VAALCO Energy (EGY) investor relations material

Executive summary

• Q3 production rose 21% QoQ to 25,284 WI BOEPD; NRI production was 20,145 BOEPD and NRI sales were 18,454 BOPD.

• Adjusted EBITDAX increased 30% QoQ to $71.1 million, while a $39.8 million net loss reflected $57.0 million in commodity derivative losses and $20.3 million of income tax expense.

• Growth programs advanced in Gabon, Côte d’Ivoire and Egypt; management expects higher 2027 production and H2 2027 free cash flow, assuming sustained strong commodity prices.

Financial highlights

• Q3 revenue was $147.0 million, versus $135.2 million in Q2 and $61.0 million in Q3 2025; operating income was $44.3 million.

• Q3 net loss was $39.8 million, or $0.38 per diluted share; Q3 2025 had net income of $1.1 million.

• Q3 Adjusted EBITDAX was $71.1 million, up 30% QoQ and from $23.7 million in Q3 2025, supported by higher realized prices and sales volumes.

• Q3 NRI sales were 1.698 million BOE, up 5% QoQ and 44% YoY; realized price was $83.64/BOE.

• Nine-month net loss was $91.2 million versus $17.2 million net income in 2025; nine-month revenue was $344.7 million and derivative losses totaled $108.9 million.

Outlook and guidance

• Q4 NRI sales guidance is 20,800–22,600 BOPD; production guidance is 24,100–26,300 WI BOEPD and 18,800–20,900 NRI BOEPD.

• Q4 capital guidance is $55–$75 million; FY 2026 capital guidance is $300–$330 million, excluding acquisitions.

• Management expects higher production and sales in 2027 and H2 2027 free cash flow, conditional on sustained strong commodity prices.

• Baobab Phase Five’s first production well is expected near year-end 2026, with additional wells in H1 2027; Egypt drilling is planned to continue into 2027.

• Venus FID is targeted for Q4 2026; Kossipo’s field development plan is progressing toward completion in H1 2027.