VAALCO Energy has reported operational and financial results for the fourth quarter and full year of 2025, including year-end 2025 reserves. Additionally, the Company provided operational and financial guidance for the first quarter and full year of 2026.
2025 Full Year Highlights:
- Sold 17,452 net revenue interest ("NRI")(1) barrels of oil equivalent per day ("BOEPD"), above the high end of the Company's increased guidance, while delivering production of 16,556 NRI(1) BOEPD or 21,160 working interest ("WI")(2) BOEPD, both above the midpoint of Vaalco's increased guidance;
- Reported full year ("FY") 2025 net loss of $41.4 million ($0.40 per diluted share) and Adjusted Net Loss(3) of $4.0 million ($0.04 per diluted share);
- Generated Adjusted EBITDAX(3) of $173.4 million and net cash from operating activities of $212.7 million in FY 2025;
- Reported year-end 2025 SEC proved reserves of 43.0 million barrels of oil equivalent ("MMBOE"), which included 4 MMBOE of positive revisions, organic additions and extensions, replacing two-thirds of 2025 production;
- Entered into new reserves based lending facility with a current commitment level of $255 million and the ability to grow to $300 million;
- Continued strong collection of receivables in Egypt and at year end 2025 this balance had fallen to $31 million;
- Acquired 70% WI(3) in and will operate the CI-705 block in offshore Côte d'Ivoire, which covers approximately 2,300 square kilometers ("km2") located in the prolific Tano basin and is approximately 70 km to the west of Vaalco's CI-40 Block; and
- Returned $26.5 million to shareholders in 2025 through dividends and has returned over $115 million to shareholders since Q4 2021 through dividends and share buybacks.
Fourth Quarter 2025 Highlights:
- Sold 18,566 NRI BOEPD, 10% above the high end of guidance, while production was 16,128 NRI(2) BOEPD or 20,729 WI(2) BOEPD;
- Reported net loss of $58.6 million ($0.56 per diluted share), Adjusted Net Loss(3) of $2.3 million ($0.02 per diluted share) and Adjusted EBITDAX(3) of $42.9 million; and
- Invested $100.1 million in capital expenditures, which included the successful start to the Gabon Phase Three Drilling Program, continued Côte d'Ivoire Floating Production Storage and Offloading vessel ("FPSO") Dry Dock refurbishment and key long leads for the upcoming 2026 drilling campaign in Côte d’Ivoire and drilling in Egypt.
2026 Recent Key Items and Outlook:
- Confirmed as operator with a 60% WI in the Kossipo field on the CI-40 Block, located southwest of the Baobab field, with a field development plan ("FDP") expected to be completed in second half of 2026;
- Further information on the Kossipo field can be found in the Q4 2025 supplemental deck posted on Vaalco's website;
- Divested all Canadian properties for $25.5 million with a closing date of February 19, 2026;
- Successfully drilled, completed and placed on production the Etame 15H-ST development well, confirming expectations from the ET-15P pilot well results;
- Planning a 2026 capital budget of $290 to $360 million, including a drilling campaign at Etame, expected completion of the FPSO Refurbishment/Reconnection Project, initial Phase 5 Drilling Program at Baobab and continued field activity in Egypt; and
- Declared quarterly cash dividend of $0.0625 per share of common stock to be paid on March 27, 2026.
(1) All NRI sales and production rates are Vaalco's working interest volumes less royalty volumes, where applicable.
(2) All WI production rates and volumes are Vaalco's working interest volumes, where applicable.
(3) Adjusted EBITDAX, Adjusted Net Income (Loss), Adjusted Working Capital, Free Cash Flow and Net Debt are Non-GAAP financial measures and are described and reconciled to the closest GAAP measure in the attached table under "Non-GAAP Financial Measures."
George Maxwell, Vaalco's Chief Executive Officer, commented:
'In 2025, we successfully completed another year where we delivered consistent quarterly results that either met or exceeded our guidance. We repeatedly raised production and sales guidance in 2025 and continued to deliver on those increased guidance ranges. Operationally, we kicked off the Gabon Phase Three Drilling Campaign in Q4 2025, we continued to progress the FPSO project for Baobab and we successfully continued to drill in Egypt. Financially, we entered into a new reserves based lending facility with the ability to grow to $300 million and we ended 2025 with an additional $35 million in cash on hand compared to the prior quarter end and closed the year with a net debt position of around $1 million. We also generated $173 million in Adjusted EBITDAX, driven by strong sales and continued to have increased collections from our receivables, where all of our aged receivables are now largely current. We are particularly pleased with the progress our team have made in our Egyptian receivables in 2025. At the start of 2025 our outstanding accounts receivable for Egypt amounted to $113 million, and at year end 2025 this balance had fallen to $31 million even after invoicing over $129 million in revenue for the year. We are pleased to be working with strong partners and host nations that continue to be very positive toward capital investment in oil and gas projects.'
'In 2026, we began the year by divesting all of our Canadian assets, and increased our future growth potential in Côte d'Ivoire by being confirmed as operator with a 60% WI in the Kossipo field. The Kossipo field is a discovery with material oil in place, located in close proximity to our highly productive Baobab field on the CI-40 Block. We also have had a positive start to our Gabon drilling campaign with the ET-15H-ST well. Despite non-commercial Gamba sands in the West Etame exploration prospect, we are now using the well bore to side-track and drill another Gamba development well before moving to the SEENT and Ebouri platforms where we have several wells and workovers planned to enhance production, lower costs and potentially add reserves. The FPSO for Baobab is currently off the coast of South Africa and is expected to return to offshore Côte d'Ivoire by late March, with the field expected to restart in Q2 2026. Soon thereafter, we plan to start the Phase 5 Drilling Program at Baobab. We are well on our way to another successful year, as indicated by our 2026 guidance and believe that we are well positioned to deliver on our forecasted 225% organic production growth by 2030.'
Mr. Maxwell concluded, 'I am proud of all that we have accomplished in these past five years and would like to thank our hard-working employees for helping us to achieve so many milestones. We have successfully grown Vaalco from a single asset delivering around 5,000 BOPD to a diversified, multi country operator well on our way to achieving our goal of 50,000 BOEPD. I believe that we are well positioned to continue to execute operationally and financially to achieve all of our growth targets and continue to generate and return value to our shareholders for the rest of the decade. Our track record of success in delivering results should provide our investors with assurance that we can execute on our expanded portfolio of opportunities.'
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Source: Vaalco Energy
