VAALCO Energy, Inc. (NYSE: EGY, LSE: EGY) today reported
operational and financial results for the second quarter of 2020.
Highlights and Recent Key
Items:
- Exceeded production guidance for the quarter by
producing 5,410 net revenue interest (“NRI”)(1) barrels of crude
oil per day (“BOPD”), or 6,218 working interest (“WI”)(2) BOPD in
Q2 2020;
- Sold 631,000 barrels of oil in Q2 2020 compared with
294,000 barrels in Q1 2020 due to a combination of four liftings in
Q2 2020 compared with two liftings in Q1 2020 and higher
production;
- Reported net income of $0.6 million ($0.01 per diluted
share), Adjusted Net Income(3) of $5.3 million
($0.09 per diluted share) and generated Adjusted
EBITDAX(3) of $10.1 million;
- Decreased Q2 2020 per barrel production expense,
excluding workovers, by 17% to $19.31 per barrel compared to $23.39
per barrel in Q1 2020;
- Managed through COVID 19 challenges with no material
disruptions in operations;
- Increased midpoint of full year production guidance to
4,850 NRI BOPD despite planned maintenance activity and
temporary production curtailment during Q3 2020 to support OPEC+
cuts; and
- Maintained strong balance sheet with no debt, a cash
balance of $44.8 million, including $9.3 million in joint venture
owner advances, working capital of $11.7 million and Adjusted
Working Capital(3) of $24.1 million as of June 30,
2020.
(1) All NRI production rates and volumes are VAALCO’s 31.1% WI
less 13% royalty volumes.(2) All WI production rates and volumes
are VAALCO’s 31.1% WI.(3) Adjusted EBITDAX, Adjusted Net Income and
Adjusted Working Capital are Non-GAAP financial measures and are
described and reconciled to the closest GAAP measure in the
attached table under “Non-GAAP Financial Measures.”
Cary Bounds, VAALCO’s Chief Executive Officer
commented: “While the current pricing environment remains volatile,
it has improved from the lows we saw in April 2020, and we believe
that the current prices have enabled us to generate positive cash
flow at current production levels. We have taken measures
over the past few years to strengthen VAALCO operationally and
financially, including eliminating all debt and growing our
production base, which allow us to better navigate cyclical energy
markets and leave us uniquely placed to consider growth
opportunities. We remain focused on operational excellence,
which was demonstrated in our second quarter 2020 results. We
continued to grow our net revenue interest production to 5,410
BOPD, a 9% increase over the first quarter of 2020, and above the
high end of our guidance range, and we’ve increased the mid-point
of our full-year production guidance range from 4,700 to 4,850 NRI
BOPD. We generated $10.1 million of Adjusted EBITDAX, and our
cash balance remained strong at $44.8 million, which includes $9.3
million in joint venture owner advances. Additionally, higher
sales volumes and proactive measures to manage costs helped drive
down our unit production costs by 17% compared to first quarter
2020. As a reminder, approximately 90% of our estimated
operating expense is fixed, so the higher production in recent
quarters has lowered our unit costs and increased our profit
margins per barrel.”
“We remain confident in our strong asset base
and to date our operations remain largely unaffected by recent
global developments which we believe is a testament to the
commitment and professionalism of our operations team.
Following the completion of our successful 2019/20 drilling
campaign, VAALCO does not have any material non-discretionary
capital expenditure requirements on the near-term horizon, allowing
us to focus on cash flow generation while preparing for the right
market conditions to begin planning the next drilling campaign at
Etame. Additionally, we will continue to evaluate
opportunities that are consistent with our inorganic growth
strategy. We believe that we are well positioned to deliver
long-term growth, in line with our strategic objectives.”
Operational Update
Gabon
Given the current volatile pricing environment,
the Company continues to evaluate all uses of cash and is managing
both operating expenses as well as capital expenditure levels in
view of the existing and expected pricing environment.
As previously announced, VAALCO completed the
2019/2020 drilling campaign in early April with no safety or
environmental incidents, and achieved a 100% success rate prior to
releasing the Vantage drilling rig. In mid-April 2020, the
South Tchibala 2H well stopped producing due to a downhole
mechanical failure not related to the electric submersible
pump. The well was producing approximately 830 gross BOPD, or
225 BOPD NRI to VAALCO prior to ceasing production. The
Company may not be able to address this well failure until the next
drilling campaign when a rig is on location.
Third quarter 2020 production from the Etame
Marin license will be slightly reduced as a result of a planned
six-day full field shutdown to perform maintenance on the Nautipa
FPSO and on the production platforms, as well as an OPEC+ mandate
to reduce production through September 2020. To assist Gabon
in meeting its OPEC+ production quota, the Minister of Hydrocarbons
has requested that VAALCO temporarily reduce the production at
Etame through September 2020. Taking into consideration the
combination of the planned maintenance turnaround as well as the
impact of deferred production from the OPEC+ mandate, the Company
expects average production for the third quarter of 2020 to be
between 4,200 BOPD and 4,600 BOPD net to VAALCO. However, due
to the strong performance in the first half of 2020 VAALCO narrowed
the range for its 2020 annual production guidance provided earlier
this year of 4,400 to 5,000 BOPD to 4,700 to 5,000 BOPD net to
VAALCO, assuming the OPEC+ mandate to reduce production is not
increased or extended beyond September 2020.
Equatorial Guinea
VAALCO has a 43% WI in Block P offshore
Equatorial Guinea. The Equatorial Guinea Ministry of Mines
and Hydrocarbons (“EG MMH”) approved VAALCO’s appointment as
operator of Block P on November 12, 2019.
The Company acquired an additional working
interest of 12% from Atlas Petroleum, thereby increasing its
working interest to 43% in 2020, in exchange for a potential future
payment to Atlas Petroleum of $3.1 million if there is commercial
production from Block P. The EG MMH has approved this
assignment. The Company is currently waiting on production
sharing contract amendments reflecting VAALCO as operator and the
updated participating interest to be executed by the EG MMH.
