VAALCO Energy, Inc. (EGY): Business Model Canvas [Dec-2025 Updated]

You're looking to dissect how VAALCO Energy, Inc. actually makes money after its major pivot from a single-asset operator to a multi-country player across Africa and Canada. Honestly, it's a compelling story of operational focus, especially when you see their Q3 2025 TTM revenue hit approximately $390 million on production of 19,887 BOEPD, all while managing a 2025 capital guidance midpoint around $240 million to support growth in Gabon and Equatorial Guinea. As an analyst who's seen countless E&P models, what stands out here is their clear path: reliable, oil-weighted production supporting a consistent $0.0625 quarterly dividend, backed by nearly 100 million barrels of 2P reserves. So, if you want the precise mechanics-from their host government partnerships to their cost structure-dive into the full Business Model Canvas breakdown below; it shows exactly how they plan to maximize value from these mature and developing fields.

VAALCO Energy, Inc. (EGY) - Canvas Business Model: Key Partnerships

You're looking at the core relationships VAALCO Energy, Inc. relies on to execute its growth plan across its African portfolio. These aren't just names on a document; they represent access, capital, and operational capability. Here's the breakdown of those critical alliances as of late 2025.

Host Governments and National Oil Companies

The foundation of VAALCO Energy, Inc.'s upstream business rests on agreements with host governments, primarily through Production Sharing Contracts (PSCs) and concession agreements. The key state-level partners include:

• Host governments granting access in Gabon, Egypt, and Côte d'Ivoire.
• EGPC (Egyptian General Petroleum Corporation) in Egypt; collections from EGPC since January 1, 2025, totaled over $103.6 million.
• PETROCI (Côte d'Ivoire) is a partner in the CI-40 Block and the newly farmed-in CI-705 Block.

Joint Venture (JV) Partners

VAALCO Energy, Inc. actively partners to share risk and leverage expertise, especially in exploration acreage. For instance, in Gabon, the exploration blocks Niosi Marin and Guduma Marin were provisionally awarded to a consortium including VAALCO Energy, BW Energy, and Panoro Energy. The plan for these blocks involves a 3D seismic campaign, with a seismic survey for Niosi planned for late 2025 or early 2026.

Drilling Contractors

Execution of the 2025/2026 drilling program in Gabon is dependent on rig availability. VAALCO Energy, Inc. secured a drilling rig in December 2024 for this campaign. The start date was contingent on the rig completing its prior commitments, with the expected commencement of the Gabon campaign targeted for late November 2025. One specific contractor mentioned for the Gabon program is Borr Jack-Up XIV Inc., a subsidiary of Borr Drilling Limited.

Financial Institutions and Credit Facility

To supplement internally generated cash flow for robust organic growth projects, VAALCO Energy, Inc. entered into a new reserves-based revolving credit facility in March 2025. This facility is secured by the assets in Gabon, Egypt, and Côte d'Ivoire. Here are the key financial terms:

Facility Detail	Amount/Term	Partner/Lender
Initial Commitment	$190 million	The Standard Bank of South Africa Limited, Isle of Man Branch (Lead)
Maximum Facility Size	Up to $300 million	Rand Merchant Bank, Mauritius Commercial Bank (Participants)
Accordion Amount	$110 million	Other participating banks and financial partners
Outstanding Borrowings (as of 9/30/2025)	$60.0 million	N/A
Post-Redetermination Borrowing Base (as of 10/17/2025)	$190.0 million	N/A
Term	Six-year term	Facility amortization begins September 30, 2026

The interest rate on drawn amounts was initially 6.5% plus SOFR, set to decrease to 6.0% plus SOFR upon completion of the Côte d'Ivoire FPSO Dry Dock Refurbishment Project.

