On this page of StockholderLetter.com we present the latest annual shareholder letter from VAALCO ENERGY INC /DE/ — ticker symbol EGY. Reading current and past EGY letters to shareholders can bring important insights into the investment thesis.
Annual Report 2024 Blueprint for Growth 2025 ANNUAL REPORT 2
Vaalco Energy, Inc. Vaalco Energy, Inc. (NYSE:EGY; LSE:EGY) is an African-focused independent energy company with a strategic vision based on profitably and sustainably growing value. Founded in 1985 and based in Houston, Texas, Vaalco s diverse portfolio of production, development and exploration assets are located in Gabon, C te d Ivoire, Egypt, Equatorial Guinea and Nigeria. At year-end 2025, Vaalco s proved reserves totaled 43.0 million barrels of oil equivalent ( MMBOE ) (89% oil), of which 41% were proved developed. In 2025, Vaalco produced 21,160 working interest ( WI ) barrels of oil equivalent per day ( BOEPD ), of which 93% was oil. The Company is a well-respected operator and non-operating partner with good working relationships across the jurisdictions where it operates and has a strong management team with extensive experience in international oil and gas activities. Vaalco remains focused on creating shareholder value by continuing to execute its strategic vision. Vaalco Global 21,160 2025 PRODUCTION BOEPD (WI) 93% OIL 3% NGLs 4% NATURAL GAS 43 89 7 MMBOE OIL PROVED DEVELOPED: NATURAL GAS 17.5 MMBOE PROVED UNDEVELOPED: 25.5 MMBOE YEAR-END 2025 PROVED RESERVES 236M 2025 CAPITAL EXPENDITURES
Annual Report 2026 In 2025, the Company delivered solid operational and financial results. A major capital expenditure program was undertaken in Gabon and C te d Ivoire to support the low-risk organic growth opportunities that we plan to pursue over the next several years to deliver significantly increased production. In early 2026, the initial results from the Gabon drilling program have been encouraging and the FPSO refurbishment and reinstallation project in C te d Ivoire is proceeding on schedule. Concurrent with these major investments during 2025, Vaalco also returned $26.5 million to shareholders through its cash dividend. GABON C TE D IVOIRE EGYPT CANADA 7,982 BOEPD (WI) 305 BOEPD (WI) 10,735 BOEPD (WI) 2,139 BOEPD (WI) 18.2 8.6 100% OIL 10.0 MMBOE YE 2025 PROVED RESERVES 62M 100% OIL MMBOE YE 2025 PROVED RESERVES 143M 100% OIL MMBOE YE 2025 PROVED RESERVES 29M CAPITAL EXPENDITURES CAPITAL EXPENDITURES Achieved ~95% production uptime Field shut-in during January 2025 to undertake planned refurbishment of FPSO Continuous drilling program during 2025 with 19 wells completed Purchased long-lead items for Baobab Phase Five drilling program planned for 2H 2026 Reduction in spud-tospud cycle time allowed for drilling of six additional wells within same budget CAPITAL EXPENDITURES Purchased long lead items for upcoming drilling program Initiated Phase Three multiwell drilling program in December 2025 Completed seismic acquisition in the Niosi and Guduma blocks 32% OIL 32% NGLs 36% NATURAL GAS 6.2 MMBOE YE 2025 PROVED RESERVES 2 $ M CAPITAL EXPENDITURES No wells drilled in 2025 Sold all Canadian assets in February 2026 Executed farm-in agreement for 70% WI and operatorship of CI-705 block Confirmed as operator with a 60% working interest in the Kossipo field on the CI-40 Block with a field development plan expected to be completed in 2026 FPSO returned to field in April 2026 and products restart expected during Q2 2026 1
Vaalco Energy, Inc. A Letter from George Maxwell, Chief Executive Officer We continued to deliver solid operational and financial results in 2025, while meeting or exceeding our quarterly guidance targets. In the past five years, we have achieved many significant milestones that reflect the efforts of our employees in transforming Vaalco into the Company that you see today. We have successfully grown from a single asset company delivering around 5,000 BOPD working interest to a diversified, multi-country operator well on our way to achieving our goal of 50,000 BOEPD working interest. Our entire organization is actively working to deliver sustainable growth and strong results to continue funding our capital programs, while also returning value to our shareholders through a top-quartile dividend. In 2025, we returned another $26.5 million in dividends and since Q4 2021 we have returned over $115 million to our shareholders through dividends and share buybacks. 2
Annual Report 2026 Our strategy remains unchanged: operate efficiently, buybacks. invest prudently, maximize our asset base, and look for accretive opportunities. In early 2026, we divested all of our Canadian assets, and we added to our C te d Ivoire position, by being named operator with a 60% working interest in the Kossipo field on the CI-40 Block. We have rationalized our portfolio, adding high upside opportunities at good prices and we are poised to deliver meaningful organic growth in the future. Prior to April 2024, we had no interests in C te d Ivoire when we completed the Svenska acquisition, securing a valuable offshore producing asset with the Baobab field on the CI-40 block. The Floating Production, Storage and Offloading vessel ( FPSO ) that services the Baobab field required planned refurbishment during 2025 and the project was completed efficiently and on schedule. The FPSO is now back in position with the field expected to be back online in the second quarter of 2026. We will then focus on working with the field operator on an exciting multi-well development drilling program that is scheduled to begin later this year. In March 2025, we announced a farm in agreement for the CI-705 block offshore C te d Ivoire where we will operate with a 70% working interest and a 100% paying interest through the seismic reprocessing and interpretation stages and potentially drilling up to two exploration wells. The block is favorably located in a proven hydrocarbon system and is approximately 70 kilometers ( km ) to the west of Vaalco s CI-40 Block, where the Baobab and Kossipo oil fields are located. In February 2026, Vaalco was confirmed as operator with a 60% working interest in the Kossipo field on the CI-40 Block just 8 km from the Baobab field. We are now working on a field development plan using new ocean bottom node seismic data that is expected to help de-risk and enhance our evaluation and development plan. The Kossipo field was discovered in 2002 and later appraised in 2019 with a well which tested at over 7,000 BOPD. So, in less than two years, we have established a sizeable position in C te d Ivoire with considerable upside potential to help us achieve our production growth targets. In addition to C te d Ivoire, we have a number of projects to execute across our asset base. Offshore Gabon, we have an extensive drilling campaign underway at the Etame platform with several wells drilled or underway and then plan to continue our capital investment program on the Ebouri and SEENT platforms where we have several wells and workovers. In Egypt, we completed a successful year-long drilling campaign in the fourth quarter of 2025 and in 2026 we have an ongoing production optimization workover and recompletion program underway and are also considering drilling additional wells. In Equatorial Guinea, we have completed our initial Front-End Engineering and Design study that confirmed the viability of the development concept and are currently evaluating alternative technical solutions which may deliver enhanced economic value. In 2025, we invested approximately $253 million in cash capital expenditures which was within our guidance and a meaningful increase from recent years as we embarked on the FPSO refurbishment and our drilling programs. We plan to invest $290 million to $360 million in 2026 as we complete the FPSO restart and have organic drilling programs underway in our key focus areas. These investments provide the needed support for our plan to significantly increase production over the next several years. 3
 • shareholder letter icon 4/24/2026 Letter Continued (Full PDF)
 • stockholder letter icon 4/28/2023 EGY Stockholder Letter
 • stockholder letter icon 4/26/2024 EGY Stockholder Letter
 • stockholder letter icon 4/25/2025 EGY Stockholder Letter
 • stockholder letter icon More "Oil & Gas Exploration & Production" Category Stockholder Letters
 • Benford's Law Stocks icon EGY Benford's Law Stock Score = 98


