659 | 55,581 | | Total Assets | 964,922 | 954,950 | | **Liabilities and Stockholders' Equity:** | | | | Total Current Liabilities | 160,917 | 181,728 | | Long-Term Debt | 60,000 | — | | Total Liabilities | 453,363 | 453,367 | | Total Stockholders' Equity | 511,559 | 501,583 | | Total Liabilities and Stockholders' Equity | 964,922 | 954,950 | - As of **June 30, 2025**, long-term debt increased from zero at **December 31, 2024**, to **$60.0 million**[46](index=46&type=chunk) - Net trade receivables increased from **$94.778 million** at **December 31, 2024**, to **$132.88 million** at **June 30, 2025**[46](index=46&type=chunk) [Consolidated Statements of Operations](index=11&type=section&id=Consolidated%20Statements%20of%20Operations) Q2 2025 net income was **$8.38 million**, a sequential increase but a significant year-over-year decrease, while year-to-date net income was **$16.111 million**, substantially lower than the prior year, primarily due to decreased commodity sales revenue and a **2024** bargain purchase gain | Metric (Thousand USD) | Q2 2025 | Q1 2025 | Q2 2024 | H1 2025 | H1 2024 | | :------------------------------------ | :------ | :------ | :------ | :------ | :------ | | Oil, Gas, and NGLs Sales Revenue | 96,893 | 110,329 | 116,778 | 207,222 | 216,933 | | Production Expenses | 40,393 | 44,806 | 52,446 | 85,198 | 84,535 | | Exploration Expenses | 2,520 | — | — | 2,520 | 48 | | DD&A | 28,273 | 30,305 | 33,132 | 58,578 | 58,956 | | G&A Expenses | 8,496 | 9,051 | 7,591 | 17,548 | 14,301 | | Operating Income | 17,182 | 26,194 | 20,400 | 43,376 | 53,906 | | Net Gain (Loss) on Derivative Instruments | 400 | -74 | 257 | 326 | -590 | | Net Interest Expense | -2,572 | -1,295 | -1,117 | -3,866 | -2,052 | | Bargain Purchase Gain | — | — | 19,898 | — | 19,898 | | Income Tax Expense | 6,983 | 16,083 | 9,303 | 23,066 | 31,541 | | Net Income | 8,380 | 7,730 | 28,151 | 16,111 | 35,837 | | Diluted Net Income Per Share | 0.08 | 0.07 | 0.27 | 0.15 | 0.34 | - Q2 2025 commodity sales revenue was **$96.893 million**, a **17% decrease** from **$116.78 million** in Q2 2024[47](index=47&type=chunk) - Net income for the first six months of 2025 was **$16.111 million**, a **55% decrease** from **$35.837 million** in the same period of 2024[47](index=47&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=12&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) For the first six months of **2025**, net cash from operating activities was **$51.049 million**, investing activities used **$107.46 million**, and financing activities provided **$32.922 million**, resulting in period-end cash, cash equivalents, and restricted cash of **$74.333 million**, a decrease from the beginning of the period | Metric (Thousand USD) | H1 2025 | H1 2024 | | :------------------------------------ | :------ | :------ | | Net Cash Provided by Operating Activities | 51,049 | 21,394 | | Net Cash Used in Investing Activities | -107,460 | -48,687 | | Net Cash Provided by (Used in) Financing Activities | 32,922 | -23,567 | | Effect of Exchange Rate Changes | 96 | -233 | | Net Change in Cash, Cash Equivalents, and Restricted Cash | -23,393 | -51,093 | | Cash, Cash Equivalents, and Restricted Cash at End of Period | 74,333 | 78,085 | - Net cash provided by operating activities for the first six months of 2025 significantly increased from **$21.394 million** in the same period of 2024 to **$51.049 million**[48](index=48&type=chunk) - Expenditures for property and equipment for the first six months of 2025 were **$104.426 million**, higher than **$49.099 million** in the same period of 2024[48](index=48&type=chunk) - Cash provided by financing activities for the first six months of 2025 was **$32.922 million**, primarily from **$60.0 million** in borrowings, compared to a **$23.567 million** outflow in the same period of 2024[48](index=48&type=chunk) [Selected Financial and Operating Statistics](index=13&type=section&id=Selected%20Financial%20and%20Operating%20Statistics) Q2 2025 average daily NRI sales were **19,393 BOEPD**, and average daily WI production was **21,654 BOEPD**; average daily NRI production was **16,956 BOEPD**, a **18% year-over-year decrease**, with average sales price (NRI basis) at **$54.87/BOE**, down **17%** year-over-year | Metric | Q2 2025 | Q1 2025 | Q2 2024 | H1 2025 | H1 2024 | | :---------------------------------------------------- | :------ | :------ | :------ | :------ | :------ | | NRI Sales (MBOE) | 1,765 | 1,717 | 1,764 | 3,481 | 3,254 | | Average Daily NRI Sales (BOEPD) | 19,393 | 19,074 | 19,386 | 19,234 | 17,881 | | Average Daily WI Production (BOEPD) | 21,654 | 22,402 | 25,411 | 22,026 | 23,607 | | Average Daily NRI Production (BOEPD) | 16,956 | 17,764 | 20,588 | 17,358 | 18,716 | | Average Sales Price (NRI Basis, USD/BOE) | 54.87 | 64.27 | 66.05 | 