false--12-31Q320190000894627YesAccelerated FilerYesP1YP1DP10YP1YP5YP2Y6M0P3YP3YP3YP3YP5Y0000894627egy:BlockPOffshoreEquatorialGuineaMember2019-09-300000894627us-gaap:TreasuryStockMember2019-07-012019-09-300000894627us-gaap:TreasuryStockMember2019-01-012019-03-310000894627egy:StockRepurchaseProgram2019Memberus-gaap:SubsequentEventMember2019-10-012019-11-050000894627egy:StockRepurchaseProgram2019Member2019-07-012019-09-300000894627egy:StockRepurchaseProgram2019Member2019-01-012019-09-300000894627egy:StockRepurchaseProgram2019Member2019-06-200000894627us-gaap:CommonStockMember2019-07-012019-09-300000894627us-gaap:CommonStockMember2019-04-012019-06-300000894627us-gaap:CommonStockMember2019-01-012019-03-310000894627us-gaap:TreasuryStockMember2018-07-012018-09-300000894627us-gaap:CommonStockMember2018-07-012018-09-300000894627us-gaap:TreasuryStockMember2018-04-012018-06-300000894627us-gaap:CommonStockMember2018-04-012018-06-300000894627us-gaap:TreasuryStockMember2019-09-300000894627us-gaap:RetainedEarningsMember2019-09-300000894627us-gaap:AdditionalPaidInCapitalMember2019-09-300000894627us-gaap:RetainedEarningsMember2019-06-300000894627us-gaap:AdditionalPaidInCapitalMember2019-06-300000894627us-gaap:TreasuryStockMember2019-03-310000894627us-gaap:RetainedEarningsMember2019-03-310000894627us-gaap:AdditionalPaidInCapitalMember2019-03-3100008946272019-03-310000894627us-gaap:TreasuryStockMember2018-12-310000894627us-gaap:RetainedEarningsMember2018-12-310000894627us-gaap:AdditionalPaidInCapitalMember2018-12-310000894627us-gaap:RetainedEarningsMember2018-09-300000894627us-gaap:AdditionalPaidInCapitalMember2018-09-300000894627us-gaap:RetainedEarningsMember2018-06-300000894627us-gaap:AdditionalPaidInCapitalMember2018-06-300000894627us-gaap:TreasuryStockMember2018-03-310000894627us-gaap:RetainedEarningsMember2018-03-310000894627us-gaap:AdditionalPaidInCapitalMember2018-03-3100008946272018-03-310000894627us-gaap:TreasuryStockMember2017-12-310000894627us-gaap:RetainedEarningsMember2017-12-310000894627us-gaap:AdditionalPaidInCapitalMember2017-12-310000894627us-gaap:RestrictedStockMember2019-07-012019-09-300000894627us-gaap:RestrictedStockMember2018-07-012018-09-300000894627us-gaap:RestrictedStockMember2018-01-012018-09-300000894627us-gaap:EmployeeStockOptionMember2018-01-012018-09-300000894627us-gaap:CommonStockMember2019-09-300000894627us-gaap:TreasuryStockMember2019-06-300000894627us-gaap:CommonStockMember2019-06-300000894627us-gaap:CommonStockMember2019-03-310000894627us-gaap:CommonStockMember2018-12-310000894627us-gaap:TreasuryStockMember2018-09-300000894627us-gaap:CommonStockMember2018-09-300000894627us-gaap:TreasuryStockMember2018-06-300000894627us-gaap:CommonStockMember2018-06-300000894627us-gaap:CommonStockMember2018-03-310000894627us-gaap:CommonStockMember2017-12-310000894627srt:DirectorMember2019-06-062019-06-060000894627egy:EmployeesMember2019-04-012019-04-010000894627egy:EmployeesMember2019-02-282019-02-280000894627egy:LongTermIncentivePlan2014Member2019-09-300000894627us-gaap:EmployeeStockOptionMember2019-01-012019-09-300000894627us-gaap:RestrictedStockMember2019-09-300000894627us-gaap:StockAppreciationRightsSARSMember2018-12-310000894627us-gaap:RestrictedStockMember2018-12-310000894627us-gaap:RestrictedStockMember2019-06-062019-06-060000894627us-gaap:StockAppreciationRightsSARSMember2019-05-102019-05-100000