Houston – November 05, 2026 -- Vaalco Energy (NYSE: EGY, LSE: EGY) lifted third-quarter 2026 Adjusted EBITDAX 30% to $71.1 million, from $54.8 million in Q2 and $23.7 million in Q3 2025, on higher realized prices and sales volumes. Non-cash hedging losses still pushed the company to a net loss of $39.8 million ($0.38 per diluted share).
Production climbs 21% across Gabon, Côte d'Ivoire and Egypt
Vaalco produced 25,284 working-interest BOPD, or 20,145 net-revenue-interest BOPD, about 21% more than in Q2 2026. Sales reached 18,454 NRI BOPD, up 4% from Q2 and toward the high end of guidance. Production rose in all three producing areas.
Capital expenditure totaled $86.9 million. The spending covered the end of the Gabon Phase Three drilling program, the restart of the Baobab field and the start of Phase Five drilling in Côte d'Ivoire, and continued drilling in Egypt.
Unrealized hedging losses of $34.7 million drive the net loss
The Q3 loss compares with net income of $42.4 million ($0.39 per diluted share) in Q2 2026 and $1.1 million ($0.01 per share) in Q3 2025. Vaalco attributed the decline mainly to hedging losses and depletion expenses, partly offset by higher revenue.
Fourth-quarter guidance targets 18% higher sales at the midpoint
Vaalco forecasts Q4 2026 sales of 20,800 to 22,600 NRI BOPD, an 18% increase on Q3 at the midpoint. Production is guided to 18,800 to 20,900 NRI BOPD. Q4 capital spending guidance was cut to $55 million to $75 million.
The board declared a quarterly cash dividend of $0.0625 per share, payable December 22, 2026.
Gabon rig released after five Etame wells, with gas replacing diesel
Vaalco released the Gabon rig in early October after bringing the ETSEM-3H development well online. The well has a 300-meter lateral with net pay in Gamba reservoir sands. Five wells came online at Etame during the campaign, and year-over-year working-interest production there is up almost 2,500 BOPD.
The ETBNM-3 gas-supply well now feeds field operations. That cuts reliance on higher-priced diesel previously shipped to the field by vessel.
Baobab restarts in June as Vaalco advances Kossipo and CI-705
Production resumed from all Baobab producer wells in June, following the FPSO's return in early April after dry dock refurbishment. The first crude lifting was completed in August, and Phase Five drilling began in September. The first well is due online near the end of 2026, with more wells following in the first half of 2027.
Vaalco became operator of the Kossipo field on Block CI-40 in February 2026 with a 60% working interest. It is progressing a field development plan toward completion in the first half of 2027.
On exploration license CI-705, where it holds a 70% working interest as operator, Vaalco and its partners agreed in September to enter the second exploration phase. The move needs approval from the Directorate General of Hydrocarbons. If approved, Vaalco must relinquish about 25% of the block area and drill one firm exploration well.
Egypt drills five wells in Q3 and extends program into 2027
The Egyptian campaign, which began in May 2026, completed five development wells in the quarter. Two more wells, started in Q3, were completed in October. Vaalco plans to maintain an ongoing drilling program there into 2027.
Venus final investment decision targeted for Q4 2026
Vaalco holds a 60% working interest and operatorship in an undeveloped part of Block P offshore Equatorial Guinea. The initial FEED study confirmed the viability of the Venus development concept, and alternative technical solutions are being evaluated. A final investment decision is expected in Q4 2026.
CEO George Maxwell said Venus and Kossipo should organically double company production. He forecast free cash flow in the second half of 2027, assuming sustained strong commodity pricing. Maxwell also pointed to a "diversified portfolio of assets in investor friendly countries in West and North Africa."
The Niosi and Guduma blocks in Gabon, where the BWE Consortium finished a 3D seismic campaign in January 2026, remain in data processing and interpretation.