Houston – – October 12, 2026 -- Vaalco Energy reported Q2 2026 net income of $42.4 million ($0.39 per diluted share), against a net loss of $93.8 million ($0.90 per share) in Q1. Adjusted EBITDAX rose almost fivefold to $54.8 million from $11.6 million. In Q2 2025, the company earned $8.4 million ($0.08 per share).
Sales volumes rise 47% as Côte d'Ivoire production resumes
Vaalco sold 17,812 net revenue interest (NRI) barrels of oil equivalent per day (BOEPD) in Q2, above the midpoint of guidance and 47% higher than in Q1. Production reached 21,796 working interest BOEPD, or 16,688 NRI BOEPD, about 10% above Q1. Q2 included two liftings in Gabon and higher sales in Egypt.
Production at the Baobab field offshore Côte d'Ivoire restarted in June 2026 after a major refurbishment of the floating production storage and offloading vessel (FPSO). The first crude lifting from the field is scheduled for August 2026.
Vaalco guides Q3 production to 19,600-21,600 NRI BOPD
The Q3 range is a 23% increase on Q2 at the guidance midpoint and includes a full quarter of Côte d'Ivoire output. Q3 sales volumes are forecast at 17,200-18,900 NRI barrels of oil per day. The quarter should include two Gabon liftings, higher Egyptian sales and the first 2026 lifting in Côte d'Ivoire.
Vaalco affirmed its full-year 2026 NRI production and sales guidance, which it raised in May by 8% and 12% respectively at the midpoint. The 2026 capital budget is unchanged despite additional drilling in Egypt.
Hedging gains and lower exploration spend lift earnings
The earnings improvement versus Q1 and Q2 2025 came mainly from hedging gains, higher realized pricing and lower exploration expense. Higher production expense, depletion and general and administrative costs partly offset those gains. The company cited a non-cash gain on derivative instruments in its Q2 net income.
Capital expenditures totaled $103.6 million. The spending covered the start of the Gabon Phase Three Drilling Program, completion of the Côte d'Ivoire FPSO dry dock refurbishment, and drilling materials and services for the 2026 Côte d'Ivoire campaign.
Egyptian trade receivables fell to $12.9 million at June 30, 2026, from $31.6 million at December 31, 2025. The board declared a quarterly cash dividend of $0.0625 per share, payable September 22, 2026.
Drilling advances in Gabon, Egypt and Côte d'Ivoire
In Gabon, the Ebouri-5H development well began production in June. The ETBNM-3 gas-supply well is now online, and its gas replaces diesel that is currently shipped to the field by vessel. On July 27, the rig moved to a new SEENT platform slot to drill the ETSEM-3PH pilot hole and development well, planned with a 300-meter completion in the Gamba sands.
In Egypt, the HE-9 development well came on production in early June. Two further development wells started in June were completed in July, and drilling continues through Q3.
In Côte d'Ivoire, a drilling rig has been mobilized and the Baobab campaign is expected to start in September 2026. CEO George Maxwell said the Phase Five program at Baobab should deliver material production uplift in 2027. Vaalco became operator of the Kossipo field on Block CI-40 with a 60% working interest in February 2026, with a field development plan targeted for completion in the first half of 2027. Partners in exploration license CI-705, where Vaalco holds 70% and is operator, will decide by year-end 2026 whether to enter the second exploration phase.
Equatorial Guinea Venus decision targeted for Q4 2026
Vaalco holds 60% of an undeveloped portion of Block P offshore Equatorial Guinea and is the designated operator. An initial front-end engineering and design study confirmed the viability of the Venus field development concept. The company is evaluating alternative technical solutions that may improve economics, with a final investment decision expected in Q4 2026.
In February 2026, Vaalco sold all its Canadian producing properties for about $25.5 million. The assets were producing about 1,850 BOEPD at the time of sale.