Company Quick10K Filing
Quick10K
Vaalco Energy
Closing Price ($) Shares Out (MM) Market Cap ($MM)
$1.88 60 $112
10-Q 2019-06-30 Quarter: 2019-06-30
10-Q 2019-03-31 Quarter: 2019-03-31
10-K 2018-12-31 Annual: 2018-12-31
10-Q 2018-09-30 Quarter: 2018-09-30
10-Q 2018-06-30 Quarter: 2018-06-30
10-Q 2018-03-31 Quarter: 2018-03-31
10-K 2017-12-31 Annual: 2017-12-31
10-Q 2017-09-30 Quarter: 2017-09-30
10-Q 2017-06-30 Quarter: 2017-06-30
10-Q 2017-03-31 Quarter: 2017-03-31
10-K 2016-12-31 Annual: 2016-12-31
10-Q 2016-09-30 Quarter: 2016-09-30
10-Q 2016-06-30 Quarter: 2016-06-30
10-Q 2016-03-31 Quarter: 2016-03-31
10-K 2015-12-31 Annual: 2015-12-31
10-Q 2015-09-30 Quarter: 2015-09-30
10-Q 2015-06-30 Quarter: 2015-06-30
10-Q 2015-03-31 Quarter: 2015-03-31
10-K 2014-12-31 Annual: 2014-12-31
10-Q 2014-09-30 Quarter: 2014-09-30
10-Q 2014-06-30 Quarter: 2014-06-30
10-Q 2014-03-31 Quarter: 2014-03-31
10-K 2013-12-31 Annual: 2013-12-31
8-K 2019-08-08 Earnings
8-K 2019-06-20 Other Events, Exhibits
8-K 2019-06-12 Officers, Shareholder Vote, Regulation FD, Exhibits
8-K 2019-06-03 Officers
8-K 2019-05-15 Regulation FD
8-K 2019-05-08 Officers
8-K 2019-05-08 Earnings
8-K 2019-04-11 Officers, Exhibits
8-K 2019-03-22 Officers, Exhibits
8-K 2019-02-11
8-K 2018-11-07 Earnings
8-K 2018-09-25 Enter Agreement, Exhibits
8-K 2018-08-07 Earnings
8-K 2018-06-19 Other Events
8-K 2018-06-05 Other Events
8-K 2018-05-22 Leave Agreement
8-K 2018-05-14 Shareholder Vote
8-K 2018-05-08 Earnings
8-K 2018-03-26 Officers
8-K 2018-03-20 Earnings
8-K 2018-03-06 Officers
8-K 2018-02-01 Regulation FD, Exhibits
8-K 2018-01-25 Regulation FD, Exhibits
BSX Boston Scientific 51,550
HE Hawaiian Electric Industries 4,500
SHAK Shake Shack 2,230
ANF Abercrombie & Fitch 1,900
IOVA Iovance Biotherapeutics 1,330
NXGN Nextgen Healthcare 1,260
UBFO United Security Bancshares 175
HOS Hornbeck Offshore Services 55
CBDY Target Group 0
TLSRP Telos 0
EGY 2019-06-30
Part I. Financial Information
Item 1. Condensed Consolidated Financial Statements
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations
Item 4. Controls and Procedures
Part II. Other Information
Item 1. Legal Proceedings
Item 1A. Risk Factors
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
EX-31.1 egy-20190630xex31_1.htm
EX-31.2 egy-20190630xex31_2.htm
EX-32.1 egy-20190630xex32_1.htm
EX-32.2 egy-20190630xex32_2.htm

Vaalco Energy Earnings 2019-06-30

EGY 10Q Quarterly Report

Balance SheetIncome StatementCash Flow

egy-20190630x10q
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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 June 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

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 July 31, 2019, there were outstanding 59,200,796 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

June 30, 2019 and December 31, 2018

3

Condensed Consolidated Statements of Operations

Three and Six Months Ended June 30, 2019 and 2018

4

Condensed Consolidated Statements of Shareholders’ Equity

Three and Six Months Ended June 30, 2019 and 2018

5

Condensed Consolidated Statements of Cash Flows

Six Months Ended June 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

27

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

35

ITEM 4. CONTROLS AND PROCEDURES

36

PART II. OTHER INFORMATION

36

ITEM 1. LEGAL PROCEEDINGS

36

ITEM 1A. RISK FACTORS

36

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES

37

ITEM 6. EXHIBITS

38

 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)

June 30, 2019

December 31, 2018

ASSETS

Current assets:

Cash and cash equivalents

$

48,557

$

33,360

Restricted cash

799

804

Receivables:

Trade

13,828

11,907

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

130

949

Other

1,239

1,398

Crude oil inventory

553

785

Prepayments and other

4,808

6,301

Current assets - discontinued operations

3,290

Total current assets

69,914

58,794

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

Wells, platforms and other production facilities

409,862

409,487

Work-in-progress

1,002

519

Undeveloped acreage

23,771

23,771

Equipment and other

10,903

9,552

445,538

443,329

Accumulated depreciation, depletion, amortization and impairment

(393,669)

(390,605)

Net oil and natural gas properties, equipment and other

51,869

52,724

Other noncurrent assets:

Restricted cash

922

920

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

2,742

2,226

Right of use operating lease assets

34,124

Deferred tax assets

30,946

40,077

Abandonment funding

11,550

11,571

Total assets

$

202,067

$

166,312

LIABILITIES AND SHAREHOLDERS' EQUITY

Current liabilities:

