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Dec 30, 2024
VAALCO Q4 2024 Earnings Report
VAALCO Energy, Inc. reported a decrease in net income and revenue for the fourth quarter of 2024 compared to the previous year, but an increase in production and record Adjusted EBITDAX for the full year.
Key Takeaways
VAALCO Energy, Inc. announced its fourth quarter and record full year 2024 financial and operating results. The company reported a net income of $11.7 million and Adjusted EBITDAX of $76.2 million for Q4 2024. Full year highlights included a record Adjusted EBITDAX of $303.0 million, a 7% year-over-year production growth, and a 57% increase in year-end 2024 SEC proved reserves to 45.0 MMBOE.
Net income for Q4 2024 was $11.7 million ($0.11 per diluted share), with Adjusted EBITDAX of $76.2 million.
Produced 20,775 net revenue interest (NRI) BOEPD and sold 20,352 NRI BOEPD in Q4 2024.
Full year 2024 net income was $58.5 million ($0.56 per diluted share) with record Adjusted EBITDAX of $303.0 million.
Increased year-end 2024 SEC proved reserves by 57% to 45.0 million barrels of oil equivalent (MMBOE).
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
For 2025, Vaalco anticipates continued growth with significant capital expenditures planned for drilling campaigns and infrastructure projects across its assets, aiming to return over $25 million to shareholders through dividends.
Positive Outlook
- Entered into a new revolving credit facility of $190 million, with ability to grow to $300 million, secured by assets in Gabon, Egypt, and Côte d'Ivoire.
- Acquired 70% WI and will operate the CI-705 block in offshore Côte D'Ivoire.
- Planning a 2025 capital budget of $270 million to $330 million, including drilling campaigns and FPSO refurbishment.
- Targeting to return over $25 million to shareholders through the dividend program.
- Continued drilling in Egypt and Canada to augment production base and cash flows.
Challenges Ahead
- The FPSO refurbishment project in Côte d'Ivoire will lead to cessation of hydrocarbon operations from January 31, 2025, with significant development drilling expected to begin in 2026.
- The 2025 capital budget of $270 million to $330 million is a substantial investment.
- The CI-705 block in Côte d'Ivoire is lightly explored with only three wells drilled to date.
- The company's ability to fund growth and opportunities relies on internally generated cash flow and cash balance.
- Future declarations of quarterly dividends are subject to approval by the Board of Directors and may be revised or terminated.
Revenue & Expenses
Visualization of income flow from segment revenue to net income