NYSE$EGY

VAALCO Energy Inc · Q4 2021 earnings

Q4 2021 earnings · · Investor relations

Briefing

VAALCO reported strong Q4 2021 financial results driven by solid sales, higher realized pricing, and a non-cash deferred tax benefit.

VAALCO Energy, Inc. reported strong Q4 2021 net income of $34.4 million, or $0.58 per diluted share, driven by solid sales, higher realized pricing, and a $16.1 million non-cash deferred tax benefit. The company sold 709,000 barrels of oil and produced 7,554 net revenue interest barrels of crude oil per day.

  • Reported strong Q4 2021 net income of $34.4 million ($0.58 per diluted share) driven by solid sales, higher realized pricing, and a $16.1 million non-cash deferred tax benefit.
  • Sold 709,000 barrels of oil in Q4 2021 and produced 7,554 net revenue interest (“NRI”) barrels of crude oil per day.
  • Reported no debt, a strong cash balance of $48.7 million as of December 31, 2021, which did not include the proceeds from the December lifting of $22.5 million which were received in January 2022.
  • Adopted a quarterly cash dividend policy in Q4 2021 and scheduled initial payment of $0.0325 per common share on March 18, 2022 to stockholders of record at close of business on February 18, 2022.

Headline financials

Total Revenue

$56.4M

Previous: $12.6M+349.0%
EPS (adj)

$0.21

Previous: -$0.10+310.0%
Net Income

$34.4M

Previous: -$3.6M+1055.8%
Operating Income

$25.9M

Previous: -$4.29M+702.4%
Gross Profit

$28.8M

Previous: $4.84M+494.7%
Cash & Equivalents

$48.7M

Previous: $47.9M+1.7%
Total Assets

$263M

Previous: $141M+86.3%
Stock-Based Comp

$361K

Previous: $2.21M-83.7%

Revenue & EPS history

VAALCO · Revenue · Quarterly

$56.4M

Q4 2021+349%vs Q4 2020
Beat estimate in 5 of 8 quarters(63%)
ActualEstimate

Forward guidance

VAALCO has provided initial guidance for the first quarter and full year 2022.

Tailwinds

  • Production for the first quarter 2022 is expected to be between 8,000 and 8,300 NRI BOPD, or 9,200 to 9,550 WI BOPD.
  • Full year 2022 production is expected to be between 9,500 and 10,500 NRI BOPD, or 10,900 to 12,050 WI BOPD.
  • VAALCO expects to benefit from production cost savings associated with the FSO conversion in late 2022.
  • Cash G&A is expected to be between $2.5 and $3.5 million for the first quarter and $9.5 to $12.5 million for the full year 2022.
  • VAALCO expects to fund its 2022 capital expenditures fully from cash on hand and cash flow from operations.

Headwinds

  • Production expense, excluding workovers, is expected to be $17.5 to $19.0 million, or $28.00 to $31.00 per barrel of oil sales for the first quarter
  • Production expense, excluding workovers, is expected to be $73.0 to $83.0 million, or $19.50 to $22.50 per barrel of oil sales for the full year 2022.
  • The Company is currently projecting one workover for the year, as such, the total cost for workovers is expected to be between $2 and $4 million, net to VAALCO.
  • Guidance for capital expenditures net to VAALCO for the first quarter are $36.0 to $44.0 million
  • Guidance for capital expenditures net to VAALCO for the full year of 2022 are $90.0 to $110.0 million, which includes its 2022 drilling program and costs associated with the FSO conversion and related field reconfiguration.

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 2021

Historical avgQ4 2021

-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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