NYSE$EGY

VAALCO Energy Inc · Q4 2020 earnings

Q4 2020 earnings · · Investor relations

Briefing

Reported operational and financial results with increased production and strategic acquisition.

VAALCO Energy reported a net loss of $3.6 million for Q4 2020, impacted by exploration expenses and a delayed lifting, though production increased due to new development wells. The company closed the Sasol acquisition, nearly doubling net production and reserves, and is planning a new drilling campaign.

  • Closed the acquisition of Sasol's working interest in the Etame field, nearly doubling VAALCO's net production and reserves.
  • Q4 2020 net production averaged 4,662 NRI BOPD.
  • Reported a net loss of $3.6 million ($0.06 per diluted share) and Adjusted EBITDAX of $3.5 million for Q4 2020.
  • Maintained a strong balance sheet with $47.9 million in cash and no debt as of December 31, 2020.

Headline financials

Total Revenue

$12.6M

Previous: $21.9M-42.7%
EPS (adj)

-$0.10

Previous: $0.09-211.1%
Net Income

-$3.6M

Previous: $1.01M-454.5%
Operating Income

-$4.29M

Previous: $7.78M-155.2%
Gross Profit

$4.84M

Previous: $10M-51.6%
Cash & Equivalents

$47.9M

Previous: $45.9M+4.2%
Total Assets

$141M

Previous: $212M-33.2%
Stock-Based Comp

$2.21M

Previous: $736K+200.4%

Revenue & EPS history

VAALCO · Revenue · Quarterly

$12.6M

Q4 2020-42.7%vs Q4 2019
Beat estimate in 1 of 7 quarters(14%)
ActualEstimate

Forward guidance

VAALCO anticipates increased production and sales volumes in 2021, driven by the Sasol acquisition, but also forecasts higher production expenses. The company is planning a drilling campaign and evaluating alternatives for its FPSO contract.

Tailwinds

  • Full year 2021 NRI production is estimated to be between 6,800 and 7,400 BOPD.
  • Sales NRI volumes for 2021 are estimated to average 7,100 to 7,800 BOPD.
  • VAALCO closed acquisition of Sasol’s interest in Etame field
  • VAALCO is planning for the commencement of the next drilling campaign at Etame in late 2021 or early 2022.
  • VAALCO estimates its net capital expenditures, excluding the 2021 drilling campaign and seismic, to total $3.0 million to $6.0 million.

Headwinds

  • All of VAALCO’s production estimates for 2021 include an estimated 15% annual natural decline in production.
  • VAALCO’s production expense guidance (excluding workovers) for full year 2021 is expected to be between $69 million and $77 million.
  • VAALCO expects net capital expenditures, excluding any costs associated with the planned 2021 drilling campaign and seismic, to be in the range of $2.0 million to $3.0 million for Q1 2021.
  • VAALCO is currently considering several alternatives regarding the leased FPSO for which the contract will expire in September 2022.
  • VAALCO expects to continue to take proactive steps to manage any disruption in its business caused by COVID-19

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 Q4 2020

Historical avgQ4 2020

-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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