VAALCO Energy, Inc. Announces Second Quarter 2025 Results

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]