VAALCO ENERGY INC /DE/
For the period ended Sep 30, 2025. Filed Nov 10, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2025 · Filed Nov 10, 2025
EGY$5.380.0%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-06-30; filed 2025-08-11.
0000894627-25-000041
ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONSCurrent report: 10-Q
Period ended 2025-09-30; filed 2025-11-10.
0000894627-25-000057
ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONSThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 157 previous paragraphs and 159 current paragraphs.
102 unchanged; 49 reworded; 8 added; 5 removed; 1 previous and 0 current paragraphs rearranged.
Tables are not compared: 7 previous and 7 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (8)
Current report
The current drilling campaign in Egypt began in December 2024 and has continued through the third quarter of 2025. During the third quarter of 2025, four development wells were drilled in the Eastern Desert, of which three were completed during the same period and the fourth well was completed in October 2025. Also, during the third quarter of 2025, we drilled one exploration well in the Western Desert which was completed in October 2025. Additionally, continuous well interventions, workovers and optimization activities were carried out throughout the third quarter of 2025 to enhance production levels.
Current report
Drilling Rig Commitment -The Company entered into a bareboat charter agreement (the “Bareboat Charter”) during the fourth quarter of 2024 to charter a drilling rig for its drilling program in Gabon that is expected to commence during the fourth quarter of 2025. Pursuant to the Bareboat Charter, the Company also entered into a service agreement with a third party for purposes of maintaining and operating the drilling rig on its behalf. The Bareboat Charter is expected to commence once the mobilization of the drilling rig towards the Company’s first well has commenced and has a noncancellable period of 300 days plus five single well options. The Bareboat Charter stipulates fixed day rates and other variable payments.
Current report
Geopolitical Conflict and Other Market Forces – The Company continues to monitor geopolitical developments globally, and specifically in Europe, the Middle East, Africa, and North America, where they have the potential to impact operational continuity and market dynamics. On October 9, 2025, Israel, Hamas, the United States and other countries in the region agreed to a framework for a ceasefire in Gaza between Israel and Hamas, which if sustained, could reduce regional instability in the Eastern Mediterranean, and improve security conditions affecting Egypt operations and related energy supply chains. However, whether the ceasefire will be sustained or will result in a lasting de-escalation of tensions in the region is unknown. Additionally, geopolitical tensions and localized disruptions persist in parts of West Africa, where we hold significant producing and development interests, require ongoing vigilance regarding political, economic, and security risks.
Current report
Additionally, global market forces including inflation, supply chain constraints due to lingering impacts from conflicts such as the Russia-Ukraine war, and shifts in U.S. trade policy including tariffs on energy-related goods, continue to increase costs and extend lead times for equipment and materials essential to drilling and production activities. These factors could affect project timing, cost structures, and overall operational efficiency. The Company also notes ongoing volatility in commodity prices driven by dynamic supply and demand fundamentals, energy transition policies, and broader macroeconomic uncertainties. Vaalco actively manages exposure to these risks through operational flexibility, diversified sourcing, and prudent financial planning to safeguard long-term growth and value creation.
Current report
The broader geopolitical trade environment, including retaliatory tariffs and ongoing trade tensions with key partners, continues to inject volatility into the global supply network, necessitating vigilant risk management and strategic sourcing to mitigate operational disruptions and cost impacts.
Current report
In June 2025, the UK government advanced its endorsement process for sustainability reporting standards by publishing exposure drafts for UK Sustainability Reporting Standards (“UK SRS”) S1 and S2, derived from the International Financial Reporting Standards (“IFRS”) S1 and S2 frameworks, and initiated a public consultation scheduled to conclude in autumn 2025. Pending final government approval and subsequent Financial Conduct Authority (FCA) rulemaking, UK listed businesses will be subject to phased implementation starting with climate-related disclosures, excluding Scope 3 greenhouse gas emissions in the first period, transitioning to full coverage in subsequent years. The UK approach eliminates fixed commencement dates and offers regulatory flexibility, with transitional reliefs supporting issuer compliance and a “climate-first” methodology for initial reports, ensuring a measured shift from existing TCFD requirements to the new UK SRS/IFRS-aligned disclosure regime. UK listed entities are advised to prepare for mandatory reporting in line with IFRS S1 and S2, anticipated from accounting periods beginning in 2026, subject to the outcomes of the consultation and final government direction.
Current report
Credit losses and other increased by approximately $0.4 million for the three months ended September 30, 2025 compared to the same period in 2024. The increase in credit losses and other is primarily attributable to allowance charges related to the joint venture partners and value added tax receivables. Credit losses and other for the same period in 2024 was an insignificant amount due to a smaller joint venture partner receivable.
Current report
Nine Months Ended September 30, 2025 Compared to the Nine Months Ended September 30, 2024
Removed paragraphs (5)
Previous report
The drilling campaign in Egypt, which commenced in December 2024, continued through the second quarter of 2025. During the second quarter of 2025, we completed six wells. Three of the wells drilled in the second quarter of 2025 will be hydraulically fractured in the third quarter of 2025. Based on detailed analysis completed in the first quarter of 2025 to evaluate the well inventory potential, a series of workover re-completions, re-activations and well optimizations have also been carried out resulting in an incremental production gain.
Previous report
Geopolitical Conflict and Other Market Forces – The outbreak of armed conflict between Russia and Ukraine in February 2022 and the subsequent sanctions imposed on the Russian Federation has, and may continue to have, a destabilizing effect on the European continent and the global oil and natural gas markets. The ongoing conflict has caused, and could continue to intensify, volatility in oil and natural gas prices, and the extent and duration of the military action, sanctions and resulting market disruptions could be significant and could potentially have a substantial negative impact on the global economy and/or our business for an unknown period of time.
