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VAALCO Q1 2025 Earnings Report
Vaalco Energy, Inc. reported its operational and financial results for the first quarter of 2025, with net income of $7.7 million and Adjusted EBITDAX of $57.0 million.
Key Takeaways
Vaalco Energy, Inc. delivered a successful first quarter in 2025, meeting or exceeding guidance with solid net income and Adjusted EBITDAX, driven by strong NRI production and sales. The company also made strategic advancements, including securing a new credit facility and progressing organic growth projects in Côte D'Ivoire and Gabon, while reducing full-year capital expenditure guidance.
Net income for Q1 2025 was $7.7 million ($0.07 per diluted share), with Adjusted Net Income of $6.3 million ($0.06 per diluted share).
Adjusted EBITDAX totaled $57.0 million in Q1 2025, a 25% decrease from Q4 2024 but a strong performance.
NRI production was 17,764 BOEPD, above the high end of guidance, and NRI sales were 19,074 BOEPD, toward the high end of guidance.
The company secured a new reserves-based revolving credit facility of $190 million, reduced full-year capital expenditure guidance by 10%, and acquired a 70% WI in the CI-705 block offshore Côte D'Ivoire.
VAALCO
VAALCO
VAALCO Revenue by Geographic Location
Revenue by Geographic Location
Gabon Revenue
CapyFin.comEgypt Revenue
CapyFin.comCanada Revenue
CapyFin.comCôte d'Ivoire Revenue
CapyFin.com Forward Guidance
Vaalco Energy, Inc. has provided second quarter 2025 guidance and updated its full year 2025 guidance, anticipating continued strong operational performance and strategic project execution.
Positive Outlook
- Full year capital expenditure guidance reduced by about 10% without impacting production or sales forecasts.
- New reserves-based revolving credit facility secured with an initial commitment of $190 million, expandable to $300 million, to support organic growth.
- Acquired 70% WI in and will operate the CI-705 block in offshore Côte D'Ivoire, enhancing future growth prospects.
- Continued execution of strategic vision, laying foundation for profitable growth in 2025 and beyond.
- Strong performance of assets in Gabon and Egypt contributing to robust production and sales.
Challenges Ahead
- Deferral of additional drilling wells in Canada to reduce overall capital expenditures.
- Start of 2024 drilling campaign in Egypt was deferred until late 2024.
- FPSO refurbishment project in Côte D'Ivoire ceased hydrocarbon production on January 31, 2025, impacting Q1 production.
- The Ebouri 4-H well in Gabon requires chemical treatment due to H2S concentration, adding operating costs.
- The company is delaying discretionary capital spending.