Overview

* VAALCO Q2 net income at $8.4 mln, adjusted net income missed expectations

* Adjusted EBITDAX of $49.9 mln beats analyst estimates, per LSEG data

Outlook

* VAALCO reiterates full-year guidance despite reduced capital expenditures

* Company expects Q3 2025 production expense between $26.5 mln and $35.0 mln

* VAALCO sees FY 2025 production expense between $148.5 mln and $161.5 mln

* Company plans significant development drilling in Côte d'Ivoire in 2026

Result Drivers

* PRODUCTION ABOVE GUIDANCE - VAALCO's NRI production reached 16,956 BOEPD, surpassing the high end of company guidance

* SALES VOLUME - Sold 19,393 NRI BOEPD, exceeding the high end of company guidance

* COST MANAGEMENT - Lower production expenses and efficient drilling contributed to results

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 $0.02

Adjusted

EPS

Q2 Miss $2.30 $4.79

Adjusted mln mln (1

Net Analyst)

Income

Q2 Net $8.40

Income mln

Q2 Beat $49.90 $42.10

Adjusted mln mln (2

EBITDAX Analysts

)

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the oil & gas exploration and production peer group is "buy"

* Wall Street's median 12-month price target for VAALCO Energy Inc ( EGY ) is $8.00, about 55.5% above its August 7 closing price of $3.56

* The stock recently traded at 19 times the next 12-month earnings vs. a P/E of 65 three months ago

Press Release:

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)