Accounts payable

$

8,016

$

8,083

Accounts with joint venture owners

3,781

304

Accrued liabilities and other

19,539

14,138

Operating lease liabilities - current portion

10,500

Foreign taxes payable

453

3,274

Current liabilities - discontinued operations

4,847

15,245

Total current liabilities

47,136

41,044

Asset retirement obligations

15,214

14,816

Operating lease liabilities - net of current portion

23,624

Other long term liabilities

421

625

Total liabilities

86,395

56,485

Commitments and contingencies (Note 10)

 

 

Shareholders’ equity:

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

Common stock, $0.10 par value; 100,000,000 shares authorized, 67,452,385 and 67,167,994 shares issued, 59,756,235 and 59,595,742 shares outstanding, respectively

6,745

6,717

Additional paid-in capital

73,059

72,358

Less treasury stock, 7,696,150 and 7,572,251 shares, respectively, at cost

(37,870)

(37,827)

Retained earnings

73,738

68,579

Total shareholders' equity

115,672

109,827

Total liabilities and shareholders' equity

$

202,067

$

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 June 30,

Six Months Ended June 30,

2019

2018

2019

2018

Revenues:

Oil and natural gas sales

$

25,230

$

24,426

$

44,995

$

52,071

Operating costs and expenses:

Production expense

9,819

12,817

18,038

23,777

Exploration expense

12

12

Depreciation, depletion and amortization

1,909

1,035

3,462

2,159

General and administrative expense

2,728

5,008

7,167

7,611

Bad debt (recovery) expense

5

145

(24)

89

Total operating costs and expenses

14,461

19,017

28,643

33,648

Other operating income (expense), net

(4,399)

314

(4,436)

338

Operating income

6,370

5,723

11,916

18,761

Other income (expense):

Derivative instruments gain (loss), net

1,911

(1,010)

(1)

(1,010)

Interest income (expense), net

201

(30)

388

(384)

Other, net

(145)

(214)

(383)

(145)

Total other income (expense), net

1,967

(1,254)

4

(1,539)

Income from continuing operations before income taxes

8,337

4,469

11,920

17,222

Income tax expense

9,208

3,582

11,961

7,624

Income (loss) from continuing operations

(871)

887

(41)

9,598

Income (loss) from discontinued operations, net of tax

(162)

(343)

5,509

(395)

Net income (loss)

$

(1,033)

$

544

$

5,468

$

9,203

Basic net income (loss) per share:

Income (loss) from continuing operations

$

(0.01)

$

0.02

$

0.00

$

0.16

Income (loss) from discontinued operations, net of tax

0.00

(0.01)

0.09

(0.01)

Net income (loss) per share

$

(0.01)

$

0.01

$

0.09

$

0.15

Basic weighted average shares outstanding

59,801

59,090

59,716

58,977

Diluted net income (loss) per share:

Income (loss) from continuing operations

$

(0.01)

$

0.02

$

0.00

$

0.16

Income (loss) from discontinued operations, net of tax

0.00

(0.01)

0.09

(0.01)

Net income (loss) per share

$

(0.01)

$

0.01

$

0.09

$

0.15

Diluted weighted average shares outstanding

59,801

59,851

59,716

59,358

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

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

8,659

8,659

Balance at March 31, 2018

66,444

(7,581)

$

6,644

$

71,400

$

(37,953)

$

(20,994)

$

19,097

Shares issued - stock-based compensation

522

36

52

216

177

445

Stock-based compensation expense

397

397

Net income

544

544

Balance at June 30, 2018

66,966

(7,545)

$

6,696

$

72,013

$

(37,776)

$

(20,450)

$

20,483

See notes to condensed consolidated financial statements.


5


Table of Contents

VAALCO ENERGY, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)

(in thousands)

Six Months Ended June 30,

2019

2018

CASH FLOWS FROM OPERATING ACTIVITIES:

Net income

$

5,468

$

9,203

Adjustments to reconcile net income to net cash provided by operating activities:

(Income) loss from discontinued operations

(5,509)

395

Depreciation, depletion and amortization

3,462

2,159

Other amortization

121

191

Deferred taxes

7,667

Unrealized foreign exchange loss

21

79

Stock-based compensation

1,620

2,756

Cash settlements paid on exercised stock appreciation rights

(261)

(82)

Derivatives instruments loss

1

1,010

Cash settlements received (paid) on matured derivative contracts, net

1,563

(11)

Bad debt (recovery) expense

(24)

89

Other operating (income) loss, net

37

(338)

Operational expenses associated with equipment and other

(60)

1,739

Change in operating assets and liabilities:

Trade receivables

(1,921)

(6,051)

Accounts with joint venture owners

4,291

13,203

Other receivables

158

(23)

Crude oil inventory

232

1,965

Prepayments and other

(1,175)

(764)

Value added tax and other receivables

718

(249)

Accounts payable

(730)

(535)

Foreign taxes payable

(2,865)

5,431

Accrued liabilities and other

3,858

1,381

Net cash provided by continuing operating activities

16,672

31,548

Net cash used in discontinued operating activities

(91)

(892)

Net cash provided by operating activities

16,581

30,656

CASH FLOWS FROM INVESTING ACTIVITIES:

Property and equipment expenditures

(1,163)