VAALCO is in commercial discussions with Levene
HydroCarbon Limited (“Levene”) where VAALCO would assign a portion
of the Block P interest to Levene and Levene would potentially
cover all or substantially all of VAALCO’s cost to drill an
exploratory well on Block P. Levene and VAALCO have not executed
any binding agreements, and there can be no certainty a transaction
will be completed. Further, approval of the assignment by the
EG MMH must be obtained prior to any transaction being completed.
As of June 30, 2020, the Company had $10.0 million recorded for the
book value of the undeveloped leasehold costs associated with the
Block P license.
VAALCO and its joint venture owners are
evaluating the timing and budgeting for development and exploration
activities under a development and production area in Block P,
including the approval of a development and production plan.
The production sharing contract for Block P provides for a
development and production period of 25 years from the date of
approval of a development and production plan.
Financial Update – Second Quarter of
2020
Net income of $0.6 million ($0.01 per diluted
share) for the second quarter of 2020 reflected the impact of lower
realized crude oil prices of $28.31 per barrel for the
quarter. The impact of lower prices was partially offset by
higher sales volumes for the quarter as a result of four
liftings. The quarter also included a loss on derivatives of
$0.8 million ($0.01 per diluted share) and an income tax benefit of
$2.2 million.
In comparison, the net loss of $1.0 million
($0.01 per diluted share) for the second quarter of 2019 benefitted
from higher realized crude oil prices of $68.62 per barrel while
sales volumes were 43% lower. The quarter also included a
derivative gain of $1.9 million and income tax expense of $9.2
million. With respect to the first quarter of 2020, the net
loss of $52.8 million ($0.91 per diluted share) also benefitted
from higher realized crude oil prices of $59.54 per barrel while
sales volumes were 53% lower; however, due to the lower crude oil
prices at March 31, 2020, the quarter included gains on derivatives
of $7.3 million ($0.13 per diluted share), non-cash charges for
impairment of proved properties of $30.6 million ($0.53 per diluted
share) and deferred income tax expense of $35.6 million ($0.61 per
diluted share).
Adjusted Net Income for the second quarter of
2020 decreased to $5.3 million ($0.09 per diluted share) from $8.0
million ($0.13 per diluted share) for the second quarter of 2019
primarily as a result of lower revenues which were impacted by
lower realized crude oil prices and an increase in production
expense as a result of higher sales volumes. This impact was
partially offset by an increase in realized derivative gains and a
decrease in current income tax expense. The reduction in
second quarter Adjusted Net Income compared with $6.9 million in
the first quarter of 2020 was primarily the result of a decrease in
revenues because of lower realized crude oil prices, an increase in
production expense as a result of higher sales volumes and an
increase in current income tax expense. This was partially
offset by an increase in realized gains on derivatives.
Adjusted EBITDAX totaled $10.1 million in the
second quarter of 2020 compared with $12.9 million in the same
period of 2019. In the first quarter of 2020, Adjusted
EBITDAX was $6.0 million. Adjusted EBITDAX for the
second quarter of 2020 was lower than the same period in the prior
year primarily due to lower revenues which were impacted by lower
realized crude oil prices and an increase in production expense as
a result of higher sales volumes. This impact was partially
offset by an increase in realized derivative gains. Adjusted
EBITDAX for the second quarter of 2020 was higher than the first
quarter of 2020 primarily due to an increase in realized gains on
derivatives. This was partially offset by lower revenues and
an increase in production expense as a result of higher sales
volumes.
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Revenue and Sales |
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Q2 2020 |
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Q2 2019 |
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% Change Q2 2020 vs. Q2 2019 |
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Q1 2020 |
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% Change Q2 2020 vs. Q1 2020 |
Production (NRI BOPD) |
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5,410 |
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3,664 |
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48 |
% |
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4,944 |
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9 |
% |
Sales (NRI BO) |
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631,000 |
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357,000 |
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77 |
% |
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294,000 |
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115 |
% |
Realized crude oil price
($/BO) |
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$ |
28.31 |
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$ |
68.62 |
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(59) |
% |
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$ |
59.54 |
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(52) |
% |
Total crude oil sales
($MM) |
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$ |
18.0 |
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$ |
25.2 |
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(29) |
% |
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$ |
18.4 |
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(2) |
% |
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During the first quarter of 2020, VAALCO had two
liftings, one in January and one in February, but the next lifting
of 85,000 barrels of oil that was scheduled for March 2020 was
delayed to April 1, 2020 due to poor weather conditions.
Consequently, VAALCO had four liftings in the second quarter of
2020 which resulted in total sales volumes of 631,000 barrels
compared with 294,000 barrels in the first quarter of 2020.
In addition, volumes available to lift increased in the second
quarter of 2020 due to the higher production rate resulting from
the new wells. Second quarter 2020 realized pricing fell 52%
from the first quarter of 2020 due to sharply lower prices received
due to the COVID-19 pandemic and OPEC-related pricing issues.
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Costs and Expenses |
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Q2 2020 |
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Q2 2019 |
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% Change Q2 2020 vs. Q2 2019 |
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Q1 2020 |
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% Change Q2 2020 vs. Q1 2020 |
Production expense, excluding
workovers ($MM) |
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$ |
12.2 |
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$ |
9.8 |
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24 |
% |
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$ |
6.9 |
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77 |
% |
Production expense, excluding
workovers ($/BO) |
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$ |
19.31 |
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$ |
27.45 |
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(30) |
% |
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$ |
23.39 |
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(17) |
% |
Workover expense ($MM) |
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$ |
(0.1 |
) |
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$ |
— |
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N/A |
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$ |
2.9 |
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(103) |
% |
Depreciation, depletion and
amortization ($MM) |
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$ |
2.8 |
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$ |
1.9 |
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47 |
% |
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$ |
3.1 |
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(10) |
% |
Depreciation, depletion and
amortization ($/BO) |
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$ |
4.44 |
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$ |
5.35 |
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(17) |
% |
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$ |
10.55 |
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(58) |
% |
General and administrative
expense, excluding non-cash compensation ($MM) |
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$ |
2.3 |
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$ |
2.8 |
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(19) |
% |
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$ |
3.3 |
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(30) |
% |
General and administrative
expense, excluding non-cash compensation ($/BO) |
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$ |
3.64 |
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$ |
7.93 |
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(54) |
% |
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$ |
11.30 |
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(68) |
% |
Stock-based compensation
expense (benefit) ($MM) |
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$ |
0.7 |
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$ |
(0.1 |
) |
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(799) |
% |
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$ |
(2.6 |
) |
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(128) |
% |
Current income tax expense
(benefit) ($MM) |
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$ |
1.2 |
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$ |
3.3 |
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(64) |
% |
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$ |
(2.1 |
) |
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(157) |
% |
Deferred income tax expense
(benefit) ($MM) |
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$ |
(3.4 |
) |
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$ |
5.9 |
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(158) |
% |
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$ |
35.6 |
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(110) |
% |
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Total production expense, excluding workovers,
increased primarily due to higher sales volumes resulting from the
significant decrease in crude oil inventory during the
quarter. The per-unit production expense, excluding
workovers, decreased significantly in the second quarter of 2020 as
compared to both the second quarter of 2019 and the first quarter
of 2020 as a result of higher sales volumes. Production
expense for the second quarter of 2020 included approximately $0.8
million in additional costs related to proactive employee-related
measures taken in response to the pandemic. No workovers were
performed during the second quarters of 2020 and 2019.
