VAALCO Energy, Inc. shared the report they made for the fourth quarter and the entire year of 2021. The results showed an income of USD$34.4 million and a 250% growth in the proved SEC reserves.
The highlights were:
- Solid sales accomplished USD 81.8 million in the year net income. Higher realized pricing and a $16.1 million non-cash deferred tax benefit. As a result, these numbers gave a Q4 2021 net income of USD 34.4 million. They translated this amount into USD 12.5 million of Adjusted Net Income in Q4 2021. Is a total of USD 39.6 million in all year’s earnings
- The generated Adjusted Net Income and Adjusted Working Capital (EBITDAX) was USD 22.6 million in Q4 2021. The entire year’s amount was $ 85.8 million.
- They produced 7,554 barrels of crude oil per day. Sold over the Q4 in 2021, 709,000 barrels of oil. These numbers increased years sales to 2.71 million barrels of oil in 2021. These numbers are above the midpoint of guidance.
- Drilled, completed, and placed on the production of the Etame 8H-ST development successfully. It was the first well in the 2021-2022 drilling campaign.
- They reported a strong balance of USD 48.7 million. It did not include the proceeds from the December lifting of USD 22.5 million, which was received in January 2022. They were also stated to have no debt as of December 31, 2021.
- In Q4 of 2021, adopted a quarterly cash dividend policy. This action helped schedule an initial payment of USD 0.0325 per common share. The payment was due on March 18, 2022, to all stockholders of record at the close of business on February 18, 2022.
- At last, they announced the 2022 operational and financial guidance. It included the benefit of cost savings associated with the production conversion in 2022.
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George Maxwell, VAALCO’s Chief Executive Officer, commented, “As shown by these strong 2021 results, we are delivering operationally, benefiting from the improved commodity price environment and generating significant cash flow. These benefits firmly place VAALCO Energy in a financially stronger position and poised to execute on accretive growth initiatives in 2022 and beyond. In the fourth quarter of 2021, we produced 7,554 NRI BOPD, which was above the midpoint of guidance. We generated nearly $23 million in Adjusted EBITDAX and maintained a debt-free balance sheet with a cash position of $48.7 million. All that while funding our 2021/2022 drilling campaign and FSO conversion from cash on hand and through cash from operations.”
