# EDGAR Filing Document

**Accession Number:** 0000894627
**File Stem:** 0000894627-25-000037
**Filing Date:** 2025-8
**Character Count:** 62276
**Document Hash:** 310afc50cd6bec95ee0f9fec5cc27395
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0000894627-25-000037.hdr.sgml**: 20250808

**ACCESSION NUMBER**: 0000894627-25-000037

**CONFORMED SUBMISSION TYPE**: 8-K

**PUBLIC DOCUMENT COUNT**: 15

**CONFORMED PERIOD OF REPORT**: 20250807

**ITEM INFORMATION**: Results of Operations and Financial Condition

**ITEM INFORMATION**: Regulation FD Disclosure

**ITEM INFORMATION**: Financial Statements and Exhibits

**FILED AS OF DATE**: 20250808

**DATE AS OF CHANGE**: 20250807

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** VAALCO ENERGY INC /DE/
- **CENTRAL INDEX KEY:** 0000894627
- **STANDARD INDUSTRIAL CLASSIFICATION:** CRUDE PETROLEUM & NATURAL GAS [1311]
- **ORGANIZATION NAME:** 01 Energy & Transportation
- **EIN:** 760274813
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 8-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-32167
- **FILM NUMBER:** 251195730

**BUSINESS ADDRESS:**
- **STREET 1:** 2500 CITYWEST BLVD.
- **STREET 2:** SUITE 400
- **CITY:** HOUSTON
- **STATE:** TX
- **ZIP:** 77042
- **BUSINESS PHONE:** 713-623-0801

**MAIL ADDRESS:**
- **STREET 1:** 2500 CITYWEST BLVD.
- **STREET 2:** SUITE 400
- **CITY:** HOUSTON
- **STATE:** TX
- **ZIP:** 77042

?xml version='1.0' encoding='ASCII'? egy-20250807

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

**FORM 8-K**

**CURRENT REPORT**

**Pursuant to Section 13 or 15(d)**

**of the Securities Exchange Act of 1934**

**Date of Report (Date of earliest event reported): August 7, 2025**

**VAALCO Energy, Inc.**

**(Exact name of registrant as specified in its charter)** 

---

| | | |
|:---|:---|:---|
| **Delaware** | **001-32167** | **76-0274813** |
| **(State or other jurisdiction<br>of incorporation)** | **(Commission<br>File Number)** | **(IRS Employer<br>Identification No.)** |
| **2500 CityWest Blvd. Suite 400**<br>**Houston,Texas** | **2500 CityWest Blvd. Suite 400**<br>**Houston,Texas** | **77042** |
| **(Address of principal executive offices)** | **(Address of principal executive offices)** | **(Zip Code)** |

---

**Registrant**'**s telephone number, including area code: (713**) **623-0801**

**Not Applicable**

**(Former Name or former address if changed since last report.)**

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

□ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

□ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

□ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

□ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

---

| | | |
|:---|:---|:---|
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered |
| Common Stock, par value $0.10 | EGY | New York Stock Exchange |
| Common Stock, par value $0.10 | EGY | London Stock Exchange |

---

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933(§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company □

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. □

------

**Item 2.02.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Results of Operations and Financial Condition.**

On August 7, 2025, VAALCO Energy, Inc. (the "Company") issued a press release announcing its financial results for the second quarter of 2025 and guidance for the third quarter and the remainder of 2025. A copy of the Company's press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K.

Presentation slides accompanying this earnings release are available on the Company's website at www.vaalco.com located on the "Presentations" page under the "News & Events" tab within the "Investors" section of the site.

The information in this Current Report on Form 8-K, including Exhibit 99.1, shall not be deemed to be "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or otherwise subject to the liabilities of that section, and is not incorporated by reference into any filing under the Exchange Act or the Securities Act of 1933, as amended (the "Securities Act"), except as shall be expressly set forth by specific reference in such filing.

**Item 7.01.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Regulation FD Disclosure.**

*Earnings Release and Conference Call.* As previously announced, the Company is hosting a conference call to discuss its financial and operational results on Friday morning, August 8, 2025 at 9:00 a.m. Central Time (10:00 a.m. Eastern Time and 3:00 p.m. London Time).

The information in this Item 7.01, including Exhibit 99.1, is being furnished and shall not be deemed to be "filed" for purposes of Section 18 of the Exchange Act or otherwise subject to the liabilities of that section. The information in this Item 7.01, including Exhibit 99.1, shall not be incorporated by reference into any filing under the Exchange Act or the Securities Act, except as shall be expressly set forth by specific reference in such filing.

**Item 9.01. Financial Statements and Exhibits.**

---

| | |
|:---|:---|
| **Exhibit No.** | **Description of Exhibit** |
| 99.1 | <u>[Press Release, dated August 7, 2025 (Earnings Release)](ex-991q22025earningsrelease.htm)</u> |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |

---

------

**SIGNATURE**

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

---

| | | |
|:---|:---|:---|
| | **VAALCO Energy, Inc.** | **VAALCO Energy, Inc.** |
| | (Registrant) | (Registrant) |
| Date: August 8, 2025 |  |  |
|  | By: | /s/ Lynn Willis |
|  | Name: | Lynn Willis |
|  | Title: | Chief Accounting Officer |

---

## Exhibit 99.1

**Exhibit 99.1**

![image_0a.jpg](image_0a.jpg)

**VAALCO ENERGY, INC. ANNOUNCES SECOND QUARTER 2025 RESULTS**

**HOUSTON** – August 7, 2025 **-** VAALCO Energy, Inc. (NYSE: EGY, LSE: EGY) ("Vaalco" or the "Company") today reported operational and financial results for the second quarter of 2025.

**Second Quarter 2025 Highlights and Recent Key Items:**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Reported net income of $8.4 million ($0.08 per diluted share), Adjusted Net Income**<sup>(1)</sup> **of $2.3 million ($0.02 per diluted share**) **and Adjusted EBITDAX**<sup>(1)</sup> **of $49.9 million;** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**• Produced 16,956 net revenue interest (**"**NRI**"**)**<sup>(2)</sup> **barrels of oil equivalent per day ("BOEPD"), above the high end of guidance, or 21,654 working interest (**"**WI**"**)**<sup>(3)</sup> **BOEPD, toward the high end of guidance;**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**• Sold 19,393 NRI BOEPD, above the high end of guidance;**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**• Reported a net cash**<sup>(4)</sup> **position of $7.9 million that did not include approximately $24.0 million of cash receivables that was collected in July 2025;**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**• Reiterated full year guidance which previously included a reduction to capital expenditures in Q1 2025 by approximately 10%, without impacting full year production or sales guidance; and**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Declared quarterly cash dividend of $0.0625 per share of common stock to be paid on September 19, 2025.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*(1)Adjusted EBITDAX, Adjusted Net Income Capital and Free Cash Flow are Non-GAAP financial measures and are described and reconciled to the closest GAAP measure in the attached table under "Non-GAAP Financial Measures."*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*(2)All NRI sales and production rates are Vaalco's working interest volumes less royalty volumes, where applicable.*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*(3)All WI production rates and volumes are Vaalco's working interest volumes, where applicable.*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*(4)Net cash is defined as cash and cash equivalents less long-term debt.*

George Maxwell, Vaalco's Chief Executive Officer, commented, "We continue to consistently deliver successful quarterly results that either meet or exceed our guidance. Both our sales and NRI production for the second quarter of 2025 were above the high end of guidance, leading to solid net income of $0.08 per diluted share and Adjusted EBITDAX of $49.9 million. We continue to execute our strategic vision as we prepare for multiple production enhancing drilling campaigns across our diversified asset base. In Côte d'Ivoire, the FPSO refurbishment project is well underway, with the vessel at the shipyard in Dubai and we are preparing for a drilling campaign in 2026 to augment the production and economic life of the Baobab field. In Gabon, we are preparing for the 2025/2026 drilling program which is expected to begin near the end of Q3 2025 as we wait for the drilling rig to complete its current commitments. In Egypt, we continue to efficiently drill wells and the success of the program in the first half of the year is expected to lead to incremental projects in the second half of 2025. As a reminder, in the first quarter, we entered into a new reserves-based credit facility that will supplement our internally-generated cash flow and cash balance to assist in funding our robust organic growth projects. In the second quarter we drew on this facility, as planned, and will continue to utilize it to assist in our growth plans."

