VAALCO ENERGY, INC. ANNOUNCES THIRD QUARTER 2026 RESULTS
VAALCO ENERGY INC /DE/ (EGY) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99.1 THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION VAALCO ENERGY, INC. ANNOUNCES THIRD QUARTER 2026 RESULTS Production Up Over 20% and Strong Sales Demonstrate Continued Delivery Against Growth Strategy HOUSTON – November 5, 2026 - VAALCO Energy, Inc. (NYSE: EGY, LSE: EGY
How this was made
The 30-second read
Why it matters
The earnings beat and raised guidance could attract buying interest, especially from investors seeking exposure to African oil assets.
Market read
Strong quarterly performance and upward‑revised guidance position EGY for potential short‑term upside.
What to watch
Capital expenditures remain high; cash flow may be pressured if commodity prices decline.
VAALCO ENERGY, INC. ANNOUNCES THIRD QUARTER 2026 RESULTS Production Up Over 20% and Strong Sales Demonstrate Continued Delivery Against Growth Strategy
Production, sales volumes, realized pricing and Adjusted EBITDAX increased versus Q2 2026, but the Company reported a net loss driven primarily by a $57.0 million net loss on derivative instruments and invested $86.9 million in capital expenditures.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Crude oil, natural gas and natural gas liquids sales, Q3 2026GAAP | $147.0M | – | – |
| Operating income, Q3 2026GAAP | $44.27M | – | – |
| Net income (loss), Q3 2026GAAP | −$39.84M | – | – |
| Diluted net income (loss) per share, Q3 2026GAAP | $ (0.38) | – | – |
| Adjusted Net Loss, Q3 2026non-GAAP | −$10.27M | – | – |
| Diluted Adjusted Net Income (Loss) per Share, Q3 2026non-GAAP | $ (0.10) | – | – |
| Adjusted EBITDAX, Q3 2026non-GAAP | $71.10M | 30% | a three-fold increase |
| NRI production, Q3 2026other | 20,145 BOEPD | 21 % | 31 % |
| WI production, Q3 2026other | 25,284 BOEPD | – | – |
| NRI sales, Q3 2026other | 1,698,000 BOE | 5 % | 44 % |
| Average daily sales volumes, Q3 2026other | 18,454 BOE | – | – |
| Realized commodity price, Q3 2026other | $83.64 per BOE | 4 % | 63 % |
| Commodity price including realized commodity derivatives, Q3 2026other | $70.51 per BOE | 8 % | 38 % |
| Total commodity sales, Q3 2026other | $147.0 | 9 % | 141 % |
| Production expense, Q3 2026GAAP | $44.98M | – | – |
| Production expense excluding offshore workovers and stock compensation, Q3 2026other | $44.9 | (1) % | 51 % |
| Production expense excluding offshore workovers, Q3 2026other | $26.43 per BOE | (6) % | 5 % |
| Exploration expense, Q3 2026GAAP | $4.8 | 4714 % | 1103 % |
| Depreciation, depletion and amortization, Q3 2026GAAP | $43.35M | – | – |
| General and administrative expense, Q3 2026GAAP | $9.05M | – | – |
| Income tax expense (benefit), Q3 2026GAAP | $20.31M | – | – |
| Commodity derivative instruments gain (loss), net, Q3 2026GAAP | −$57.00M | – | – |
| Property and equipment expenditures, cash basis, Q3 2026other | $86.89M | – | – |
| Net sales, first nine months of 2026other | 4,413 MBOE | – | – |
| Net income (loss), nine months ended September 30, 2026GAAP | −$91.16M | – | – |
| Net cash provided by operating activities, nine months ended September 30, 2026GAAP | $89.80M | – | – |
| Free Cash Flow, nine months ended September 30, 2026non-GAAP | $12.45M | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Gabon net revenue, Q3 2026Two liftings in Gabon were included in Q3 2026 sales volumes. | $73,849 | – | – |
| Egypt net revenue, Q3 2026Q3 2026 included increased sales in Egypt. | $45,321 | – | – |
| Canada net revenue, Q3 2026The Company cited the Canada Assets Divestment in its first-nine-month sales discussion. | $ (26) | – | – |
| Côte d’Ivoire net revenue, Q3 2026The first Côte d’Ivoire lifting in 2026 contributed to Q3 sales. | $27,831 | – | – |
FY 2026 and Q4 2026 outlook
- Operating expensesFY 2026 Production Expense (millions) WI & NRI: $166.00 - $180.00; FY 2026 Production Expense per BOE WI: $19.00 - $23.00; FY 2026 Production Expense per BOE NRI: $24.00 - $29.00; Q4 2026 Production Expense (millions) WI & NRI: $51.0 - $59.0 MM; Q4 2026 Production Expense per BO WI: $19.00 - $23.00; Q4 2026 Production Expense per BO NRI: $25.50 - $28.00; FY 2026 Cash G&A: $32.0 - $36.0 MM; Q4 2026 Cash G&A: $7.5 - $9.5 MM
- NoteFY 2026 Production (BOEPD) WI: 22350 - 23800; NRI: 17400 - 18550.