EGY Shareholder/Stockholder Letter Transcript:

Annual Report 2024
Blueprint
for Growth
2025
ANNUAL REPORT
2

Vaalco Energy, Inc.
Vaalco Energy, Inc. (NYSE:EGY; LSE:EGY) is an
African-focused independent energy company
with a strategic vision based on profitably and
sustainably growing value. Founded in 1985
and based in Houston, Texas, Vaalco   s diverse
portfolio of production, development and
exploration assets are located in Gabon, C  te
d   Ivoire, Egypt, Equatorial Guinea and Nigeria.
At year-end 2025, Vaalco   s proved reserves
totaled 43.0 million barrels of oil equivalent
(   MMBOE   ) (89% oil), of which 41% were proved
developed. In 2025, Vaalco produced 21,160
working interest (   WI   ) barrels of oil equivalent
per day (   BOEPD   ), of which 93% was oil.
The Company is a well-respected operator
and non-operating partner with good working
relationships across the jurisdictions where it
operates and has a strong management team
with extensive experience in international oil
and gas activities. Vaalco remains focused on
creating shareholder value by continuing to
execute its strategic vision.
Vaalco Global
21,160
2025 PRODUCTION BOEPD (WI)
93%
OIL
3%
NGLs
4%
NATURAL GAS
43 89 7

MMBOE
OIL
PROVED DEVELOPED:

NATURAL
GAS
17.5 MMBOE
PROVED UNDEVELOPED:
25.5 MMBOE
YEAR-END 2025 PROVED RESERVES
236M

2025 CAPITAL EXPENDITURES

Annual Report 2026
In 2025, the Company delivered solid operational and financial results. A major capital
expenditure program was undertaken in Gabon and C  te d   Ivoire to support the low-risk
organic growth opportunities that we plan to pursue over the next several years to deliver
significantly increased production. In early 2026, the initial results from the Gabon drilling
program have been encouraging and the FPSO refurbishment and reinstallation project in
C  te d   Ivoire is proceeding on schedule. Concurrent with these major investments during
2025, Vaalco also returned $26.5 million to shareholders through its cash dividend.
GABON
C  TE D   IVOIRE
EGYPT
CANADA
7,982 BOEPD (WI)
305 BOEPD (WI)
10,735 BOEPD (WI)
2,139 BOEPD (WI)
18.2
8.6
100% OIL
10.0
MMBOE YE 2025
PROVED RESERVES
62M
100% OIL
MMBOE YE 2025
PROVED RESERVES
143M
100% OIL
MMBOE YE 2025
PROVED RESERVES
29M


