Vaalco Energy Inc

VAALCO Energy reported second-quarter 2026 net income of $42.4 million, or $0.39 per diluted share, reversing a $93.76 million loss in the first quarter, with adjusted EBITDAX nearly quintupling to $54.8 million. Sales volumes reached 17,812 net revenue interest barrels of oil equivalent per day, up 47% from the prior quarter, driven by the resumption of production at the Baobab field offshore Côte d'Ivoire in June after a yearlong refurbishment. The company forecasts third-quarter production between 19,600 and 21,600 NRI barrels per day, a 23% increase at the midpoint, and affirmed its increased full-year 2026 guidance without changing its capital budget. Realized commodity prices climbed to $80.77 per barrel of oil equivalent, boosting total commodity sales to $135.2 million from $62.6 million. However, the first half still resulted in a net loss of $51.3 million, weighed down by derivative losses and higher costs, and the company maintained its quarterly dividend at $0.0625 per share.

VAALCO Energy has successfully drilled, completed, and placed on production the ETBNM-3 gas-supply well in offshore Gabon, and has moved the rig to drill the ETSEM-3PH pilot hole and development well. The ETBNM-3 well encountered reservoir properties above pre-drill estimates with over 10 meters of net reservoir pay and strong porosity and permeability, providing sufficient gas to reduce reliance on higher-priced diesel for field operations. Evaluation is ongoing for shallower pay intervals in the D-9 and D-12 zones that may contain wet gas to light oil. On July 27, the rig was relocated to the SEENT platform to begin the ETSEM-3PH well, which includes a pilot hole to test the original field oil-water contact and the underlying Dentale formation, followed by a planned horizontal Gamba producer with a 300-meter completion length. CEO George Maxwell noted the gas well will not directly add production or sales but should lower costs, improve uptime, and potentially boost output from existing wells over time.