- NoteFY 2026 Sales Volume (BOEPD) WI: 22050 - 23300; NRI: 17000 - 18050.
- NoteFY 2026 Exploration Expense: $29 - $31 MM; Offshore Workovers: $0 - $0 MM; CAPEX Excluding Acquisitions: $300 - $330 MM; DD&A: $20.00 - $23.00 per BOE.
- NoteQ4 2026 Production (BOPD) WI: 24100 - 26300; NRI: 18800 - 20900.
- NoteQ4 2026 Sales Volume (BOPD) WI: 26300 - 28100; NRI: 20800 - 22600.
- NoteQ4 2026 Exploration Expense: $3 - $4 MM; Offshore Workovers: $0 - $0 MM; CAPEX Excluding Acquisitions: $55 - $75 MM; DD&A: $20.00 - $23.00 per BO.
Capital returns
- Vaalco paid a quarterly cash dividend of $0.0625 per share of common stock for the third quarter of 2026 on September 22, 2026.
- The next quarterly cash dividend of $0.0625 per share of common stock for the fourth quarter of 2026 ($0.25 annualized) is to be paid on December 22, 2026 to stockholders of record at the close of business on November 20, 2026.
- Dividend distribution for the nine months ended September 30, 2026: $20,056.
- Treasury shares for the nine months ended September 30, 2026: $1,985.
What drove it
- Higher realized commodity prices and sales volumes led to higher revenue and Adjusted EBITDAX.
- Q3 2026 sales included two Gabon liftings, the first 2026 Côte d’Ivoire lifting and increased sales in Egypt.
- All three producing areas, Egypt, Côte d’Ivoire and Gabon, saw production increases.
- The Gabon Phase Three Drilling Program was completed, including the ETSEM-3H development well.
- Production resumed from all Côte d’Ivoire producer wells in June 2026 and the first crude oil lifting was completed in August 2026.
- Five development wells were drilled and completed in Egypt during the third quarter.
Concerns
- The Company reported a net loss of $39.8 million, including $34.7 million of unrealized hedging losses.
- Net loss on derivative instruments was $57.0 million, including a realized loss of $22.3 million on matured commodity derivative contracts.
- Depreciation, depletion and amortization was $43.4 million, up 27% compared with Q2 2026.
- Long-term debt was $239.0 million at September 30, 2026, compared with $60,000 at December 31, 2025.
- Net cash used in investing activities was $243,050 for the nine months ended September 30, 2026.
What to watch
- Q4 2026 NRI sales-volume guidance of 20800 - 22600 BOPD and NRI production guidance of 18800 - 20900 BOPD.
- The first Côte d’Ivoire Phase Five production well is planned to come online near the end of 2026.
- Final Investment Decision for Venus in Equatorial Guinea is expected in Q4 2026.
- The Kossipo field development plan is being progressed toward completion in the first half of 2027.
- The Company forecasts free cash flow generation in the second half of 2027, assuming sustained strong commodity pricing.
Balance sheet and cash flow
- Cash and cash equivalents at September 30, 2026: $51.3 million.
- Long-term debt at September 30, 2026: $239.0 million.
- Liquidity remaining on the 2025 RBL Facility: approximately $61.0 million.
- Net debt at September 30, 2026: $187,690.
- Net cash provided by operating activities for the nine months ended September 30, 2026: $89,803.
- Property and equipment expenditures, including exploration expense, for the nine months ended September 30, 2026: $ (268,524).
- Net cash used in investing activities for the nine months ended September 30, 2026: $ (243,050).
- Net cash provided by financing activities for the nine months ended September 30, 2026: $145,639.