"We believe that we are well positioned to fund the significant growth and opportunities that we have planned over the next few years which should lead to even greater growth and value for the remainder of the decade. In May, we provided additional details at our Capital Markets Day regarding the meaningful upside that we believe is available to drive future organic growth and support our commitment to consistent shareholder returns. Our track record of success in delivering results at or above expectations should provide our investors with assurance that we will execute on the portfolio of opportunities we discussed in the Capital Markets Day presentation."

------

**Operational Update**

**Gabon** 

The Company secured a drilling rig in December 2024 for its 2025/2026 drilling program, which is expected to begin near the end of Q3 2025 as we wait for the drilling rig to complete its current commitments. The program includes drilling multiple development wells, and appraisal or exploration wells, and perform workovers, with options to drill additional wells. Vaalco plans to drill the wells at both the Etame platform and at its Seent platform, as well as a re-drill and several workovers in the Ebouri field to access production and reserves that were previously removed from proved reserves due to the presence of hydrogen sulfide.

In July 2025, the Company performed planned, staged shutdowns of the Gabon platforms to perform safety inspections and necessary maintenance to increase the integrity and reliability of the assets.

**Egypt**

The drilling campaign in Egypt, which commenced in December 2024, continued through Q2 2025. During the quarter, Vaalco completed six wells and three of the wells drilled during Q2 2025 will be hydraulically fractured in Q3 2025. Based on detailed analysis completed in Q1 2025 to evaluate the well inventory potential, a series of workover re-completions, re-activations and well optimizations have also been carried out resulting in an incremental production gain.

**Canada**

In 2024, Vaalco drilled and completed five horizontal wells in Canada, with all laterals being greater than two miles long. These wells continue to meet production expectations and the Company is monitoring their longer-term performance for future drilling opportunities. In 2025, the Company has decided to defer the drilling of additional wells in Canada to reduce the Company's overall capital expenditures.

**Côte d'Ivoire**

As part of the planned dry dock refurbishment, the Baobab Floating Production, Storage and Offloading ("FPSO") vessel ceased hydrocarbon production on January 31, 2025 and the final lifting of crude oil from the FPSO took place in February 2025. The vessel departed from the field in late March 2025 and arrived at the shipyard in Dubai ahead of schedule in mid-May 2025. The FPSO refurbishment is now underway in the shipyard. A rig has been secured for significant development drilling which is expected to begin in 2026 after the FPSO returns to service bringing meaningful additions to production from the main Baobab field in CI-40. The Company is also evaluating the anticipated impact of the potential future development of the Kossipo field, which is also on the CI-40 license.

**Equatorial Guinea**

Vaalco owns a 60% working interest in an undeveloped portion of Block P offshore Equatorial Guinea where it is the designated operator. The Company has an existing plan of development of the Venus field discovery on Block P, which focuses on key areas of drilling evaluations, facilities design, market inquiries and metocean review. The Company completed a Front End Engineering and Design study and is currently targeting a Final Investment Decision by the end of 2025.

**Financial Update** – **Second Quarter of 2025**

Vaalco reported net income of $8.4 million ($0.08 per diluted share) for Q2 2025 which was up compared with net income of $7.7 million ($0.07 per diluted share) in Q1 2025 and down 70% compared with net income of $28.2 million ($0.27 per diluted share) in Q2 2024. The increase in earnings compared with Q1 2025 was driven by higher sales volume in Q2 2025 of 1,765 MBOE compared to a sales volume of 1,717 MBOE in Q1 2025 and lower production expense, depreciation, depletion and amortization ("DD&A") and lower income tax expense partially offset by lower realized pricing driven by a decrease in oil market index prices.

------

Adjusted EBITDAX totaled $49.9 million in Q2 2025, a 12% decrease from $57.0 million in Q1 2025. The decrease was primarily due to lower realized pricing offset by higher sales volumes and lower production expense. Adjusted EBITDAX was down 31% from $72.5 million generated in Q2 2024 primarily due to lower realized pricing.

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| *Quarterly Summary - Sales and Net Revenue* | *Quarterly Summary - Sales and Net Revenue* | *Quarterly Summary - Sales and Net Revenue* | *Quarterly Summary - Sales and Net Revenue* | *Quarterly Summary - Sales and Net Revenue* |  |  |  |  |  |  |
| **$ in thousands** | **Three Months Ended June 30, 2025** | **Three Months Ended June 30, 2025** | **Three Months Ended June 30, 2025** | **Three Months Ended June 30, 2025** | **Three Months Ended June 30, 2025** | **Three Months Ended March 31, 2025** | **Three Months Ended March 31, 2025** | **Three Months Ended March 31, 2025** | **Three Months Ended March 31, 2025** | **Three Months Ended March 31, 2025** |
|  | Gabon | Egypt | Canada | Côte d'Ivoire | **Total** | Gabon | Egypt | Canada | Côte d'Ivoire | **Total** |
| Oil Sales | $**67964** | $**55188** | $**3751** | $**354** | $**127257** | $59864 | $57656 | $5325 | $18042 | $140887 |
| NGL Sales | **—** | **—** | **1298** | **—** | **1298** |  |  | 1808 |  | 1808 |
| Gas Sales | **—** | **—** | **572** | **—** | **572** |  |  | 636 |  | 636 |
| Gross Sales | **67964** | **55188** | **5621** | **354** | **129127** | 59864 | 57656 | 7769 | 18042 | 143331 |
| Selling Costs & Carried Interest | **65** | **(179)** | **(240)** | **—** | **(354)** |  | (149) | (232) |  | (381) |
| Royalties & Taxes | **(9462)** | **(21752)** | **(666)** | **—** | **(31880)** | (7677) | (23587) | (1357) |  | (32621) |
| Net Revenue | $**58567** | $**33257** | $**4715** | $**354** | $**96893** | $52187 | $33920 | $6180 | $18042 | $110329 |
| Oil Sales MMB (working interest) | **1034** | **995** | **62** | **—** | **2091** | 757 | 920 | 80 | 238 | 1995 |
| Average Oil Price Received | $**65.72** | $**55.31** | $**60.44** | $**—** | $**60.87** | $79.09 | $62.49 | $66.17 | $75.87 | $70.61 |
| *Change* |  |  |  |  | **(14)%** |  |  |  |  |  |
| Average Brent Price |  |  |  |  | $**68.07** |  |  |  |  | $75.87 |
| *Change* |  |  |  |  | **(10)%** |  |  |  |  |  |
| Gas Sales MMCF (working interest) | **—** | **—** | **448** | **—** | **448** |  |  | 413 |  | 413 |
| Average Gas Price Received | **—** | **—** | $**1.28** | **—** | $**1.28** |  |  | $1.54 |  | $1.54 |
| *Change* |  |  |  |  | **(17)%** |  |  |  |  |  |
| Average Aeco Price ($USD) | **—** | **—** | $**1.35** | **—** | $**1.35** |  |  | $1.43 |  | $1.43 |
| *Change* |  |  |  |  | **(6)%** |  |  |  |  |  |
| NGL Sales MMB (working interest) |  |  | **60** |  | **60** |  |  | 69 |  | 69 |
| Average Liquids Price Received |  |  | $**21.65** |  | $**21.65** |  |  | $26.39 |  | $26.39 |
| *Change* |  |  |  |  | **(18)%** |  |  |  |  |  |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| *Revenue and Sales* | **Q2 2025** | **Q2 2024** | **% Change Q2 2025 vs. Q2 2024** | **Q1 2025** | **% Change Q2 2025 vs. Q1 2025** |
| Production (NRI BOEPD) | **16956** | 20588 | (18)% | 17764 | (5)% |
| Sales (NRI BOE) | **1765000** | 1764000 |  | 1717000 | 3% |
| Realized commodity price ($/BOE) | $**54.87** | $66.05 | (17)% | $64.27 | (15)% |
| Commodity (Per BOE including realized <br>&nbsp;&nbsp;&nbsp;&nbsp; commodity derivatives) | $**54.92** | $66.03 | (17)% | $64.34 | (15)% |
| Total commodity sales ($MM) | $**96.9** | $116.5 | (17)% | $110.3 | (12)% |