VAALCO Energy, Inc. (EGY) - Canvas Business Model: Key Activities

Crude oil and natural gas exploration, development, and production activities are central to VAALCO Energy, Inc. (EGY). The company reported a Net Revenue Interest (NRI) production average of 15,405 BOEPD for the third quarter of 2025, with Working Interest (WI) production at 19,887 BOEPD for the same period. Sales volumes averaged 12,831 NRI BOEPD in Q3 2025. The company increased its full-year 2025 production guidance midpoint, while simultaneously reducing the full-year capital guidance midpoint by 19%, or $58 million, from the original 2025 estimate. For the first nine months of 2025, VAALCO Energy reported net income of $17.2 million and Adjusted EBITDAX of $130.5 million. The Q3 2025 realized price was $51.26 per BOE. The company declared a quarterly cash dividend of $0.0625 per share of common stock, payable on December 24, 2025. Cash, cash equivalents, and restricted cash totaled $32,114 thousand at the end of Q3 2025.

The company is actively engaged in executing major capital projects, most notably the Floating Production Storage and Offloading vessel (FPSO) refurbishment offshore Côte d'Ivoire. The FPSO Baobab Ivoirien MV10 ceased hydrocarbon production on January 31, 2025, and departed the field in late March 2025, being towed to a shipyard in Dubai for refurbishment. This critical project is expected to allow production to continue until at least 2038. The vessel was reported to be five months into dry-dock operations as of the third quarter of 2025. VAALCO is preparing for a development drilling campaign in 2026 to augment the Baobab field's production life. The company noted it had already been paid back 1.8x its initial net investment in Côte d'Ivoire within eight months of closing the acquisition.

Optimizing production from mature fields is a continuous activity, exemplified by operations on the Etame Marin block in Gabon, where VAALCO holds a 58.8% working interest and operates the asset. In Q3 2025, VAALCO completed a full-field maintenance turnaround on the Etame Marin block, which was the first since bringing the new FSO online in 2022, and this was executed on budget and without safety or environmental incidents. The company expects to commence its 2025-2026 drilling program in late November 2025, which includes multiple development, appraisal, and workover wells at the Etame, Seent, and Ebouri fields, targeting reserves previously excluded due to hydrogen sulfide (H2S).

Managing and integrating accretive Mergers and Acquisitions (M&A) transactions remains a key focus, marking the transition from a single-asset operator. The company closed the acquisition of Svenska Petroleum Exploration AB for $40.2 million, which cost less than $1 per barrel on a 2P2C basis. Furthermore, in 2025, VAALCO expanded its footprint by acquiring a 70% working interest in and taking over operatorship of the CI-705 block in offshore Côte d'Ivoire. VAALCO leadership has presented plans to double production by 2027 through mergers, acquisitions, and project development.

Maintaining operational excellence and high safety standards is tracked across its portfolio spanning five countries: Côte d'Ivoire, Egypt, Equatorial Guinea, Gabon, and Canada. The company's Q3 2025 production costs, excluding offshore workovers and stock compensation, were $29.8 million, equating to $25.24 per BOE, showing cost control despite operational activities. The company returned $6.7 million to shareholders through dividends in Q3 2025.

Key Operational and Financial Metrics (Q3 2025 & Guidance):

Metric	Value (Q3 2025)	Unit/Context	Source
NRI Production	15,405	BOEPD
WI Production	19,887	BOEPD
NRI Sales Volumes	12,831	BOEPD
Net Income	$1.1 million	Q3 2025
Adjusted EBITDAX	$23.7 million	Q3 2025
Production Expense (Excl. Workovers/Stock Comp)	$29.8 million	Q3 2025
Production Expense per BOE	$25.24	Q3 2025
Cash CapEx Spent	$48.3 million	Q3 2025
Q4 2025 WI Production Guidance Midpoint	21,250	BOEPD (Midpoint of 20,300-22,200)
Full Year Capital Guidance Reduction	$58 million	From Original 2025 Estimate

Operational details by country for Q3 2025 included:

• Gabon (Etame Marin Block): Completed a full-field maintenance turnaround.
• Côte d'Ivoire: FPSO Baobab refurbishment was five months into dry-dock operations in Dubai.
• Egypt: Average daily production was 10,812 BOEPD.
• Equatorial Guinea: Completed Front-End Engineering and Design (FEED) for the Venus field development.
• Canada: New drilling was deferred to focus capital on international projects.

