Vaalco announces 2024 financial results and plans for 2025

4Q24 highlights:

• Reported net income of US$11.7 million (US$0.11 per diluted share) and adjusted EBITDAX of US$76.2 million.
• Produced 20 775 bpd net revenue interest (NRI) or 25 300 bpd working interest (WI), both at the midpoint of guidance.
• Sold 20 352 bpd NRI in 4Q24, toward the high end of guidance.

2024 full year highlights:

The company reported full year (FY) 2024 net income of US$58.5 million (US$0.56 per diluted share) and net cash from operating activities of US$113.7 million.

The company generated record Adjusted EBITDAX of US$303.0 million in FY 2024.

Production grew in 2024 by 7% year-over-year to 19 936 bpd NRI, at the midpoint of the company's increased guidance. WI production of 24 738 bpd, was also at the midpoint of Vaalco's increased guidance.

The company sold 19 843 bpd NRI, above the midpoint of the company's increased guidance.

Vaalco increased year-end 2024 SEC proved reserves by 57% to 45 million bpd.

The company closed the accretive all cash acquisition of Svenska Petroleum Exploration AB (Svenska) for a net purchase price of US$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 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.

Vaalco completed production sharing contracts (PSCs) with the Government of Gabon for the offshore Niosi Marin and Guduma Marin exploration blocks.

The business returned US$33 million to shareholders in 2024, as well as US$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 US$190 million with the ability to grow to US$300 million, secured by Vaalco’s Gabon, Egypt and Côte d’Ivoire assets.
• Acquired 70% WI in and will operate the CI-705 block in offshore Côte D’Ivoire.
• Planning a 2025 capital budget of US$270 to US$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.
Target to return over US$25 million to shareholders through Vaalco’s dividend programme.

Read the full report here.

Read the article online at: https://www.hydrocarbonengineering.com/petrochemicals/17032025/vaalco-announces-2024-financial-results-and-plans-for-2025/