---

In Q2 2025, Vaalco had a net revenue decrease of $13.4 million or 12% compared to Q1 2025 primarily due to lower average realized price received of $54.87 per barrel in Q2 2025 compared to $64.27 per barrel in Q1 2025, offset by an increase in the total NRI sales volumes of 1,765 MBOE which was 3% higher than the Q1 2025 volumes of 1,717 MBOE but was flat compared to 1,764 MBOE for Q2 2024. Q2 2025 NRI sales were above the high end of Vaalco's guidance.

------

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| *Costs and Expenses* | **Q2 2025** | **Q2 2024** | **% Change Q2 2025 vs. Q2 2024** | **Q1 2025** | **% Change Q2 2025 vs. Q1 2025** |
| Production expense, excluding offshore workovers and stock comp ($MM) | $**40.3** | $52.4 | (23)% | $44.7 | (10)% |
| Production expense, excluding offshore workovers ($/BOE) | $**22.87** | $29.70 | (23)% | $26.08 | (12)% |
| Offshore workover expense ($MM) | $**—** | $0.1 | (100)% | $— | —% |
| Depreciation, depletion and amortization ($MM) | $**28.3** | $33.1 | (15)% | $30.3 | (7)% |
| Depreciation, depletion and amortization ($/BOE) | $**16.02** | $18.78 | (15)% | $17.65 | (9)% |
| General and administrative expense, excluding stock-based compensation ($MM) | $**7.1** | $6.6 | 8% | $7.8 | (9)% |
| General and administrative expense, excluding stock-based compensation ($/BOE) | $**4.04** | $3.80 | 6% | $4.51 | (11)% |
| Stock-based compensation expense ($MM) | $**1.4** | $0.9 | 57% | $1.4 | —% |
| Current income tax expense (benefit) ($MM) | $**12.8** | $13.3 | (4)% | $17.7 | (28)% |
| Deferred income tax expense (benefit) ($MM) | $**(5.8)** | $(4.0) | 45% | $(1.6) | 262% |

---

Total production expense (excluding offshore workovers and stock compensation) of $40.3 million in Q2 2025 decreased by 10% compared to Q1 2025 and 23% compared to Q2 2024. The decrease in Q2 2025 compared to Q1 2025 and Q2 2024 was driven by a reduction in production expenses in the Côte d'Ivoire segment.

DD&A expense for Q2 2025 was $28.3 million, which was 7% lower than $30.3 million in Q1 2025 and 15% lower than $33.1 million in Q2 2024. The decrease in Q2 2025 DD&A expense compared to Q1 2025 and Q2 2024 is due primarily to a reduction in DD&A expenses in the Côte d'Ivoire segment.

General and administrative ("G&A") expense, excluding stock-based compensation, decreased to $7.1 million in Q2 2025 from $7.8 million in Q1 2025 due to lower salaries and wages, IT expense and other expenses and increased from $6.6 million in Q2 2024. The increase in G&A expenses compared to Q2 2024 was primarily due to higher professional service fees, salaries and wages, and accounting and legal fees. Q2 2025 cash G&A was within the Company's guidance.

Non-cash stock-based compensation expense was $1.4 million for Q2 2025 flat compared to Q1 2025 and higher compared to $0.9 million for Q2 2024.

Exploration expense was $2.5 million for Q2 2025 which was attributable to the purchase of seismic data to be used in Block 705 in Cote d'Ivoire. There were no exploration costs incurred in Q1 2025 or Q2 2024.

Other income (expense), net, was an expense of $1.8 million for Q2 2025, compared to an expense of $2.4 million for Q1 2025 and income of $17.1 million during Q2 2024. Other income (expense), net, normally consists of foreign currency losses and interest expense, net. In Q2 2024, there was a $19.9 million bargain purchase gain associated with the Svenska acquisition offset by $3.1 million in transaction costs related to the Svenska acquisition.

Income tax expense (benefit) was an expense for Q2 2025 of $7.0 million which includes a $3.1 million favorable oil price adjustment as a result of the change in value of the government of Gabon's allocation of Profit Oil between the time it was produced and the time it was taken in-kind. After excluding this impact, income taxes were $10.1 million for the period. Income tax expense for Q2 2024 was an expense of $9.3 million. This expense is comprised of current tax expense of $10.4 million including a $1.1 million favorable oil price adjustment as a result of the change in value of the government of Gabon's allocation of Profit Oil between the time it was produced and the time it was taken in-kind. After excluding this impact, current income taxes were $10.4 million for the period.

Taxes paid by jurisdiction are as follows:

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| (in thousands) | **Gabon** | **Egypt** | **Canada** | **Equatorial Guinea** | **Cote d'Ivoire** | **Corporate and Other** | **Total** |
| **Cash/In Kind Taxes Paid:** |  |  |  |  |  |  |  |
| **Three months ended June 30, 2025** | $**35288** | **13587** | **—** | **—** | $**951** | **—** | $**49826** |

---

------

**Financial Update - First Six Months of 2025**

WI Sales for the first six months of 2025 increased to 4,358 MBOE compared to 4,134 MBOE in the first six months of 2024. The increase was driven primarily by timing, number and size of crude oil liftings in each quarter and do not always coincide with volumes produced in any given period.

The average realized crude oil price for the first six months of 2025 was $65.62 per barrel, representing a decrease of 12% from $74.75 realized in the first six months of 2024. This decrease in crude oil price reflects the softening of commodity prices over the past year.

The Company reported net income for the first six months of 2025 of $16.1 million, which compares to $35.8 million for the first six months of 2024. The decrease in net income for the six months ended June 30, 2025 compared to the same period in 2024 was primarily due to the bargain purchase gain related to the Svenska acquisition completed in April 2024, along with lower realized pricing in 2025.