VAALCO Energy, Inc. (EGY) - Canvas Business Model: Key Resources

You're looking at the core assets VAALCO Energy, Inc. (EGY) relies on to run its business as of late 2025. These aren't just line items; they are the physical and financial foundations supporting their operations and growth plans.

The most significant tangible asset is the reserve base, outlined as Proved and probable (2P) working interest reserves of nearly 100 million barrels. This figure represents the estimated recoverable resource base underpinning future cash flows.

VAALCO Energy, Inc. (EGY) maintains a diversified asset portfolio across Gabon, Egypt, Côte d'Ivoire, Equatorial Guinea, and Canada. This geographic spread helps mitigate single-region operational or political risk. Here's a breakdown of working interests and key operational metrics from the latest reporting period:

• Gabon: Operates the Etame Marin block with a 58.8% working interest (WI). Production was impacted by a planned maintenance shutdown in July 2025.
• Côte d'Ivoire: Holds a 27.4% non-operated WI in Block CI-40 (Baobab field) and a 70% WI as operator in the CI-705 block from a 2025 farm-in.
• Egypt: Interests span the Eastern Desert concession, approximately 45,067 acres, and the South Ghazalat concession in the Western Desert, approximately 7,340 acres.
• Equatorial Guinea: Holds a 60% WI and is the operator of the undeveloped portion of Block P.
• Canada: Maintains production and WI in Harmattan assets, though drilling was paused due to commodity prices.

The company's operational capacity is supported by critical infrastructure, specifically the Floating Storage and Offloading (FSO) and Floating Production Storage and Offloading (FPSO) infrastructure. The Baobab FPSO refurbishment in Côte d'Ivoire was progressing well in Q3 2025, with a rig secured for development drilling expected to start in 2026 after its return to service.

Financially, liquidity is managed through cash and credit facilities. As of September 30, 2025, VAALCO Energy, Inc. (EGY) reported an unrestricted cash balance of $24.0 million. This cash position, combined with a reserves-based revolving credit facility (new facility) with initial aggregate commitments of $190.0 million (with the ability to grow to $300.0 million), provides funding flexibility. Outstanding borrowings under this new facility were $60.0 million as of that same date.

The operational performance in Q3 2025 generated specific financial metrics that reflect the use of these key resources:

Metric	Amount (Q3 2025)
Net Revenue	$61.0 million
Adjusted EBITDAX	$23.7 million
NRI Production (BOEPD)	15,405
WI Production (BOEPD)	19,887
Cash Capital Expenditures	$48.3 million
Production Expense (Total)	$29.8 million
Depreciation, Depletion & Amortization (DD&A)	$20.6 million

Finally, the human capital component is the technical and commercial expertise in West African offshore operations. This expertise is evidenced by the successful execution of a planned full field maintenance shutdown in Gabon in July 2025, which was completed on budget, and the continued efficiency gains from the drilling program in Egypt.

Finance: review Q4 2025 cash flow forecast against the $0.0625 per share dividend declaration by Friday.

VAALCO Energy, Inc. (EGY) - Canvas Business Model: Value Propositions

You're looking at the core promises VAALCO Energy, Inc. (EGY) is making to its stakeholders right now, based on their late 2025 operational posture. It's about delivering reliable barrels while managing capital discipline and setting up future growth.