Analysis
Vaalco delivered a stronger operating quarter. NRI production was 20,145 BOEPD, up 21 % from Q2 2026 and 31 % from Q3 2025, while NRI sales reached 1,698,000 BOE, up 5 % sequentially and 44 % year over year. The sales result reflected two Gabon liftings, the first Côte d’Ivoire lifting in 2026 and increased Egypt sales. Realized commodity price increased to $83.64 per BOE from $80.77 per BOE in Q2 2026, and total commodity sales rose 9 % sequentially to $147.0.
Revenue and operating profit improved, but derivative losses reversed the result at the net-income line. Crude oil, natural gas and natural gas liquids sales were $146,975, operating income was $44,272 and Adjusted EBITDAX increased 30% sequentially to $71,101. However, commodity derivative instruments produced a $ (56,998) loss, contributing to a $ (39,836) GAAP net loss and diluted loss per share of $ (0.38). The release attributes the loss primarily to a $57.0 million net loss on derivative instruments, including $34.7 million of unrealized hedging losses.
Costs showed mixed movement. Production expense excluding offshore workovers and stock compensation was $44.9, down 1 % from Q2 2026 but up 51 % from Q3 2025, while the corresponding per-BOE measure improved 6 % sequentially to $26.43 per BOE. G&A excluding stock-based compensation declined 23 % sequentially to $7.4. DD&A increased 27 % sequentially to $43.4, and exploration expense increased to $4.8 from $0.1 in Q2 2026.
Capital deployment remains substantial. Third-quarter cash-basis property and equipment expenditures were $86,888, near the low end of third-quarter guidance, and were directed to Gabon drilling, Egypt drilling, and Côte d’Ivoire reconnection and drilling work. At September 30, 2026, cash and cash equivalents were $51.3 million, long-term debt was $239.0 million and net debt was $187,690. For the first nine months, operating cash flow was $89,803, investing cash outflow was $ (243,050), and non-GAAP Free Cash Flow was $12,452 after adding back dividends paid.
The outlook calls for a further step up in Q4 volumes, with NRI sales-volume guidance of 20800 - 22600 BOPD and NRI production guidance of 18800 - 20900 BOPD. Q4 capital-expenditure guidance was reduced to $55 - $75 MM, while full-year CAPEX guidance is $300 - $330 MM. Operational milestones include the planned first Côte d’Ivoire Phase Five production well near year-end 2026, expected Q4 2026 Venus Final Investment Decision, and Kossipo field-development-plan progress toward the first half of 2027. The quarterly dividend remains $0.0625 per share.
Management, verbatim
The third quarter results continue to demonstrate our ability to successfully execute on our strategy as we deliver on our forecasts and grow production in a strong commodity price environment.
George Maxwell, Chief Executive Officer
In Q3 2026, we had strong sales volumes, toward the high end of our guidance, with production up 21% compared to Q2 2026 and continued increased realized pricing.
George Maxwell, Chief Executive Officer
As we look to 2027, we are projecting significant increases in production and strong sales, which coupled with continued attractive pricing should generate solid operational cash flow and Adjusted EBITDAX generation.
George Maxwell, Chief Executive Officer
Not in the filing
stated, not guessed- Gross margin was not reported.
- Quarterly operating cash flow was not reported.
- Quarterly free cash flow was not reported.
- Share repurchases were not reported as a capital-return program.
- Revenue guidance was not reported.
- Gross-margin guidance was not reported.
- Tax-rate guidance was not reported.
- A previous-release outlook was not provided, so no comparison with prior guidance is available.
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure is checked against the filing text, and a metric the filing does not print, or whose value, prior period and change do not add up, is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
VAALCO Energy (NYSE: EGY) filed an 8‑K reporting its Q3 2026 operational and financial results and provided Q4 guidance.
Ticker impact
VAALCO Energy reported Q3 2026 results with production up 21% and issued guidance raising Q4 sales volume expectations.
likely upward pressure as the market prices in higher production and sales guidance
The company posted a 30% increase in Adjusted EBITDAX and announced higher Q4 sales volumes, which typically supports a bullish reaction.
Market effects
Energy sector may see modest uplift as a mid‑cap oil producer shows strong production growth.
African oil production outlook improves, supporting regional energy equities.
Limited to oil‑focused investors; broader market impact modest.
Counterpoint
If oil prices soften, the raised production guidance may not translate into earnings growth.
Key entities
- CompanyVAALCO Energy, Inc.
Oil and gas producer listed on NYSE under ticker EGY.