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| *Year to Date Summary - Sales and Net Revenue* | *Year to Date Summary - Sales and Net Revenue* | *Year to Date Summary - Sales and Net Revenue* | *Year to Date Summary - Sales and Net Revenue* | *Year to Date Summary - Sales and Net Revenue* |  |  |  |  |  |  |
| **$ in thousands** | **Six Months Ended June 30, 2025** | **Six Months Ended June 30, 2025** | **Six Months Ended June 30, 2025** | **Six Months Ended June 30, 2025** | **Six Months Ended June 30, 2025** | **Six Months Ended June 30, 2024** | **Six Months Ended June 30, 2024** | **Six Months Ended June 30, 2024** | **Six Months Ended June 30, 2024** | **Six Months Ended June 30, 2024** |
|  | Gabon | Egypt | Canada | Côte d'Ivoire | **Total** | Gabon | Egypt | Canada | Côte d'Ivoire | **Total** |
| Oil Sales | $**127828** | $**112844** | $**9076** | $**18396** | $**268144** | $127115 | $128506 | $13700 | $17240 | $286561 |
| NGL Sales | **—** | **—** | **3106** |  | **3106** |  |  | 3898 |  | 3898 |
| Gas Sales | **—** | **—** | **1208** |  | **1208** |  |  | 1205 |  | 1205 |
| Gross Sales | **127828** | **112844** | **13390** | **18396** | **272458** | 127115 | 128506 | 18803 | 17240 | 291664 |
| Selling Costs & Carried Interest | **65** | **(328)** | **(473)** | **—** | **(736)** | 1174 | (228) | (461) |  | 485 |
| Royalties & Taxes | **(17139)** | **(45339)** | **(2022)** | **—** | **(64500)** | (17111) | (55836) | (2269) |  | (75216) |
| Net Revenue | $**110754** | $**67177** | $**10895** | $**18396** | $**207222** | $111178 | $72442 | $16073 | $17240 | $216933 |
| Oil Sales MMB (working interest) | **1791** | **1915** | **143** | **238** | **4087** | 1528 | 1903 | 191 | 211 | 3833 |
| Average Oil Price Received | $**71.37** | $**58.76** | $**63.68** | $**77.36** | $**65.62** | $83.17 | $67.52 | $71.70 | 81.70 | $74.75 |
| *Change* |  |  |  |  | **(12)%** |  |  |  |  |  |
| Average Brent Price |  |  |  |  | $**72.03** |  |  |  |  | $83.83 |
| *Change* |  |  |  |  | **(14)%** |  |  |  |  |  |
| Gas Sales MMCF (working interest) | **—** | **—** | **861** | **—** | **861** |  |  | 892 |  | 892 |
| Average Gas Price Received | **—** | **—** | $**1.40** | **—** | $**1.40** |  |  | $1.35 |  | $1.35 |
| *Change* |  |  |  |  | **4%** |  |  |  |  |  |
| Average Aeco Price ($USD) | **—** | **—** | $**1.39** | **—** | $**1.39** |  |  | $1.15 |  | $1.15 |
| *Change* |  |  |  |  | **21%** |  |  |  |  |  |
| NGL Sales MMB (working interest) | **—** | **—** | **128** | **—** | **128** |  |  | 152 |  | 152 |
| Average Liquids Price Received | **—** | **—** | $**24.17** | **—** | $**24.17** |  |  | $25.63 |  | $25.63 |
| *Change* |  |  |  |  | **(6)%** |  |  |  |  |  |

---

------

**Capital Investments/Balance Sheet**

For the second quarter of 2025, net capital expenditures totaled $45.9 million on a cash basis and $40.9 million on an accrual basis. These expenditures were primarily related to project costs and long-lead items for Gabon, Egypt and Côte d'Ivoire and the development drilling program in Egypt.

On June 30, 2025, Vaalco had an unrestricted cash balance of $67.9 million. During July 2025, the Company received cash payments of current receivables totaling approximately $24.0 million, primarily related to collection of approximately $19.0 million receivable for the lifting that occurred in Gabon in late June and approximately $5.0 million received from EGPC. Working capital at June 30, 2025 was $62.8 million compared with $56.2 million at December 31, 2024, while Adjusted Working Capital at June 30, 2025 totaled $79.9 million.

In March 2025, Vaalco entered into a new reserves based revolving credit facility (the "new facility") with an initial commitment of $190 million and the ability to grow to $300 million, led by The Standard Bank of South Africa Limited, Isle of Man Branch with other participating banks and financial partners. The new facility, which is subject to customary administrative conditional precedents, replaces the Company's previously undrawn revolving credit facility. The Company arranged the new facility primarily to provide short-term funding that may be needed from time-to-time to supplement its internally generated cash flow and cash balance as it executes its planned investment programs across its diversified asset base over the next few years. As of June 30, 2025, the Company had $60.0 million outstanding borrowings.

**Quarterly Cash Dividend**

Vaalco paid a quarterly cash dividend of $0.0625 per share of common stock for the second quarter of 2025 on June 27, 2025. The Company also recently announced its next quarterly cash dividend of $0.0625 per share of common stock for the third quarter of 2025 ($0.25 annualized), to be paid on September 19, 2025 to stockholders of record at the close of business on August 22, 2025. Future declarations of quarterly dividends and the establishment of future record and payment dates are subject to approval by the Vaalco Board of Directors.

**Hedging**

The Company continued to hedge a portion of its expected future production to lock in strong cash flow generation to assist in funding its capital and shareholder return programs.

The following includes hedges remaining in place as of the end of the second quarter of 2025:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | | **Settlement Period** | **Settlement Period** | **Settlement Period** | **Settlement Period** |
|<br>**Instrument** |<br>**Index** | **July 2025 to September 2025** | **October 2025 to December 2025** | **January 2026 to March 2026** | **April 2026 to June 2026** |
| **Crude oil:** | | | | | |
| *Swaps* | Dated Brent |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Total volumes (Bbls) |  | 100000 |  |  |  |
| &nbsp;&nbsp;&nbsp;Weighted average fixed price ($/Bbl) |  | $65.45 | $— | $— | $— |
| *Collars* | Dated Brent |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Total volumes (Bbls) |  | 405000 | 480000 | 400000 | 360000 |
| &nbsp;&nbsp;&nbsp;Weighted average floor price ($/Bbl) |  | $63.02 | $60.83 | $62.29 | $61.88 |
| &nbsp;&nbsp;&nbsp;Weighted average ceiling price ($/Bbl) |  | $74.36 | $67.81 | $68.63 | $67.95 |
| **Natural Gas:** |  |  |  |  |  |
| *Swaps* | AECO 7A |  |  |  |  |
| &nbsp;&nbsp;Total volumes (GJs)<sup>(a)</sup> |  | 342000 | 114000 |  |  |
| &nbsp;&nbsp;&nbsp;Weighted average fixed price (CAD/GJ) |  | $2.15 | $2.15 | $— | $— |

---

(a) One gigajoule (GJ) equals one billion joules (J). A gigajoule of natural gas is approximately 25.5 cubic meters standard conditions.

------

The table below presents commodity swaps entered into subsequent to June 30, 2025.

---

| | | | | |
|:---|:---|:---|:---|:---|
| | | **Settlement Period** | **Settlement Period** | **Settlement Period** |
|<br>**Instrument** |<br>**Index** | **October 2025 to December 2025** | **January 2026 to March 2026** | **July 2026** |
| **Crude oil:** | | | | |
| *Collars* | Dated Brent |  |  |  |
| &nbsp;&nbsp;&nbsp;Total volumes (Bbls) |  |  |  | 75000 |
| &nbsp;&nbsp;&nbsp;Weighted average floor price ($/Bbl) |  | $— | $— | $65.00 |
| &nbsp;&nbsp;&nbsp;Weighted average ceiling price ($/Bbl) |  | $— | $— | $71.00 |
| **Natural Gas:** |  |  |  |  |
| *Swaps* | AECO 7A |  |  |  |
| &nbsp;&nbsp;Total volumes (GJs)<sup>(a)</sup> |  | 100000 | 150000 |  |
| &nbsp;&nbsp;&nbsp;Weighted average fixed price (CAD/GJ) |  | $2.86 | $2.86 | $— |

---

**2025 Guidance:** 

The Company has provided third quarter 2025 guidance and full year 2025 guidance. All of the quarterly and annual guidance is detailed in the tables below.