Workover expense for the first quarter of 2020 included costs
related to two workovers.
Depreciation, depletion and amortization
(“DD&A”) expense in the second quarter of 2020 on a per NRI
barrel of crude oil sales basis decreased from the comparable prior
year quarter and the first quarter of 2020 as a result of higher
sales volumes as well as the reduction in depletable costs as a
result of the impairment charge that was recorded in the first
quarter of 2020 due to lower oil prices.
General and administrative (“G&A”) expense,
excluding non-cash stock-based compensation, was lower in the
second quarter of 2020 as compared to the second quarter 2019 and
the first quarter of 2020 as a result of lower professional fees,
travel expenses, and accounting and audit fees. Non-cash
stock-based compensation expense (benefit) was impacted by the
change in the SARs liability as a result of changes in the
Company’s stock price during the quarter.
Income tax was a benefit for the three months
ended June 30, 2020 of $2.2 million. This is comprised of a
$3.4 million deferred tax benefit and a current tax expense of $1.2
million. Foreign income taxes are attributable to Gabon and are
settled by the government taking their crude oil in-kind.
Current income tax expense included a $0.9 million favorable crude
oil price adjustment as a result of the change in value of the
government’s allocation between the time it was produced and the
time it was taken in-kind. After excluding this impact,
current income taxes were $2.1 million for the period. The
deferred income tax benefit included a $4.1 million benefit to
decrease the valuation allowances on U.S. and Gabonese deferred tax
assets offset by a $0.7 million deferred tax expense.
Income tax expense for the three months ended
June 30, 2019 was $9.2 million. This was comprised of $5.9 million
of deferred tax expense and a current tax provision of $3.3 million
and was impacted by $4.4 million in non-deductible expense related
to joint venture owners’ audits.
In the first quarter of 2020, current income tax
expense included a $3.4 million favorable crude oil price
adjustment as a result of the change in value of the government’s
allocation between the time it was produced and the time it was
taken in-kind. After excluding this impact, current income
taxes were $1.9 million for the period. Deferred income tax
expense for the first quarter of 2020 included a $46.9 million
charge to increase the valuation allowances on both the U.S. and
Gabon deferred tax assets offset by an $11.8 million deferred tax
benefit.
Financial Update – First Six Months of
2020
Production for the first six months of 2020 was
higher by 45% at 942 MBbls net crude oil compared to 648 MBbls net
crude oil production in the first six months of 2019. The
increase in production was related to the three new wells brought
onto production and successful workovers associated with the
2019/2020 drilling campaign. The first half of 2020 saw sales
volume increase 41% to 925 MBbls net crude oil compared to 654
MBbls for the first half of 2019. Crude oil sales are a
function of the number and size of crude oil liftings in each
quarter and do not always coincide with volumes produced in any
given period.
The average realized crude oil price for the
first six months of 2020 was $38.24 per barrel, representing a
decrease of 43% from $66.60 realized in the first six months of
2019. This sharp decline in crude oil prices reflects the
downward pressure resulting from the COVID pandemic as well as
supply and demand imbalances.
The Company incurred a net loss for the six
months ended June 30, 2020 of $52.2 million, which compares to net
income of $5.5 million for the same period of 2019. The
decrease in operating results for the six months ended June 30,
2020 compared to the same period in 2019 was primarily due to
charges of $30.6 million for impairment of proved crude oil and
natural gas properties and $42.8 million to increase to the
valuation allowance on deferred tax assets. Also contributing to
the decrease were lower revenues as a result of receiving lower
crude oil prices partially offset by higher sales volumes. The net
income for the six months ended June 30, 2019 was inclusive of
income from discontinued operations of $5.5
million.
Response to COVID-19 Pandemic and
Current Pricing Environment
VAALCO remains committed to the health and
safety of all its employees and contractors. In response to
the COVID-19 pandemic and the current pricing environment, VAALCO
has taken the following measures:
- Implemented stay-at-home initiatives for all but critical staff
and put into place social distancing measures;
- Actively screening and monitoring employees and contractors
that come onto the Company’s Gabon facilities including testing and
quarantines with onsite medical supervision;
- Engaged in regular Company-wide COVID-19 updates to keep
employees informed of key developments;
- Implemented cost cutting measures with vendors;
- Implemented sharing certain costs, such as support vessels,
helicopter, and personnel with other operators in the region;
- Temporarily reduced director, executive and certain
non-executive employee compensation; and
- Ceased or deferred discretionary capital spending.
VAALCO expects to continue to take proactive
steps to manage any disruption in its business caused by COVID-19
and to protect the health and safety of its employees. As of
August 6, 2020, VAALCO has experienced no material impact on its
Gabon operations directly associated with COVID-19; however, the
Company has incurred higher costs related to proactive measures
taken in response to the pandemic. These were approximately
$0.8 million during the second quarter and were primarily related
to additional personnel-related costs to support enhanced health
and safety measures. The situation surrounding COVID-19
remains fluid and unpredictable, and VAALCO is actively managing
its response and assessing potential impacts to its financial
position and operating results, as well as any adverse developments
that could impact the Company’s business.