Previous report
For example, shortly after the outbreak of the conflict through the year ended December 31, 2024 and ongoing into 2025, we noticed that the lead times associated with obtaining materials to support our operations and drilling activities have lengthened, leading to delays and, in most cases, prices for materials have increased. Management believes the ongoing war between Russia and Ukraine, the Houthis attacks on maritime vessels in the Red Sea region, conflicts in the Middle East and the related impact on the global economy are causing supply chain issues and energy concerns in parts of the global economy, as well as destabilizing impacts on the global oil and natural gas market. In addition, increased inflation, higher interest rates and current turmoil in certain governments are impacting the global supply chain market.
Previous report
We expect continued required reporting attention on climate change issues and emissions of greenhouse gases (“GHG”), including methane (a primary component of natural gas) and carbon dioxide (a byproduct of crude oil and natural gas combustion) and freshwater use as and when the UK Government confirms that UK listed businesses shall be required to comply with IFRS S2 Climate-Related Disclosures. These requirements replace the Task Force on Climate-related Financial Disclosures (“TCFD”) reporting requirements noted below.
Previous report
Six Months Ended June 30, 2025 Compared to the Six Months Ended June 30, 2024
Reworded paragraphs (49)
Previous wording
•general economic conditions, including any future economic downturn, the impact of inflation, and disruption in financial credit and other disruptions resulting from geo-political events such as the Russian invasion of Ukraine, the conflict in the Middle East, and trade tensions between the U.S. and China;
Current wording
•general economic conditions, including any future economic downturn, the impact of inflation, and disruption in financial credit and other disruptions resulting from geo-political events such as the Russian invasion of Ukraine, conflicts in the Middle East, and trade tensions between the U.S. and China;
Previous wording
The Company paid a quarterly cash dividend of $0.0625 per share of common stock for the second quarter of 2025 ($0.25 annualized) on June 27, 2025 to stockholders of record at the close of business on May 23, 2025. The Company also announced its next quarterly cash dividend of $0.0625 per share of common stock for the third quarter of 2025 ($0.25 annualized) to be paid on September 19, 2025 to stockholders of record at close of business on August 22, 2025. Payment of future dividends, if any, will be at the discretion of the board of directors after taking into account various factors, including current financial condition, the tax impact of repatriating cash, operating results and current and anticipated cash needs.
Current wording
The Company paid a quarterly cash dividend of $0.0625 per share of common stock for the third quarter of 2025 ($0.25 annualized) on September 19, 2025 to stockholders of record at the close of business on August 22, 2025. The Company also announced its next quarterly cash dividend of $0.0625 per share of common stock for the fourth quarter of 2025 ($0.25 annualized) to be paid on December 24, 2025 to stockholders of record at close of business on November 21, 2025. Payment of future dividends, if any, will be at the discretion of the board of directors after taking into account various factors, including current financial condition, the tax impact of repatriating cash, operating results and current and anticipated cash needs.
Previous wording
The Company secured a drilling rig in December 2024 in conjunction with its 2025/2026 drilling program, which is expected to begin near the end of the third quarter of 2025, as we wait for the drilling rig to complete its current commitments. The program includes drilling multiple development wells, and appraisal or exploration wells, and perform workovers, with options to drill additional wells. We plan to drill the wells at both the Etame platform and at our Seent platform, as well as a re-drill and several workovers in the Ebouri field to access production and reserves that were previously removed from proved reserves due to the presence of hydrogen sulfide.
Current wording
The Company secured a drilling rig in December 2024 in conjunction with its 2025/2026 drilling program, which is expected to begin during the fourth quarter of 2025, once the drilling rig completes its current commitments. The program includes drilling multiple development wells, and appraisal or exploration wells, and perform workovers, with options to drill additional wells. We plan to drill wells at both the Etame platform and at its Seent platform, as well as a re-drill and a number of workovers in the Ebouri field to access production and reserves that were previously removed from proved reserves due to the presence of hydrogen sulfide.
Previous wording
In July 2025, the Company performed planned, staged shutdowns of the Gabon platforms to perform safety inspections and necessary maintenance to increase the integrity and reliability of the assets.
Current wording
In July 2025, the Company performed planned, staged shutdowns of the Gabon platforms to perform safety inspections and necessary maintenance to increase the integrity and reliability of the assets. This is the first full field maintenance shutdown that the Company has performed since the new Floating Storage and Offloading vessel (“FSO”) was brought online in 2022. All fields were successfully brought back online and the planned turnaround was completed on budget and with no safety or environmental incidents.
Previous wording
In 2024, Vaalco drilled and completed five horizontal wells in Canada, with all laterals being greater than two miles long. These wells continue to meet production expectations and the Company is monitoring their longer-term performance for future drilling opportunities. In 2025, the Company has decided to defer the drilling of additional wells in Canada based on a reassessment of capital allocation priorities across the portfolio, ensuring that investment is directed toward projects with the highest expected returns.
Current wording
In 2025, the Company decided to defer the drilling of additional wells in Canada based on a reassessment of capital allocation priorities across the portfolio and to ensure that investment is directed toward projects with the highest expected returns. Therefore, the Canadian division is looking towards lower-cost optimization projects to enhance productivity by year-end.
Previous wording
As part of the planned dry dock refurbishment, the Baobab FPSO ceased hydrocarbon production on January 31, 2025 and the final lifting of crude oil from the FPSO took place in February 2025. The vessel departed from the field in late March 2025 and arrived at the shipyard in Dubai ahead of schedule in mid-May 2025. The FPSO refurbishment is now underway in the shipyard. A rig has been secured for significant development drilling which is expected to begin in 2026 after the FPSO returns to service bringing meaningful additions to production from the main Baobab field in CI-40. The Company is also evaluating the anticipated impact of the potential future development of the Kossipo field, which is also on the CI-40 license.
Current wording
As part of the planned dry dock refurbishment, the Baobab FPSO ceased hydrocarbon production on January 31, 2025 and the final lifting of crude oil from the FPSO took place in February 2025. The vessel departed from the field in late March 2025 and arrived at the shipyard in Dubai ahead of schedule in mid-May 2025. The FPSO refurbishment is progressing well and has now been underway for the last five months in the shipyard. A rig has been secured for significant development drilling which is expected to begin in 2026 after the FPSO returns to service, bringing meaningful additions to production from the main Baobab field in CI-40. The Company is also evaluating the anticipated impact of the potential future development of the Kossipo field, which is also on the CI-40 license.