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | | **FY 2025** | **Gabon** | **Egypt** | **Canada** | **Côte d'Ivoire** |
| Production (BOEPD) | WI | 19250 - 22310 | 7000 - 8300 | 9750 - 11100 | 2200 - 2600 | 300 - 310 |
| Production (BOEPD) | NRI | 14500 - 16710 | 6200 - 7100 | 6200 - 7200 | 1800 - 2100 | 300 - 310 |
| Sales Volume (BOEPD) | WI | 19850 - 22700 | 7300 - 8300 | 9750 - 11100 | 2200 - 2600 | 600 - 700 |
| Sales Volume (BOEPD) | NRI | 14900 - 17200 | 6300 - 7200 | 6200 - 7200 | 1800 - 2100 | 600 - 700 |
| Production Expense (millions) | WI & NRI | $148.5 - $161.5 MM |  |  |  |  |
| Production Expense per BOE | WI | $18.00 - $21.50 |  |  |  |  |
| Production Expense per BOE | NRI | $24.00 - $28.00 |  |  |  |  |
| Offshore Workovers (millions) | WI & NRI | $0 - $10 MM |  |  |  |  |
| Cash G&A (millions) | WI & NRI | $25.0 - $31.0 MM |  |  |  |  |
| CAPEX Excluding Acquisitions (millions) | WI & NRI | $250 - $300 MM |  |  |  |  |
| DD&A ($/BOE) | NRI | $16.00 - $20.00 |  |  |  |  |

---

------

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | | **Q3 2025** | **Gabon** | **Egypt** | **Canada** | **Côte d'Ivoire** |
| Production (BOEPD) | WI | 18900 - 20800 | 6400 - 7100 | 10500 - 11500 | 2000 - 2200 |  |
| Production (BOEPD) | NRI | 14400 - 15600 | 5600 - 6100 | 7200 - 7800 | 1600 - 1700 |  |
| Sales Volume (BOEPD) | WI | 16000 - 17900 | 3500 - 4200 | 10500 - 11500 | 2000 - 2200 |  |
| Sales Volume (BOEPD) | NRI | 11900 - 13100 | 3100 - 3600 | 7200 - 7800 | 1600 - 1700 |  |
| Production Expense (millions) | WI & NRI | $26.5 - $35.0 MM |  |  |  |  |
| Production Expense per BOE | WI | $18.00 - $22.00 |  |  |  |  |
| Production Expense per BOE | NRI | $25.00 - $29.00 |  |  |  |  |
| Offshore Workovers (millions) | WI & NRI | $0 - $0 MM |  |  |  |  |
| Cash G&A (millions) | WI & NRI | $6.0 - $8.0 MM |  |  |  |  |
| CAPEX Excluding Acquisitions (millions) | WI & NRI | $70 - $90 MM |  |  |  |  |
| DD&A ($/BOE) | NRI | $16.00 - $20.00 |  |  |  |  |

---

**Conference Call**

As previously announced, the Company will hold a conference call to discuss its second quarter 2025 financial and operating results, Friday, August 8, 2025, at 9:00 a.m. Central Time (10:00 a.m. Eastern Time and 3:00 p.m. London Time). Interested parties may participate by dialing (833) 685-0907. Parties in the United Kingdom may participate toll-free by dialing 08082389064 and other international parties may dial (412) 317-5741. Participants should request to be joined to the "Vaalco Energy Second Quarter 2025 Conference Call." This call will also be webcast on Vaalco's website at <u>www.vaalco.com</u>. An archived audio replay will be available on Vaalco's website.

A "Q2 2025 Supplemental Information" investor deck will be posted to Vaalco's website prior to its conference call on August 8, 2025 that includes additional financial and operational information.

**About Vaalco**

Vaalco, founded in 1985 and incorporated under the laws of Delaware, is a Houston, Texas, USA based, independent energy company with a diverse portfolio of production, development and exploration assets across Gabon, Egypt, Côte d'Ivoire, Equatorial Guinea, Nigeria and Canada.

**For Further Information**

---

| | |
|:---|:---|
| **Vaalco Energy, Inc. (General and Investor Enquiries)** | +00 1 713 543 3422 |
| Website: | www.vaalco.com |
| **Al Petrie Advisors (US Investor Relations)** | +00 1 713 543 3422 |
| Al Petrie / Chris Delange |  |
| **Burson Buchanan (UK Financial PR)** | +44 (0) 207 466 5000 |
| Ben Romney / Barry Archer | VAALCO@buchanan.uk.com |

---

**Forward Looking Statements**

------

reasonable basis. All statements other than statements of historical fact may be forward-looking statements. The words "anticipate," "believe," "estimate," "expect," "intend," "forecast," "outlook," "aim," "target," "will," "could," "should," "may," "likely," "plan" and "probably" or similar words may identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking. Forward-looking statements in this press release include, but are not limited to, statements relating to (i) estimates of future drilling, production, sales and costs of acquiring crude oil, natural gas and natural gas liquids; (ii) expectations regarding Vaalco's ability to effectively integrate assets and properties it has acquired as a result of the Svenska acquisition into its operations; (iii) expectations regarding future exploration and the development, growth and potential of Vaalco's operations, project pipeline and investments, and schedule and anticipated benefits to be derived therefrom; (iv) expectations regarding future acquisitions, investments or divestitures; (v) expectations of future dividends; (vi) expectations of future balance sheet strength; and (vii) expectations of future equity and enterprise value.

Such forward-looking statements are subject to risks, uncertainties and other factors, which could cause actual results to differ materially from future results expressed, projected or implied by the forward-looking statements. These risks and uncertainties include, but are not limited to: risks relating to any unforeseen liabilities of Vaalco; the ability to generate cash flows that, along with cash on hand, will be sufficient to support operations and cash requirements; risks relating to the timing and costs of completion for scheduled maintenance of the FPSO servicing the Baobab field; and the risks described under the caption "Risk Factors" in Vaalco's most recent Annual Report on Form 10-K.

Dividends beyond the third quarter of 2025 have not yet been approved or declared by the Board of Directors for Vaalco. The declaration and payment of future dividends remains at the discretion of the Board and will be determined based on Vaalco's financial results, balance sheet strength, cash and liquidity requirements, future prospects, crude oil and natural gas prices, and other factors deemed relevant by the Board. The Board reserves all powers related to the declaration and payment of dividends. Consequently, in determining the dividend to be declared and paid on Vaalco common stock, the Board may revise or terminate the payment level at any time without prior notice.

Any forward-looking statement made by Vaalco in this press release is based only on information currently available to Vaalco and speaks only as of the date on which it is made. Except as may be required by applicable securities laws, Vaalco undertakes no obligation to publicly update any forward-looking statement, whether written or oral, that may be made from time to time, whether as a result of new information, future developments or otherwise.

**Other Oil and Gas Advisories**

Investors are cautioned when viewing BOEs in isolation. BOE conversion ratio is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. Given that the value ratio based on the current price of crude oil as compared to natural gas is significantly different from the energy equivalencies described above, utilizing such equivalencies may be incomplete as an indication of value.

**Inside Information**

This announcement contains inside information as defined in Regulation (EU) No. 596/2014 on market abuse which is part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 ("MAR") and is made in accordance with the Company's obligations under article 17 of MAR. The person responsible for arranging the release of this announcement on behalf of Vaalco is Matthew Powers, Corporate Secretary of Vaalco.