Capital Investments/Balance
Sheet
For the second quarter of 2020, net capital
expenditures totaled $8.1 million on a cash basis and $1.2 million
on an accrual basis. Capital expenditures are primarily
related to the 2019/2020 drilling program at Etame. As a
result of the current crude oil price environment and the
significant economic disruptions caused by COVID-19, VAALCO has
ceased or deferred discretionary capital spending, and there are no
remaining material non-discretionary capital expenditures for the
balance of 2020. Any capital expenditures made during the remainder
of 2020 are expected to be funded by cash on hand and cash flow
from operations. The Company intends to manage future capital
expenditure levels in view of the existing and expected pricing
environment.
At the end of the second quarter, VAALCO had an
unrestricted cash balance of $44.8 million. The unrestricted cash
balance includes $9.3 million of cash attributable to non-operating
joint venture owner advances. Working capital at June 30, 2020 was
$11.7 million compared with $13.4 million at March 31, 2020, while
Adjusted Working Capital at June 30, 2020 totaled $24.1 million,
compared with $25.8 million at March 31, 2020.
Hedging
On May 6, 2019, the Company entered into
commodity swaps at a Dated Brent weighted average of $66.70 per
barrel for the period from and including July 2019 through June
2020 for an approximate quantity of 500,000 barrels. These
swaps settled on a monthly basis. The Company does not have
any derivatives for periods after June 30, 2020.
2020 Guidance
To date, VAALCO’s operations have not been
materially impacted by the worldwide COVID-19 pandemic and the
Company’s guidance assumes that there are no material changes to
the impact of the pandemic on the Company’s operations for the
remainder of 2020 and that the OPEC+ mandates to reduce production
are not increased or extended beyond September 2020. VAALCO
currently estimates that the full year 2020 NRI production range
will increase to between 4,700 and 5,000 BOPD due to strong
performance in the first half of 2020. For the third quarter
of 2020, forecasted NRI production is expected to be between 4,200
and 4,600 BOPD. The decrease in production for the third quarter as
compared to the second quarter reflects reductions imposed by the
State of Gabon in response to production cuts agreed to as a member
of OPEC. In addition, third quarter production reflects a
planned six-day full field shut-in for scheduled maintenance.
Sales NRI volumes for 2020 increased in line with production to at
an estimated average of 4,700 to 5,000 BOPD. The Company’s
production expense guidance (excluding workovers) for full year
2020 is $37 to $39 million or $20.00 to $22.00 per NRI barrel of
crude oil sales, with production expense for the third quarter of
2020 projected to be between $9 and $10 million or $20.00 to $24.00
per NRI barrel of crude oil sales. The Company forecasts between
$10 and $12 million in cash G&A expense for full year
2020. Capital expenditures for the full year 2020 are
currently expected to be between $10 million and $12
million.
Conference Call
As previously announced, the Company will hold a
conference call to discuss its second quarter financial and
operating results August 7, 2020, at 8:00 a.m. Central Time (9:00
a.m. Eastern Time and 2:00 pm London Time). Interested parties may
participate by dialing (877) 270-2148. Parties in the United
Kingdom may participate toll-free by dialing 08082389064 and other
international parties may dial (412) 902-6510. Participants
should request to be joined to the “VAALCO Energy Second Quarter
2020 Conference Call.” This call will also be webcast on VAALCO’s
website at www.vaalco.com. An archived audio replay will be
available on VAALCO’s website.
About VAALCO
VAALCO, founded in 1985, is a Houston, USA
based, independent energy company with production, development and
exploration assets in the West African region.
The Company is an established operator within
the region, holding a 31.1% working interest in the Etame Marin
Block, located offshore Gabon, which to date has produced over 116
million barrels of crude oil and of which the Company is the
operator.
For Further Information
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VAALCO Energy, Inc.
(General and Investor Enquiries) |
+00 1 713 623 0801 |
Website: |
www.vaalco.com |
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Al Petrie Advisors (US
Investor Relations) |
+00 1 713 543 3422 |
Al Petrie / Chris Delange |
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Buchanan (UK Financial
PR) |
+44 (0) 207 466 5000 |
Ben Romney / Kelsey
Traynor / James Husband |
VAALCO@buchanan.uk.com |
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Forward Looking Statements
This document includes “forward-looking
statements” within the meaning of Section 27A of the Securities Act
of 1933, as amended, and Section 21E of the Securities Exchange Act
of 1934, as amended. All statements, other than statements of
historical facts, included in this document that address
activities, events, plans, expectations, objectives or developments
that VAALCO expects, believes or anticipates will or may occur in
the future are forward-looking statements. These statements
may include statements related to the impact of the COVID-19
pandemic, including the recent sharp decline in the global demand
for and resulting global oversupply of crude oil and the resulting
steep decline in oil prices, production quotas imposed by Gabon,
disruptions in global supply chains, quarantines of our workforce
or workforce reductions and other matters related to the pandemic,
well results, wells anticipated to be drilled and placed on
production, future levels of drilling and operational activity and
associated expectations, the implementation of the Company’s
business plans and strategy, prospect evaluations, prospective
resources and reserve growth, its activities in Equatorial Guinea,
expected sources of and potential difficulties in obtaining future
capital funding and future liquidity, its ability to restore
production in non-producing wells, future operating losses, future
changes in crude oil and natural gas prices, future strategic
alternatives, future acquisitions, capital expenditures, future
drilling plans, prospect evaluations, negotiations with governments
and third parties, timing of the settlement of Gabon income taxes,
expectations regarding processing facilities, production, sales and
financial projections and reserve growth. These statements
are based on assumptions made by VAALCO based on its experience and
perception of historical trends, current conditions, expected
future developments and other factors it believes are appropriate
in the circumstances. Such statements are subject to a number
of assumptions, risks and uncertainties, many of which are beyond
VAALCO’s control. These risks include, but are not limited
to, crude oil and natural gas price volatility, the impact of
production quotas imposed by Gabon in response to production cuts
agreed to as a member of OPEC, inflation, general economic
conditions, the outbreak of COVID-19, the Company’s success in
discovering, developing and producing reserves, production and
sales differences due to timing of liftings, decisions by future
lenders, the risks associated with liquidity, lack of availability
of goods, services and capital, environmental risks, drilling
risks, foreign regulatory and operational risks, and regulatory
changes.
