VAALCO Energy reported third‑quarter 2025 results on November 10, 2025, delivering a net income of $1.1 million ($0.01 per diluted share) and adjusted EBITDAX of $23.7 million. The company’s GAAP earnings per share of $0.01 beat consensus estimates of $‑0.04 by $0.05, a 125 % upside, while revenue of $61.0 million fell short of the $62.5 million estimate by $1.5 million, a 2.4 % miss.
Revenue declined 37 % from $96.9 million in Q2 2025 and 59 % from $140.3 million in Q3 2024, driven by a 13 % drop in the average realized price to $51.26 per BOE and a 33 % reduction in NRI sales to 1,180 MBOE from 1,765 MBOE. The Gabon maintenance shutdown in July 2025 further reduced production volumes, amplifying the revenue impact.
Margin compression was offset by disciplined cost management. Production expenses fell 26 % to $29.8 million and depreciation, depletion and amortization (DD&A) dropped 56 % to $20.6 million, the lowest level in the company’s history. Despite these savings, the sharp revenue decline pushed adjusted EBITDAX down to $23.7 million from $49.9 million in Q2 2025 and $92.8 million in Q3 2024, illustrating the sensitivity of earnings to commodity prices and output levels.
Management adjusted its full‑year outlook by lowering the capital guidance midpoint by $58 million while raising production guidance, signaling confidence in operational efficiency and a focus on capital‑efficient growth. The company also increased its reserves‑based revolving credit facility commitments to $240 million to support upcoming drilling campaigns, underscoring a commitment to fund future production expansion.
Operational highlights include the completion of a full‑field maintenance shutdown in Gabon, the launch of a 2025/2026 drilling program slated to begin in late November, the ongoing Baobab FPSO refurbishment in Côte d’Ivoire, and continued drilling in Egypt’s Eastern Desert. These projects are positioned to boost production and reserves in the medium term.
CEO George Maxwell emphasized that the company “continues to deliver consistent quarterly results that either meet or exceed our guidance” and highlighted the company’s ability to raise full‑year production expectations while trimming capital spend. The market reaction was tempered by the revenue miss and the steep year‑over‑year decline, with investors focusing on the company’s pricing environment and operational headwinds, despite the EPS beat and strong cost discipline.
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