------

**VAALCO ENERGY, INC AND SUBSIDIARIES**

Condensed Consolidated Balance Sheets

*(Unaudited)*

---

| | | |
|:---|:---|:---|
| | **As of June 30, 2025** | **As of December 31, 2024** |
| | ***(in thousands)***  | ***(in thousands)***  |
| **ASSETS** | | |
| Current assets: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Cash and cash equivalents | $**67871** | $82650 |
| &nbsp;&nbsp;&nbsp;&nbsp;Receivables: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Trade, net of allowances for credit loss and other of $0.2 million and $0.2 million, respectively | **132879** | 94778 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts with joint venture owners, net of allowance for credit losses of $2.2 million and $1.5 million, respectively | **351** | 179 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Egypt receivables and other | **3991** | 35763 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other current assets | **18637** | 24557 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current assets | **223729** | 237927 |
| Crude oil, natural gas and NGLs properties and equipment, net | **587263** | 538103 |
| Other noncurrent assets: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Right of use operating lease assets | **15340** | 17254 |
| &nbsp;&nbsp;&nbsp;&nbsp;Right of use finance lease assets | **75447** | 79849 |
| &nbsp;&nbsp;&nbsp;&nbsp;Deferred tax assets | **43659** | 55581 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other long-term assets | **19484** | 26236 |
| Total assets | $**964922** | $954950 |
| **LIABILITIES AND SHAREHOLDERS' EQUITY** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Current liabilities | $**160917** | $181728 |
| &nbsp;&nbsp;&nbsp;&nbsp;Asset retirement obligations | **82798** | 78592 |
| &nbsp;&nbsp;&nbsp;&nbsp;Operating lease liabilities - net of current portion | **11903** | 13903 |
| &nbsp;&nbsp;&nbsp;&nbsp;Finance lease liabilities - net of current portion | **63162** | 67377 |
| &nbsp;&nbsp;&nbsp;&nbsp;Deferred tax liabilities | **74583** | 93904 |
| &nbsp;&nbsp;&nbsp;&nbsp;Long-term debt | **60000** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Other long-term liabilities | **—** | 17863 |
| Total liabilities | **453363** | 453367 |
| Total shareholders' equity | **511559** | 501583 |
| Total liabilities and shareholders' equity | $**964922** | $954950 |

---

------

**VAALCO ENERGY, INC AND SUBSIDIARIES**

Consolidated Statements of Operations

*(Unaudited)*

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Six Months Ended** | **Six Months Ended** |
| | **June 30, 2025** | **June 30, 2024** | **March 31, 2025** | **June 30, 2025** | **June 30, 2024** |
|  | *(in thousands except per share amounts)* | *(in thousands except per share amounts)* | *(in thousands except per share amounts)* | *(in thousands except per share amounts)* | *(in thousands except per share amounts)* |
| Revenues: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Crude oil, natural gas and natural gas liquids sales | $**96893** | $116778 | $110329 | $**207222** | $216933 |
| Operating costs and expenses: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Production expense | **40393** | 52446 | 44806 | **85198** | 84535 |
| &nbsp;&nbsp;&nbsp;Exploration expense | **2520** |  |  | **2520** | 48 |
| &nbsp;&nbsp;&nbsp;Depreciation, depletion and amortization | **28273** | 33132 | 30305 | **58578** | 58956 |
| &nbsp;&nbsp;&nbsp;General and administrative expense | **8496** | 7591 | 9051 | **17548** | 14301 |
| &nbsp;&nbsp;&nbsp;Credit losses and other | **29** | 3341 | (27) | **2** | 5153 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total operating costs and expenses | **79711** | 96510 | 84135 | **163846** | 162993 |
| &nbsp;&nbsp;&nbsp;Other operating income, net | **—** | 132 |  | **—** | (34) |
| Operating income | **17182** | 20400 | 26194 | **43376** | 53906 |
| Other income (expense): |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Derivative instruments gain (loss), net | **400** | 257 | (74) | **326** | (590) |
| &nbsp;&nbsp;&nbsp;Interest expense, net | **(2572)** | (1117) | (1295) | **(3866)** | (2052) |
| &nbsp;&nbsp;&nbsp;Bargain purchase gain | **—** | 19898 |  | **—** | 19898 |
| &nbsp;&nbsp;&nbsp;Other income (expense), net | **353** | (1984) | (1012) | **(659)** | (3784) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total other income (expense), net | **(1819)** | 17054 | (2381) | **(4199)** | 13472 |
| Income before income taxes | **15363** | 37454 | 23813 | **39177** | 67378 |
| &nbsp;&nbsp;&nbsp;Income tax expense | **6983** | 9303 | 16083 | **23066** | 31541 |
| Net income | $**8380** | $28151 | $7730 | $**16111** | $35837 |
| Other comprehensive income (loss): |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Currency translation adjustments | **4759** | (1068) | 117 | **4876** | (3522) |
| Comprehensive income | $**13139** | $27083 | $7847 | $**20987** | $32315 |
| Basic net income per share: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Net income per share | $**0.08** | $0.27 | $0.07 | $**0.15** | $0.34 |
| &nbsp;&nbsp;&nbsp;Basic weighted average shares outstanding | **103936** | 103528 | 103758 | **103848** | 103594 |
| Diluted net income per share: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Net income per share | $**0.08** | $0.27 | $0.07 | $**0.15** | $0.34 |
| &nbsp;&nbsp;&nbsp;Diluted weighted average shares outstanding | **103958** | 103676 | 103785 | **103872** | 103677 |

---

------

**VAALCO ENERGY, INC AND SUBSIDIARIES**

Condensed Consolidated Statements of Cash Flows

*(Unaudited)*

---

| | | |
|:---|:---|:---|
| | **Six Months Ended June 30,** | **Six Months Ended June 30,** |
| | **2025** | **2024** |
|  | ***(in thousands)*** | ***(in thousands)*** |
| CASH FLOWS FROM OPERATING ACTIVITIES: |  |  |
| Net income | $**16111** | $35837 |
| Adjustments to reconcile net income to net cash provided by operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Depreciation, depletion and amortization | **58578** | 58956 |
| &nbsp;&nbsp;&nbsp;&nbsp;Bargain purchase gain | **—** | (19898) |
| &nbsp;&nbsp;&nbsp;&nbsp;Amortization of deferred financing costs | **461** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Deferred taxes | **(7399)** | (7407) |
| &nbsp;&nbsp;&nbsp;&nbsp;Unrealized foreign exchange (gain) loss | **305** | (196) |
| &nbsp;&nbsp;&nbsp;&nbsp;Stock-based compensation expense | **2976** | 1883 |
| &nbsp;&nbsp;&nbsp;&nbsp;Cash settlements paid on exercised stock appreciation rights | **—** | (154) |
| &nbsp;&nbsp;&nbsp;&nbsp;Derivative instruments (gain) loss, net | **(326)** | 590 |
| &nbsp;&nbsp;&nbsp;&nbsp;Cash settlements paid on matured derivative contracts, net | **214** | (33) |
| &nbsp;&nbsp;&nbsp;&nbsp;Credit losses and other | **2** | 5508 |
| &nbsp;&nbsp;&nbsp;&nbsp;Equipment and other expensed in operations | **2448** | 1029 |
| &nbsp;&nbsp;&nbsp;&nbsp;Change in operating assets and liabilities | **(22321)** | (54721) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash provided by operating activities | **51049** | 21394 |
| CASH FLOWS FROM INVESTING ACTIVITIES: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Property and equipment expenditures | **(104426)** | (49099) |
| &nbsp;&nbsp;&nbsp;&nbsp;Acquisition of crude oil and natural gas properties | **(3034)** |  |
| &nbsp;&nbsp;&nbsp;Cash acquired in business combination, net of cash paid | **—** | 412 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash used in investing activities | **(107460)** | (48687) |
| CASH FLOWS FROM FINANCING ACTIVITIES: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Proceeds from the issuances of common stock | **—** | 447 |
| &nbsp;&nbsp;&nbsp;&nbsp;Proceeds from borrowings | **60000** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Dividend distribution | **(13127)** | (13042) |
| &nbsp;&nbsp;&nbsp;&nbsp;Treasury shares | **(709)** | (6802) |
| &nbsp;&nbsp;&nbsp;&nbsp;Deferred financing costs | **(6910)** | (1) |
| &nbsp;&nbsp;&nbsp;&nbsp;Payments of finance lease | **(6332)** | (4169) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash provided by (used in) in financing activities | **32922** | (23567) |
| Effects of exchange rate changes on cash | **96** | (233) |
| NET CHANGE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH | **(23393)** | (51093) |
| CASH, CASH EQUIVALENTS AND RESTRICTED CASH AT BEGINNING OF PERIOD | **97726** | 129178 |
| CASH, CASH EQUIVALENTS AND RESTRICTED CASH AT END OF PERIOD | $**74333** | $78085 |

