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]

Financial Data and Key Metrics Changes - For the full year 2024, the company increased its adjusted EBITDAX to $303 million, a new record [8] - Record production reached almost 25,000 working interest barrels equivalent per day, with record sales of nearly 20,000 net interest barrels per day [9] - SEC proved reserves grew 57% year over year to 45 million BOE, while 2P CPR reserves increased to 96.1 million BOE [31][32] Business Line Data and Key Metrics Changes - In Côte d'Ivoire, the company completed the Svenska acquisition in April 2024, which contributed positively to reserves and production [10][11] - Canadian production was approximately 75% liquid in Q2 through Q4, improving the production mix [17] - In Egypt, the company focused on high-rate return capital workover projects, completing twelve workovers in 2024 [20][21] Market Data and Key Metrics Changes - The company reported a stable pricing environment in Q4 2024, with production costs below guidance [41] - The production costs for the full year 2024 were $22.48 per barrel, slightly lower than the previous year [42] - The company expects production sales for 2025 to be lower than 2024 due to the FPSO shutdown and natural decline [53] Company Strategy and Development Direction - The company aims to grow production, reserves, and shareholder value through a diversified portfolio of assets [34][35] - Plans include extensive drilling campaigns in Gabon and Côte d'Ivoire, with a focus on maximizing asset value [62] - The company is progressing with the FEED study for the Venus Block P in Equatorial Guinea, anticipating an FID in 2025 [29][30] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's operational and financial momentum entering 2025, despite a challenging pricing environment [10][31] - The company highlighted its commitment to returning cash to shareholders, having returned $83 million over the past two years [10][34] - Management believes the stock is undervalued compared to its SEC proved reserves and 2P CPR reserves [33] Other Important Information - The company has entered into a new revolving credit facility with an initial commitment of $190 million, expandable to $300 million [50] - The FPSO refurbishment project is on schedule, with commissioning expected to start in early May 2026 [108] - The company has not experienced any lost-time incidents in 2024, reflecting its commitment to safety [22] Q&A Session Summary Question: Can you talk about the cycle times for exploration projects in Gabon and Côte d'Ivoire? - Management indicated that seismic acquisition for Gabon is expected in Q1 2026, with drilling likely not starting until late 2026 or early 2027 [71][72] Question: What impact will the capital campaign in 2026 have on cost recovery pools? - Management noted that capital spent in Gabon will start recovering as soon as successful wells are in production, while Côte d'Ivoire will see a 25% uplift in investment once production resumes [78] Question: How do you expect production to change with the upcoming drilling campaigns? - Management expressed optimism about achieving significant production increases from the Gabon drilling campaign, which has been expanded to five wells [86][88] Question: What are the critical path items for the FPSO refurbishment? - Management highlighted the importance of the turn bearing ordered for the FPSO, with expectations for commissioning to begin in early May 2026 [108] Question: How many H2S wells are planned for the upcoming drilling program? - Management confirmed that the Aburi platform currently has two wells tied in, with plans for additional wells in the 2025-2026 program [124][126]

Financial Data and Key Metrics Changes - For the full year 2024, the company achieved a record adjusted EBITDAX of $300 million, marking a year-over-year increase of $23 million or 8% [6][25] - Record production reached almost 25,000 working interest barrels equivalent per day, with record sales of nearly 20,000 net interest barrels per day [6][25] - SEC proved reserves grew by 57% year-over-year to 45 million BOE, while 2P CPR reserves increased to 96.1 million BOE [6][21] Business Line Data and Key Metrics Changes - In Canada, production from new wells increased to approximately 75% liquids in Q2 through Q4, contributing to strong production performance [12] - In Egypt, 12 workovers were completed in 2024, with plans for 8 to 13 additional wells to be drilled in 2025 [14] - Gabon showed positive production results with strong uptime and improved decline curves, with a drilling program planned to begin in Q3 2025 [16][17] Market Data and Key Metrics Changes - The company reported stable pricing in Q4 2024, supported by a hedging program to mitigate risks [27] - Production costs for Q4 2024 were below guidance, with absolute costs at $37.7 million and per barrel costs at $20.16 [27][28] Company Strategy and Development Direction - The company aims to maximize asset value through operational efficiency, prudent investments, and seeking accretive opportunities [40][42] - Plans include extensive drilling campaigns in Gabon and Cote D'Ivoire, with a focus on enhancing production and reserves [41][42] - The company is positioned to execute projects in its diversified portfolio, with a strong emphasis on returning value to shareholders [42] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's operational and financial momentum entering 2025, highlighting a commitment to safety and operational excellence [5][15] - The company anticipates a production decline in 2025 due to the FPSO shutdown but expects significant growth in 2026 as new projects come online [34][35] Other Important Information - The company returned $33 million to shareholders through dividends and buybacks in 2024, with a projected annual dividend of $0.25 per share for 2025 [7][42] - A new revolving credit facility of up to $300 million was established to support capital programs [33][38] Q&A Session Summary Question: Can you talk about the cycle times for exploration projects in Gabon and Cote D'Ivoire? - Management indicated that seismic acquisition is expected to begin in Q1 2026, with drilling likely starting in late 2026 or early 2027 for Gabon, while Cote D'Ivoire will see seismic data acquisition in Q2 or Q3 2025 [45][46] Question: What impact will the capital campaign in 2026 have on cost recovery pools? - Management noted that capital spent on successful wells in Gabon will begin to recover quickly, while Cote D'Ivoire will see a 25% uplift in investment once production resumes [48][49] Question: How will the Gabon drilling campaign impact production volumes? - Management expressed optimism about achieving significant production increases, similar to past campaigns, with a focus on enhancing the Itami asset [51][52] Question: What are the critical path items for the FPSO refurbishment in Cote D'Ivoire? - Key milestones include the turret bearing delivery and the expected timeline for commissioning, with first oil anticipated in mid to late May 2026 [66][68] Question: How many H2S wells will be included in the drilling program? - Management confirmed that the Aburi wells will be part of the drilling program, with the first wells being drilled in 2025 and the Aburi wells following later [82][85]