The Q1 results were a washout due to one-off factors (government lifting, hedging losses, exploration dry hole), but the raised FY guidance and strong Q2 outlook signal the worst is past. Watch for Côte d'Ivoire production restart in Q2 and the Phase Five drilling program in H2 2026 as catalysts. The massive derivative losses are non-cash and should reverse if oil prices stabilize. The stock may trade on the forward guidance rather than the backward-looking loss.
Price Chart
Executive Summary
VAALCO Energy reported a GAAP net loss of $93.8M ($0.90/diluted share) for Q1 2026, driven by $70.6M in derivative losses and $22.4M in exploration expense, with net revenue falling 43% YoY to $62.6M due to a government lifting in Gabon and the Canada divestiture. However, the company raised full-year 2026 production and sales guidance by 8% and 12% respectively while maintaining capital budget, and guided Q2 2026 sales volumes 44% higher sequentially, signaling an operational inflection point as the Côte d'Ivoire FPSO restarts and Gabon drilling delivers.
Key Financial Metrics
Key Facts
- GAAP net loss of $93.8M ($0.90/diluted share) vs net income of $7.7M ($0.07/diluted) in Q1 2025
- Net revenue fell 43% YoY to $62.6M from $110.3M; NRI sales volumes down 36% YoY to 1,094 MBOE
- Adjusted Net Loss of $47.2M ($0.45/diluted) excluding $55.9M unrealized derivative loss
- Adjusted EBITDAX collapsed to $11.6M from $57.0M in Q1 2025 due to lower sales and hedging losses
- Raised FY2026 NRI production guidance 8% and sales guidance 12% at midpoint; maintained $290-360M capex
- Q2 2026 NRI sales guidance of 16,800-18,300 BOPD implies 44% sequential increase at midpoint
- Long-term debt surged to $152M from $60M at year-end; net debt rose to $104M from $1.1M
- Operating cash flow was negative $39.2M vs positive $32.7M in Q1 2025
- Declared quarterly dividend of $0.0625/share, unchanged
- Divested Canadian assets for $25.5M; Côte d'Ivoire FPSO restart on track for Q2 2026
Financial Impact
GAAP net loss of $93.8M; Adjusted EBITDAX of $11.6M; net debt increased by $103M to $104M
Risk Factors
- Hedging program caps upside if oil prices continue to rally; $70.6M derivative loss in Q1 highlights the drag
- Net debt ballooned to $104M from $1.1M; further capex spending could pressure liquidity
- Côte d'Ivoire FPSO restart delays could push production ramp into H2 2026
- Exploration risk: West Etame well was a dry hole; further exploration expense expected ($26-31M FY guidance)
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0000894627-26-000023 |
| Document: egy-20260507.htm | 0000894627-26-000023 |
| Document: 0000894627-26-000023-index-headers.html | 0000894627-26-000023 |
| Document: 0000894627-26-000023-index.html | 0000894627-26-000023 |
| Document: 0000894627-26-000023.txt | 0000894627-26-000023 |
| 8-K Data (Synthetic) | 0000894627-26-000023 |
Track record builds as more directional reports settle.
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 7, 2026 19d ago | 8-K | $5.79 $6.06 | ▲ +4.66% | ▲ +5.64% | $6.51 (+12.52%) |
Aug 6, 2026 11w ago | Press Release | $5.55 $5.78 | ▲ +4.14% | ▲ +3.75% | $6.51 (+17.39%) |
Aug 5, 2026 11w ago | Press Release | $5.15 $5.72 | ▲ +11.07% | ▲ +10.72% | $6.51 (+26.50%) |
Jun 9, 2026 19w ago | 8-K | $5.56 $5.44 | ▼ −2.16% | ▼ −5.59% | $6.51 (+17.18%) |
Jun 9, 2026 19w ago | Press Release | $5.40 $5.42 | ▲ +0.37% | ▼ −2.04% | $6.51 (+20.65%) |
May 7, 2026 24w ago | 8-K | $5.60 $6.00 | ▲ +7.14% | ▲ +5.68% | $6.51 (+16.34%) |
May 5, 2026 24w ago | Press Release | $6.52 $6.07 | ▼ −6.90% | ▼ −8.89% | $6.51 (−0.08%) |
Apr 21, 2026 26w ago | 8-K | $6.05 $6.58 | ▲ +8.68% | ▲ +8.62% | $6.51 (+7.69%) |
Mar 5, 2026 33w ago | Press Release | $5.45 $5.39 | ▼ −1.10% | ▲ +0.43% | $6.51 (+19.54%) |
US Market Status
Subscribe to SecBot
Get Real-Time SEC Filing Intelligence
Comprehensive SEC filing analysis delivered the moment filings hit EDGAR. Sentiment scoring, impact analysis, and actionable insights for every material event.
Create a free account Live analysis, Telegram alerts, watchlists and the MCP server for subscribers