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Mar 31, 2023
VAALCO Q1 2023 Earnings Report
VAALCO reported strong Q1 2023 results, marked by increased production and strategic advancements.
Key Takeaways
VAALCO Energy, Inc. reported a net income of $3.5 million ($0.03 per diluted share) for Q1 2023. The company achieved a 27% increase in daily production compared to Q4 2022. VAALCO is progressing with the Venus development in Equatorial Guinea and finalized multiple substantive documents with partners and the Ministry of Mines & Hydrocarbons.
Reported Q1 2023 net income of $3.5 million ($0.03 per diluted share) and Adjusted Net Income of $7.3 million ($0.07 per diluted share).
Generated Adjusted EBITDAX of $47.8 million and funded $27.7 million in cash capital expenditures.
Increased quarterly dividend by 92% to $0.0625 per share and returned $10.5 million in share buy backs through May 9th.
Finalized multiple substantive documents with partners and the Ministry of Mines & Hydrocarbons in Equatorial Guinea for Block P which includes the Venus development.
VAALCO
VAALCO
VAALCO Revenue by Geographic Location
Revenue by Geographic Location
Gabon Revenue
CapyFin.com Forward Guidance
VAALCO provided guidance for 2023, including production, sales volume, production expense, offshore workovers, cash G&A, and CAPEX.
Positive Outlook
- Expects second quarter NRI sales to be between 15,600 and 17,300 BOEPD which includes the impacts of the delayed liftings.
- The Company is currently evaluating future drilling campaigns, with the intent of moving exclusively to 3-mile laterals in order to improve economics.
- Planned activity includes a detailed seabed survey to identify the prime location for the development facilities.
- VAALCO anticipates a strong, efficient and economic development of this exciting discovery with first oil projected for 2026.
- In the second quarter of 2023, the Company plans to drill another six vertical wells.
Challenges Ahead
- VAALCO has seen inflationary and industry supply chain pressure on personnel and contractor costs.
- A lifting in Gabon originally planned for March 2023 was delayed until April which resulted in lower NRI sales volumes of 13,600 BOEPD during the first quarter of 2023.
- Commodity pricing was lower.
- Higher production expense, DD&A expense and higher taxes.
- There were no offshore workover expenses in the first quarter of 2022, the fourth quarter of 2022 incurred $4.7 million in offshore workover expenses.