Investors are cautioned that forward-looking
statements are not guarantees of future performance and that actual
results or developments may differ materially from those projected
in the forward-looking statements. VAALCO disclaims any
intention or obligation to update or revise any forward-looking
statements, whether as a result of new information, future events,
or otherwise.
Inside Information
This announcement contains inside information as
defined in Regulation (EU) No. 596/2014 on market abuse (“MAR”) and
is made in accordance with the Company’s obligations under article
17 of MAR.
VAALCO ENERGY, INC AND SUBSIDIARIESConsolidated
Balance Sheets (Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
June 30, 2020 |
|
December 31, 2019 |
ASSETS |
|
(in thousands) |
Current assets: |
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
44,841 |
|
|
$ |
45,917 |
|
Restricted cash |
|
|
1,090 |
|
|
|
911 |
|
Receivables: |
|
|
|
|
|
|
Trade |
|
|
9,521 |
|
|
|
14,335 |
|
Accounts with joint venture owners, net of allowance of $0.0
million and $0.5 million, respectively |
|
|
134 |
|
|
|
2,714 |
|
Other |
|
|
2,350 |
|
|
|
1,517 |
|
Crude oil inventory |
|
|
853 |
|
|
|
1,072 |
|
Prepayments and other |
|
|
3,445 |
|
|
|
3,292 |
|
Total current assets |
|
|
62,234 |
|
|
|
69,758 |
|
Crude oil and natural gas
properties and equipment - successful efforts method: |
|
|
|
|
|
|
Wells, platforms and other production facilities |
|
|
442,665 |
|
|
|
422,651 |
|
Work-in-progress |
|
|
— |
|
|
|
7,378 |
|
Undeveloped acreage |
|
|
21,476 |
|
|
|
23,771 |
|
Equipment and other |
|
|
10,184 |
|
|
|
11,157 |
|
|
|
|
474,325 |
|
|
|
464,957 |
|
Accumulated depreciation,
depletion, amortization and impairment |
|
|
(432,977 |
) |
|
|
(396,699 |
) |
Net crude oil and natural gas properties, equipment and other |
|
|
41,348 |
|
|
|
68,258 |
|
Other noncurrent assets: |
|
|
|
|
|
|
Restricted cash |
|
|
925 |
|
|
|
925 |
|
Value added tax and other receivables, net of allowance of $1.9
million and $1.0 million, respectively |
|
|
3,812 |
|
|
|
3,683 |
|
Right of use operating lease assets |
|
|
27,918 |
|
|
|
33,383 |
|
Deferred tax assets |
|
|
— |
|
|
|
24,159 |
|
Abandonment funding |
|
|
11,420 |
|
|
|
11,371 |
|
Total assets |
|
$ |
147,657 |
|
|
$ |
211,537 |
|
LIABILITIES AND
SHAREHOLDERS' EQUITY |
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
Accounts payable |
|
$ |
9,250 |
|
|
$ |
15,897 |
|
Accounts with joint venture owners |
|
|
9,259 |
|
|
|
— |
|
Accrued liabilities and other |
|
|
16,299 |
|
|
|
29,773 |
|
Operating lease liabilities - current portion |
|
|
12,274 |
|
|
|
11,990 |
|
Foreign taxes payable |
|
|
3,368 |
|
|
|
5,740 |
|
Current liabilities - discontinued operations |
|
|
48 |
|
|
|
350 |
|
Total current liabilities |
|
|
50,498 |
|
|
|
63,750 |
|
Asset retirement
obligations |
|
|
16,643 |
|
|
|
15,844 |
|
Operating lease liabilities -
net of current portion |
|
|
15,631 |
|
|
|
21,371 |
|
Deferred tax liabilities |
|
|
8,098 |
|
|
|
— |
|
Other long term
liabilities |
|
|
56 |
|
|
|
852 |
|
Total liabilities |
|
|
90,926 |
|
|
|
101,817 |
|
Commitments and
contingencies |
|
|
|
|
|
|
Shareholders’ equity: |
|
|
|
|
|
|
Preferred stock, $25 par value; 500,000 shares authorized, none
issued |
|
|
— |
|
|
|
— |
|
Common stock, $0.10 par value; 100,000,000 shares authorized,
67,819,242 and 67,673,787 shares issued, 57,456,139 and 58,024,571
shares outstanding, respectively |
|
|
6,782 |
|
|
|
6,767 |
|
Additional paid-in capital |
|
|
73,739 |
|
|
|
73,549 |
|
Less treasury stock, 10,363,103 and 9,649,216 shares, respectively,
at cost |
|
|
(42,419 |
) |
|
|
(41,429 |
) |
Retained earnings |
|
|
18,629 |
|
|
|
70,833 |
|
Total shareholders' equity |
|
|
56,731 |
|
|
|
109,720 |
|
Total liabilities and shareholders' equity |
|
$ |
147,657 |
|
|
$ |
211,537 |
|
|
|
VAALCO ENERGY, INC AND SUBSIDIARIESConsolidated Statements of
Operations (Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Six Months Ended June 30, |
|
|
June 30, 2020 |
|
June 30, 2019 |
|
March 31, 2020 |
|
2020 |
|
|
2019 |
|
|
|
(in thousands except per share amounts) |
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Crude oil and natural gas sales |
|
$ |
17,974 |
|
|
$ |
25,230 |
|
|
$ |
18,389 |
|
|
$ |
36,363 |
|
|
$ |
44,995 |
|
Operating costs and
expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Production expense |
|
|
12,126 |
|
|
|
9,819 |
|
|
|
9,749 |
|
|
|
21,875 |
|
|
|
18,038 |
|
Depreciation, depletion and amortization |
|
|
2,801 |
|
|
|
1,909 |
|
|
|
3,103 |
|
|
|
5,904 |
|
|
|
3,462 |
|
Impairment of proved crude oil and natural gas properties |
|