Previous wording
We own a 60% working interest in an undeveloped portion of Block P offshore Equatorial Guinea where we are the designated operator. We have an existing plan of development of the Venus field discovery on Block P, which focuses on key areas of drilling evaluations, facilities design, market inquiries and metocean review. The Company is still reviewing a Front End Engineering and Design study and is currently targeting a Final Investment Decision by the end of 2025.
Current wording
We own a 60% working interest in an undeveloped portion of Block P offshore Equatorial Guinea where we are the designated operator. We have an existing plan of development of the Venus field discovery on Block P, which focuses on key areas of drilling evaluations, facilities design, market inquiries and metocean review. The Company has completed the initial Front End Engineering and Design study that confirmed the viability of the development concept and is currently evaluating alternative technical solutions which may deliver enhanced economic value.
Previous wording
Our cash flows for the six months ended June 30, 2025 and 2024 are as follows:
Current wording
Our cash flows for the nine months ended September 30, 2025 and 2024 are as follows:
Previous wording
The $29.7 million increase in net cash provided by operating activities during the six months ended June 30, 2025 compared to the six months ended June 30, 2024, was driven primarily by changes in operating assets and liabilities during the period. The net increase in changes provided by operating assets and liabilities of $32.3 million for the six months ended June 30, 2025 compared to the same period of 2024 was primarily related to the overall decrease in accrued liabilities and accounts payable, as well as the increase in collections from the Egypt receivables, value added tax and other receivables.
Current wording
The $1.7 million decrease in net cash provided by operating activities during the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024 was driven primarily by changes in operating assets and liabilities during the period. The net increase in changes provided by operating assets and liabilities of $45.9 million for the nine months ended September 30, 2025 compared to the same period of 2024 was primarily related to the overall decrease in accrued liabilities and accounts payable, decrease in trade receivables due to the settlement of the Egypt backdated receivables and improvement of trade receivables, value added tax and other receivables. The favorable changes in the cash flows from operating activities are offset primarily by a decrease in foreign taxes payable.
Previous wording
The $58.8 million change in net cash used in investing activities during the six months ended June 30, 2025 compared to the six months ended June 30, 2024, was due to costs associated with the development drilling programs in Egypt, as well as maintenance, project costs and long lead items for Gabon and Côte d'Ivoire. For the six months ended June 30, 2024, cash used in investing activities was due to capital spending costs associated with the development drilling programs in Egypt and Canada not exceeding prior year expenditures along with reduced current year expenditures for Gabon. In addition, Vaalco used $40.2 million in cash for the acquisition of Svenska which is offset by the cash received from Svenska in the amount of $40.6 million.
Current wording
The $94.6 million change in net cash used in investing activities during the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024, was due to costs associated with the development drilling programs in Egypt, as well as maintenance, project costs and long lead items for Gabon and Côte d'Ivoire. For the nine months ended September 30, 2024, cash used in investing activities was due to capital spending costs associated with the development drilling programs in Egypt and Canada not exceeding prior year expenditures along with reduced current year expenditures for Gabon. In addition, Vaalco used $40.2 million in cash for the acquisition of Svenska which is offset by the cash received from Svenska in the amount of $40.6 million.
Previous wording
Net cash used in financing activities during the six months ended June 30, 2025 included $13.1 million for dividend distributions, $6.9 million of payments for deferred financing costs and $6.3 million of principal payments on our finance leases, offset by $60.0 million in proceeds from borrowings under the 2025 RBL Facility. For the six months ended June 30, 2024, cash used in financing activities included $13.0 million for dividend distributions, $6.8 million for treasury stock repurchases made under our stock repurchase plan or as a result of tax withholding on options exercised and on vested restricted stock, and $4.2 million of principal payments on our finance leases partially offset by $0.5 million in proceeds from options exercised.
Current wording
Net cash provided by financing activities during the nine months ended September 30, 2025 primarily consists of $60.0 million in proceeds from borrowings under the 2025 RBL Facility, offset by cash used of $19.8 million for dividend distributions, $7.1 million of payments for deferred financing costs and $9.8 million of principal payments on our finance leases. For the nine months ended September 30, 2024, cash used in financing activities included $19.6 million for dividend distributions, $6.8 million for treasury stock repurchases made under our stock repurchase plan or as a result of tax withholding on options exercised and on vested restricted stock, and $6.3 million of principal payments on our finance leases partially offset by $0.4 in proceeds from options exercised.
Previous wording
For the six months ended June 30, 2025, we had accrual basis capital expenditures of $92.2 million compared to $46.5 million accrual basis capital expenditures for the same period in 2024. For the six months ended June 30, 2025, our cash spending primarily related to the new wells drilled as part of the drilling campaign in Egypt as well as expenditures associated with the preparation of the FPSO dry dock project in Côte d'Ivoire. During the same period in 2024, our cash spending primarily related to the Svenska acquisition as well as payments for the 2024 drilling campaigns in both Egypt and Canada.
Current wording
For the nine months ended September 30, 2025, we had accrual basis capital expenditures of $147.6 million compared to $73.1 million accrual basis capital expenditures for the same period in 2024. For the nine months ended September 30, 2025, our cash spending primarily related to the new wells drilled as part of the drilling campaign in Egypt as well as expenditures associated with the refurbishment of the FPSO in Côte d'Ivoire. During the same period in 2024, our cash spending primarily related to the Svenska acquisition as well as payments for the 2024 drilling campaigns in both Egypt and Canada.