Reliable, high-margin, oil-weighted production mix for global energy markets

VAALCO Energy, Inc. delivers production that is consistently at or above guidance, which speaks directly to reliability. For the third quarter of 2025, Net Revenue Interest (NRI) production hit 15,405 BOEPD, landing at the high end of guidance. To be fair, sales volumes in that quarter were 12,831 NRI BOEPD, slightly impacted by a planned maintenance shutdown in Gabon in July 2025. The company's operating margin stands at 25.14%, which helps frame the high-margin aspect of their value proposition. They are focused on maximizing the economic life of assets like the Etame field in Gabon, which has already produced 127 million barrels to date.

This operational performance is summarized in the table below, showing how they are executing against their 2025 targets:

Metric	Value (Late 2025 Update)	Context
Q3 2025 NRI Production	15,405 BOEPD	At the high end of guidance.
Q3 2025 NRI Sales Volumes	12,831 BOEPD	Near the top of the guidance range.
Full Year 2025 Capital Guidance Midpoint	Around $240 million	Reduced from original guidance.
Capital Guidance Reduction (vs. Original)	19% (or $58 million)	Driven by operational efficiency.
Q3 2025 Production Expense	$29.8 million	Down 26% quarter-over-quarter.

Consistent commitment to shareholder returns via a quarterly dividend of $0.0625 per share

The commitment to returning cash is concrete. VAALCO Energy, Inc. declared a quarterly cash dividend of $0.0625 per share, payable on December 24, 2025. This consistent payout, maintained through the volatile commodity price environment of 2025, is a key part of the value proposition for income-focused investors. The company has been returning cash to shareholders through dividends since 2022.

Operational efficiency demonstrated by reducing 2025 capital guidance midpoint to around $240 million

You see real discipline here. The full-year 2025 capital guidance midpoint has been lowered to approximately $240 million, representing a reduction of about 19% or $58 million from the original estimate. This reduction, achieved while simultaneously raising the full-year production guidance midpoint by about 5%, clearly signals improved operational efficiency. They kept production expenses virtually flat while increasing expected output.

Significant organic growth potential from planned drilling in Gabon and Equatorial Guinea

The near-term growth pipeline is focused on established areas. In Gabon, the contracted drilling rig for the 2025/2026 program is expected to arrive in late November 2025 to commence drilling development, appraisal, and workover wells at Etame, Seent, and Ebouri fields. In Equatorial Guinea, the Front End Engineering and Design (FEED) study for the Venus field development is complete, confirming viability, and the company is now assessing technical solutions to enhance economics. The Venus project is targeted to produce between 18,000 to 20,000 barrels per day at its peak. Looking further out, VAALCO Energy, Inc. plans a 50% production increase by the second half of 2026 and has a long-term goal to exceed 50,000 barrels per day by 2030.

The growth drivers VAALCO Energy, Inc. is emphasizing include:

• Commencing the 2025/2026 drilling program in Gabon in late November 2025.
• Advancing the Venus development in Equatorial Guinea toward a Final Investment Decision.
• Planning for a large development drilling campaign at Port Bouët in Côte d'Ivoire in 2026.
• Continuing success with the drilling campaign in Egypt's Eastern and Western Deserts.

Experienced operator focused on maximizing economic life of existing fields

The focus on existing assets is evident in the workovers and re-entries planned. For example, the Gabon drilling program includes re-entry operations targeting reserves in the Ebouri field previously excluded due to hydrogen sulfide presence. Also, the July 2025 full-field maintenance shutdown in Gabon was executed on budget and without incident, demonstrating operational maturity in managing complex asset upkeep. This focus on optimization, rather than just new exploration, helps maintain current cash flow while growth projects mature. The company's CEO noted that they continue to deliver results that meet or exceed guidance, a testament to the operational focus.

Finance: draft 13-week cash view by Friday.

VAALCO Energy, Inc. (EGY) - Canvas Business Model: Customer Relationships

Direct, long-term contractual relationships with crude oil traders and refiners are central to VAALCO Energy, Inc.'s revenue realization, supported by consistent operational delivery against guidance.

