Vaalco Energy Inc /De/ (NYSE: EGY)

VAALCO Energy, Inc. is an independent energy company headquartered in Houston, Texas engaged in the acquisition, exploration, development and production of crude oil, natural gas and natural gas liquids. The company maintains a diversified, African-focused portfolio of production, development and exploration assets located in Gabon, Egypt, Cote d'Ivoire, Equatorial Guinea and Nigeria. Its overall business strategy focuses on maximizing the value of current resources through cost control and disciplined capital allocation while expanding into new development opportunities across its strategically complementary asset base to accelerate shareholder returns and increase shareholder value.

The company generates revenue through the production and sale of crude oil, natural gas and natural gas liquids. In 2025, its production totaled 6,043 MBoe comprising 2,535 MBoe (42%) from Gabon, 2,730 MBoe (45%) from Egypt, 111 MBoe (2%) from Cote d'Ivoire and 667 MBoe (11%) from Canada prior to the divestment of its Canadian assets in February 2026, with revenue derived from the sale of these hydrocarbons to third-party purchasers under prevailing market terms.

The company operates through the following segments: Gabon, Egypt, Cote d'Ivoire, Equatorial Guinea and Canada.

• Gabon: This segment's production of 2,535 MBoe in 2025 represented 42% of the company's total output, all crude oil, from the Etame Marin block where the company holds a 58.8% working interest and serves as the designated operator, covering approximately 46,200 gross acres located 20 miles offshore in water depths of approximately 250 feet, plus the Niosi Marin and Guduma Marin exploration blocks where it holds a 37.5% non-operating working interest in each, covering 2,989 and 1,929 square kilometers respectively and adjacent to the Etame PSC area.

• Egypt: This segment contributed 2,730 MBoe or 45% of 2025 total production, all crude oil, from the Merged Concession in the Eastern Desert (approximately 45,067 acres) and the South Ghazalat concession in the Western Desert (approximately 7,340 acres), both held through joint ventures with EGPC in which the company maintains an equal ownership interest entitling it to 100% of the working interest in the concessions.

• Cote d'Ivoire: This segment produced 111 MBoe or 2% of 2025 total production, all crude oil, from the Baobab field in Block CI-40 where the company holds a 27.4% non-operated working interest (30.4% paying interest) in the deepwater producing field developed with 24 subsea production wells and five water injector wells tied to a FPSO, with additional interests in the CI-705 block where it became the operator with a 70% working interest and 100% paying interest through a commercial carry arrangement in March 2025 and the non-producing OML 145 block offshore Nigeria where it holds a 21.05% non-operated working interest.

• Equatorial Guinea: This segment holds a 60% working interest in Block P offshore Equatorial Guinea where the company is the designated operator, having completed a feasibility study for the Venus field discovery that was approved by the Equatorial Guinea Ministry of Mines and Hydrocarbons in September 2022 and a front-end engineering study in the second quarter of 2025, with commercial development contingent on a final investment decision and subject to a potential future payment of $6.8 million to the national oil company upon first oil production from the block under the terms of the PSC.

• Canada: Prior to its divestment in February 2026, this segment produced 667 MBoe or 11% of 2025 total production comprising 32% crude oil, 36% natural gas and 32% natural gas liquids from the Harmattan area of western Canada approximately 80 kilometers north of Calgary, Alberta, including Cardium light oil and Mannville liquids-rich gas assets, plus a 100% working interest in a large oil battery and a compressor station where a majority of oil volumes was processed prior to the asset sale.

VAALCO Energy, Inc. operates in a highly competitive oil and gas industry where competition for acquisitions, exploration, development and production is intense from major integrated companies and numerous independent operators, with the company believing its quality portfolio, strong management and technical expertise specific to the markets in which it operates, ongoing focus on maintaining a competitive cost structure and disciplined capital allocation framework position it to achieve its business strategy and navigate various commodity price environments.

Customer concentration data for 2025 indicates the company derived 100% of its Gabon revenue from a single purchaser, 100% of its Egypt revenue from a single purchaser, 100% of its Cote d'Ivoire revenue from a single purchaser, and its Canadian revenue was allocated among three customers representing 51%, 20% and 15% of the segment's total revenue in that year.