Previous wording
Due to the inherent volatility in crude oil prices, we use commodity derivative instruments such as swaps, costless collars and put options to hedge price risk associated with a portion of our anticipated crude oil and gas production. These instruments allow us to reduce, but not eliminate, the potential effects of variability in cash flow from operations due to fluctuations in commodity prices. The instruments provide only partial protection against declines in crude oil and gas prices and may limit our potential gains from future increases in prices. None of these instruments are used for trading purposes. We do not speculate on commodity prices, but rather attempt to hedge physical production by individual hydrocarbon product in order to protect returns. The counterparty to our derivative swap transactions was a major oil company’s trading subsidiary, and our costless collars are with Glencore. We have not designated any of our derivative contracts as fair value or cash flow hedges. The changes in fair value of the contracts are included in the unaudited condensed consolidated statements of operations and other comprehensive income. We record such derivative instruments as assets or liabilities in the unaudited condensed consolidated balance sheets. Our 2025 RBL Facility requires us to enter into commodity price hedge positions establishing certain minimum fixed prices for anticipated future production. See Part I, Item 1, Note 8. Derivatives and Fair Value to the unaudited condensed consolidated financial statements for further discussion.
Current wording
Due to the inherent volatility in crude oil prices, we use commodity derivative instruments such as swaps, costless collars and put options to hedge price risk associated with a portion of our anticipated crude oil and gas production. These instruments allow us to reduce, but not eliminate, the potential effects of variability in cash flow from operations due to fluctuations in commodity prices. The instruments provide only partial protection against declines in crude oil and gas prices and may limit our potential gains from future increases in prices. None of these instruments are used for trading purposes. We do not speculate on commodity prices, but rather attempt to hedge physical production by individual hydrocarbon product in order to protect returns. The counterparty to our derivative swap transactions was a major oil company’s trading subsidiary, and our costless collars are with Glencore. We have not designated any of our derivative contracts as fair value or cash flow hedges. The changes in fair value of the contracts are included in the unaudited condensed consolidated statements of operations and other comprehensive income. We record such derivative instruments as assets or liabilities in the unaudited condensed consolidated balance sheets. Our 2025 RBL Facility requires us to enter into commodity price hedge positions establishing certain minimum fixed prices for anticipated future production. See Part I, Item 1, Note 8. Derivatives to the unaudited condensed consolidated financial statements for further discussion.
Previous wording
At June 30, 2025, we had unrestricted cash of $67.9 million. We invest cash not required for immediate operational and capital expenditure needs in short-term money market instruments primarily with financial institutions where we determine our credit exposure is negligible. As operator of the Etame Marin block in Gabon, we enter into project-related activities on behalf of our working interest joint venture owners. We generally obtain advances from joint venture owners prior to significant funding commitments. Our cash on hand will be utilized, along with cash generated from operations, to fund our operations and capital expenditures.
Current wording
At September 30, 2025, we had unrestricted cash of $24.0 million. We invest cash not required for immediate operational and capital expenditure needs in short-term money market instruments primarily with financial institutions where we determine our credit exposure is negligible. As operator of the Etame Marin block in Gabon, we enter into project-related activities on behalf of our working interest joint venture owners. We generally obtain advances from joint venture owners prior to significant funding commitments. Our cash on hand will be utilized, along with cash generated from operations, to fund our operations and capital expenditures.
Previous wording
Based on current expectations, we believe we have sufficient liquidity through our existing cash balances, cash flow from operations and our 2025 RBL Facility to support our current cash requirements during the next 12 months and beyond, including the FPSO refurbishment, drilling programs, as well as transaction expenses and capital and operational costs associated with our business segments' operations. However, our ability to generate sufficient cash flow from operations or fund any potential future acquisitions, consortiums, joint ventures or pay dividends for other similar transactions depends on operating and economic conditions, some of which are beyond our control. If additional capital is needed, we may not be able to obtain debt or equity financing on terms favorable to us, or at all. We are continuing to evaluate all uses of cash, including opportunistic acquisitions, and whether to pursue growth opportunities and whether such growth opportunities, additional sources of liquidity, including equity and/or debt financings, are appropriate to fund any such growth opportunities.
Current wording
Based on current expectations, we believe we have sufficient liquidity through our existing cash balances, cash flow from operations and our 2025 RBL Facility to support our current cash requirements during the next 12 months and beyond, including the FPSO refurbishment, drilling programs, dividend payments, Merged Concession Agreement, abandonment funding, as well as transaction expenses and capital and operational costs associated with our business segments' operations. However, our ability to generate sufficient cash flow from operations or fund any potential future acquisitions, consortiums, joint ventures or pay dividends for other similar transactions depends on operating and economic conditions, some of which are beyond our control. If additional capital is needed, we may not be able to obtain debt or equity financing on terms favorable to us, or at all. We are continuing to evaluate all uses of cash, including opportunistic acquisitions, and whether to pursue growth opportunities and whether such growth opportunities, additional sources of liquidity, including equity and/or debt financings, are appropriate to fund any such growth opportunities.
Previous wording
Capital Projects - In December 2024, Vaalco secured a rig for the 2025/26 drilling campaign at Etame and is currently finalizing locations and planning for the next drilling campaign, which is expected to begin near the end of the third quarter of 2025. In Egypt, additional drilling and completion activity is expected in the second half of 2025.
Current wording
Capital Projects - In December 2024, Vaalco secured a rig for the 2025/26 drilling campaign at Etame and is currently finalizing locations and planning for the next drilling campaign, which is expected to begin during the fourth quarter of 2025. In Egypt, additional drilling and completion activities are expected to continue during the last quarter of 2025.
Previous wording
Additionally, the evolving global trade environment may increase compliance complexity and affect the cost efficiency of international operations. Enhanced documentation requirements and new rules of origin associated with U.S. trade actions could impact our ability to efficiently move materials through international logistics hubs, such as those in Houston, Texas and could necessitate additional internal resources to maintain compliance.
Current wording
Additionally, the evolving global trade environment may increase compliance complexity and affect the cost efficiency of international operations. Enhanced documentation requirements and new rules of origin associated with U.S. trade actions could impact our ability to efficiently move materials through international logistics hubs, such as those in Houston, Texas and could necessitate additional internal resources to maintain compliance. These complexities necessitate additional internal resources to ensure sustained compliance and efficient material flow.
