[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** |

分组1 - Vaalco Energy reported quarterly earnings of $0.06 per share, matching the Zacks Consensus Estimate, and the same as the previous year [1] - The company posted revenues of $110.33 million for the quarter ended March 2025, exceeding the Zacks Consensus Estimate by 4.98% and up from $100.16 million a year ago [2] - Vaalco Energy shares have declined approximately 25.6% since the beginning of the year, contrasting with the S&P 500's decline of 4.3% [3] 分组2 - The earnings outlook for Vaalco Energy is currently unfavorable, resulting in a Zacks Rank 4 (Sell) for the stock, indicating expected underperformance in the near future [6] - The current consensus EPS estimate for the upcoming quarter is $0.02 on revenues of $89.4 million, and for the current fiscal year, it is $0.10 on revenues of $359.1 million [7] - The Oil and Gas - Exploration and Production - International industry is ranked in the bottom 26% of over 250 Zacks industries, suggesting potential challenges for stocks in this sector [8]

HOUSTON, May 08, 2025 (GLOBE NEWSWIRE) -- VAALCO Energy, Inc. (NYSE: EGY, LSE: EGY) (“Vaalco” or the “Company”) today reported operational and financial results for the first quarter of 2025. First Quarter 2025 Highlights and Recent Key Items: Reported net income of $7.7 million ($0.07 per diluted share), Adjusted Net Income of $6.3 million ($0.06 per diluted share) and Adjusted EBITDAX(1) of $57.0 million; Produced 17,764 net revenue interest (“NRI”)(2) barrels of oil equivalent per day (“BOEPD”), above th ...

HOUSTON, May 08, 2025 (GLOBE NEWSWIRE) -- Vaalco Energy, Inc. (NYSE: EGY; LSE: EGY) ("Vaalco" or the "Company") today announced that it declared its quarterly cash dividend of $0.0625 per share of common stock for the second quarter of 2025 ($0.25 annualized), which is payable on June 27, 2025, to stockholders of record at the close of business on May 23, 2025. Future declarations of quarterly dividends and the establishment of future record and payment dates are subject to approval by the Board of Director ...

HOUSTON, May 07, 2025 (GLOBE NEWSWIRE) -- Vaalco Energy, Inc. (NYSE: EGY; LSE: EGY) (“Vaalco” or the “Company”) today provided additional details regarding its Capital Markets Day presentation on Wednesday, May 14, 2025. The presentation will begin at 8 a.m. Central Time (2 p.m. London Time) and is expected to conclude by around 10:00 a.m. Central Time (4 p.m. London Time). Participation in the Capital Markets Day is directed to Vaalco’s shareholders, buy side and sell side analysts, as well as large instit ...

Core Viewpoint - VAALCO Energy, Inc. is set to release its first quarter 2025 earnings on May 8, 2025, and will host a conference call on May 9, 2025, to discuss financial and operational results [1][2]. Company Information - VAALCO Energy, Inc. 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, Côte d'Ivoire, Equatorial Guinea, Nigeria, and Canada [3]. Conference Call Details - The earnings release will occur after the close of trading on the New York Stock Exchange on May 8, 2025, with the conference call scheduled for May 9, 2025, at 9:00 a.m. Central Time [2]. - Participants can join the call using specific toll-free numbers based on their location, and the call will also be available via webcast on VAALCO's website [2].

| Vaalco Energy, Inc. (General and Investor Enquiries) | +00 1 713 543 3422 | | --- | --- | | Website: | www.vaalco.com | | Al Petrie Advisors (US Investor Relations) | +00 1 713 543 3422 | | Al Petrie / Chris Delange | | | Buchanan (UK Financial PR) | +44 (0) 207 466 5000 | | Ben Romney / Barry Archer | Vaalco@buchanan.uk.com | Forward Looking Statements https://www.investormeetcompany.com/vaalco-energy-inc/register-investor. Interested parties can also access the presentation on Vaalco's web site, www.vaa ...

Core Points - Vaalco Energy, Inc. will host a Capital Markets Day presentation on May 14, 2025, focusing on its long-term vision and growth strategy across its diversified asset base [1][2] - The event will feature presentations from key management members, highlighting exciting development projects and the company's Africa-focused growth strategy [3] Company Overview - Vaalco, founded in 1985 and based in Houston, Texas, is an independent energy company with a diverse portfolio of production, development, and exploration assets across multiple countries including Gabon, Egypt, Côte d'Ivoire, Equatorial Guinea, Nigeria, and Canada [4]

