M&A - VAALCO ENERGY INC /DE/

Form Type: 10-Q

Filing Date: 2025-05-12

Corporate Action: Acquisition

Type: New

Accession Number: 000089462725000024

Filing Summary: For the quarterly period ended March 31, 2025, VAALCO Energy, Inc. reported a strong performance including an increase in revenues to $110.3 million primarily from crude oil, natural gas, and NGL sales. The operating income was recorded at $26.2 million, reflecting the company's ability to manage costs effectively despite an increase in production expenses. The net income for this quarter stood at $7.7 million, consistent with the previous year, showing resilience in profit margins. Important to note is the company's recent strategic acquisition activities; in March 2025, VAALCO farmed into the CI-705 block offshore Côte d’Ivoire, gaining a 70% working interest. This acquisition was achieved through a commercial carry arrangement at an estimated cost of $3 million. The company's cash and cash equivalents decreased to $40.9 million by the end of the quarter, down from $82.7 million at year-end, largely due to significant investments in property and equipment. Overall, VAALCO's performance and strategic actions indicate its commitment to expansion and operational efficiency in its international exploration and production activities.