Vaalco Energy, Inc. (EGY) Reports Fourth Quarter And Record Full Year 2024 Financial And Operating Earnings Results And Year-End 2024 Reserves

VAALCO Energy, Inc. (EGY) today announced its financial results for the latest quarter, showcasing a strong performance that exceeded market expectations. The company reported earnings per share (EPS) of $0.11, significantly surpassing the estimated EPS of $0.045. This impressive result represents an EPS beat of $0.065, highlighting VAALCO Energy’s robust operational execution and financial management.

Key Highlights:

• VAALCO Energy reported a net income of $11.7 million for Q4 2024 and $58.5 million for the full year 2024.
• The company achieved record Adjusted EBITDAX of $303.0 million in 2024.
• Production increased by 7% year-over-year to 19,936 NRI BOEPD.
• Year-end 2024 SEC proved reserves increased by 57% to 45.0 MMBOE.
• VAALCO completed the acquisition of Svenska Petroleum Exploration AB for $40.2 million.
• The company plans a 2025 capital budget of $270 to $330 million, including major projects in Etame, Côte d’Ivoire, Egypt, and Canada.
• VAALCO aims to return over $25 million to shareholders through dividends in 2025.
• A new revolving credit facility of $190 million was secured, with potential to grow to $300 million.

Summary:

VAALCO Energy, Inc. reported strong financial and operational results for the fourth quarter and full year of 2024, achieving a net income of $11.7 million for Q4 and $58.5 million for the year. The company also recorded a record Adjusted EBITDAX of $303.0 million, reflecting its strategic focus on operational excellence and profitable growth. Production increased by 7% year-over-year, reaching 19,936 NRI BOEPD, while year-end 2024 SEC proved reserves rose by 57% to 45.0 MMBOE. The acquisition of Svenska Petroleum Exploration AB for $40.2 million significantly contributed to this growth, enhancing VAALCO’s asset base and future development opportunities, particularly in West Africa.

Looking ahead to 2025, VAALCO plans a capital budget of $270 to $330 million, focusing on major projects across its portfolio, including a drilling campaign at Etame and the Côte d’Ivoire FPSO Dry Dock Refurbishment Project. The company also secured a new revolving credit facility with an initial commitment of $190 million, providing financial flexibility to support its growth initiatives. CEO George Maxwell emphasized the company’s commitment to returning value to shareholders, with plans to return over $25 million through dividends in 2025. Maxwell stated, “We have transformed VAALCO through acquisitions and organic growth, expanding our asset base, nearly tripling production and quadrupling proved reserves.”

VAALCO Energy, Inc. (EGY) has experienced a rollercoaster ride in its stock price over the past year, with a notable 6.74% increase in the past week, yet a significant decline of 25.49% over the last six months. This volatility is mirrored in the company’s fundamental metrics, which paint a complex picture. Despite a low price-to-earnings ratio of 4.42, suggesting the stock might be undervalued, the company’s earnings per share have seen a steep decline with a two-year compound annual growth rate (CAGR) of -33.28%. However, VAALCO’s revenue has grown at a healthy 20.03% over the same period, and its free cash flow has surged by an impressive 118.69%, indicating strong operational cash generation. The company also boasts a solid net profit margin of 17.28% and a return on invested capital of 13.19%, reflecting efficient management and profitability. These mixed signals suggest that while VAALCO Energy is facing challenges, particularly in earnings growth, its robust cash flow and revenue growth could provide a foundation for future recovery. Investors may find the current price fluctuations an intriguing opportunity, albeit with a cautious eye on the company’s earnings trajectory.

VAALCO Energy, Inc., an independent energy company, acquires, explores for, develops, and produces crude oil and natural gas. The company holds Etame production sharing contract related to the Etame Marin block located offshore in the Republic of Gabon in West Africa. It also owns interests in an undeveloped block offshore Equatorial Guinea, West Africa. VAALCO Energy, Inc. was incorporated in 1985 and is headquartered in Houston, Texas.