VAALCO Energy Inc
LSE:EGY
VAALCO Energy Inc
VAALCO Energy, Inc. engages in the acquisition, development, and production of crude oil. The company is headquartered in Houston, Texas and currently employs 117 full-time employees. The Company’s segments include segments Gabon and Equatorial Guinea. The firm is holding a 63.6% participating interest in the Etame Marin block, located offshore Gabon, which to date has produced over 125 million barrels of crude oil and of which the Company is the operator. The operations of all segments include exploration for and production of hydrocarbons where commercial reserves have been found and developed. The firm owns an interest in an undeveloped block offshore Equatorial Guinea, West Africa. Its subsidiaries include VAALCO Gabon (Etame), Inc., VAALCO Production (Gabon), Inc., VAALCO Gabon S.A., VAALCO Angola (Kwanza), Inc., VAALCO Energy (EG), Inc., VAALCO Energy Mauritius (EG) Limited, VAALCO Energy, Inc. (UK Branch) and VAALCO Energy (USA), Inc.
VAALCO Energy, Inc. engages in the acquisition, development, and production of crude oil. The company is headquartered in Houston, Texas and currently employs 117 full-time employees. The Company’s segments include segments Gabon and Equatorial Guinea. The firm is holding a 63.6% participating interest in the Etame Marin block, located offshore Gabon, which to date has produced over 125 million barrels of crude oil and of which the Company is the operator. The operations of all segments include exploration for and production of hydrocarbons where commercial reserves have been found and developed. The firm owns an interest in an undeveloped block offshore Equatorial Guinea, West Africa. Its subsidiaries include VAALCO Gabon (Etame), Inc., VAALCO Production (Gabon), Inc., VAALCO Gabon S.A., VAALCO Angola (Kwanza), Inc., VAALCO Energy (EG), Inc., VAALCO Energy Mauritius (EG) Limited, VAALCO Energy, Inc. (UK Branch) and VAALCO Energy (USA), Inc.
Production & Guidance: VAALCO delivered Q3 production and sales at the high end of guidance, leading to a 5% increase in full-year production guidance and a 20% reduction in full-year capital guidance.
Financial Performance: Q3 net income was $1.1 million and adjusted EBITDAX was $23.7 million, with $130.5 million in adjusted EBITDAX for the first nine months of 2025.
Cost Control: Production expense per BOE declined by $1 year-over-year, and Q3 production costs were at the low end of guidance, supporting strong margins despite softer commodity prices.
Major Projects: Key projects in Cote d'Ivoire, Gabon, Egypt, and Equatorial Guinea remain on track, with significant production uplift expected from 2026 onward as new drilling campaigns commence.
Shareholder Returns: The company returned $6.7 million in Q3 and around $20 million year-to-date to shareholders via dividends, maintaining a dividend yield of about 7%.
Liquidity & Credit: Ended Q3 with $24 million in unrestricted cash and $60 million of borrowings, with a reserves-based lending facility reaffirmed at $190 million.
