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Sep 30, 2023

VAALCO Q3 2023 Earnings Report

VAALCO reported strong Q3 2023 results driven by operational excellence and strategic asset diversification.

Key Takeaways

VAALCO Energy, Inc. announced a net income of $6.1 million for Q3 2023 and an Adjusted EBITDAX increase of 9% to $71.4 million compared to Q2 2023. The company's cash position grew to over $100 million, supporting future capital programs and shareholder returns.

Adjusted EBITDAX grew by 9% to $71.4 million compared to Q2 2023.

Funded $22.5 million in capital expenditures from cash on hand and cash from operations in Q3 2023.

Completed six wells in Egypt and continued drilling in Canada, exceeding expectations.

Cash position grew to over $100 million at September 30, 2023, enabling funding of 2024 capital program and shareholder returns.

Total Revenue
$116M
Previous year: $78.1M
+48.9%
EPS
$0.07
Previous year: $0.56
-87.5%
Production Expense/BOE
$22.1
Gross Profit
$43.8M
Previous year: $37M
+18.5%
Cash and Equivalents
$103M
Previous year: $69.3M
+49.2%
Free Cash Flow
$71.7M
Total Assets
$828M
Previous year: $395M
+109.7%

VAALCO

VAALCO

VAALCO Revenue by Segment

VAALCO Revenue by Geographic Location

Forward Guidance

VAALCO provided fourth quarter 2023 guidance and updated its full year 2023 guidance, raising production guidance for Egypt and Canada and lowering its full year capital expenditure budget.

Positive Outlook

  • Production guidance for both Egypt and Canada have been raised.
  • Gabon full year production guidance has been raised.
  • Capital costs have been lowered.
  • Q4 2023 Sales Volume (BOEPD) NRI between 19,800 and 22,000
  • Gabon FY 2023 Production (BOEPD) WI between 10,300 and 10,700

Challenges Ahead

  • Production Expense (millions) WI & NRI between $42.2 and $47.6
  • Production Expense per BOE WI between $16.00 and $21.00
  • Production Expense per BOE NRI between $21.00 and $26.50
  • Cash G&A (millions) WI & NRI between $4.0 and $6.0
  • DD&A ($/BO) NRI between $20.0 and $22.0

Revenue & Expenses

Visualization of income flow from segment revenue to net income