VAALCO Energy (EGY) Q4 2025 earnings summary

Executive summary

• Achieved strong operational and financial results in 2025, with production and sales exceeding guidance and a diversified asset base across multiple countries.

• Divested Canadian assets for $25.5 million in early 2026 to focus on core African and Egyptian operations, with proceeds at 2.7x trailing twelve months operational cash flow.

• Returned $26.5 million in dividends in 2025, totaling over $115 million to shareholders since Q4 2021.

• Expanded African portfolio with new operatorships and asset acquisitions in Côte d'Ivoire and Gabon, including 60% WI in Kossipo field.

• 2025 was a transitional year with major projects in Côte d'Ivoire and Gabon impacting production timing.

Financial highlights

• 2025 Adjusted EBITDAX reached $173.4 million; net cash from operating activities was $212.7 million.

• Reported a net loss of $41.4 million for 2025, driven by a $67.2 million non-cash impairment from the Canadian asset sale.

• Production costs for 2025 were $158 million ($24.89/boe); per-barrel costs slightly lower year-over-year at $22.48.

• Unrestricted cash at year-end was $58.9 million, with $195 million available under the credit facility.

• Year-end 2025 SEC proved reserves: 43 MMboe (down 5% YoY); 2P CPR reserves: 73.7 MMboe (down 6% YoY); PV-10 of 1P WI CPR reserves up 8% to $410 million and 2P WI CPR reserves up 26% to $859 million.

Outlook and guidance

• 2026 production guidance: 20,100–22,400 WI boe/d and 16,100–17,950 NRI boe/d; sales volumes 14,900–18,050 NRI boe/d.

• Significant production uplift expected in H2 2026 as FPSO returns in Côte d'Ivoire and Gabon drilling ramps up.

• 2026 CapEx projected at $290–$360 million, focused on drilling in Gabon, FPSO completion, Baobab drilling, Egypt recompletions, and Kossipo development.

• Production expense guidance for 2026: $150.5–$178 million ($19–$24/boe); cash G&A: $31–$37 million.

• Exit 2026 production rate expected at 25,000–26,000 WI boe/d.