894627us-gaap:RestrictedStockMember2019-04-012019-04-010000894627us-gaap:StockAppreciationRightsSARSMember2019-02-282019-02-280000894627us-gaap:RestrictedStockMember2019-02-282019-02-280000894627us-gaap:EmployeeStockOptionMember2019-02-282019-02-280000894627us-gaap:RestrictedStockMember2019-01-012019-09-300000894627egy:GaboneseGovernmentShareOfProfitOilMember2019-01-012019-09-300000894627egy:GaboneseGovernmentShareOfProfitOilMember2018-07-012018-09-300000894627egy:CrudeOilSalesAndPurchaseAgreementsMember2019-07-012019-09-300000894627egy:CrudeOilSalesAndPurchaseAgreementsMember2019-01-012019-09-300000894627egy:CrudeOilSalesAndPurchaseAgreementsMember2018-07-012018-09-300000894627egy:GaboneseGovernmentShareOfProfitOilMember2018-01-012018-09-300000894627egy:CrudeOilSalesAndPurchaseAgreementsMember2018-01-012018-09-300000894627country:GA2019-07-012019-09-300000894627country:GA2018-07-012018-09-300000894627country:GA2018-01-012018-09-3000008946272018-05-222018-05-2200008946272019-01-012019-01-310000894627us-gaap:SegmentDiscontinuedOperationsMemberegy:JointOperatingWithRepublicOfAngolaMember2019-07-012019-07-310000894627country:GA2018-09-300000894627egy:GrossObligationMember2018-12-310000894627us-gaap:AccountingStandardsUpdate201602Member2019-01-010000894627us-gaap:GeneralAndAdministrativeExpenseMember2019-07-012019-09-300000894627egy:ProductionExpenseMember2019-07-012019-09-300000894627egy:LeaseCostsBilledToJointVentureOwnersMember2019-07-012019-09-300000894627us-gaap:GeneralAndAdministrativeExpenseMember2019-01-012019-09-300000894627egy:ProductionExpenseMember2019-01-012019-09-300000894627egy:LeaseCostsBilledToJointVentureOwnersMember2019-01-012019-09-300000894627us-gaap:OperatingSegmentsMemberegy:EquatorialGuineaSegmentMember2019-07-012019-09-300000894627us-gaap:OperatingSegmentsMemberegy:EquatorialGuineaSegmentMember2018-07-012018-09-300000894627us-gaap:OperatingSegmentsMemberegy:EquatorialGuineaSegmentMember2018-01-012018-09-300000894627us-gaap:RetainedEarningsMember2019-07-012019-09-300000894627us-gaap:RetainedEarningsMember2019-04-012019-06-300000894627us-gaap:RetainedEarningsMember2019-01-012019-03-310000894627us-gaap:RetainedEarningsMember2018-07-012018-09-300000894627us-gaap:RetainedEarningsMember2018-04-012018-06-300000894627us-gaap:RetainedEarningsMember2018-01-012018-03-310000894627country:GA2019-07-310000894627us-gaap:SegmentDiscontinuedOperationsMemberegy:JointOperatingWithRepublicOfAngolaMember2019-06-300000894627srt:MinimumMember2019-09-300000894627srt:MaximumMember2019-09-300000894627us-gaap:OperatingSegmentsMemberegy:EquatorialGuineaSegmentMember2019-01-012019-09-300000894627us-gaap:SegmentDiscontinuedOperationsMemberegy:JointOperatingWithRepublicOfAngolaMember2019-01-012019-03-310000894627egy:FpsoCharterMember2019-09-300000894627egy:FpsoCharterMember2018-12-310000894627egy:AuthoritiesOtherThanUnitedStatesAndGabonMember2019-01-012019-09-300000894627us-gaap:SegmentDiscontinuedOperationsMemberegy:JointOperatingWithRepublicOfAngolaMember2019-09-300000894627us-gaap:SegmentDiscontinuedOperationsMemberegy:JointOperatingWithRepublicOfAngolaMember2019-07-012019-09-300000894627egy:CommodityContractJuly19ThroughJune2020Member2019-05-060000894627egy:CommodityContractJune2018ThroughJune2019Member2018-06-300000894627egy:CommodityContractJuly19ThroughJune2020Member2019-05-062019-05-060000894627egy:CommodityContractJune2018ThroughJune2019Member2019-01-012019-09-300000894627egy:CommodityContractJuly19ThroughJune2020Member2019-01-012019-09-300000894627egy:CommodityContractJune2018ThroughJune2019Member2018-06-012018-06-300000894627egy:CrudeOilSwapsMemberegy:UnrealizedGainLossMember2019-07-012019-09-300000894627egy:CrudeOilSwapsMemberegy:RealizedGainContractSettlementsMember2019-07-012019-09-300000894627egy:CrudeOilSwapsMember2019-07-012019-09-300000894627egy:CrudeOilSwapsMemberegy:UnrealizedGainLossMember2019-01-012019-09-300000894627egy:CrudeOilSwapsMemberegy:RealizedGainContractSettlementsMember2019-01-012019-09-300000894627egy:CrudeOilSwapsMember2019-01-012019-09-300000894627egy:CrudeOilSwapsMemberegy:UnrealizedGainLossMember2018-07-012018-09-300000894627egy:CrudeOilSwapsMemberegy:RealizedGainContractSettlementsMember2018-07-012018-09-300000894627egy:CrudeOilSwapsMember2018-07-012018-09-300000894627egy:CrudeOilSwapsMemberegy:UnrealizedGainLossMember2018-01-012018-09-300000894627egy:CrudeOilSwapsMemberegy:RealizedGainContractSettlementsMember2018-01-012018-09-300000894627egy:CrudeOilSwapsMember2018-01-012018-09-300000894627egy:CommodityContractJune2018ThroughJune2019Member2019-09-300000894627us-gaap:OperatingSegmentsMemberegy:GabonSegmentMember2019-07-012019-09-300000894627us-gaap:CorporateNonSegmentMember2019-07-012019-09-300000894627us-gaap:OperatingSegmentsMemberegy:GabonSegmentMember2019-01-012019-09-300000894627us-gaap:CorporateNonSegmentMember2019-01-012019-09-300000894627us-gaap:CorporateNonSegmentMember2018-07-012018-09-300000894627us-gaap:CorporateNonSegmentMember2018-01-012018-09-300000894627srt:RestatementAdjustmentMember2018-09-300000894627egy:VariousDebtInstrumentsMember2019-07-012019-09-300000894627egy:VariousDebtInstrumentsMember2019-01-012019-09-300000894627egy:VariousDebtInstrumentsMember2018-07-012018-09-300000894627egy:VariousDebtInstrumentsMember2018-01-012018-09-300000894627egy:FullCharterPaymentMember2019-09-300000894627srt:ParentCompanyMember2018-12-310000894627egy:FullCharterPaymentMember2018-12-310000894627egy:GlencoreUkLtdAndMercuriaEnergyTradingSaCustomersMemberus-gaap:SalesRevenueNetMember2019-01-012019-09-300000894627us-gaap:SegmentDiscontinuedOperationsMemberegy:JointOperatingWithRepublicOfAngolaMember2018-12-310000894627us-gaap:FairValueInputsLevel2Member2019-09-300000894627us-gaap:FairValueInputsLevel2Member2018-12-310000894627us-gaap:OperatingSegmentsMemberegy:GabonSegmentMemberus-gaap:SegmentContinuingOperationsMember2019-09-300000894627us-gaap:OperatingSegmentsMemberegy:EquatorialGuineaSegmentMemberus-gaap:SegmentContinuingOperationsMember2019-09-300000894627us-gaap:CorporateNonSegmentMemberus-gaap:SegmentContinuingOperationsMember2019-09-300000894627us-gaap:SegmentContinuingOperationsMember2019-09-300000894627us-gaap:OperatingSegmentsMemberegy:GabonSegmentMemberus-gaap:SegmentContinuingOperationsMember2018-12-310000894627us-gaap:OperatingSegmentsMemberegy:EquatorialGuineaSegmentMemberus-gaap:SegmentContinuingOperationsMember2018-12-310000894627us-gaap:CorporateNonSegmentMemberus-gaap:SegmentContinuingOperationsMember2018-12-310000894627us-gaap:SegmentContinuingOperationsMember2018-12-310000894627us-gaap:OperatingSegmentsMemberegy:GabonSegmentMember2018-07-012018-09-300000894627us-gaap:OperatingSegmentsMemberegy:GabonSegmentMember2018-01-012018-09-3000008946272019-