The sale of crude oil liftings from offshore terminals is the primary mechanism for these relationships. For the third quarter of 2025, VAALCO Energy, Inc. reported Net Revenue Interest (NRI) sales volumes at the high end of guidance, specifically 12,831 barrels of oil equivalent per day (BOEPD). This volume was achieved despite a planned and successful full field maintenance shutdown in Gabon during July 2025, which caused NRI sales volumes to decrease by 33% compared to the second quarter of 2025 volumes of 1,765 MBOE. The average realized price for Q3 2025 was $51.26 per BOE, down from $54.87 per BOE in Q2 2025. VAALCO Energy, Inc. forecasts that Q4 2025 NRI sales will be higher than Q3 2025 due to more offshore listings in Gabon.

Metric	Period	Working Interest (WI)	Net Revenue Interest (NRI)
Sales Volume (BOEPD)	Q3 2025	19,887 BOEPD (Above Midpoint of Guidance)	12,831 BOEPD (High End of Guidance)
Sales Volume (MBOE)	Q3 2025	N/A	1,180 MBOE
Average Realized Price (per BOE)	Q3 2025	N/A	$51.26
Production Expense per BOE	Q3 2025 Guidance	$19.00 - $23.00	$25.00 - $29.00
Production Volume (BOEPD)	Q3 2025	19,887 BOEPD (Above Midpoint of Guidance)	15,405 BOEPD (High End of Guidance)

Investor relations are managed through regular communication, with the third quarter 2025 earnings release and conference call occurring on November 10/11, 2025. The CEO noted that VAALCO Energy, Inc. has met or exceeded production guidance for over two years. For the first nine months of 2025 year-to-date, the company reported net income of $17.2 million and Adjusted EBITDAX of $130.5 million. The company declared a quarterly cash dividend of $0.0625 per share, payable on December 24, 2025, having returned approximately $20 million in dividends year-to-date. VAALCO Energy, Inc. increased its full-year 2025 production and sales guidance midpoint by about 5% while further decreasing its capital guidance midpoint by almost 20% (or $58 million).

Government relations are maintained through adherence to Production Sharing Contract (PSC) terms and local content requirements across its portfolio in Gabon, Egypt, Côte d'Ivoire, Equatorial Guinea, Nigeria, and Canada.

• The Block P PSC in Equatorial Guinea allows for a development and production period of 25 years from the date of Plan of Development approval.
• In Egypt, the company plans to operate three wells using solar energy and connect production facilities to renewable sources.
• The Côte d'Ivoire Baobab FPSO refurbishment is scheduled for production restart in Spring 2026.
• VAALCO Energy, Inc. has approximately 500,000 barrels of 2025 oil production hedged with an average floor of approximately $61 per barrel.
• The company is targeting around 40% of its first-half 2026 oil production to be hedged by year-end 2025.

Finance: review Q4 2025 CapEx forecast of $90-$110 million against the revised full-year guidance by end of week.

VAALCO Energy, Inc. (EGY) - Canvas Business Model: Channels

You're looking at how VAALCO Energy, Inc. gets its product-crude oil, natural gas, and NGLs-to the market and keeps its investors informed. It's a mix of direct commodity sales and public market presence.

Direct sales of crude oil liftings to international buyers via tankers

VAALCO Energy, Inc. moves its product directly to international buyers, which involves lifting crude oil volumes. For the three months ended September 30, 2025, the company reported Crude oil, natural gas and natural gas liquids sales revenue of $61,007 thousand. You saw NRI (Net Revenue Interest) sales volumes hit 12,831 NRI BOEPD in the third quarter of 2025, which was at the high end of guidance. To give you a sense of the pricing volatility, the average realized price received in Q3 2025 was $51.26 per BOE, down from $54.87 per BOE in Q2 2025. Back in the first quarter of 2025, NRI sales volumes were higher at 19,074 NRI BOEPD, with an average realized sales price (NRI basis) of $64.27 per BOE.

