Vaalco Energy has announced its fourth quarter and full-year 2024 results, highlighting significant growth and expansion.
Key Highlights:
- Q4 2024 net income: $11.7 million ($0.11 per diluted share)
- Q4 2024 Adjusted EBITDAX: $76.2 million
- Full-year 2024 net income: $58.5 million ($0.56 per diluted share)
- Full-year 2024 Adjusted EBITDAX: $303.0 million
- 2024 production growth: 7% year-over-year to 19,936 NRI BOEPD
- 57% increase in year-end 2024 SEC proved reserves to 45.0 MMBOE
- Returned $33 million to shareholders in 2024 through dividends and buybacks
- 2025 outlook: capital budget of $270-330 million, target to return over $25 million to shareholders.
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.
Important project to know about EGY
- FPSO refurbishment project is underway. This will temporarily reduce annual production.
- Egyptian receivables initially climbed but began to reverse in the second half of the fiscal year 2024.
- The FPSO project, a significant capital expense, will not recur soon. Therefore, free cash flow is likely to increase substantially in fiscal year 2026.
- Post-FPSO, a planned drilling campaign aims to substantially raise future production.
- An experiment to eliminate hydrogen sulfide from some production may unexpectedly increase 2025 production if this is successful.
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