59.50 | 66.22 | | Production Expenses (USD/BOE Sales) | 22.89 | 26.10 | 29.74 | 24.47 | 25.98 | | DD&A (USD/BOE Sales) | 16.02 | 17.65 | 18.78 | 16.83 | 18.12 | | G&A Expenses (USD/BOE Sales) | 4.81 | 5.27 | 4.30 | 5.04 | 4.41 | | Property and Equipment Expenditures (Cash Basis, Thousand USD) | 45,899 | 58,527 | 32,481 | 104,426 | 49,099 | - Q2 2025 average daily NRI production was **16,956 BOEPD**, a **18% decrease** from **20,588 BOEPD** in Q2 2024[49](index=49&type=chunk) - Q2 2025 average sales price (NRI basis) was **$54.87/BOE**, a **17% decrease** from **$66.05/BOE** in Q2 2024[50](index=50&type=chunk) [Non-GAAP Financial Measures](index=14&type=section&id=Non-GAAP%20Financial%20Measures) [Non-GAAP Definitions](index=14&type=section&id=Non-GAAP%20Definitions) This section defines the company's non-GAAP financial measures, including Adjusted Net Income, Adjusted EBITDAX, Adjusted Working Capital, and Free Cash Flow, explaining their purpose and limitations - Adjusted Net Income is used to evaluate operational and financial performance, excluding non-cash and/or other specific items management believes are not indicative of recurring performance[52](index=52&type=chunk) - Adjusted EBITDAX is used to measure the company's ability to internally fund exploration and development activities and to service or incur additional debt[53](index=53&type=chunk) - Adjusted Working Capital is used to assess the company's working capital position for ongoing operations, excluding the impact of lease obligations[54](index=54&type=chunk) - Free Cash Flow is used to evaluate financial performance and determine the total amount of cash available to return to shareholders over a specified period[55](index=55&type=chunk) - All non-GAAP measures have limitations and should not be considered as substitutes for net income, operating income, cash flow from operating activities, or other liquidity measures under GAAP[58](index=58&type=chunk) [Reconciliations of Non-GAAP Financial Measures](index=16&type=section&id=Reconciliations%20of%20Non-GAAP%20Financial%20Measures) This section provides detailed reconciliations of net income to Adjusted Net Income, net income to Adjusted EBITDAX, working capital to Adjusted Working Capital, and Free Cash Flow, illustrating the impact of various adjustments on GAAP metrics Reconciliation of Net Income to Adjusted Net Income (Thousand USD) | Metric | Q2 2025 | Q1 2025 | Q2 2024 | H1 2025 | H1 2024 | | :------------------------------------ | :------ | :------ | :------ | :------ | :------ | | Net Income | 8,380 | 7,730 | 28,151 | 16,111 | 35,837 | | Total Adjustments | -6,063 | -1,390 | -5,574 | -7,453 | -6,747 | | Adjusted Net Income | 2,317 | 6,340 | 22,577 | 8,658 | 29,090 | | Diluted Adjusted Net Income Per Share | 0.02 | 0.06 | 0.22 | 0.08 | 0.28 | Reconciliation of Net Income to Adjusted EBITDAX (Thousand USD) | Metric | Q2 2025 | Q1 2025 | Q2 2024 | H1 2025 | H1 2024 | | :------------------------------------ | :------ | :------ | :------ | :------ | :------ | | Net Income | 8,380 | 7,730 | 28,151 | 16,111 | 35,837 | | Net Interest Expense | 2,572 | 1,295 | 1,117 | 3,866 | 2,052 | | Income Tax Expense | 6,983 | 16,083 | 9,303 | 23,066 | 31,541 | | DD&A | 28,273 | 30,305 | 33,132 | 58,578 | 58,956 | | Exploration Expenses | 2,520 | — | — | 2,520 | 48 | | Total Non-Cash or Unusual Items | 1,165 | 1,548 | 60,772 | 2,710 | 5,785 | | Adjusted EBITDAX | 49,893 | 56,958 | 72,475 | 106,851 | 134,219 | Reconciliation of Working Capital to Adjusted Working Capital (Thousand USD) | Metric | June 30, 2025 | December 31, 2024 | Change | | :------------------------------------ | :------------- | :---------------- | :----- | | Working Capital | 62,812 | 56,199 | 6,613 | | Add: Lease Liabilities - Current Portion | 17,072 | 16,895 | 177 | | Adjusted Working Capital | 79,884 | 73,094 | 6,790 | Reconciliation of Free Cash Flow (Thousand USD) | Metric | First Six Months of 2025 | | :------------------------------------ | :----------------------- | | Net Cash Provided by Operating Activities | 51,049 | | Net Cash Used in Investing Activities | -107,460 | | Net Cash Provided by Financing Activities | 32,922 | | Effect of Exchange Rate Changes | 96 | | Net Change in Cash | -23,393 | | Add Back Cash Paid to Shareholders: | | | Dividends Paid | 13,127 | | Free Cash Flow | -10,266 |

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].

The market expects Vaalco Energy (EGY) to deliver a year-over-year decline in earnings on lower revenues when it reports results for the quarter ended June 2025. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates. The earnings report, which is expected to be released on August 7, might help the stock move higher if these key numbers are better t ...

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]