Here's a quick look at the sales performance across the first three quarters of 2025:

Metric	Q1 2025 Value	Q3 2025 Value
NRI Sales Volumes (BOEPD)	19,074	12,831
Average Realized Price (per BOE, NRI basis)	$64.27	$51.26
Net Income (in thousands USD)	$7,700	$1,101

Transportation of natural gas and NGLs through pipeline infrastructure in Canada

In Canada, the channel involves moving natural gas and NGLs via existing pipeline infrastructure. This segment contributes a smaller portion of the overall production mix compared to the oil-heavy African assets. For the nine months ended September 30, 2025, the combined Crude oil, natural gas and natural gas liquids production in Canada, reported in MBOE (thousand barrels of oil equivalent), was 595 MBOE. Specifically for Q3 2025, the combined MBOE figure was 197 MBOE. It's worth noting that management indicated a pause in Canadian drilling activities due to commodity prices as of the third quarter of 2025.

Investor communications via NYSE and LSE listings and regulatory filings

VAALCO Energy, Inc. maintains its presence across two major exchanges, which is a key channel for capital access and transparency. You can track the company under ticker EGY on both the New York Stock Exchange (NYSE) and the London Stock Exchange (LSE). The company communicates financial performance through required regulatory filings and scheduled calls; for instance, the Q3 2025 results were released on November 10, 2025. The commitment to shareholders is evident through its dividend policy; the fourth quarter 2025 quarterly cash dividend was declared at $0.0625 per share, payable on December 24, 2025, marking the 16th consecutive quarterly dividend.

The primary communication touchpoints include:

• Listing on the NYSE and LSE stock exchanges.
• Filing of quarterly reports on Form 10-Q with the SEC.
• Issuing press releases for operational and financial updates.
• Hosting scheduled conference calls for earnings discussions.

Local supply chains and service providers in operating countries

The physical delivery and maintenance of production rely heavily on local service providers and supply chains across its operational footprint. VAALCO Energy, Inc. operates in several jurisdictions, which necessitates managing diverse local vendor relationships. The company's operational expense base reflects these local engagements; Total production expense for Q3 2025 was $29.872 million. Furthermore, collections from the Egyptian General Petroleum Corporation (EGPC) since January 2025 have exceeded $103.6 million, showing a significant local financial flow. Management has been actively managing capital deployment, reducing the full year 2025 capital guidance midpoint by almost $58 million to around $240 million in total, signaling a focus on efficiency in these local service channels.

The key operating countries that define these local channels are:

• Gabon
• Egypt
• Côte d'Ivoire
• Equatorial Guinea
• Canada

Finance: draft 13-week cash view by Friday.

VAALCO Energy, Inc. (EGY) - Canvas Business Model: Customer Segments

You're looking at the key groups VAALCO Energy, Inc. sells to and draws capital from as of late 2025. It's a mix of direct commodity buyers and the financial market participants who fund the whole operation.

International crude oil traders and refiners seeking African sweet crude

These customers buy the physical barrels VAALCO Energy, Inc. lifts from its operated fields in Gabon, Egypt, and Equatorial Guinea. The sales volume is key here, showing the immediate demand for their output. For the third quarter of 2025, VAALCO Energy, Inc. sold 12,831 NRI BOEPD (Net Revenue Interest Barrels of Oil Equivalent Per Day). This is a segment VAALCO Energy, Inc. is actively working to grow, with plans for a late 2025 drilling campaign in Gabon.

The realized price they get directly impacts revenue. In Q3 2025, the average realized price was $51.26 per BOE (Barrel of Oil Equivalent). Compare that to Q2 2025, where the average realized price was $54.87 per BOE.