09-012019-09-300000894627us-gaap:SegmentDiscontinuedOperationsMemberegy:JointOperatingWithRepublicOfAngolaMember2019-04-012019-06-3000008946272019-06-3000008946272018-09-3000008946272018-06-3000008946272017-12-310000894627egy:LiabilityAwardMember2019-07-012019-09-300000894627egy:EquityAwardMember2019-07-012019-09-300000894627egy:LiabilityAwardMember2019-01-012019-09-300000894627egy:EquityAwardMember2019-01-012019-09-300000894627egy:LiabilityAwardMember2018-07-012018-09-300000894627egy:EquityAwardMember2018-07-012018-09-300000894627egy:LiabilityAwardMember2018-01-012018-09-300000894627egy:EquityAwardMember2018-01-012018-09-300000894627us-gaap:AdditionalPaidInCapitalMember2019-07-012019-09-300000894627us-gaap:AdditionalPaidInCapitalMember2019-04-012019-06-3000008946272019-04-012019-06-300000894627us-gaap:AdditionalPaidInCapitalMember2019-01-012019-03-3100008946272019-01-012019-03-310000894627us-gaap:AdditionalPaidInCapitalMember2018-07-012018-09-300000894627us-gaap:AdditionalPaidInCapitalMember2018-04-012018-06-3000008946272018-04-012018-06-300000894627us-gaap:AdditionalPaidInCapitalMember2018-01-012018-03-3100008946272018-01-012018-03-310000894627egy:PotentialFeesFromCustomsAuditsMember2018-12-310000894627egy:BlockPOffshoreEquatorialGuineaMember2019-01-012019-09-300000894627country:GA2017-01-012017-12-310000894627us-gaap:TreasuryStockMember2019-04-012019-06-300000894627us-gaap:StockAppreciationRightsSARSMember2019-09-300000894627country:GAus-gaap:SubsequentEventMember2019-10-012019-10-310000894627egy:FpsoCharterMember2019-01-012019-09-300000894627egy:EtameFieldMember2018-09-172018-09-170000894627srt:MinimumMember2019-01-012019-09-300000894627srt:MaximumMember2019-01-012019-09-300000894627egy:OffshoreGabonMember2019-01-012019-09-300000894627egy:EtameFieldMember2019-01-012019-09-300000894627egy:ProductionSharingContractSeptember172018ThroughSeptember162028Member2019-01-012019-09-300000894627egy:ProductionSharingContractAfterSeptember162028Member2019-01-012019-09-300000894627egy:PriorProductionSharingContractThroughSeptember172018Member2019-01-012019-09-300000894627us-gaap:SegmentDiscontinuedOperationsMemberegy:JointOperatingWithRepublicOfAngolaMember2019-01-012019-09-300000894627us-gaap:SegmentDiscontinuedOperationsMemberegy:JointOperatingWithRepublicOfAngolaMember2018-07-012018-09-300000894627us-gaap:SegmentDiscontinuedOperationsMemberegy:JointOperatingWithRepublicOfAngolaMember2018-01-012018-09-300000894627country:GA2018-09-1700008946272018-01-012018-12-310000894627egy:EtameFieldMember2019-09-300000894627egy:CommodityContractJuly19ThroughJune2020Member2019-09-300000894627us-gaap:StockAppreciationRightsSARSMember2019-01-012019-09-3000008946272019-07-012019-09-3000008946272018-07-012018-09-3000008946272018-01-012018-09-300000894627us-gaap:SegmentDiscontinuedOperationsMemberegy:JointOperatingWithRepublicOfAngolaMember2006-11-012006-11-300000894627country:GA2019-01-012019-09-300000894627us-gaap:SegmentDiscontinuedOperationsMemberegy:JointOperatingWithRepublicOfAngolaMember2006-11-300000894627country:GA2018-09-262018-09-260000894627country:GA2018-09-260000894627country:GA2019-09-3000008946272019-09-3000008946272018-12-3100008946272019-10-3100008946272019-01-012019-09-30egy:segmentiso4217:XAFiso4217:USDiso4217:USDxbrli:sharesegy:itemiso4217:USDutr:Diso4217:USDutr:bblutr:bblxbrli:pureiso4217:USDxbrli:shares