Previous wording
Climate-Related Disclosures – On March 27, 2025, the SEC ended its defense of the final rules on climate-related disclosures, effectively withdrawing its support for the regulation. The rules, which were adopted in March 2024, require publicly traded companies to disclose climate-related risks and greenhouse gas emissions. The SEC's decision to end its defense was made after a change in administration and a shift in policy, with Acting Chairman Mark Uyeda expressing concerns about the rule's costs and intrusiveness. While the rules remain on hold pending legal challenges, the SEC's withdrawal of support signals a potential shift in direction for climate disclosure regulations. Despite this regulatory shift in the U.S., we remain committed to maintaining transparency and aligning with industry standards for similarly situated companies.
Current wording
Climate-Related Disclosures – On March 27, 2025, the SEC ended its defense of the final rules on climate-related disclosures, effectively withdrawing its support for the regulation. The rules, which were adopted in March 2024, require publicly traded companies to disclose climate-related risks and greenhouse gas emissions. The SEC's decision to end its defense was made after a change in administration and a shift in policy, with Acting Chairman Mark Uyeda expressing concerns about the rule's costs and intrusiveness. While the rules remain on hold pending legal challenges, which, as of September 2025, have been held in abeyance by the Eighth Circuit Court of Appeals until such time as the SEC reconsiders the challenged rules by notice-and-comment rulemaking or renews its defense of the rules, the SEC's withdrawal of support signals a potential shift in direction for climate disclosure regulations. Despite this regulatory shift in the U.S., we remain committed to maintaining transparency and aligning with industry standards for similarly situated companies.
Previous wording
US activity notwithstanding, for the past three years, the Company has refined its reporting in line with the recommendations of the TCFD, which is recognized as the global standard in climate-related reporting and required by Vaalco to report against through its listing on the London Stock Exchange. The full TCFD report was included within the Company's 2024 Sustainability Report (rather than in the Annual Report on Form 10-K or in the annual report which was published in connection with the annual meeting), as the Sustainability Report details environmental, social and governance matters of which the TCFD report forms an important part. The 2024 Sustainability Report is available on the Company's website.
Current wording
U.S. activity notwithstanding, for the past three years, the Company has refined its reporting in line with the recommendations of the Task Force on Climate-Related Disclosures (“TCFD”), which is recognized as the global standard in climate-related reporting and required by Vaalco to report against through its listing on the London Stock Exchange. The full TCFD report was included within the Company's 2024 Sustainability Report (rather than in the Annual Report on Form 10-K or in the annual report which was published in connection with the annual meeting), as the Sustainability Report details environmental, social and governance matters of which the TCFD report forms an important part. The 2024 Sustainability Report is available on the Company's website.
Previous wording
Net income for the three months ended June 30, 2025 was $8.4 million compared to a net income of $28.2 million during the same period of 2024. See discussion below for changes in revenues and expenses.
Current wording
Net income for the three months ended September 30, 2025 was $1.1 million compared to a net income of $11.0 million during the same period of 2024. See discussion below for changes in revenues and expenses.
Previous wording
Crude oil, natural gas and NGLs revenues decreased $19.9 million, or approximately 17%, to $96.9 million during the three months ended June 30, 2025 from $116.8 million during the same period in 2024. The revenue decrease is primarily attributable to lower revenues in our Côte d'Ivoire and Canada segments.
Current wording
Crude oil, natural gas and NGLs revenues decreased $79.3 million, or approximately 57%, to $61.0 million during the three months ended September 30, 2025 from $140.3 million during the same period in 2024. The revenue decrease is primarily attributable to lower revenues in our Côte d'Ivoire and Canada segments.
Previous wording
Crude oil sales in Gabon are a function of the number and size of crude oil liftings in each year and thus crude oil sales do not always coincide with volumes produced in any given year. The Company’s Gabon segment contributed $58.6 million of revenue to the Company’s total revenue during the three months ended June 30, 2025, an increase of $4.9 million from the $53.7 million of revenue reported during the three months ended June 30, 2024. The increase in revenues is primarily due to a sales volume increase in Gabon from the 660 MBbls reported during the second quarter of 2024 to 900 MBbls for the three months ended June 30, 2025, offset by a lower average realized sales price received in Gabon of $65.02 per Bbl for three months ended June 30, 2025 compared to the $81.29 per Bbl average realized sales price received during the same period in 2024. Gabon's share of crude oil inventory, excluding royalty barrels, was approximately 54,776 barrels and 129,803 barrels at June 30, 2025 and 2024, respectively.
Current wording
Crude oil sales in Gabon are a function of the number and size of crude oil liftings in each year and thus crude oil sales do not always coincide with volumes produced in any given year. The Company’s Gabon segment contributed $21.3 million of revenue to the Company’s total revenue during the three months ended September 30, 2025, a decrease of $26.3 million from the $47.6 million of revenue reported during the three months ended September 30, 2024. The decrease in revenues is primarily due to a sales volume decrease in Gabon from the 617 MBbls reported during the third quarter of 2024 to 333 MBbls for the three months ended September 30, 2025 combined with a lower average realized sales price received in Gabon of $62.40 per Bbl for three months ended September 30, 2025 compared to the $77.16 per Bbl average realized sales price received during the same period in 2024. The lower sales and production volumes is primarily a result of a planned and successful full field maintenance shutdown which occurred in July 2025. Gabon's share of crude oil inventory, excluding royalty barrels, was approximately 292 MBbls to 217 MBbls at September 30, 2025 and 2024, respectively.