Production Overview - Gabon segment produced approximately 2,783 MBoe, accounting for 38% of total production in 2024, with 100% being crude oil[42] - Egypt segment contributed approximately 2,585 MBoe, representing 35% of total production, also entirely crude oil[47] - Cote d'Ivoire segment produced approximately 1,058 MBoe, which is 15% of total production, with 100% being crude oil[50] - Canada segment produced approximately 870 MBoe, accounting for 12% of total production, with a mix of 40% crude oil, 29% natural gas, and 31% NGLs[54] - The company produced a total of 6,776 MBbl of crude oil in 2024, with an average production cost of $22.51 per BoE[88] Revenue and Financial Performance - Total revenue for the year ended December 31, 2024, was approximately $478.99 million[41] - The standardized measure of discounted future net cash flows increased to $379,400,000 in 2024 from $341,934,000 in 2023[76] - The average sales price for crude oil in Canada for 2024 was $69.12 per Bbl, down from $71.67 per Bbl in 2023[75] - The average price for natural gas in Canada decreased to $0.95 per Mcf in 2024 from $1.91 per Mcf in 2023[75] - The company estimates that a $5 per barrel decrease in crude oil price would decrease revenues by $12.9 million in Gabon for the year ended December 31, 2024[398] Reserves and Development - Estimated proved reserves as of December 31, 2024, totaled 45,018 MBoe, representing 100% of total reserves[41] - As of December 31, 2024, the total proved reserves amounted to 45,018 MBoe, consisting of 38,529 MBbls of crude oil and 22,631 MMcf of natural gas[73] - The company reported a total of 24,128 MBoe in proved undeveloped reserves at the end of 2024, an increase of 17.9 MMBoe from the previous year, primarily due to the acquisition of reserves from the Svenska Acquisition[81] - Significant development drilling is expected to begin in 2026 in Cote d'Ivoire after planned maintenance of the FPSO[53] - The Venus Plan of Development in Equatorial Guinea is on schedule, aiming for a Final Investment Decision by the end of Q2 2025[59] Employment and Diversity - As of December 31, 2024, VAALCO Energy had 230 full-time employees, with 119 in Gabon, 39 in Egypt, and 54 in Houston[95] - Approximately 19% of the management team are female employees, and 96% of the Gabon workforce is Gabonese[96] - The company emphasizes a pay-for-performance compensation philosophy to attract and retain talent[97] - VAALCO Energy's commitment to diversity includes a long-standing Equal Employment Opportunity policy[96] Regulatory and Compliance - The 2019 Hydrocarbons Law in Gabon mandates that foreign producers conduct operations through a company incorporated in Gabon[110] - The State of Gabon can acquire a maximum 10% equity stake in operators applying for or holding exclusive development and production authorization[114] - The Egyptian Ministry of Petroleum and Mineral Resources regulates the oil and gas industry, with all resources under the control of the State of Egypt[116] - Concession agreements in Egypt have the force of law and can last up to 30 years, overriding contradictory laws[117] - The concession agreements typically include minimum work and financial commitments, bonus payments tied to production milestones, and royalties payable to the government[118] Environmental and Climate Commitments - The Canadian government aims to achieve a 40-45% reduction in GHG emissions from 2005 levels by 2030, impacting the oil and gas sector[137] - The proposed regulations in Canada set a cap on GHG emissions within the oil and gas sector, equivalent to 35% below 2019 levels by 2030[137] - Gabon aims to comply with the Paris Agreement through its Climate Change Ordinance, which includes emission reduction targets and a zero flaring objective for gas[139] - Egypt's revised Nationally Determined Contribution (NDC) commits to a 65% reduction in emissions from the oil and gas sector (1.7 Mt CO2e) by 2030 and aims for 42% of electricity generation from renewable sources by 2035[139] - Côte d'Ivoire has committed to a 30.41% reduction in GHG emissions by 2030 as part of its revised NDC for 2021-2030[140] Financial Instruments and Debt - Outstanding derivative contracts include collars for 70,000 barrels of Dated Brent at an average price of $65.00 per barrel for January to March 2025[401] - The company entered into additional derivative contracts for future anticipated production, specifically 60,000 Bbls under collars for the settlement period of July 2025 to September 2025, with an average put price of $65.00 per Bbl and an average call price of $80.00 per Bbl[402] - As of December 31, 2024, the company had a zero balance outstanding on its Facility, indicating no current debt obligations[403] - The 2025 Facility Agreement includes loans that will bear interest at a rate of Term SOFR plus an applicable margin of 6.50% until certain completion tests are met, after which the margin will decrease to 6.00%[403] - Increases in interest rates under the 2025 Facility Agreement could adversely impact the company's results of operations and cash flows[403]

Group 1 - VAALCO Energy (NYSE: EGY) is expected to experience growth in fiscal year 2025, setting the stage for several years of expansion [2] - The oil and gas industry is characterized as a boom-bust, cyclical sector, requiring patience and experience for successful investment [2] Group 2 - The analysis of oil and gas companies includes a comprehensive breakdown of balance sheets, competitive positions, and development prospects [1]