Global energy markets that purchase oil and gas commodities

This segment represents the total transactional volume flowing into VAALCO Energy, Inc.'s coffers from commodity sales across all producing assets. The company generated total commodity sales of $96.9 million for the third quarter of 2025. For the first half of 2025, oil sales from the Egyptian operations alone exceeded $112.844 million. The Gabon segment is noted as the one generating maximum revenue for VAALCO Energy, Inc..

Here's a quick look at the sales volumes for the first three quarters of 2025:

Period Ending	NRI Sales Volume (BOEPD)	NRI Sales Volume (MBOE)
March 31, 2025 (Q1)	19,074	1,717
June 30, 2025 (Q2)	(Not explicitly stated in BOEPD)	1,765
September 30, 2025 (Q3)	12,831	1,180

Institutional and retail investors seeking exposure to a dividend-paying E&P company

These are the capital providers who own shares of VAALCO Energy, Inc. (EGY) on the NYSE and LSE. The company supports this segment with a commitment to shareholder returns. VAALCO Energy, Inc. declared a quarterly cash dividend of $0.0625 per share in Q3 2025, payable on December 24, 2025. The 2025 guidance targets returning over $25 million to shareholders through the dividend program. As of November 4, 2025, the market capitalization stood at $395M, based on 104M shares outstanding.

The appeal to this segment is tied to the company's financial health and growth prospects, evidenced by the trailing twelve-month revenue of $390M as of September 30, 2025.

• Quarterly Dividend Declared (Q3 2025): $0.0625 per share
• 2025 Shareholder Return Target: Over $25 million
• Market Capitalization (Nov 4, 2025): $395 million

Host governments receiving royalties and profit oil/gas under PSCs

These governments are critical partners under the Production Sharing Contracts (PSCs) that grant VAALCO Energy, Inc. access to reserves. The company operates in Gabon, Egypt, Côte d'Ivoire, and Equatorial Guinea. A significant relationship is the one in Equatorial Guinea for Block P, where the PSC provides a development and production period of 25 years from approval. VAALCO Energy, Inc. operates this block with a 60% Working Interest (WI).

The company is advancing the Venus field development in Equatorial Guinea, having completed the FEED study and targeting a Final Investment Decision by the end of 2025. This structure ensures the host governments receive their contractual share of production and associated revenues.

VAALCO Energy, Inc. (EGY) - Canvas Business Model: Cost Structure

You're looking at the core outflows VAALCO Energy, Inc. has to manage to keep the lights on and the wells flowing, focusing on the numbers from late 2025.

Production expenses, which are the day-to-day costs of getting oil and gas out of the ground, showed discipline in the third quarter. For Q3 2025, these expenses, excluding offshore workovers and stock compensation, clocked in at $29.8 million. This was a significant drop, down 26% quarter-over-quarter from Q2 2025 and 29% compared to Q3 2024. For the full year 2025, VAALCO Energy, Inc. guided production expenses to be in the range of $152 million and $158 million.

Depreciation, Depletion, and Amortization (DD&A) expense also saw movement. In Q3 2025, the DD&A expense decreased compared to both Q2 2025 and Q3 2024, primarily due to a reduction in the Côte d'Ivoire segment. Specifically, the Q3 2025 DD&A was down 27% quarter-over-quarter and 56% year-over-year.

Capital expenditures (CapEx) for drilling and development are a major variable cost. VAALCO Energy, Inc. revised its full-year 2025 capital guidance midpoint down to around $240 million. This represented a reduction of almost 20% from the original 2025 guidance midpoint. The company spent $48.3 million in cash CapEx in Q3 2025, which was below the guidance range of $70 million to $90 million for that quarter. The spending profile shifts for the end of the year, with Q4 2025 CapEx anticipated to be higher, guided between $90 million to $110 million as the Gabon drilling campaign was set to begin in late November.

General and Administrative (G&A) expenses reflect the corporate overhead. For Q3 2025, G&A expense, excluding stock-based compensation, was $7.2 million, which was essentially flat compared to $7.1 million in Q2 2025. This was an increase from $6.0 million in Q3 2024, driven by higher professional service fees and salaries. Cash G&A for Q3 2025 was reported at the midpoint of the Company's guidance.