|
— |
|
|
|
— |
|
|
|
30,625 |
|
|
|
30,625 |
|
|
|
— |
|
General and administrative expense |
|
|
3,019 |
|
|
|
2,728 |
|
|
|
754 |
|
|
|
3,773 |
|
|
|
7,167 |
|
Bad debt expense and other |
|
|
179 |
|
|
|
5 |
|
|
|
810 |
|
|
|
989 |
|
|
|
(24 |
) |
Total operating costs and expenses |
|
|
18,125 |
|
|
|
14,461 |
|
|
|
45,041 |
|
|
|
63,166 |
|
|
|
28,643 |
|
Other operating expense, net |
|
|
(815 |
) |
|
|
(4,399 |
) |
|
|
(31 |
) |
|
|
(846 |
) |
|
|
(4,436 |
) |
Operating income (loss) |
|
|
(966 |
) |
|
|
6,370 |
|
|
|
(26,683 |
) |
|
|
(27,649 |
) |
|
|
11,916 |
|
Other income (expense): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Derivative instruments gain (loss), net |
|
|
(756 |
) |
|
|
1,911 |
|
|
|
7,339 |
|
|
|
6,583 |
|
|
|
(1 |
) |
Interest income, net |
|
|
11 |
|
|
|
201 |
|
|
|
116 |
|
|
|
127 |
|
|
|
388 |
|
Other, net |
|
|
47 |
|
|
|
(145 |
) |
|
|
(31 |
) |
|
|
16 |
|
|
|
(383 |
) |
Total other income (expense), net |
|
|
(698 |
) |
|
|
1,967 |
|
|
|
7,424 |
|
|
|
6,726 |
|
|
|
4 |
|
Income (loss) from continuing
operations before income taxes |
|
|
(1,664 |
) |
|
|
8,337 |
|
|
|
(19,259 |
) |
|
|
(20,923 |
) |
|
|
11,920 |
|
Income tax expense
(benefit) |
|
|
(2,249 |
) |
|
|
9,208 |
|
|
|
33,478 |
|
|
|
31,229 |
|
|
|
11,961 |
|
Income (loss) from continuing
operations |
|
|
585 |
|
|
|
(871 |
) |
|
|
(52,737 |
) |
|
|
(52,152 |
) |
|
|
(41 |
) |
Income (loss) from
discontinued operations, net of tax |
|
|
11 |
|
|
|
(162 |
) |
|
|
(63 |
) |
|
|
(52 |
) |
|
|
5,509 |
|
Net income (loss) |
|
$ |
596 |
|
|
$ |
(1,033 |
) |
|
$ |
(52,800 |
) |
|
$ |
(52,204 |
) |
|
$ |
5,468 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic net income (loss) per
share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from continuing operations |
|
$ |
0.01 |
|
|
$ |
(0.01 |
) |
|
$ |
(0.91 |
) |
|
$ |
(0.90 |
) |
|
$ |
0.00 |
|
Income (loss) from discontinued operations, net of tax |
|
|
0.00 |
|
|
|
0.00 |
|
|
|
0.00 |
|
|
|
0.00 |
|
|
|
0.09 |
|
Net income (loss) per share |
|
$ |
0.01 |
|
|
$ |
(0.01 |
) |
|
$ |
(0.91 |
) |
|
$ |
(0.90 |
) |
|
$ |
0.09 |
|
Basic weighted average shares outstanding |
|
|
57,456 |
|
|
|
59,801 |
|
|
|
57,975 |
|
|
|
57,716 |
|
|
|
59,716 |
|
Diluted net income (loss) per
share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from continuing operations |
|
$ |
0.01 |
|
|
$ |
(0.01 |
) |
|
$ |
(0.91 |
) |
|
$ |
(0.90 |
) |
|
$ |
0.00 |
|
Income (loss) from discontinued operations, net of tax |
|
|
0.00 |
|
|
|
0.00 |
|
|
|
0.00 |
|
|
|
0.00 |
|
|
|
0.09 |
|
Net income (loss) per share |
|
$ |
0.01 |
|
|
$ |
(0.01 |
) |
|
$ |
(0.91 |
) |
|
$ |
(0.90 |
) |
|
$ |
0.09 |
|
Diluted weighted average shares outstanding |
|
|
57,594 |
|
|
|
59,801 |
|
|
|
57,975 |
|
|
|
57,716 |
|
|
|
59,716 |
|
|
|
VAALCO ENERGY, INC AND SUBSIDIARIESConsolidated Statements of
Cash Flows (Unaudited)
|
|
|
|
|
|
|
|
|
Six Months Ended June 30, |
|
|
2020 |
|
|
2019 |
|
|
|
(in thousands) |
CASH FLOWS FROM OPERATING
ACTIVITIES: |
|
|
|
|
|
|
Net income (loss) |
|
$ |
(52,204 |
) |
|
$ |
5,468 |
|
Adjustments to reconcile net
income to net cash provided by (used in) operating activities: |
|
|
|
|
|
|
(Income) loss from discontinued operations |
|
|
52 |
|
|
|
(5,509 |
) |
Depreciation, depletion and amortization |
|
|
5,904 |
|
|
|
3,462 |
|
Impairment of proved crude oil and natural gas properties |
|
|
30,625 |
|
|
|
— |
|
Other amortization |
|
|
121 |
|
|
|
121 |
|
Deferred taxes |
|
|
32,271 |
|
|
|
7,667 |
|
Unrealized foreign exchange (gain ) loss |
|
|
(19 |
) |
|
|
21 |
|
Stock-based compensation |
|
|
(1,849 |
) |
|
|
1,620 |
|
Cash settlements paid on exercised stock appreciation rights |
|
|
— |
|
|
|
(261 |
) |
Derivatives instruments (gain) loss |
|
|
(6,583 |
) |
|
|
1 |
|
Cash settlements received on matured derivative contracts, net |
|
|
7,216 |
|
|
|
1,563 |
|
Bad debt (recovery) expense and other |
|
|
989 |
|
|
|
(24 |
) |
Other operating loss, net |
|
|
46 |
|
|
|
37 |
|
Operational expenses associated with equipment and other |
|
|
1,077 |
|
|
|
(60 |
) |
Change in operating assets and liabilities: |
|
|
|
|
|
|
Trade receivables |
|
|
4,814 |
|
|
|
(1,921 |
) |
Accounts with joint venture owners |
|
|
11,783 |
|
|
|
4,291 |
|
Other receivables |
|
|
(857 |
) |
|
|
158 |
|
Crude oil inventory |
|
|
219 |
|
|
|
232 |
|
Prepayments and other |
|
|
(779 |
) |
|
|
(1,175 |
) |
Value added tax and other receivables |
|
|
(695 |
) |
|
|
718 |
|
Accounts payable |
|
|
(5,819 |
) |
|
|
(730 |
) |
Foreign taxes payable |
|
|
(2,386 |
) |
|
|
(2,865 |
) |
Accrued liabilities and other |
|
|
(3,333 |
) |
|
|
3,858 |
|