CAPITAL
EXPENDITURES
CAPITAL
EXPENDITURES
Achieved ~95%
production uptime
Field shut-in during January
2025 to undertake planned
refurbishment of FPSO
Continuous drilling
program during 2025 with
19 wells completed
Purchased long-lead items
for Baobab Phase Five
drilling program planned for
2H 2026
Reduction in spud-tospud cycle time allowed
for drilling of six additional
wells within same budget
CAPITAL
EXPENDITURES
Purchased long lead items
for upcoming drilling
program
Initiated Phase Three multiwell drilling program in
December 2025
Completed seismic
acquisition in the Niosi and
Guduma blocks

32% OIL
32% NGLs
36% NATURAL GAS
6.2
MMBOE YE 2025
PROVED RESERVES
2
$ M
CAPITAL
EXPENDITURES
No wells drilled in 2025
Sold all Canadian assets
in February 2026
Executed farm-in
agreement for 70% WI and
operatorship of CI-705 block
Confirmed as operator
with a 60% working interest
in the Kossipo field on the
CI-40 Block with a field
development plan expected
to be completed in 2026
FPSO returned to field in April
2026 and products restart
expected during Q2 2026
1

Vaalco Energy, Inc.
A Letter from
George Maxwell,
Chief Executive Officer
We continued to deliver solid operational
and financial results in 2025, while meeting
or exceeding our quarterly guidance
targets. In the past five years, we have
achieved many significant milestones
that reflect the efforts of our employees
in transforming Vaalco into the Company
that you see today. We have successfully
grown from a single asset company
delivering around 5,000 BOPD working
interest to a diversified, multi-country
operator well on our way to achieving our
goal of 50,000 BOEPD working interest.
Our entire organization is actively working
to deliver sustainable growth and strong
results to continue funding our capital
programs, while also returning value to
our shareholders through a top-quartile
dividend. In 2025, we returned another
$26.5 million in dividends and since Q4
2021 we have returned over $115 million to
our shareholders through dividends and
share buybacks.
2

Annual Report 2026
Our
strategy remains unchanged: operate efficiently,
buybacks.
invest prudently, maximize our asset base, and look
for accretive opportunities. In early 2026, we divested
all of our Canadian assets, and we added to our C  te
d   Ivoire position, by being named operator with a 60%
working interest in the Kossipo field on the CI-40 Block.
We have rationalized our portfolio, adding high upside
opportunities at good prices and we are poised to
deliver meaningful organic growth in the future.
Prior to April 2024, we had no interests in C  te d   Ivoire
when we completed the Svenska acquisition, securing
a valuable offshore producing asset with the Baobab
field on the CI-40 block. The Floating Production,
Storage and Offloading vessel (   FPSO   ) that services the
Baobab field required planned refurbishment during
2025 and the project was completed efficiently and
on schedule. The FPSO is now back in position with the
field expected to be back online in the second quarter
of 2026. We will then focus on working with the field
operator on an exciting multi-well development drilling
program that is scheduled to begin later this year.
In March 2025, we announced a farm in agreement
for the CI-705 block offshore C  te d   Ivoire where we
will operate with a 70% working interest and a 100%
paying interest through the seismic reprocessing and
interpretation stages and potentially drilling up to two
exploration wells. The block is favorably located in a
proven hydrocarbon system and is approximately 70
kilometers (   km   ) to the west of Vaalco   s CI-40 Block,
where the Baobab and Kossipo oil fields are located.
In February 2026, Vaalco was confirmed as operator
with a 60% working interest in the Kossipo field on the
CI-40 Block just 8 km from the Baobab field. We are now
working on a field development plan using new ocean
bottom node seismic data that is expected to help
de-risk and enhance our evaluation and development
plan. The Kossipo field was discovered in 2002 and later
appraised in 2019 with a well which tested at over 7,000
BOPD. So, in less than two years, we have established
a sizeable position in C  te d   Ivoire with considerable
upside potential to help us achieve our production
growth targets.
In addition to C  te d   Ivoire, we have a number of
projects to execute across our asset base. Offshore
Gabon, we have an extensive drilling campaign
underway at the Etame platform with several wells
drilled or underway and then plan to continue our
capital investment program on the Ebouri and SEENT
platforms where we have several wells and workovers.
In Egypt, we completed a successful year-long drilling
campaign in the fourth quarter of 2025 and in 2026 we
have an ongoing production optimization workover
and recompletion program underway and are also
considering drilling additional wells. In Equatorial
Guinea, we have completed our initial Front-End
Engineering and Design study that confirmed the
viability of the development concept and are currently
evaluating alternative technical solutions which may
deliver enhanced economic value.
In 2025, we invested approximately $253 million in cash
capital expenditures which was within our guidance
and a meaningful increase from recent years as
we embarked on the FPSO refurbishment and our
drilling programs. We plan to invest $290 million to
$360 million in 2026 as we complete the FPSO restart
and have organic drilling programs underway in
our key focus areas. These investments provide the
needed support for our plan to significantly increase
production over the next several years.
3


shareholder letter icon 4/24/2026 Letter Continued (Full PDF)
 

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