NYSE$EGY

VAALCO Energy Inc · Q1 2022 earnings

Q1 2022 earnings · · Investor relations

Briefing

Reported net income of $12.2 million, or $0.20 per diluted share.

VAALCO Energy reported strong Q1 2022 results, including a net income of $12.2 million, driven by increased production and higher realized pricing. The company is progressing with its drilling campaign and FSO conversion, and remains focused on maximizing shareholder returns.

  • Reported Q1 2022 net income of $12.2 million ($0.20 per diluted share) and Adjusted Net Income of $21.1 million ($0.36 per diluted share).
  • Increased Adjusted EBITDAX by 49% quarter-over-quarter to $33.5 million in Q1 2022.
  • Increased Q1 2022 production by 7% to 8,051 net revenue interest barrels of crude oil per day compared to Q4 2021.
  • Funded $23.1 million cash capital expenditures during Q1 2022 with cash on hand and cash from operations.

Headline financials

Total Revenue

$68.7M

Previous: $39.8M+72.6%
EPS (adj)

$0.36

Previous: $0.15+140.0%
Capital Expenditures

-$41M

Previous: -$19.1M-115.2%
Free Cash Flow

-$28.8M

Previous: -$9.19M-213.9%
Net Income

$12.2M

Previous: $9.87M+23.3%
Operating Income

$40M

Previous: $14.3M+178.9%
Gross Profit

$68.7M

Previous: $39.8M+72.6%
Cash & Equivalents

$18.9M

Previous: $19.3M-1.6%
Total Assets

$309M

Previous: $177M+74.2%
Stock-Based Comp

$1.42M

Previous: $1.56M-8.8%

Revenue & EPS history

VAALCO · Revenue · Quarterly

$68.7M

Q1 2022+72.6%vs Q1 2021
Beat estimate in 5 of 8 quarters(63%)
ActualEstimate

Forward guidance

Second quarter 2022 production is expected to increase, with sales also projected to rise significantly. Production expenses are anticipated to decrease, while capital expenditures are expected to increase. The company reaffirms full-year 2022 guidance.

Tailwinds

  • Second quarter 2022 production is expected to be 10,000 to 10,700 BOPD, a 29% increase at the midpoint compared to Q1 2022.
  • Second quarter 2022 sales guidance is 10,700 to 11,300 BOPD, a 61% increase at the midpoint compared to Q1 2022.
  • Production expense, excluding workovers, is expected to be $22.00 to $25.00, a decrease of 20% at the midpoint compared to Q1 2022.
  • Cash G&A expense for the second quarter is expected to be between $2.5 and $3.5 million.
  • VAALCO expects to fund its 2022 capital expenditures fully from cash on hand and cash flow from operations.

Headwinds

  • Capital expense for the second quarter 2022 is expected to be between $40.0 and $50.0 million.
  • Workover expense for the second quarter 2022 is expected to be between $0 and $2 million.
  • Operational and weather factors impacted sales volumes in Q1 2022.
  • Temporary operational issues reduced production in February.
  • The company experienced higher costs related to proactive measures taken in response to the pandemic, totaling approximately $0.9 million during the first quarter of 2022.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q1 2022

Historical avgQ1 2022

-0.6%

Avg return

Earnings day

-0.4%

Avg return

5 days after

+2.4%

Avg return

30 days after

38%

25 / 65 earnings

Positive

+41.4%

Q1 2018

Best reaction

-25.5%

Q2 2018

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+8.0%+6.4%-0.9%
Q4 2025-4.6%-0.2%+2.8%
Q3 2025-4.3%-2.5%-10.9%
Q1 2025-0.3%+3.8%+0.0%
Q4 2024+14.2%+6.3%-11.6%
Q3 2024-3.2%-6.2%-10.9%
Q2 2024+8.4%+2.8%-5.5%
Q1 2024-4.6%-2.2%-6.0%
Q4 2023+23.0%+35.2%+57.2%
Q3 2023-10.2%-7.2%+3.7%
Q2 2023+9.9%+13.1%-1.2%
Q1 2023-9.6%-13.2%-1.4%
Q4 2022-14.4%-15.6%-13.4%
Q3 2022-5.0%+3.7%-8.5%
Q2 2022+4.2%+0.6%-5.2%
Q1 2022+4.4%+1.4%+27.5%
Q4 2021-4.1%-19.6%+9.0%
Q3 2021+17.7%+21.1%-7.6%
Q2 2021-2.6%-10.7%-8.1%
Q1 2021-7.0%+3.7%+19.6%
Q4 2020-6.2%-9.5%-29.5%
Q3 2020+9.6%+26.9%+83.4%
Q2 2020-3.4%+1.7%-8.4%
Q1 2020-6.1%-3.7%+45.3%
Q4 2019-2.3%-27.7%-45.3%
Q3 2019+1.0%+0.0%+1.0%
Q2 2019+0.0%+6.5%+8.2%
Q1 2019-10.9%-25.1%-28.0%
Q4 2018-1.3%-4.3%+3.4%
Q3 2018+3.3%-7.5%-22.6%
Q2 2018-25.5%-12.3%-20.5%
Q1 2018+41.4%+36.0%+107.2%
Q4 2017-3.7%-6.3%-14.3%
Q3 2017-7.1%-3.9%-14.7%
Q2 2017-5.2%-10.0%-16.4%
Q1 2017+8.0%+15.3%-3.1%
Q4 2016-13.7%-11.6%+0.0%
Q3 2016-2.4%-1.9%+13.0%
Q2 2016+1.5%+2.9%+5.8%
Q1 2016-6.6%
Q4 2015+6.0%
Q3 2015-6.0%
Q2 2015+9.7%
Q1 2015-8.3%
Q4 2014-21.4%
Q3 2014-0.4%
Q2 2014+17.0%
Q1 2014-21.6%
Q4 2013+15.4%
Q3 2013+12.7%
Q2 2013+0.2%
Q1 2013-6.9%
Q4 2012-9.7%
Q4 2009-9.7%
Q3 2012-1.8%
Q2 2012-5.0%
Q1 2011-2.9%
Q1 2012-2.9%
Q4 2011+13.7%
Q3 2011-8.3%
Q3 2010-8.3%
Q2 2010+0.5%
Q2 2011+0.5%
Q4 2010+0.5%
Q1 2010+6.1%

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