Net cash provided by continuing operating activities |
|
|
20,593 |
|
|
|
16,672 |
|
Net cash used in discontinued operating activities |
|
|
(354 |
) |
|
|
(91 |
) |
Net cash provided by operating activities |
|
|
20,239 |
|
|
|
16,581 |
|
CASH FLOWS FROM
INVESTING ACTIVITIES: |
|
|
|
|
Property and equipment expenditures |
|
|
(20,097 |
) |
|
|
(1,163 |
) |
Net cash used in continuing investing activities |
|
|
(20,097 |
) |
|
|
(1,163 |
) |
Net cash used in discontinued investing activities |
|
|
— |
|
|
|
— |
|
Net cash used in investing activities |
|
|
(20,097 |
) |
|
|
(1,163 |
) |
CASH FLOWS FROM
FINANCING ACTIVITIES: |
|
|
|
|
Proceeds from the issuances of common stock |
|
|
— |
|
|
|
107 |
|
Treasury shares |
|
|
(990 |
) |
|
|
(352 |
) |
Net cash used in continuing
financing activities |
|
|
(990 |
) |
|
|
(245 |
) |
Net cash used in discontinued
financing activities |
|
|
— |
|
|
|
— |
|
Net cash used in financing
activities |
|
|
(990 |
) |
|
|
(245 |
) |
NET CHANGE IN CASH, CASH
EQUIVALENTS AND RESTRICTED CASH |
|
|
(848 |
) |
|
|
15,173 |
|
CASH, CASH EQUIVALENTS AND
RESTRICTED CASH AT BEGINNING OF PERIOD |
|
|
59,124 |
|
|
|
46,655 |
|
CASH, CASH EQUIVALENTS AND
RESTRICTED CASH AT END OF PERIOD |
|
$ |
58,276 |
|
|
$ |
61,828 |
|
|
|
VAALCO ENERGY, INC AND SUBSIDIARIESSelected Financial and
Operating Statistics(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Six Months Ended June 30, |
|
|
June 30, 2020 |
|
June 30, 2019 |
|
March 31, 2020 |
|
2020 |
|
2019 |
NRI SALES DATA: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Crude oil (MBbls) |
|
|
631 |
|
|
357 |
|
|
294 |
|
|
925 |
|
|
654 |
NRI PRODUCTION DATA |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Crude oil (MBbls) |
|
|
492 |
|
|
333 |
|
|
450 |
|
|
942 |
|
|
648 |
Average daily production volumes (bbls/day) |
|
|
5,410 |
|
|
3,664 |
|
|
4,944 |
|
|
5,177 |
|
|
3,581 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AVERAGE SALES PRICES: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Crude oil (per Bbls) |
|
$ |
28.31 |
|
$ |
68.62 |
|
$ |
59.54 |
|
$ |
38.24 |
|
$ |
66.60 |
COSTS AND EXPENSES (PER BBL OF
SALES): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Production expense |
|
$ |
19.22 |
|
$ |
27.50 |
|
$ |
33.16 |
|
$ |
23.65 |
|
$ |
27.58 |
Production expense, excluding workovers* |
|
|
19.31 |
|
|
27.45 |
|
|
23.39 |
|
|
20.61 |
|
|
27.38 |
Depreciation, depletion and amortization |
|
|
4.44 |
|
|
5.35 |
|
|
10.55 |
|
|
6.38 |
|
|
5.29 |
General and administrative expense** |
|
|
4.78 |
|
|
7.64 |
|
|
2.56 |
|
|
4.08 |
|
|
10.96 |
Property and equipment
expenditures, cash basis (in thousands) |
|
$ |
8,117 |
|
$ |
375 |
|
$ |
11,980 |
|
$ |
20,097 |
|
$ |
1,163 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
*Workover costs excluded from the three months ended June 30,
2020 and 2019 and March 31, 2020 are $0.1 million, none and $2.8
million, respectively.**General and administrative expenses include
$1.14, $(0.29) and $(8.74) per barrel of oil of sales of
stock-based compensation expense in the three months ended June 30,
2020, and 2019 and March 31, 2020, respectively.
NON-GAAP FINANCIAL MEASURES
Adjusted EBITDAX is a supplemental non-GAAP
financial measure used by VAALCO’s management and by external users
of the Company’s financial statements, such as industry analysts,
lenders, rating agencies, investors and others who follow the
industry, as an indicator of the Company’s ability to internally
fund exploration and development activities and to service or incur
additional debt. Adjusted EBITDAX is a non-GAAP financial measure
and as used herein represents net income before discontinued
operations, interest income net, income tax expense, depletion,
depreciation and amortization, exploration expense, non-cash and
other items including stock compensation expense and unrealized
commodity derivative loss.
Management uses Adjusted Net Income to evaluate
operating and financial performance and believes the measure is
useful to investors because it eliminates the impact of certain
non-cash and/or other items that management does not consider to be
indicative of the Company’s performance from period to period.
Management also believes this non-GAAP measure is useful to
investors to evaluate and compare the Company’s operating and
financial performance across periods, as well as facilitating
comparisons to others in the Company’s industry. Adjusted Net
Income is a non-GAAP financial measure and as used herein
represents net income before discontinued operations, deferred
income tax expense, unrealized commodity derivative loss and
non-cash and other items.