---

------

VAALCO ENERGY, INC AND SUBSIDIARIES

Selected Financial and Operating Statistics

*(Unaudited)*

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Six Months Ended** | **Six Months Ended** |
| | **June 30, 2025** | **June 30, 2024** | **March 31, 2025** | **June 30, 2025** | **June 30, 2024** |
| **NRI SALES DATA** | | | | | |
| &nbsp;&nbsp;&nbsp;Crude oil, natural gas and natural gas liquids sales (MBOE) | **1765** | 1764 | 1717 | **3481** | 3254 |
| &nbsp;&nbsp;&nbsp;Average daily sales volumes (BOE) | **19393** | 19386 | 19074 | **19234** | 17881 |
| **WI PRODUCTION DATA** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Etame Crude oil (MBbl) | **779** | 780 | 767 | **1546** | 1599 |
| &nbsp;&nbsp;&nbsp;Gabon Average daily production volumes (BOEPD) | **8563** | 8566 | 8522 | **8543** | 8784 |
| &nbsp;&nbsp;&nbsp;Egypt Crude oil (MBbl) | **995** | 953 | 920 | **1915** | 1903 |
| &nbsp;&nbsp;&nbsp;Egypt Average daily production volumes (BOEPD) | **10929** | 10474 | 10225 | **10579** | 10457 |
| &nbsp;&nbsp;&nbsp;Canada Crude Oil (MBbl) | **62** | 130 | 80 | **143** | 191 |
| &nbsp;&nbsp;&nbsp;Canada Natural Gas (MMcf) | **448** | 423 | 413 | **861** | 892 |
| &nbsp;&nbsp;&nbsp;Canada Natural Gas Liquid (MBOE) | **60** | 76 | 69 | **128** | 152 |
| &nbsp;&nbsp;&nbsp;Canada Crude oil, natural gas and natural gas liquids (MBOE) | **197** | 277 | 218 | **414** | 492 |
| &nbsp;&nbsp;&nbsp;Canada Average daily production volumes (BOEPD) | **2162** | 3041 | 2420 | **2290** | 2702 |
| &nbsp;&nbsp;&nbsp;Côte d'Ivoire Crude oil (MBbl) | **—** | 303 | 111 | **111** | 303 |
| &nbsp;&nbsp;&nbsp;Côte d'Ivoire Average daily production volumes (BOEPD) | **—** | 3329 | 1235 | **614** | 1664 |
| Total Crude oil, natural gas and natural gas liquids production (MBOE) | **1971** | 2313 | 2016 | **3987** | 4297 |
| Average daily production volumes (BOEPD) | **21654** | 25411 | 22402 | **22026** | 23607 |
| **NRI PRODUCTION DATA** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Etame Crude oil (MBbl) | **678** | 678 | 667 | **1345** | 1391 |
| &nbsp;&nbsp;&nbsp;Gabon Average daily production volumes (BOEPD) | **7450** | 7451 | 7414 | **7432** | 7642 |
| &nbsp;&nbsp;&nbsp;Egypt Crude oil (MBbl) | **693** | 643 | 642 | **1334** | 1284 |
| &nbsp;&nbsp;&nbsp;Egypt Average daily production volumes (BOEPD) | **7612** | 7066 | 7131 | **7373** | 7053 |
| &nbsp;&nbsp;&nbsp;Canada Crude Oil (MBbl) | **54** | 117 | 66 | **120** | 169 |
| &nbsp;&nbsp;&nbsp;Canada Natural Gas (MMcf) | **393** | 381 | 338 | **731** | 787 |
| &nbsp;&nbsp;&nbsp;Canada Natural Gas Liquid (MBOE) | **53** | 69 | 56 | **108** | 134 |
| &nbsp;&nbsp;&nbsp;Canada Crude oil, natural gas and natural gas liquids (MBOE) | **172** | 250 | 179 | **351** | 429 |
| &nbsp;&nbsp;&nbsp;Canada Average daily production volumes (BOEPD) | **1894** | 2742 | 1984 | **1939** | 2356 |
| &nbsp;&nbsp;&nbsp;Côte d'Ivoire Crude oil (MBbl) | **—** | 303 | 111 | **111** | 303 |
| &nbsp;&nbsp;&nbsp;Côte d'Ivoire Average daily production volumes (BOEPD) | **—** | 3329 | 1235 | **614** | 1664 |
| Total Crude oil, natural gas and natural gas liquids production (MBOE) | **1543** | 1874 | 1599 | **3142** | 3406 |
| Average daily production volumes (BOEPD) | **16956** | 20588 | 17764 | **17358** | 18716 |

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **AVERAGE SALES PRICES:** | | | | | |
| Crude oil, natural gas and natural gas liquids sales (per BOE) - WI basis | $**57.83** | $70.92 | $67.03 | $**62.33** | $70.31 |
| Crude oil, natural gas and natural gas liquids sales (per BOE) - NRI basis | $**54.87** | $66.05 | $64.27 | $**59.50** | $66.22 |
| Crude oil, natural gas and natural gas liquids sales (Per BOE including realized commodity derivatives) - NRI basis | $**54.92** | $66.03 | $64.34 | $**59.57** | $66.21 |
| **COSTS AND EXPENSES (Per BOE of sales):** |  |  |  |  |  |
| Production expense | **22.89** | $29.74 | $26.10 | $**24.47** | $25.98 |
| Production expense, excluding offshore workovers and stock compensation\* | **22.85** | $29.68 | $26.05 | $**24.43** | $25.96 |
| Depreciation, depletion and amortization | **16.02** | $18.78 | $17.65 | $**16.83** | $18.12 |
| General and administrative expense\*\* | **4.81** | $4.30 | $5.27 | $**5.04** | $4.41 |
| Property and equipment expenditures, cash basis (in thousands) | $**45899** | $32481 | $58527 | $**104426** | $49099 |

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\*Offshore workover costs excluded for Q2 2025, Q2 2024, and Q1 2025 are $0.0 million, $0.1 million and $0.0 million, respectively.

\*Stock compensation associated with production expense excluded for Q2 2025, Q2 2024, and Q1 2025 are immaterial.

\*\*General and administrative expenses include $0.78, $0.51 and $0.76 per barrel of oil related to stock-based compensation expense for Q2 2025, Q2 2024, and Q1 2025, respectively.

NON-GAAP FINANCIAL MEASURES

Management uses Adjusted Net Income to evaluate operating and financial performance and believes the measure is useful to investors because it eliminates the impact of certain non-cash and/or other items that management does not consider to be indicative of the Company's performance from period to period. Management also believes this non-GAAP measure is useful to investors to evaluate and compare the Company's operating and financial performance across periods, as well as to facilitate comparisons to others in the Company's industry. Adjusted Net Income is a non-GAAP financial measure and as used herein represents net income, plus deferred income tax expense (benefit), unrealized derivative instrument loss (gain), bargain purchase gain on the Svenska Acquisition, FPSO demobilization, transaction costs related to the Svenska acquisition and non-cash and other items.

Adjusted EBITDAX is a supplemental non-GAAP financial measure used by Vaalco's management and by external users of the Company's financial statements, such as industry analysts, lenders, rating agencies, investors and others who follow the industry. Management believes the measure is useful to investors because it is as an indicator of the Company's ability to internally fund exploration and development activities and to service or incur additional debt. Adjusted EBITDAX is a non-GAAP financial measure and as used herein represents net income, plus interest expense (income) net, income tax expense (benefit), depreciation, depletion and amortization, exploration expense, FPSO demobilization, non-cash and other items including stock compensation expense, bargain purchase gain on the Svenska Acquisition, other operating (income) expense, net, non-cash purchase price adjustment, transaction costs related to acquisition, credit losses and other and unrealized derivative instrument loss (gain).

