EGY: VAALCO Energy's 3rd Quarter Net Income Climbs 14%
Thursday November 9, 9:15 am ET
HOUSTON, Nov. 9 /PRNewswire-FirstCall/ -- VAALCO Energy, Inc. (NYSE: EGY - News), announced that for the third quarter of 2006 its net income was $13.6 million, or $0.22 per diluted share, up 14% from its net income of $11.9 million, or $0.20 per diluted share, for the comparable period in 2005. Revenues were $25.6 million in the third quarter of 2006, compared with $26.2 million in the third quarter of 2005.
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VAALCO sold 391,000 net barrels of crude oil equivalent at an average price of $65.50 per barrel during the third quarter of 2006, compared to 451,000 net barrels of crude oil equivalent at an average price of $58.71 per barrel in the third quarter of 2005.
For the nine months ended September 30, 2006, the Company earned $35.1 million, or $0.58 per diluted share, an increase of 45% from VAALCO's earnings of $24.2 million, or $0.41 per diluted share, in the nine months ended September 30, 2005. Nine-month revenues increased 25% to $82.5 million from $66.0 million.
Crude oil sales for the nine months ended September 30, 2006 were 1,277,000 net barrels of oil equivalent compared with 1,311,000 net barrels for the nine months ended September 30, 2005. Average crude oil sales prices increased 28% to an average $64.54 per barrel of oil equivalent for the nine months ended September 30, 2006.
Robert L. Gerry, III, Chairman and CEO, stated, "During the third quarter, the Etame field offshore Gabon, West Africa, continued to perform well for the Company. We completed the installation of the drilling platform in the adjacent Avouma field and the pipeline that will tie Avouma to the Etame production facilities. We are currently drilling two development wells in Avouma and hope that this field will become a new source of revenue later this year.
"To expand our exploration portfolio, earlier this month we signed a Production Sharing Agreement with the Government of Angola for a 40% interest in the 1.4 million-acre Block 5 concession offshore Angola. That represents our third exploration concession, along with Etame and the onshore Mutamba Iroru concession in Gabon."
Financial results:
(Unaudited - in thousands of dollars)
Three Months Ended Sept. 30, Nine Months Ended Sept. 30,
2006 2005 2006 2005
Revenues 25,640 26,240 82,452 65,983
Operating costs
and expenses 5,352 4,743 17,009 16,238
Operating Income
(Loss) 20,288 21,497 65,443 49,745
Other Income
(Expense) 649 171 1,243 475
Income tax
expense (6,280) (8,306) (27,077) (23,089)
Income (loss) from
discontinued
operations 488 (25) (241) (16)
Minority Interest
in earnings
of subsidiaries (1,555) (1,434) (4,314) (2,952)
Net Income 13,590 11,903 35,054 24,163
Basic Income per
Common Share $0.23 $0.21 $0.61 $0.48
Diluted Income per
Common Share $0.22 $0.20 $0.58 $0.41
Discretionary cash flow, a non-GAAP financial measure of the amount of cash generated that can be used for working capital, debt service or future investments, was $17.2 million and $45.5 million for the three months and nine months ended Sept. 30, 2006, respectively.
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