Management uses Adjusted Working Capital as a
measurement tool to assess the working capital position of the
Company’s continuing operations excluding leasing obligations
because it eliminates the impact of discontinued operations as well
as the impact of lease liabilities. Under the lease
accounting standards, lease liabilities related to assets used in
joint operations include both the Company’s share of expenditures
as well as the share of lease expenditures which its non-operator
joint venture owners’ will be obligated to pay under joint
operating agreements. Adjusted Working Capital is a non-GAAP
financial measure and as used herein represents working capital
excluding working capital attributable to discontinued operations
and current liabilities associated with lease obligations.
Adjusted EBITDAX and Adjusted Net Income have
significant limitations, including that they do not reflect the
Company’s cash requirements for capital expenditures, contractual
commitments, working capital or debt service. Adjusted EBITDAX and
Adjusted Net Income should not be considered as substitutes for net
income (loss), operating income (loss), cash flows from operating
activities or any other measure of financial performance or
liquidity presented in accordance with GAAP. Adjusted EBITDAX and
Adjusted Net Income exclude some, but not all, items that affect
net income (loss) and operating income (loss) and these measures
may vary among other companies. Therefore, the Company’s Adjusted
EBITDAX and Adjusted Net Income may not be comparable to similarly
titled measures used by other companies.
The tables below reconcile the most directly
comparable GAAP financial measures to Adjusted Net Income, Adjusted
EBITDAX and Adjusted Working Capital.
VAALCO ENERGY, INC AND SUBSIDIARIESReconciliations of Non-GAAP
Financial Measures(Unaudited)(in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Six Months Ended June 30, |
Reconciliation of Net
Income (Loss) to Adjusted Net Income |
|
June 30, 2020 |
|
June 30, 2019 |
|
March 31, 2020 |
|
2020 |
|
|
2019 |
|
Net income (loss) |
|
$ |
596 |
|
|
$ |
(1,033 |
) |
|
$ |
(52,800 |
) |
|
$ |
(52,204 |
) |
|
$ |
5,468 |
|
Adjustment for discrete
items: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Discontinued operations, net of tax |
|
|
(11 |
) |
|
|
162 |
|
|
|
63 |
|
|
|
52 |
|
|
|
(5,509 |
) |
Impairment of proved crude oil and natural gas properties |
|
|
— |
|
|
|
— |
|
|
|
30,625 |
|
|
|
30,625 |
|
|
|
— |
|
Unrealized derivative instruments (gain) loss |
|
|
7,254 |
|
|
|
(1,479 |
) |
|
|
(6,621 |
) |
|
|
633 |
|
|
|
1,564 |
|
Deferred income tax expense (benefit) |
|
|
(3,367 |
) |
|
|
5,925 |
|
|
|
35,638 |
|
|
|
32,271 |
|
|
|
7,667 |
|
Other operating expense, net |
|
|
815 |
|
|
|
4,399 |
|
|
|
31 |
|
|
|
846 |
|
|
|
4,436 |
|
Adjusted Net Income |
|
$ |
5,287 |
|
|
$ |
7,974 |
|
|
$ |
6,936 |
|
|
$ |
12,223 |
|
|
$ |
13,626 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Six Months Ended June 30, |
Reconciliation of Net
Income (Loss) to Adjusted EBITDAX |
|
June 30, 2020 |
|
June 30, 2019 |
|
March 31, 2020 |
|
2020 |
|
|
2019 |
|
Net income (loss) |
|
$ |
596 |
|
|
$ |
(1,033 |
) |
|
$ |
(52,800 |
) |
|
$ |
(52,204 |
) |
|
$ |
5,468 |
|
Add back: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Impact of discontinued operations |
|
|
(11 |
) |
|
|
162 |
|
|
|
63 |
|
|
|
52 |
|
|
|
(5,509 |
) |
Interest income, net |
|
|
(11 |
) |
|
|
(201 |
) |
|
|
(116 |
) |
|
|
(127 |
) |
|
|
(388 |
) |
Income tax expense (benefit) |
|
|
(2,249 |
) |
|
|
9,208 |
|
|
|
33,478 |
|
|
|
31,229 |
|
|
|
11,961 |
|
Depreciation, depletion and amortization |
|
|
2,801 |
|
|
|
1,909 |
|
|
|
3,103 |
|
|
|
5,904 |
|
|
|
3,462 |
|
Impairment of proved crude oil and natural gas properties |
|
|
— |
|
|
|
— |
|
|
|
30,625 |
|
|
|
30,625 |
|
|
|
— |
|
Non-cash or unusual
items: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock-based compensation |
|
|
720 |
|
|
|
(103 |
) |
|
|
(2,569 |
) |
|
|
(1,849 |
) |
|
|
1,620 |
|
Unrealized derivative instruments (gain) loss |
|
|
7,254 |
|
|
|
(1,479 |
) |
|
|
(6,621 |
) |
|
|
633 |
|
|
|
1,564 |
|
Other operating expense, net |
|
|
815 |
|
|
|
4,399 |
|
|
|
31 |
|
|
|
846 |
|
|
|
4,436 |
|
Bad debt expense and other |
|
|
179 |
|
|
|
5 |
|
|
|
810 |
|
|
|
989 |
|
|
|
(24 |
) |
Adjusted EBITDAX |
|
$ |
10,094 |
|
|
$ |
12,867 |
|
|
$ |
6,004 |
|
|
$ |
16,098 |
|
|
$ |
22,590 |
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
Working Capital to Adjusted Working Capital |
|
June 30, 2020 |
|
March 31, 2020 |
|
December 31, 2019 |
Current assets |
|
$ |
62,234 |
|
|
$ |
79,049 |
|
|
$ |
69,758 |
|
Current liabilities |
|
|
(50,498 |
) |
|
|
(65,687 |
) |
|
|
(63,750 |
) |
Working
capital |
|
|
11,736 |
|
|
|
13,362 |
|
|
|
6,008 |
|
Add: operating lease
liabilities - current portion |
|
|
12,274 |
|
|
|
12,050 |
|
|
|
11,990 |
|
Add: current liabilities -
discontinued operations |
|
|
48 |
|
|
|
395 |
|
|
|
350 |
|
Adjusted Working
Capital |
|
$ |
24,058 |
|
|
$ |
25,807 |
|
|
$ |
18,348 |
|
|
|
|
|
|
|
|
|
|
|
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