Vaalco Reports Q4 Net Revenue of $91.04M
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Mar 12 2026
0mins
Should l Buy EGY?
Reports Q4 net revenue $91.04M vs. $61.00M last year. Sold 18,566 NRI BOEPD while production was 16,128 NRI BOEPD or 20,729 WI BOEPD. Vaalco's SEC proved reserves at December 31, 2025 decreased by 5% to 43.0 MMBOE. CEO George Maxwell commented, "In 2025, we successfully completed another year where we delivered consistent quarterly results that either met or exceeded our guidance. We repeatedly raised production and sales guidance in 2025 and continued to deliver on those increased guidance ranges...We also generated $173M in Adjusted EBITDAX, driven by strong sales and continued to have increased collections from our receivables, where all of our aged receivables are now largely current. We are particularly pleased with the progress our team have made in our Egyptian receivables in 2025...We have successfully grown Vaalco from a single asset delivering around 5,000 BOPD to a diversified, multi country operator well on our way to achieving our goal of 50,000 BOEPD. I believe that we are well positioned to continue to execute operationally and financially to achieve all of our growth targets and continue to generate and return value to our shareholders for the rest of the decade. Our track record of success in delivering results should provide our investors with assurance that we can execute on our expanded portfolio of opportunities."
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Analyst Views on EGY
Wall Street analysts forecast EGY stock price to rise
1 Analyst Rating
1 Buy
0 Hold
0 Sell
Moderate Buy
Current: 6.530
Low
7.53
Averages
7.53
High
7.53
Current: 6.530
Low
7.53
Averages
7.53
High
7.53
About EGY
VAALCO Energy, Inc. is an independent energy company with a diverse portfolio of production, development and exploration assets across Gabon, Egypt, Cote d’Ivoire, Equatorial Guinea, Nigeria and Canada. It is engaged in the acquisition, exploration, development and production of crude oil, natural gas and natural gas liquids. It owns a working interest in, and is the operator of, the Etame PSC related to the Etame Marin block located offshore Gabon in West Africa. The Etame Marin block covers an area of about 46,200 gross acres. The Company owns an interest in an undeveloped block offshore Equatorial Guinea, West Africa. In Egypt, its interests are spread across two regions: the Eastern Desert and the Western Desert. In Harmattan, Canada, it owns production and working interests in Cardium light oil and Mannville liquids-rich gas assets. It also owns a working interest in the Block CI-40 and CI-705 block offshore Cote d’Ivoire in West Africa.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Shareholder Returns: The company returned over $150 million to shareholders through dividends and share buybacks since Q4 2021, reflecting a proactive approach to capital management despite financial pressures.
- Production and Costs: In 2025, VAALCO's net revenue interest sales reached 17,452 barrels of oil equivalent per day, with total production costs of $158 million, translating to $24.89 per barrel, highlighting efforts in cost control but necessitating improved production efficiency to tackle future challenges.
- Future Outlook: The company anticipates 2026 production guidance of 20,100 to 22,400 barrels of oil equivalent per day and CapEx guidance of $290 million to $360 million, demonstrating confidence in future growth despite market volatility and investment risks.
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VAALCO Energy Q4 2025 Earnings Call Highlights
- Financial Performance: VAALCO generated over $750 million in adjusted EBITDAX for 2025, despite a net loss of $58.6 million in Q4 primarily due to a $67.2 million noncash impairment charge, highlighting the significant impact of asset sales on financial results.
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- Strategic Transformation: VAALCO completed the divestment of its Canadian assets and expanded operations in Côte d'Ivoire, securing a 60% working interest in the Kossipo field, marking a successful transition from a single-asset operator to a diversified multi-country operator.
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VAALCO (EGY) Q4 2025 Earnings Call Transcript
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- Asset Divestiture: VAALCO has divested all Canadian properties for $25.5 million, with a closing date set for February 19, 2026, allowing the company to focus resources on more promising projects.
- Future Investment Plans: The company plans a capital budget of $290 to $360 million for 2026, including drilling activities at Etame, completion of the FPSO refurbishment project, and initial drilling programs at Baobab, reflecting strong confidence in future growth.
See More
Middle East Situation Impacts Oil and Gas Stocks
- Fertilizer Production Disruption: The blockade of the Strait of Hormuz has left over 1 million tons of fertilizer stranded in the Gulf, causing shortages for farmers; however, CF Industries remains unaffected, maintaining production capacity and demonstrating its pricing power and competitive advantage in the market.
- ExxonMobil Earnings Growth: As the largest U.S. oil and gas company, ExxonMobil is expected to achieve industry-leading earnings of $28.8 billion in 2026 amid rising oil prices, which, despite being slightly lower than last year, provides a strong profit margin due to the current oil price surge.
