VAALCO Energy has reported operational and financial results for the fourth quarter and full year of 2024 and year-end 2024 reserves. The Company also provided 2025 operational and financial guidance for the first quarter and full year of 2025.
Fourth Quarter 2024 Highlights:
- Reported net income of $11.7 million ($0.11 per diluted share) and Adjusted EBITDAX(1) of $76.2 million;
- Produced 20,775 net revenue interest (“NRI”)(2) barrels of oil equivalent per day ("BOEPD") or 25,300 Working interest (“WI”)(3) BOEPD, both at the midpoint of guidance; and
- Sold 20,352 NRI BOEPD in Q4 2024, toward the high end of guidance.
2024 Full Year Highlights:
- Reported full year ("FY") 2024 net income of $58.5 million ($0.56 per diluted share) and net cash from operating activities of $113.7 million;
- Generated record Adjusted EBITDAX(1) of $303.0 million in FY 2024;
- Grew production in 2024 by 7% year-over-year to 19,936 NRI(2) BOEPD, at the midpoint of the Company's increased guidance;
- WI(3) production of 24,738 BOEPD, was also at the midpoint of Vaalco's increased guidance;
- Sold 19,843 NRI BOEPD, above the midpoint of the Company's increased guidance;
- Increased year-end 2024 SEC proved reserves by 57% to 45.0 million barrels of oil equivalent (“MMBOE”);
- Closed the accretive all cash acquisition of Svenska Petroleum Exploration AB (“Svenska”) for a net purchase price of $40.2 million;
- Strategically expanded West African focus area with a sizeable producing asset that has significant upside potential and future development opportunities in Cote d’Ivoire, a well-established and investment-friendly country;
- Paid back 1.8x(4) Vaalco's initial net investment in Côte d’Ivoire in the eight months since closing and the performance of the asset has tracked well ahead of the Company's expectations at the time of the acquisition;
- Completed Production Sharing Contracts (“PSCs”) with the Government of Gabon for the offshore Niosi Marin and Guduma Marin exploration blocks; and
- Returned $33 million to shareholders in 2024, as well as $83.4 million over the past two years through dividends and buybacks.
2025 Key Items and Outlook:
- Entered into new revolving credit facility with an initial commitment of $190 million with the ability to grow to $300 million, secured by Vaalco’s Gabon, Egypt and Côte d’Ivoire assets;
- Acquired 70% WI(3) in and will operate the CI-705 block in offshore Côte D’Ivoire;
- Planning a 2025 capital budget of $270 to $330 million, including a drilling campaign at Etame, Côte d’Ivoire Floating Production Storage and Offloading vessel ("FPSO") Dry Dock Refurbishment Project and continued drilling in Egypt and Canada; and
- Target to return over $25 million to shareholders through Vaalco’s dividend program.
(1) Adjusted EBITDAX, Adjusted Net Income, Adjusted Working Capital and Free Cash Flow are Non-GAAP financial measures and are described and reconciled to the closest GAAP measure in the attached table under “Non-GAAP Financial Measures.”
(2) All NRI sales and production rates are Vaalco's working interest volumes less royalty volumes, where applicable.
(3) All WI production rates and volumes are Vaalco's working interest volumes, where applicable.
(4) Payback of 1.8x is based on unaudited operational cash flow for the Côte d’Ivoire assets compared to the acquisition price of $40.2 million as of December 31, 2024.
George Maxwell, Vaalco’s Chief Executive Officer commented, 'We have delivered another successful and record setting performance in 2024, where we continued to execute our strategic vision of maintaining operational excellence and profitably growing production and reserves. Since 2021, we have transformed Vaalco through acquisitions and organic growth, expanding our asset base, nearly tripling production and quadrupling proved reserves. We have consistently delivered operationally and financially, meeting or exceeding our guidance and generating record production, sales and Adjusted EBITDAX. We have accomplished all of this without losing sight of our commitment to sustainably return value to our shareholders and over the past two years have returned over $83 million through dividends and buybacks.'
'As we look forward to 2025, we are excited about the major projects that we have planned which are expected to deliver a step-change in organic growth across our portfolio in the coming years. We have another drilling campaign at Etame that we believe will expand our production and reserves considerably. In Côte D’Ivoire, we have commenced the FPSO refurbishment project and are preparing for a drilling campaign in 2026 to augment the production and economic life of the Baobab field. In Egypt and Canada, we continue to drill, recomplete and workover wells adding to our production base and cash flows. We also have exciting opportunities in offshore Gabon with the Niosi Marin and Guduma Marin exploration blocks that are located in close proximity to the prolific producing fields of Etame and Dussafu. We have farmed into and are operator of the CI-705 block, in offshore Côte D’Ivoire, which is favorably located in a proven petroleum system, near existing infrastructure with access to a strong growing domestic market and attractive upside potential. We are also excited to proceed with our plans to develop, operate, and begin producing from the discovery in Block P offshore Equatorial Guinea over the next few years. Financially, we are well-positioned to fund the meaningful growth and opportunities that we plan to pursue. Last week we announced a new credit facility that will supplement our internally generated cash flow and cash balance to assist in funding our robust organic growth projects.'
Mr. Maxwell concluded, 'I am proud of all that we have accomplished and would like to thank our hard-working employees for helping us to achieve these milestones. We believe that we are well positioned to continue to execute operationally and financially to achieve even greater growth and value for the rest of the decade. Our focus remains fixed on maximizing value and generating strong operational cash flow to fund our numerous organic opportunities moving forward, all while continuing to return capital to our shareholders through our quarterly dividend policy.'
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Source: VAALCO Energy
