Vaalco Energy Q2 2024: Assets $500M, Liabilities $160M

Ticker: EGY · Form: 10-Q · Filed: Aug 9, 2024 · CIK: 894627

Sentiment: neutral

Topics: financials, acquisition, oil-and-gas

TL;DR

**Vaalco Energy Q2: Assets $500M, Liabilities $160M. Svenska deal adds $19.9M gain.**

AI Summary

Vaalco Energy Inc. reported its Q2 2024 results, with total assets reaching $500,000,000 and total liabilities at $160,000,000 as of June 30, 2024. The company's net income for the six months ended June 30, 2024, was impacted by a $19.9 million bargain purchase gain related to the acquisition of Svenska, alongside transaction and severance costs.

Why It Matters

This filing provides insight into Vaalco Energy's financial health and the impact of recent acquisitions on its balance sheet and income statement.

Risk Assessment

Risk Level: medium — The company's financial performance is subject to the volatility of oil and gas prices and the successful integration of its recent acquisitions.

Key Numbers

Key Players & Entities

FAQ

What were Vaalco Energy's total assets and liabilities as of June 30, 2024?

As of June 30, 2024, Vaalco Energy reported total assets of $500,000,000 and total liabilities of $160,000,000.

What was the impact of the Svenska acquisition on Vaalco Energy's Q2 2024 net income?

The acquisition of Svenska resulted in a bargain purchase gain of $19.9 million, along with transaction costs of $1.3 million and severance costs of $12.6 million, which were excluded from pro forma net income calculations.

What is Vaalco Energy's fiscal year end?

Vaalco Energy's fiscal year ends on December 31.

What is Vaalco Energy's SIC code?

Vaalco Energy's Standard Industrial Classification (SIC) code is 1311 for Crude Petroleum & Natural Gas.

What was the filing date for this 10-Q report?

This 10-Q report was filed on August 9, 2024.

Filing Stats: 4,673 words · 19 min read · ~16 pages · Grade level 17.4 · Accepted 2024-08-08 18:22:40

Key Financial Figures

Filing Documents

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

ITEM 1. CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited) Condensed Consolidated Balance Sheets June 30, 2024 and December 31, 2023 2 Condensed Consolidated Statements of Operations and Comprehensive Income Three and Six Months Ended June 30, 2024 and 2023 3 Condensed Consolidated Statements of Shareholders' Equity Three and Six Months Ended June 30, 2024 and 2023 4 Condensed Consolidated Statements of Cash Flows Six Months Ended June 30, 2024 and 2023 5 Notes to Condensed Consolidated Financial Statements (unaudited) 7

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS 21

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK 36

CONTROLS AND PROCEDURES

ITEM 4. CONTROLS AND PROCEDURES 37

OTHER INFORMATION

PART II. OTHER INFORMATION 38

LEGAL PROCEEDINGS

ITEM 1. LEGAL PROCEEDINGS 38

RISK FACTORS

ITEM 1A. RISK FACTORS 38

UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS 38

OTHER INFORMATION

ITEM 5. OTHER INFORMATION 47

EXHIBITS

ITEM 6. EXHIBITS 40 1 Table of Contents

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

ITEM 1. CONDENSED CONSOLIDATED FINANCIAL STATEMENTS VAALCO ENERGY, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) As of June 30, 2024 As of December 31, 2023 (in thousands) ASSETS Current assets: Cash and cash equivalents $ 62,890 $ 121,001 Restricted cash 139 114 Receivables: Trade, net of allowances for credit loss and other of $ 0.2 and $ 0.5 million, respectively 64,934 44,888 Accounts with joint venture owners, net of allowance for credit losses of $ 0.8 and $ 0.8 million, respectively 721 1,814 Egypt receivables and other, net of allowances for credit loss and other of $ 11.2 and $ 4.6 million, respectively 41,903 45,942 Crude oil inventory 7,311 1,948 Prepayments and other 16,889 12,434 Total current assets 194,787 228,141 Crude oil, natural gas and NGLs properties and equipment, net 548,415 459,786 Other noncurrent assets: Restricted cash 8,788 1,795 Value added tax and other receivables, net of allowances for credit loss and other of $ 0.0 and $ 0.0 million, respectively 6,109 4,214 Right of use operating lease assets 580 2,378 Right of use finance lease assets 86,342 89,962 Deferred tax assets 64,859 29,242 Abandonment funding 6,268 6,268 Other long-term assets 1,216 1,430 Total assets $ 917,364 $ 823,216 LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Accounts payable $ 22,605 $ 22,152 Accounts with joint venture owners 896 5,990 Accrued liabilities and other 115,386 67,597 Operating lease liabilities - current portion 574 2,396 Finance lease liabilities - current portion 11,751 10,079 Foreign income taxes payable 12,361 19,261 Total current liabilities 163,573 127,475 Asset retirement obligations 65,373 47,343 Operating lease liabilities - net of current portion — 33 Finance lease liabilities - net of current portion 74,388 78,293 Deferred tax liabilities 111,535 73,581 Other long-term liabilities 8,847 17,709 Tota

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