Vaalco Energy Stock Earnings Reports

VAALCO reported a transitional but pivotal Q1 2026 as operational activity ramps across Gabon, Côte d’Ivoire, Egypt and Equatorial Guinea. Management completed the sale of Canadian assets, was named operator with a 60% WI at Kossipo (CI-40), and finished the Baobab FPSO refurbishment (moored and being reconnected with production expected to restart in June and sales in Q3). Gabon drilling delivered strong results (Etame wells: ~2,000 bbl/d and ~4,850 bbl/d initial rates) and the rig moved to Avouma for further development/workovers. Egypt drilling and optimization programs continue and were expanded. The company increased full-year 2026 production and sales guidance (NRI exit guidance ~25–27k bbl/d), while keeping full-year CapEx guidance unchanged; Q2 CapEx is expected to be $110–130M. Financially, Q1 showed a net loss of $93.7M driven largely by $71M of derivative losses (including $56M unrealized) and $22.4M exploration expense (unsuccessful West Etame well and seismic costs). Adjusted EBITDAX was $11.6M. Cash at quarter end was $48M; the company drew $92M on its RBL (aggregate borrowing base later increased to $300M; $152M drawn, net debt $104M). Hedging program produced significant mark-to-market volatility; management expects material improvement in sales and cash flow beginning in Q2 due to partner liftings in Gabon and resumed Côte d’Ivoire sales in Q3. The company continues to target FID on the Venus (Equatorial Guinea) project in 2026 and remains committed to returning capital via its dividend policy.