Previous wording
Crude oil sales in Egypt are either sold to a third party via a cargo lifting or sold directly to the government, through EGPC. During the three months ended June 30, 2025, the oil sold in Egypt was through direct sales to EGPC. The Company’s Egypt segment contributed $33.3 million of revenue to the Company’s total revenue for the three months ended June 30, 2025, which is slightly lower than the $35.5 million of revenue reported during the three months ended June 30, 2024. The decrease in revenues was primarily due to a decrease in average realized sales price from $55.19 per Bbl during the three months ended June 30, 2024 to $48.01 per Bbl during the same period in 2025. Sales volumes in Egypt remained relatively consistent at 693 MBbls and 643 MBbls, during the three months ended June 30, 2025 and 2024, respectively.
Current wording
Crude oil sales in Egypt are either sold to a third party via a cargo lifting or sold directly to the government, through EGPC. During the three months ended September 30, 2025, the oil sold in Egypt was through direct sales to EGPC. The Company’s Egypt segment contributed $35.7 million of revenue to the Company’s total revenue for the three months ended September 30, 2025, which is higher than the $34.5 million of revenue reported during the three months ended September 30, 2024. The increase in revenues was primarily due to an increase in sales volumes to 693 MBbls during the three months ended September 30, 2025 compared to 657 MBbls, during the three months ended September 30, 2024 partially offset by a decrease in average realized sales price from $52.58 per Bbl during the three months ended September 30, 2024 to $51.51 per Bbl during the same period in 2025.
Previous wording
Crude oil sales in Canada are normally sold through pipelines to a third party. The Company’s Canadian segment contributed $4.7 million of revenue to the Company’s total revenue for the three months ended June 30, 2025, or a decrease of $5.7 million compared to $10.4 million of revenue reported during the three months ended June 30, 2024. The decrease in revenues was primarily due to lower average realized sales price received of $27.35 per Boe during the three months ended June 30, 2025 compared to the $41.68 per Boe received during the same period in 2024. Sales volumes in Canada decreased during the three months ended June 30, 2025 to 172 MBoe in comparison to 249 MBoe in the same period in 2024.
Current wording
Crude oil sales in Canada are normally sold through pipelines to a third party. The Company’s Canadian segment contributed $4.0 million of revenue to the Company’s total revenue for the three months ended September 30, 2025, or a decrease of $4.4 million compared to $8.4 million of revenue reported during the three months ended September 30, 2024. The decrease in revenues was primarily due to lower average realized sales price received of $26.13 per Boe during the three months ended September 30, 2025 compared to the $36.95 per Boe received during the same period in 2024. Sales volumes in Canada decreased during the three months ended September 30, 2025 to 155 MBoe in comparison to 227 MBoe in the same period in 2024.
Previous wording
Crude oil sales in Côte d’Ivoire are sold through a marketing contract with an international oil trading company which offers the cargo shipments to buyers, mainly refineries, around the world. The Company's Côte d’Ivoire segment contributed $0.4 million of revenue to the Company’s total revenue during the three months ended June 30, 2025. As previously noted, the FPSO refurbishment is now underway in the shipyard. The FPSO is expected to return to service in 2026.
Current wording
Crude oil sales in Côte d’Ivoire are sold through a marketing contract with an international oil trading company which offers the cargo shipments to buyers, mainly refineries, around the world. As previously noted, the FPSO ceased production in January 2025 and its refurbishment is currently underway in the shipyard. The FPSO is expected to return to service in 2026. As such, there were no revenues from the Company's Côte d’Ivoire segment during the three months ended September 30, 2025. Revenues during the three months ended September 30, 2024 were $49.8 million with total sales volumes of 632 MBbls and an average sales price received of $78.75 per Bbl.
Previous wording
Production expenses decreased $12.1 million, or approximately 23%, for the three months ended June 30, 2025 to $40.4 million from $52.4 million for the same period in the prior year. The decrease was primarily driven by a reduction in production expenses in our Côte d’Ivoire segment. On a per barrel basis, production expense, excluding workover expense and stock compensation expense, for the three months ended June 30, 2025 decreased to $22.85 per barrel from $29.68 per barrel for the three months ended June 30, 2024.
Current wording
Production expenses decreased $12.5 million, or approximately 29%, for the three months ended September 30, 2025 to $29.9 million from $42.3 million for the same period in the prior year. The decrease was primarily driven by a reduction in production expenses in our Côte d’Ivoire segment. On a per barrel basis, production expense, excluding workover expense and stock compensation expense, for the three months ended September 30, 2025 increased to $25.23 per barrel from $19.80 per barrel for the three months ended September 30, 2024.
Previous wording
Exploration expensefor the three months ended June 30, 2025 of $2.5 million was attributable to the purchase of seismic data to be used in Block 705 in Cote d’Ivoire. There were no exploration costs incurred during the same period in 2024.
Current wording
Exploration expensefor the three months ended September 30, 2025 of $0.4 million was attributable to the purchase of additional seismic data to be used in Block 705 in Cote d’Ivoire and to expenses related to Blocks G and H in Gabon. There were no exploration costs incurred during the same period in 2024.
Previous wording
Depreciation, depletion and amortization costs decreased $4.9 million, or approximately 15%, for the three months ended June 30, 2025 to $28.3 million from $33.1 million during the same period in 2024. Since there was no production during the three months ended June 30, 2025 in Côte d’Ivoire, there was also no depletion expense recorded and therefore resulted in the decrease in the overall depletion expense for the period.
Current wording
Depreciation, depletion and amortization costs decreased by $26.5 million, or approximately 56%, for the three months ended September 30, 2025 to $20.6 million from $47.0 million during the same period in 2024. Since there was no production during the three months ended September 30, 2025 in Côte d’Ivoire, there was also no depletion expense recorded and therefore resulted in the decrease in the overall depletion expense for the period.
Previous wording
General and administrative expenses slightly increased $3.2 million, or 23%, for the six months ended June 30, 2025 to $17.5 million from $14.3 million during the same period in 2024. The increase in general and administrative expenses is primarily due to an increase inprofessional service fees, salaries and wages, and accounting and legal fees.
Current wording
General and administrative expenses increased by $1.9 million, or 28%, for the three months ended September 30, 2025 to $8.8 million from $6.9 million during the same period in 2024. The increase in general and administrative expenses is primarily due to an increase in professional service fees and salaries and wages.
