The following is a summary of the VAALCO Energy, Inc. (EGY) Q3 2024 Earnings Call Transcript:

Financial Performance:

• VAALCO reported Q3 2024 net income of $11 million, with earnings per share of $0.10.

• Adjusted EBITDAX increased to $92.8 million for Q3 and reached $227 million through the first 9 months of 2024.

• The company generated strong operational cash flow, with adjusted EBITDAX exceeding the previous year by over $40 million for the first 9 months.

• Third-quarter production costs were at the low end of guidance, with absolute expense totalling $42.3 million and per barrel cost of $19.80.

Business Progress:

• VAALCO has successfully integrated the Svenska acquisition, adding significant reserves and production capacity.

• In Q3, the company completed three ship liftings in Cote d'Ivoire, contributing to a 20% sales increase versus Q2.

• Continuing strong operational execution, the company met or exceeded production guidance continuously for the past two years.

• Planned capital expenditures for 2024 on long lead items are estimated between $30 million and $40 million, focusing on the next drilling campaigns and FPSO projects.

Opportunities:

• The acquisition and integration of Svenska assets have significantly increased the company's oil reserves and production capabilities.

• Plans for future drilling in Gabon, Cote d'Ivoire, and Egypt promise to boost production and operational capacity further.

• The company has entered new exploration blocks in Gabon, indicating expanded operational scope and potential new production domains.

Risks:

• Dependency on strategic projects like FPSO in Cote d'Ivoire, scheduling and execution of drilling campaigns could affect production timelines and financial performance.

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