egy-20250331

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

______________________

FORM 10-Q

______________________

(Mark One)


x			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2025


o			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from _______ to _______

Commission File Number 1-32167

______________________

VAALCO Energy, Inc.

(Exact name of registrant as specified in its charter)

______________________


Delaware			76-0274813
(State or other jurisdiction of incorporation or organization)			(I.R.S. Employer Identification No.)

2500 CityWest Blvd. Suite 400 Houston, Texas			77042
(Address of principal executive offices)			(Zip code)

(713) 623-0801

(Registrant’s telephone number, including area code)

______________________

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading symbol(s)	Name of each exchange on which registered
Common Stock	EGY	New York Stock Exchange
Common Stock	EGY	London Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x No o

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes x No o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer

Accelerated filer

Non‑accelerated filer

Smaller reporting company

Emerging growth company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes o No x

As of May 6, 2025, there were outstanding 103,819,046 shares of common stock, $0.10 par value per share, of the registrant.

Table of Contents

VAALCO ENERGY, INC. AND SUBSIDIARIES

Table of Contents


PART I. FINANCIAL INFORMATION
ITEM 1. CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited)
Condensed Consolidated Balance Sheets March 3 1 , 202 5 and December 31, 202 4			2
Condensed Consolidated Statements of Operations and Comprehensive Income Three Months Ended March 3 1 , 202 5 and 20 24			3
Condensed Consolidated Statements of Shareholders’ Equity Three Months Ended March 3 1 , 202 5 and 202 4			4
Condensed Consolidated Statements of Cash Flows Three Months Ended March 3 1 , 202 5 and 2 024			5
Notes to Condensed Consolidated Financial Statements (unaudited)			7
ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS			20
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK			31
ITEM 4. CONTROLS AND PROCEDURES			33
PART II. OTHER INFORMATION			34
ITEM 1. LEGAL PROCEEDINGS			34
ITEM 1A. RISK FACTORS			34
ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS			35
ITEM 5. OTHER INFORMATION			35
ITEM 6. EXHIBITS			36

Table of Contents

PART I. FINANCIAL INFORMATION

ITEM 1. CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

VAALCO ENERGY, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)


	As of March 31, 2025		As of December 31, 2024
	(in thousands)
ASSETS
Current assets:
Cash and cash equivalents	$	40,914	$	82,650
Restricted cash	9,717		143
Receivables:
Trade, net of allowances for credit loss and other of $0.2 million and $0.2 million, respectively	120,252		94,778
Accounts with joint venture owners, net of allowance for credit losses of $1.8 million and $1.5 million, respectively	2,847		179
Egypt receivables and other	3,235		35,763
Crude oil inventory	7,990		9,441
Prepayments and other	15,883		14,973
Total current assets	200,838		237,927
Crude oil, natural gas and NGLs properties and equipment, net	562,926		538,103
Other noncurrent assets:
Restricted cash	—		8,665
Value added tax and other receivables, net of allowances for credit loss and other of $0.5 million and $0.8 million, respectively	5,379		10,094
Right of use operating lease assets	16,303		17,254
Right of use finance lease assets	78,862		79,849
Deferred tax assets	48,364		55,581
Abandonment funding	6,268		6,268
Other long-term assets	8,163		1,209
Total assets	$	927,103	$	954,950
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable	$	18,793	$	11,756
Accounts with joint venture owners	2,462		3,324
Accrued liabilities and other	115,017		107,710
Operating lease liabilities - current portion	3,724		3,512
Finance lease liabilities - current portion	13,526		13,383
Foreign income taxes payable	24,153		42,043
Total current liabilities	177,675		181,728
Asset retirement obligations	81,053		78,592
Operating lease liabilities - net of current portion	12,915		13,903
Finance lease liabilities - net of current portion	66,198		67,377
Deferred tax liabilities	85,168		93,904
Other long-term liabilities	—		17,863
Total liabilities	423,009		453,367
Commitments and contingencies (Note 10)
Shareholders’ equity:
Preferred stock, $25 par value; 500,000 shares authorized, none issued	—		—
Common stock,$0.10 par value; 160,000,000 shares authorized, 122,419,929 and 122,304,124 shares issued, 103,819,046 and 103,743,163 shares outstanding, respectively	12,242		12,230
Additional paid-in capital	363,955		362,578
Accumulated other comprehensive income (loss)	(4,845)		(4,962)
Less treasury stock, 18,600,883 and 18,560,931 shares, respectively, at cost	(78,179)		(78,024)
Retained earnings	210,921		209,761
Total shareholders' equity	504,094		501,583
Total liabilities and shareholders' equity	$	927,103	$	954,950

See notes to unaudited condensed consolidated financial statements.

Table of Contents

VAALCO ENERGY, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (Unaudited)


	Three Months Ended March 31,
			2025		2024
		(in thousands, except per share amounts)
Revenues:
Crude oil, natural gas and natural gas liquids sales			$	110,329	$	100,155
Operating costs and expenses:
Production expense			44,806		32,089

Exploration expense			—		48
Depreciation, depletion and amortization			30,305		25,824

General and administrative expense			9,051		8,023
Credit (recovery) losses and other			(27)		1,812
Total operating costs and expenses			84,135		67,796
Other operating expense, net			—		(166)
Operating income			26,194		32,193
Other income (expense):
Derivative instruments loss, net			(74)		(847)
Interest expense, net			(1,295)		(935)

Other expense, net			(1,012)		(487)
Total other income (expense), net			(2,381)		(2,269)
Income before income taxes			23,813		29,924
Income tax expense			16,083		22,238
Net income			$	7,730	$	7,686
Other comprehensive income (loss)
Currency translation adjustments			117		(2,454)
Comprehensive income			$	7,847	$	5,232

Basic net income per share:
Net income per share			$	0.07	$	0.07
Basic weighted average shares outstanding			103,758		103,659
Diluted net income per share:
Net income per share			$	0.07	$	0.07
Diluted weighted average shares outstanding			103,785		104,541

See notes to unaudited condensed consolidated financial statements.

Table of Contents

VAALCO ENERGY, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY (Unaudited)


	Common Shares Issued	Treasury Shares	Common Stock		Additional Paid-In Capital		Accumulated Other Comprehensive Loss		Treasury Stock		Retained Earnings		Total
	(in thousands)
Balance at January 1, 2025	122,304	(18,561)	$	12,230	$	362,578	$	(4,962)	$	(78,024)	$	209,761	$	501,583
Shares issued - stock-based compensation	116	—	12		(12)		—		—		—		—
Stock-based compensation expense	—	—	—		1,389

SEC Form 10-Q filed by VAALCO Energy Inc.