Previous wording
Derivative instruments gain (loss), netis attributable to our swaps and collars as discussed in Part I, Item 1, Note 8. Derivatives and Fair Value to the unaudited condensed consolidated financial statements. Derivative gain increasedby $0.1 million to a gain of $0.4 million for the three months ended June 30, 2025 from a gain of $0.3 million during the same period in 2024. Derivative gains for the three months ended June 30, 2025 are a result of the decrease in the price of Dated Brent crude oil over the initial strike price per barrel of the option over the three months ended June 30, 2025. Our derivative instruments currently cover a portion of our production through July 2026 for oil and through March 2026 for natural gas.
Current wording
Derivative instruments gain (loss), netis attributable to our swaps and collars as discussed in Part I, Item 1, Note 8. Derivatives to the unaudited condensed consolidated financial statements. Derivative loss increased by $1.3 million to a loss of $1.1 million for the three months ended September 30, 2025 from a gain of $0.2 million during the same period in 2024. Derivative loss for the three months ended September 30, 2025 are a result of the decrease in the price of Dated Brent crude oil over the initial strike price per barrel of the option over the three months ended September 30, 2025. Our derivative instruments currently cover a portion of our production through September 2026 for oil and through December 2026 for natural gas.
Previous wording
Interest expense, netwas $2.6 million for the three months ended June 30, 2025 compared to an expense of $1.1 million during the same period in 2024. The increase in net interest expense for the three months ended June 30, 2025 primarily resulted from an increase in our amortization of debt issue costs, commitment fees incurred and interest incurred on our borrowing under the 2025 RBL Facility, partially offset by interest income.
Current wording
Interest expense, netwas $2.3 million for the three months ended September 30, 2025 compared to an expense of $0.6 million during the same period in 2024. The increase in net interest expense for the three months ended September 30, 2025 primarily resulted from an increase in our amortization of debt issue costs, commitment fees incurred and interest incurred on our borrowing under the 2025 RBL Facility, partially offset by interest income.
Previous wording
Other income (expense), netdecreased by $2.3 million to an income of $0.4 million for the three months ended June 30, 2025 from a $2.0 million expense during the same period in 2024. Other income (expense), net, normally consists primarily of foreign currency gains and losses. However, during the three months ended June 30, 2024, there was a $1.7 million expense related to transactions costs associated with the Svenska acquisition.
Current wording
Other income (expense), netincreased by $0.2 million to an income of less than $0.1 million for the three months ended September 30, 2025 from a $0.1 million expense during the same period in 2024. Other income (expense), net, normally consists primarily of foreign currency gains and losses.
Previous wording
Income tax expense (benefit) for the three months ended June 30, 2025 was an expense of $7.0 million which includes a $3.1 million favorable oil price adjustment as a result of the change in value of the government of Gabon's allocation of Profit Oil between the time it was produced and the time it was taken in-kind. After excluding this impact, income taxes were $10.1 million for the period. Income tax expense for the three months ended June 30, 2024 was an expense of $9.3 million. This expense is comprised of current tax expense of $10.4 million including a $1.1 million favorable oil price adjustment as a result of the change in value of the government of Gabon's allocation of Profit Oil between the time it was produced and the time it was taken in-kind. After excluding this impact, current income taxes were $10.4 million for the period.
Current wording
Income tax expense (benefit) for the three months ended September 30, 2025 was a benefit of $3.6 million which includes a $3.9 million favorable oil price adjustment as a result of the change in value of the government of Gabon's allocation of Profit Oil between the time it was produced and the time it was taken in-kind. After excluding this impact, income taxes were $0.3 million for the period. Income tax expense for the three months ended September 30, 2024 was an expense of $32.6 million. This expense is comprised of current tax expense of $33.7 million including a $1.8 million favorable oil price adjustment as a result of the change in value of the government of Gabon's allocation of Profit Oil between the time it was produced and the time it was taken in-kind. After excluding this impact, current income taxes were $35.5 million for the period.
Previous wording
Net income for the six months ended June 30, 2025 was $16.1 million compared to a net income of $35.8 million during the same period of 2024. See discussion below for changes in revenues and expenses.
Current wording
Net income for the nine months ended September 30, 2025 was $17.2 million compared to a net income of $46.8 million during the same period of 2024. See discussion below for changes in revenues and expenses.
Previous wording
Crude oil, natural gas and NGLs revenues decreased $9.7 million, or approximately 4%, to $207.2 million during the six months ended June 30, 2025 from $216.9 million during the same period in 2024. The revenue decrease is primarily due to lower revenues in Egypt and Canada.
Current wording
Crude oil, natural gas and NGLs revenues decreased $89.0 million, or approximately 25%, to $268.2 million during the nine months ended September 30, 2025 from $357.3 million during the same period in 2024. The revenue decrease is primarily due to lower revenues in Gabon and Côte d’Ivoire.
Previous wording
The revenue changes in the six months ended June 30, 2025 compared to the same period in 2024 identified as related to changes in price or volume, are shown in the table below:
Current wording
The revenue changes in the nine months ended September 30, 2025 compared to the same period in 2024 identified as related to changes in price or volume, are shown in the table below:
Previous wording
Crude oil sales in Gabon are a function of the number and size of crude oil liftings in each year and thus crude oil sales do not always coincide with volumes produced in any given year. The Company’s Gabon segment contributed $110.8 million of revenue to the Company’s total revenue during the six months ended June 30, 2025, a slight decrease of $0.4 million from the $111.2 million of revenue reported during the six months ended June 30, 2024. The decrease in revenues is primarily due to the lower average realized sales price received in Gabon of $71.04 per Bbl for six months ended June 30, 2025 compared to $83.61 per Bbl average realized sales price received during the same period in 2024 offset by an increase in sales volume in Gabon to 1,558 MBbls for the six months ended June 30, 2025 from the 1,330 MBbls sales volume during the same period of 2024. Gabon's share of crude oil inventory, excluding royalty barrels, was approximately 54,776 barrels and 129,803 barrels at six months ended June 30, 2025 and 2024, respectively.
