VAALCO Energy's Q4 2024 Earnings: Record EBITDAX and Strategic Growth

VAALCO Energy, Inc. (NYSE: EGY, LSE: EGY) reported a stellar fourth quarter and full-year 2024, showcasing its operational excellence and strategic growth initiatives. The company's financial performance for the year was marked by record Adjusted EBITDAX of $303.0 million, a 7% year-over-year production growth to 19,936 NRI BOEPD, and a 57% increase in year-end 2024 SEC proved reserves to 45.0 MMBOE. These achievements underscore VAALCO's commitment to maintaining operational excellence and profitably growing production and reserves.



The company's strategic acquisitions have been a significant driver of its growth. The acquisition of Svenska Petroleum Exploration AB in April 2024 for $40.2 million has already paid back 1.8 times the initial investment by year-end, demonstrating the accretive nature of the deal. This acquisition has not only expanded VAALCO's asset base but also significantly increased its production capacity, contributing to the record production and sales figures for 2024.

VAALCO's financial position has been further strengthened by a new revolving credit facility with an initial commitment of $190 million, expandable to $300 million. This liquidity increase supports the company's ambitious 2025 capital program, which includes a drilling campaign at Etame, Côte d’Ivoire FPSO Dry Dock Refurbishment Project, and continued drilling in Egypt and Canada. The company aims to return over $25 million to shareholders through its dividend program in 2025, maintaining its commitment to shareholder returns.

However, the temporary shutdown of production in Côte d’Ivoire due to the FPSO refurbishment poses a challenge for 2025. The company anticipates lower production and sales for the year, with an increase in per barrel operating expenses due to lower sales. Despite this, VAALCO's strategic plans, including the acquisition of 70% WI in the CI-705 block in offshore Côte D’Ivoire and a capital budget of $270 to $330 million, position the company for organic growth and long-term value creation.



In summary, VAALCO Energy's Q4 2024 earnings call highlighted the company's record financial performance, strategic acquisitions, and growth initiatives. While the temporary shutdown of production in Côte d’Ivoire poses a challenge for 2025, VAALCO's strong financial position and strategic plans position the company for long-term success. Investors can expect continued growth and shareholder returns as VAALCO executes its strategic vision.