Vaalco lifts third-quarter output 21% and adjusted EBITDAX 30%

what happened

Vaalco Energy said in an RNS release that its third-quarter 2026 production on a working interest basis rose about 21% from the second quarter, to 25,284 barrels of oil per day. On a net revenue interest basis, output reached 20,145 barrels per day.

The company reported a net loss of $39.8 million, or $0.38 per diluted share, driven mainly by a non-cash loss on derivative instruments. Adjusted EBITDAX rose 30% to $71.1 million, while capital expenditures totaled $86.9 million.

For the fourth quarter, Vaalco expects sales of 20,800 to 22,600 barrels per day on a net revenue interest basis and capital guidance of $55 to $75 million. The company also expects free cash flow in the second half of 2027, assuming strong commodity prices are sustained.

why it matters

The quarterly figures matter, but investors are also watching the outlook. The Baobab restart offshore Cote d'Ivoire and drilling in Gabon are meant to lift output, while firm pricing supports cash generation at this independent producer. Shares of EGY will depend largely on oil prices and delivery of the growth program.

market impact

EGY: higher output and EBITDAX support the company's shares, though oil prices remain the key factor

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