Table of Contents

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

________________________________

FORM 10-Q

________________________________

(Mark One)

x  QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2019

¨  TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from _______ to _______

Commission file number 1-32167

________________________________

VAALCO Energy, Inc.

(Exact name of registrant as specified in its charter)

________________________________

Delaware

 

76-0274813

(State or other jurisdiction of

Incorporation or organization)

 

(I.R.S. Employer

Identification No.)

9800 Richmond Avenue

Suite 700

Houston, Texas

 

77042

(Address of principal executive offices)

 

(Zip code)

(713) 623-0801

(Registrant’s telephone number, including area code)

________________________________

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading symbol(s)

Name of each exchange on which registered

Common Stock

EGY

New York Stock Exchange

EGY

London Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act during the past 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  x    No   ¨

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes  x    No  ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer

¨

Accelerated filer

x

Non-accelerated filer

¨

(Do not check if a smaller reporting company)

Smaller reporting company

Emerging growth company

x

¨

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.¨

Indicate by check mark whether the registrant is a shell company (as defined in Exchange Act Rule 12b-2).        Yes  ¨    No   x

As of October 31, 2019, there were outstanding 58,387,504 shares of common stock, $0.10 par value per share, of the registrant.  

 


Table of Contents

VAALCO ENERGY, INC. AND SUBSIDIARIES

Table of Contents

PART I. FINANCIAL INFORMATION

ITEM 1. CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

Condensed Consolidated Balance Sheets

September 30, 2019 and December 31, 2018

3

Condensed Consolidated Statements of Operations

Three and Nine Months Ended September 30, 2019 and 2018

4

Condensed Consolidated Statements of Shareholders’ Equity

Three and Nine Months Ended September 30, 2019 and 2018

5

Condensed Consolidated Statements of Cash Flows

Nine Months Ended September 30, 2019 and 2018

6

Notes to Condensed Consolidated Financial Statements

8

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

29

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

36

ITEM 4. CONTROLS AND PROCEDURES

37

PART II. OTHER INFORMATION

38

ITEM 1. LEGAL PROCEEDINGS

38

ITEM 1A. RISK FACTORS

38

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES

38

ITEM 6. EXHIBITS

39

 Unless the context otherwise indicates, references to “VAALCO,” “the Company”, “we,” “our,” or “us” in this Form 10-Q are references to VAALCO Energy, Inc., including its wholly-owned subsidiaries.


2


Table of Contents

PART I. FINANCIAL INFORMATION

ITEM 1. CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

VAALCO ENERGY, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)

(in thousands, except share and per share amounts)

September 30, 2019

December 31, 2018

ASSETS

Current assets:

Cash and cash equivalents

$

57,227

$

33,360

Restricted cash

769

804

Receivables:

Trade

7,503

11,907

Accounts with joint venture owners, net of allowance of $0.5 million for both periods presented

113

949

Other

1,160

1,398

Crude oil inventory

775

785

Prepayments and other

6,996

6,301

Current assets - discontinued operations

3,290

Total current assets

74,543

58,794

Oil and natural gas properties and equipment - successful efforts method:

Wells, platforms and other production facilities

409,995

409,487

Work-in-progress

5,303

519

Undeveloped acreage

23,771

23,771

Equipment and other

12,523

9,552

451,592

443,329

Accumulated depreciation, depletion, amortization and impairment

(394,975)

(390,605)

Net oil and natural gas properties, equipment and other

56,617

52,724

Other noncurrent assets:

Restricted cash

924

920

Value added tax and other receivables, net of allowance of $1.3 million and $2.0 million, respectively

3,035

2,226

Right of use operating lease assets

36,852

Deferred tax assets

25,903

40,077

Abandonment funding

11,112

11,571

Total assets

$

208,986

$

166,312

LIABILITIES AND SHAREHOLDERS' EQUITY

Current liabilities:

Accounts payable

$

6,658

$

8,083

Accounts with joint venture owners

11,828

304

Accrued liabilities and other

23,886

14,138

Operating lease liabilities - current portion

12,432

Foreign taxes payable

3,211

3,274

Current liabilities - discontinued operations

326

15,245

Total current liabilities

58,341

41,044

Asset retirement obligations

15,709

14,816

Operating lease liabilities - net of current portion

24,397

Other long term liabilities

652

625

Total liabilities

99,099

56,485

Commitments and contingencies (Note 11)

 

 

Shareholders’ equity:

Preferred stock, $25 par value; 500,000 shares authorized, none issued

Common stock, $0.10 par value; 100,000,000 shares authorized, 67,478,897 and 67,167,994 shares issued, 58,593,068 and 59,595,742 shares outstanding, respectively

6,748

6,717

Additional paid-in capital

73,263

72,358

Less treasury stock, 8,885,829 and 7,572,251 shares, respectively, at cost

(39,943)

(37,827)

Retained earnings

69,819

68,579

Total shareholders' equity

109,887

109,827

Total liabilities and shareholders' equity

$

208,986

$

166,312

See notes to condensed consolidated financial statements.

