VAALCO Energy, Inc. Announces Fourth Quarter and Record Full Year 2024 Financial and Operating Results and Year-End 2024 Reserves

Core Viewpoint - VAALCO Energy, Inc. reported strong operational and financial results for Q4 and full year 2024, highlighting significant growth in production and reserves, alongside a commitment to returning value to shareholders through dividends and buybacks [1][4]. Fourth Quarter 2024 Highlights - Reported net income of $11.7 million ($0.11 per diluted share), an increase of 6% from Q3 2024 but a decrease from $44.0 million in Q4 2023 [5][23]. - Adjusted EBITDAX totaled$76.2 million, an 18% decrease from $92.8 million in Q3 2024 and down 20$95.9 million in Q4 2023 [24]. - Produced 20,775 net revenue interest (NRI) barrels of oil equivalent per day (BOEPD) and sold 20,352 NRI BOEPD, both at the high end of guidance [5][23]. Full Year 2024 Highlights - Full year net income was $58.5 million, down from$60.4 million in 2023, primarily due to increased depreciation, depletion, and amortization (DD&A) expenses [37]. - NRI production volumes increased by 6.8% to 7.3 million barrels of oil equivalent (MMBOE) compared to 6.8 MMBOE in 2023 [38]. - Average realized crude oil price for 2024 was $65.64 per barrel, a slight decrease of 0.3$65.83 in 2023 [39]. 2025 Key Items and Outlook - The company plans a capital budget of $270 to$330 million for 2025, including a drilling campaign at Etame and refurbishment of the FPSO [5][6]. - Targeting to return over $25 million to shareholders through dividends in 2025 [5]. - The company has entered a new revolving credit facility with an initial commitment of$190 million, expandable to $300 million, to support growth initiatives [5][6]. Year-End 2024 Reserves - SEC proved reserves increased by 57% to 45.0 MMBOE from 28.6 MMBOE at year-end 2023, with 20.9 MMBOE in proved developed reserves and 24.1 MMBOE in proved undeveloped reserves [18]. - The reserve replacement ratio was 324%, reflecting strong additions through the Svenska acquisition and positive revisions [18]. Operational Update - In Egypt, the company enhanced production through planned workovers, achieving positive well economics [7]. - In Côte d'Ivoire, the company commenced a dry docking project for the FPSO and plans significant development drilling in 2026 [16][17]. - The company has secured a rig for the 2025/26 drilling campaign at Etame, with plans to finalize locations soon [13].