- Vaalco Energy Market Performance: Vaalco Energy, focusing on regions unaffected by the Strait of Hormuz blockade, has seen its stock price rise nearly 70% year-to-date, along with a dividend yield exceeding 4%, indicating strong performance and investment potential in the current market environment.
- CF Industries Stock Buyback: CF Industries repurchased $1.34 billion worth of shares last year, reducing its outstanding share count by approximately 10%, which enhances earnings per share and further solidifies its leadership position in the fertilizer market.
See More
Strait of Hormuz Blockade Drives Gas Prices Higher
- Fertilizer Production Disruption: The blockade of the Strait of Hormuz has left over 1 million tons of fertilizer stranded in the Gulf, leading to shortages for farmers and driving up fertilizer prices, which impacts agricultural production and the food supply chain.
- Strong Performance by CF Industries: CF Industries reported a 19.2% year-over-year increase in net sales for 2025 and repurchased $1.34 billion worth of shares last year, reducing its outstanding shares by approximately 10%, enhancing potential earnings per share, while the current blockade does not affect its production.
- ExxonMobil Benefits from Rising Oil Prices: As the largest publicly traded oil company in the U.S., ExxonMobil saw its stock rise over 80% during the oil price surge in 2022, and it is expected to benefit again in 2026 if the Strait of Hormuz remains closed, despite a slight decline in earnings for 2025.
- Vaalco Energy's Market Advantage: Operating in Gabon, Egypt, and Côte d'Ivoire, Vaalco Energy is unaffected by the Strait of Hormuz blockade, with its stock price up nearly 70% year-to-date, and a dividend yield above 4% providing additional returns for investors.
See More
VAALCO Energy Reports Key Financial Highlights for 2025
- Financial Performance: VAALCO Energy generated over $750 million in adjusted EBITDAX over the past three years, yet reported a net loss of $58.6 million in Q4 2025 primarily due to a $67.2 million non-cash impairment charge, indicating challenges in profitability.
- Shareholder Returns: The company returned over $150 million to shareholders through dividends and share buybacks since Q4 2021, reflecting a proactive approach to capital management despite financial pressures.
- Production and Costs: In 2025, VAALCO's net revenue interest sales reached 17,452 barrels of oil equivalent per day, with total production costs of $158 million, translating to $24.89 per barrel, highlighting efforts in cost control but necessitating improved production efficiency to tackle future challenges.
- Future Outlook: The company anticipates 2026 production guidance of 20,100 to 22,400 barrels of oil equivalent per day and CapEx guidance of $290 million to $360 million, demonstrating confidence in future growth despite market volatility and investment risks.
See More
VAALCO Energy Q4 2025 Earnings Call Highlights
- Financial Performance: VAALCO generated over $750 million in adjusted EBITDAX for 2025, despite a net loss of $58.6 million in Q4 primarily due to a $67.2 million noncash impairment charge, highlighting the significant impact of asset sales on financial results.
- Production and Sales: The company achieved an average daily sales volume of 17,452 barrels of oil equivalent in 2025, exceeding the revised guidance, with Q1 2026 production expected to range between 18,700 and 20,600 barrels, reflecting a positive outlook for production increases.
- Strategic Transformation: VAALCO completed the divestment of its Canadian assets and expanded operations in Côte d'Ivoire, securing a 60% working interest in the Kossipo field, marking a successful transition from a single-asset operator to a diversified multi-country operator.
- Future Outlook: Capital expenditures for 2026 are projected between $290 million and $360 million, focusing on FPSO refurbishment and drilling projects in Gabon, with management emphasizing significant production and cash flow growth anticipated in the second half of the year.
See More
VAALCO (EGY) Q4 2025 Earnings Call Transcript
See More
VAALCO Releases Q4 Earnings and 2026 Outlook
- Earnings Performance: VAALCO reported a Q4 non-GAAP EPS of -$0.02, missing expectations by $0.04, while revenue of $91.04 million, down 25.2% year-over-year, beat estimates by $0.94 million, indicating resilience amid challenges.
- Kossipo Field Development: The company confirmed a 60% working interest in the Kossipo field on the CI-40 Block, with a field development plan expected to be completed in the second half of 2026, marking a strategic expansion into new areas.
- Asset Divestiture: VAALCO has divested all Canadian properties for $25.5 million, with a closing date set for February 19, 2026, allowing the company to focus resources on more promising projects.
- Future Investment Plans: The company plans a capital budget of $290 to $360 million for 2026, including drilling activities at Etame, completion of the FPSO refurbishment project, and initial drilling programs at Baobab, reflecting strong confidence in future growth.
See More