Costs related to major maintenance events are also critical. The refurbishment of the Baobab FPSO in Côte d'Ivoire was a significant 2025 activity. The vessel ceased production on January 31, 2025, and departed for the shipyard in Dubai in late March 2025 for its dry dock refurbishment. By the time of the Q3 2025 results, the vessel was five months into its dry-dock operations. This project is intended to extend the production life of the asset until at least 2038.

Here is a breakdown of the key reported cost figures from the third quarter of 2025:

Cost Category	Q3 2025 Amount (USD)	Comparison/Context
Production Expense (excl. workovers/stock comp)	$29.8 million	Down 26% QoQ
General & Administrative (excl. stock comp)	$7.2 million	Flat vs. Q2 2025 ($7.1 million)
Cash Capital Expenditures	$48.3 million	Below Q3 guidance of $70 million to $90 million
DD&A Expense	Not explicitly stated	Down 56% YoY

The overall capital plan for 2025 was managed with discipline:

• Full Year 2025 CapEx midpoint guidance reduced to around $240 million.
• Total reduction in full-year capital guidance midpoint was approximately $58 million from the original plan.
• The original 2025 CapEx outlook midpoint was between $270 million and $330 million.
• Q4 2025 CapEx is forecasted higher, between $90 million and $110 million.

You should keep an eye on how the Gabon drilling rig availability impacts the Q4 spend versus the revised annual forecast. Finance: draft 13-week cash view by Friday.

VAALCO Energy, Inc. (EGY) - Canvas Business Model: Revenue Streams

The revenue streams for VAALCO Energy, Inc. (EGY) are fundamentally tied to the sale of hydrocarbons produced from its geographically diverse asset base across Africa and Canada.

The company's top-line performance for the trailing twelve-month period ending September 30, 2025, registered at $389.95M. This revenue is derived from the sale of crude oil and natural gas/NGLs.

A significant component of the revenue generation is the production volume achieved across its working interests. For the third quarter of 2025, VAALCO Energy, Inc. reported working interest (WI) production of 19,887 BOEPD (Barrels of Oil Equivalent Per Day).

The sources of this production and subsequent revenue include:

• Sales of crude oil from assets located in Gabon, Egypt, and Côte d'Ivoire.
• Sales of natural gas and Natural Gas Liquids (NGLs) from Canadian assets.

The company also benefits from cash inflows related to the settlement of outstanding balances with national oil companies. Collections from the Egyptian General Petroleum Corporation (EGPC) since January 1, 2025, totaled over $103.6 million as of the third quarter of 2025.

To provide a clearer picture of the financial performance underpinning these revenue streams through the first nine months of 2025, here are key figures:

Financial Metric	Amount	Period/Date
Revenue (Q3 2025)	$61 million	Quarter ending September 30, 2025
Revenue (TTM)	$389.95M	Trailing Twelve Months ending September 30, 2025
Adjusted EBITDAX	$130.5 million	First 9 Months of 2025
EGPC Collections YTD	>$103.6 million	Since January 1, 2025 (as of Q3 2025)

Further detail on the Egyptian segment's contribution to sales revenue shows strong performance in the first half of the year:

• Oil sales from VAALCO Energy, Inc.'s Egyptian operations reached $112.844 million for the six months ending June 30, 2025.
• Net revenues from Egypt for the same H1 2025 period were $67.177 million.

The Q3 2025 operational performance, which directly impacts revenue realization, is summarized below:

Production/Sales Metric	Value	Unit
Working Interest (WI) Production	19,887	BOEPD (Q3 2025)
Net Revenue Interest (NRI) Production	15,405	BOEPD (Q3 2025)
NRI Sales Volumes	12,831	BOEPD (Q3 2025)