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HOUSTON - Vaalco Energy Inc . (NYSE: NYSE:EGY, LSE: EGY), an independent energy company, announced its financial and operational results for the fourth quarter and full year of 2024, along with year-end 2024 reserves. The company also provided operational and financial guidance for 2025.
Fourth Quarter 2024 Highlights:
- Net income of $11.7 million ($0.11 per diluted share) and Adjusted EBITDAX of $76.2 million;
- Midpoint production of 20,775 NRI barrels of oil equivalent per day (BOEPD) and 25,300 Working interest (WI) BOEPD;
- Sold 20,352 NRI BOEPD in Q4 2024, near the upper end of guidance.
2024 Full Year Highlights:
- FY 2024 net income of $58.5 million ($0.56 per diluted share) and net cash from operating activities of $113.7 million;
- Record Adjusted EBITDAX of $303.0 million in FY 2024;
- 7% year-over-year production growth to 19,936 NRI BOEPD;
- Increased year-end 2024 SEC proved reserves by 57% to 45.0 million barrels of oil equivalent (MMBOE);
- Closed the Svenska Petroleum Exploration AB acquisition for $40.2 million, expanding the West African focus area;
- Completed Production Sharing Contracts (PSCs) with the Government of Gabon for offshore exploration blocks;
- Returned $33 million to shareholders in 2024 through dividends and buybacks.
2025 Key Items and Outlook:
- New revolving credit facility with an initial commitment of $190 million;
- Acquired 70% WI in and will operate the CI-705 block in offshore Côte D’Ivoire;
- Planning a 2025 capital budget of $270 to $330 million, including several drilling campaigns;
- Target (NYSE:TGT) to return over $25 million to shareholders through Vaalco’s dividend program.
CEO George Maxwell stated, "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. 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."
Operational Update:
Egypt: Vaalco focused on enhancing production in 2024 through a series of planned workovers and interventions using the OGS-10 rig.
Canada: The 2024 drilling campaign commenced in January 2024 with all four wells drilled, completed, and brought onto production by Q2 2024.
Gabon: Vaalco successfully completed its transition to a Floating Storage and Offloading vessel ("FSO") and related field reconfiguration processes in October 2022, providing a low-cost solution that increases storage capacity for the Etame block.
Côte d’Ivoire: Work with Modec on the dry docking project for the Baobab FPSO continued in Q4 2024, with significant development drilling expected to begin in 2026 after the FPSO returns to service.
Year-End 2024 Reserves:
Vaalco’s SEC proved reserves at December 31, 2024, increased by 57% to 45.0 MMBOE from 28.6 MMBOE at year-end 2023. The standardized measure of Vaalco’s SEC proved reserves increased to $379.4 million at December 31, 2024, from $341.9 million at December 31, 2023.
Financial Update - Fourth Quarter of 2024:
Vaalco reported net income of $11.7 million ($0.11 per diluted share) for the fourth quarter of 2024, which was up 6% compared with net income of $11.0 million ($0.10 per diluted share) in the third quarter of 2024. Adjusted EBITDAX totaled $76.2 million in the fourth quarter of 2024.
Financial Update - Full Year 2024:
The Company reported net income for the year ended December 31, 2024, of $58.5 million, which is a decrease from the $60.4 million reported for the same period in 2023.
Quarterly Cash Dividend:
Vaalco paid a quarterly cash dividend of $0.0625 per share of common stock for the fourth quarter of 2024 on December 20, 2024.
Hedging:
The Company continued to hedge a portion of its expected future production to lock in strong cash flow generation.
2025 Guidance:
The Company has provided first quarter 2025 guidance and its full year 2025 guidance, with production and sales volume targets along with expected capital expenditures and expenses.
Conference Call:
Vaalco will hold a conference call to discuss its fourth quarter 2024 financial and operating results on Friday, March 14, 2025.
About Vaalco:
Vaalco, founded in 1985 and incorporated under the laws of Delaware, is a Houston, Texas, USA based, independent energy company with a diverse portfolio of production, development, and exploration assets across Gabon, Egypt, Côte d’Ivoire, Equatorial Guinea, Nigeria, and Canada.
This article is based on a press release statement.
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