3


Table of Contents

VAALCO ENERGY, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)

(in thousands, except per share amounts)

Three Months Ended September 30,

Nine Months Ended September 30,

2019

2018

2019

2018

Revenues:

Oil and natural gas sales

$

17,603

$

25,266

$

62,598

$

77,337

Operating costs and expenses:

Production expense

9,836

7,481

27,874

31,258

Exploration expense

12

Depreciation, depletion and amortization

1,509

1,130

4,971

3,289

Gain on revision of asset retirement obligations

(3,325)

(3,325)

General and administrative expense

4,738

2,811

11,905

10,422

Bad debt (recovery) expense

54

(157)

30

(68)

Total operating costs and expenses

16,137

7,940

44,780

41,588

Other operating income (expense), net

35

(6)

(4,401)

332

Operating income

1,501

17,320

13,417

36,081

Other income (expense):

Derivative instruments gain (loss), net

2,267

(1,026)

2,266

(2,036)

Interest income (expense), net

193

111

581

(273)

Other, net

(138)

(3)

(521)

(148)

Total other income (expense), net

2,322

(918)

2,326

(2,457)

Income from continuing operations before income taxes

3,823

16,402

15,743

33,624

Income tax expense (benefit)

7,681

(62,224)

19,642

(54,600)

Income (loss) from continuing operations

(3,858)

78,626

(3,899)

88,224

Income (loss) from discontinued operations, net of tax

(61)

(21)

5,448

(416)

Net income (loss)

$

(3,919)

$

78,605

$

1,549

$

87,808

Basic net income (loss) per share:

Income (loss) from continuing operations

$

(0.07)

$

1.31

$

(0.07)

$

1.48

Income (loss) from discontinued operations, net of tax

0.00

0.00

0.09

(0.01)

Net income (loss) per share

$

(0.07)

$

1.31

$

0.02

$

1.47

Basic weighted average shares outstanding

58,953

59,481

59,457

59,147

Diluted net income (loss) per share:

Income (loss) from continuing operations

$

(0.07)

$

1.28

$

(0.07)

$

1.46

Income (loss) from discontinued operations, net of tax

0.00

0.00

0.09

(0.01)

Net income (loss) per share

$

(0.07)

$

1.28

$

0.02

$

1.45

Diluted weighted average shares outstanding

58,953

60,818

59,457

59,846

See notes to condensed consolidated financial statements.


4


Table of Contents

VAALCO ENERGY, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY (Unaudited)

(in thousands)

Common Shares Issued

Treasury Shares

Common Stock

Additional Paid-In Capital

Treasury Stock

Retained Earnings

Total

Balance at January 1, 2019

67,168

(7,572)

$

6,717

$

72,358

$

(37,827)

$

68,579

$

109,827

Shares issued - stock-based compensation

160

16

31

47

Stock-based compensation expense

28

28

Treasury stock acquired

(45)

(105)

(105)

Net income

6,501

6,501

Balance at March 31, 2019

67,328

(7,617)

6,733

72,417

(37,932)

75,080

116,298

Shares issued - stock-based compensation

124

12

48

60

Stock-based compensation expense

594

594

Treasury stock acquired

(79)

62

(309)

(247)

Net loss

(1,033)

(1,033)

Balance at June 30, 2019

67,452

(7,696)

6,745

73,059

(37,870)

73,738

115,672

Shares issued - stock-based compensation

27

3

23

26

Stock-based compensation expense

181

181

Treasury stock acquired

(1,190)

(2,073)

(2,073)

Net loss

(3,919)

(3,919)

Balance at September 30, 2019

67,479

(8,886)

$

6,748

$

73,263

$

(39,943)

$

69,819

$

109,887

Common Shares Issued

Treasury Shares

Common Stock

Additional Paid-In Capital

Treasury Stock

Retained Earnings (Deficit)

Total

Balance at January 1, 2018

66,444

(7,581)

$

6,644

$

71,251

$

(37,953)

$

(29,653)

$

10,289

Stock-based compensation expense

149

149

Net income