Management uses Adjusted Working Capital as a transition tool to assess the working capital position of the Company's continuing operations excluding leasing obligations because it eliminates the impact of discontinued operations as well as the impact of lease liabilities. Under the applicable lease accounting standards, lease liabilities related to assets used in joint operations include both the Company's share of expenditures as well as the share of lease expenditures which its non-operator joint venture owners' will be obligated to pay under joint operating agreements. Adjusted Working Capital is a non-GAAP financial measure and as used herein represents working capital excluding working capital attributable to discontinued operations and current liabilities associated with lease obligations.

Management uses Free Cash Flow to evaluate financial performance and to determine the total amount of cash over a specified period available to be used in connection with returning cash to shareholders, and believes the measure is useful to investors because it provides the total amount of net cash available for returning cash to shareholders by adding cash generated from operating activities, subtracting amounts used in financing and investing activities, effects of exchange rate changes on cash and adding back amounts used for dividend payments and stock repurchases. Free Cash Flow is a non-GAAP financial measure and as used herein represents net change in cash, cash equivalents and restricted cash and adds the amounts paid under dividend distributions and share repurchases over a specified period.

Free Cash Flow has significant limitations, including that it does not represent residual cash flows available for discretionary purposes and should not be used as a substitute for cash flow measures prepared in accordance with GAAP. Free Cash Flow should not be considered as a substitute for cashflows from operating activities before discontinued operations or any other liquidity measure

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presented in accordance with GAAP. Free Cash Flow may vary among other companies. Therefore, the Company's Free Cash Flow may not be comparable to similarly titled measures used by other companies.

Adjusted EBITDAX and Adjusted Net Income have significant limitations, including that they do not reflect the Company's cash requirements for capital expenditures, contractual commitments, working capital or debt service. Adjusted EBITDAX, Adjusted Net Income, Adjusted Working Capital and Free Cash Flow should not be considered as substitutes for net income (loss), operating income (loss), cash flows from operating activities or any other measure of financial performance or liquidity presented in accordance with GAAP. Adjusted EBITDAX and Adjusted Net Income exclude some, but not all, items that affect net income (loss) and operating income (loss), and the calculation of these measures may vary among other companies. Therefore, the Company's Adjusted EBITDAX, Adjusted Net Income, Adjusted Working Capital and Free Cash Flow may not be comparable to similarly titled measures used by other companies.

The tables below reconcile the most directly comparable GAAP financial measures to Adjusted Net Income, Adjusted EBITDAX, Adjusted Working Capital and Free Cash Flow.

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VAALCO ENERGY, INC AND SUBSIDIARIES

Reconciliations of Non-GAAP Financial Measures

*(Unaudited)*

*(in thousands)*

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Six Months Ended** | **Six Months Ended** |
| **Reconciliation of Net Income to Adjusted Net Income** | **June 30, 2025** | **June 30, 2024** | **March 31, 2025** | **June 30, 2025** | **June 30, 2024** |
| Net income | $**8380** | $28151 | $7730 | $**16111** | $35837 |
| Adjustment for discrete items: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Unrealized derivative instruments loss (gain) | **(309)** | (266) | 198 | **(111)** | 557 |
| &nbsp;&nbsp;&nbsp;Bargain purchase gain | **—** | (19898) |  | **—** | (19898) |
| &nbsp;&nbsp;&nbsp;Deferred income tax expense (benefit) | **(5788)** | (2021) | (1610) | **(7398)** | (5462) |
| Non-cash purchase price adjustment | **—** | 14981 |  | **—** | 14981 |
| Transaction costs related to acquisition | **34** | 1762 | 22 | **56** | 3075 |
| Other operating (income) expense, net | **—** | (132) |  | **—** |  |
| Adjusted Net Income | $**2317** | $22577 | $6340 | $**8658** | $29090 |
| Diluted Adjusted Net Income per Share | $**0.02** | $0.22 | $0.06 | $**0.08** | $0.28 |
| Diluted weighted average shares outstanding <sup>(1)</sup> | **103958** | 103676 | 103785 | **103872** | 103677 |

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<sup>(1)</sup> No adjustments to weighted average shares outstanding

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Six Months Ended** | **Six Months Ended** |
| **Reconciliation of Net Income to Adjusted EBITDAX** | **June 30, 2025** | **June 30, 2024** | **March 31, 2025** | **June 30, 2025** | **June 30, 2024** |
| Net income | $**8380** | $28151 | $7730 | **16111** | 35837 |
| Add back: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Interest expense, net | **2572** | 1117 | 1295 | **3866** | 2052 |
| &nbsp;&nbsp;&nbsp;Income tax expense | **6983** | 9303 | 16083 | **23066** | 31541 |
| &nbsp;&nbsp;&nbsp;Depreciation, depletion and amortization | **28273** | 33132 | 30305 | **58578** | 58956 |
| &nbsp;&nbsp;&nbsp;Exploration expense | **2520** |  |  | **2520** | 48 |
| Non-cash or unusual items: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Stock-based compensation | **1411** | 984 | 1352 | **2763** | 1883 |
| &nbsp;&nbsp;&nbsp;Unrealized derivative instruments loss | **(309)** | (266) | 198 | **(111)** | 557 |
| &nbsp;&nbsp;&nbsp;Bargain purchase gain | **—** | (19898) |  | **—** | (19898) |
| &nbsp;&nbsp;&nbsp;Other operating (income) expense, net | **—** | (132) |  | **—** | 34 |
| &nbsp;&nbsp;&nbsp;Non-cash purchase price adjustment | **—** | 14981 |  | **—** | 14981 |
| &nbsp;&nbsp;&nbsp;Transaction costs related to acquisition | **34** | 1762 | 22 | **56** | 3075 |
| &nbsp;&nbsp;&nbsp;Credit losses and other | **29** | 3341 | (27) | **2** | 5153 |
| Adjusted EBITDAX | $**49893** | $72475 | $56958 | $**106851** | $134219 |

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VAALCO ENERGY, INC AND SUBSIDIARIES

Reconciliations of Non-GAAP Financial Measures

*(Unaudited)*

*(in thousands)*

---

| | | | |
|:---|:---|:---|:---|
| **Reconciliation of Working Capital to Adjusted Working Capital** | **June 30, 2025** | **December 31, 2024** | **Change** |
| &nbsp;&nbsp;Current assets | $**223729** | $237927 | $(14198) |
| &nbsp;&nbsp;Current liabilities | **(160917)** | (181728) | 20811 |
| **Working capital** | **62812** | 56199 | 6613 |
| &nbsp;&nbsp;Add: lease liabilities - current portion | **17072** | 16895 | 177 |
| **Adjusted Working Capital** | $**79884** | $73094 | $6790 |

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| | |
|:---|:---|
| | **Six Months Ended June 30, 2025** |
| **Reconciliation of Free Cash Flow** | *(in thousands)* |
| &nbsp;&nbsp;Net cash provided by Operating activities | $**51049** |
| &nbsp;&nbsp;Net cash used in Investing activities | **(107460)** |
| &nbsp;&nbsp;Net cash provided by Financing activities | **32922** |
| &nbsp;&nbsp;Effects of exchange rate changes on cash | **96** |
| **Total net cash change** | **(23393)** |
| Add back shareholder cash out: |  |
| &nbsp;&nbsp;Dividends paid | **13127** |
| **Total cash returned to shareholders** | **13127** |
| **Free Cash Flow** | $**(10266)** |

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