VAALCO Energy Inc. reported its first quarter 2022 operational and financial results. The company revealed a net income of $12.2 million, or $0.20 per diluted share.
The company reported an adjusted Net Income of $21.1 million or $0.35 per diluted share. Moreover, the adjusted EBITDA increased by 49% quarter-over-quarter to $33.5 million in Q1.
In addition, the production increased by 7% to 8,051 net revenue interest barrels of crude oil per day. Also, the exit rate for Q1 2022 production increased to approximately 9,500 net revenue interest; barrels of crude oil per day.
Likewise, sold 616,000 barrels of oil during this quarter due to field start-up operational issues. This pushed out the timing of third operational issues which pushed out the timing of a third lifting until April 4th.
Furthermore, the company reported the successful drilling, completion and placement of production of the first two development wells. The development wells were part of the 2021/2022 drilling campaign.
Additionally, VAALCO announced the quarterly cash dividend payment of $0.0325 per common share to be paid in Q2 2022. Also, physically paid their maiden dividend of $0.0325 per common share on March 18, 2022.
George Maxwell, VAALCO’s Chief Executive Officer commented, “We are delivering operationally, benefiting from the improved commodity price environment, and generating significant cash flow, allowing us to execute on our accretive growth strategy, fully fund our capital commitments and firmly place VAALCO in a financially stronger position. We are very encouraged by our highly successful 2021/2022 drilling campaign results thus far, with the first two wells in the campaign both having initial rates above our internal expectations. We generated $33.5 million in Adjusted EBITDAX in Q1 2022, a nearly 50% increase over the fourth quarter, further demonstrating our confidence that we can fully fund all of our 2022 capital budget from cash on hand and through cash from operations. Enhancing our production, reducing our costs and extending the economic life at Etame is a driving force for VAALCO’s continued success.”
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VAALCO Energy Inc. is an independent energy company. It has an engagement in the acquisition, development, and production of crude oil. The company is based in Houston, Texas; its properties are primarily located in Gabon and Equatorial Guinea in West Africa.