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Mar 31, 2022
VAALCO Q1 2022 Earnings Report
Reported net income of $12.2 million, or $0.20 per diluted share.
Key Takeaways
VAALCO Energy reported strong Q1 2022 results, including a net income of $12.2 million, driven by increased production and higher realized pricing. The company is progressing with its drilling campaign and FSO conversion, and remains focused on maximizing shareholder returns.
Reported Q1 2022 net income of $12.2 million ($0.20 per diluted share) and Adjusted Net Income of $21.1 million ($0.36 per diluted share).
Increased Adjusted EBITDAX by 49% quarter-over-quarter to $33.5 million in Q1 2022.
Increased Q1 2022 production by 7% to 8,051 net revenue interest barrels of crude oil per day compared to Q4 2021.
Funded $23.1 million cash capital expenditures during Q1 2022 with cash on hand and cash from operations.
Forward Guidance
Second quarter 2022 production is expected to increase, with sales also projected to rise significantly. Production expenses are anticipated to decrease, while capital expenditures are expected to increase. The company reaffirms full-year 2022 guidance.
Positive Outlook
- Second quarter 2022 production is expected to be 10,000 to 10,700 BOPD, a 29% increase at the midpoint compared to Q1 2022.
- Second quarter 2022 sales guidance is 10,700 to 11,300 BOPD, a 61% increase at the midpoint compared to Q1 2022.
- Production expense, excluding workovers, is expected to be $22.00 to $25.00, a decrease of 20% at the midpoint compared to Q1 2022.
- Cash G&A expense for the second quarter is expected to be between $2.5 and $3.5 million.
- VAALCO expects to fund its 2022 capital expenditures fully from cash on hand and cash flow from operations.
Challenges Ahead
- Capital expense for the second quarter 2022 is expected to be between $40.0 and $50.0 million.
- Workover expense for the second quarter 2022 is expected to be between $0 and $2 million.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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