Current wording
Crude oil sales in Gabon are a function of the number and size of crude oil liftings in each year and thus crude oil sales do not always coincide with volumes produced in any given year. The Company’s Gabon segment contributed $132.0 million of revenue to the Company’s total revenue during the nine months ended September 30, 2025, a decrease of $26.8 million from the $158.8 million of revenue reported during the nine months ended September 30, 2024. The decrease in revenues is primarily due to the lower average realized sales price received in Gabon of $69.52 per Bbl for nine months ended September 30, 2025 compared to $81.55 per Bbl average realized sales price received during the same period in 2024. Additionally, there was a decrease in sales volume in Gabon to 1,891 MBbls for the nine months ended September 30, 2025 from the 1,947 MBbls sales volume during the same period of 2024. Gabon's share of crude oil inventory, excluding royalty barrels, was approximately 292 MBbls and 217 MBbls at September 30, 2025 and 2024, respectively.
Previous wording
Crude oil sales in Egypt are either sold to a third party via a cargo lifting or sold directly to the government, through EGPC. During the six months ended June 30, 2025, the oil sold in Egypt was through direct sales to EGPC. The Company’s Egypt segment contributed $67.2 million of revenue to the Company’s total revenue for the six months ended June 30, 2025, which is $5.2 million lower than the $72.4 million of revenue reported during the six months ended June 30, 2024. The decrease in revenues was primarily due to a decrease in average realized sales price from $56.43 per Bbl during the six months ended June 30, 2024 to $50.34 per Bbl during the same period in 2025. Sales volumes in Egypt remained relatively consistent at 1,334 MBbls and 1,284 MBbls during the six months ended June 30, 2025 and 2024, respectively.
Current wording
Crude oil sales in Egypt are either sold to a third party via a cargo lifting or sold directly to the government, through EGPC. During the nine months ended September 30, 2025, the oil sold in Egypt was through direct sales to EGPC. The Company’s Egypt segment contributed $102.9 million of revenue to the Company’s total revenue for the nine months ended September 30, 2025, which is $4.1 million lower than the $107.0 million of revenue reported during the nine months ended September 30, 2024. The decrease in revenues was primarily due to a decrease in average realized sales price from $55.12 per Bbl during the nine months ended September 30, 2024 to $50.74 per Bbl during the same period in 2025. Sales volumes in Egypt remained relatively consistent at 2,027 MBbls and 1,941 MBbls during the nine months ended September 30, 2025 and 2024, respectively.
Previous wording
Crude oil sales in Canada are normally sold through pipelines to a third party. The Company’s Canadian segment contributed $10.9 million of revenue to the Company’s total revenue for the six months ended June 30, 2025, or a decrease of $5.2 million, compared to $16.1 million of revenue reported during the six months ended June 30, 2024. The decrease in revenues was primarily due to lower average realized sales price received of $31.04 per Boe during the six months ended June 30, 2025 compared to $37.46 per Boe received during the same period in 2024. Sales volumes in Canada decreased during the six months ended June 30, 2025 to 351 MBoe in comparison to 429 MBoe in the same period in 2024.
Current wording
Crude oil sales in Canada are normally sold through pipelines to a third party. The Company’s Canadian segment contributed $14.9 million of revenue to the Company’s total revenue for the nine months ended September 30, 2025, or a decrease of $9.6 million, compared to $24.5 million of revenue reported during the nine months ended September 30, 2024. The decrease in revenues was primarily due to lower average realized sales price received of $29.54 per Boe during the nine months ended September 30, 2025 compared to $37.29 per Boe received during the same period in 2024. Sales volumes in Canada decreased during the nine months ended September 30, 2025 to 506 MBoe in comparison to 656 MBoe in the same period in 2024.
Previous wording
Crude oil sales in Côte d’Ivoire are sold through a marketing contract with an international oil trading company which offers the cargo shipments to buyers, mainly refineries, around the world. The Company's Côte d’Ivoire segment contributed $18.4 million of revenue to the Company’s total revenue for the six months ended June 30, 2025, or an increase of $1.2 million, compared to $17.2 million of revenue reported during the six months ended June 30, 2024. The increase in revenues was primarily due to an increase in sales volumes from 211 MBbls during six months ended June 30, 2024 to 238 MBbls during the same period in 2025. The increase in sales volumes is offset by lower average realized sales price received of $77.36 per Boe during the six months ended June 30, 2025 compared to $81.59 per Boe received during the same period in 2024.
Current wording
Crude oil sales in Côte d’Ivoire are sold through a marketing contract with an international oil trading company which offers the cargo shipments to buyers, mainly refineries, around the world. As previously noted, the FPSO ceased production in January 2025 and its refurbishment is currently underway in the shipyard. The FPSO is expected to return to service in 2026. The Company's Côte d’Ivoire segment contributed $18.4 million of revenue to the Company’s total revenue for the nine months ended September 30, 2025, or a decrease of $48.6 million, compared to $67.0 million of revenue reported during the nine months ended September 30, 2024. The decrease in revenues was primarily due to a decrease in sales volumes from 844 MBbls during nine months ended September 30, 2024 to 238 MBbls during the same period in 2025. In addition, the average realized sales price received of $77.36 per Bbl during the nine months ended September 30, 2025 was lower compared to $79.43 per Bbl received during the same period in 2024.
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Previous report — wording carried elsewhere
Credit losses and other decreased by approximately $3.3 million during the three months ended June 30, 2025 compared to the same period in 2024. The decrease in credit losses and other is primarily attributable to the higher allowance calculated during the second quarter of 2024 related to the Backdated Receivables, defined in Part I, Item 1, Note 10. Commitments and Contingencies to the unaudited condensed consolidated financial statements. The Backdated Receivables were settled as of March 31, 2025.