Executive Summary

Q2 2025 revenue was $96.89M, diluted EPS $0.08, Adjusted EBITDAX $49.89M; NRI production 16,956 BOEPD and NRI sales 19,393 BOEPD both above the high end of guidance .
Versus Wall Street consensus (S&P Global), revenue was slightly below ($96.89M actual vs $97.34M estimate*) while Adjusted EBITDA exceeded ($45.86M actual vs $43.82M estimate*); S&P “Primary EPS” actual was $0.02 vs $0.03 estimate*, whereas reported diluted EPS was $0.08 [GetEstimates Q2 2025]*.
FY25 guidance was reiterated (CAPEX $250–$300M; expense and DD&A ranges unchanged), and Q3 2025 guidance introduced (lower production and sales on planned Gabon maintenance and fewer liftings) .
Dividend of $0.0625/share declared for Q3 2025 (15th consecutive quarterly dividend); cash $67.9M, debt $60.0M at quarter-end, net cash $7.9M (excluding ~$24M collected in July) .

What Went Well and What Went Wrong

What Went Well

Above-guidance volumes: “Both our sales and NRI production for the second quarter of 2025 were above the high end of guidance… Adjusted EBITDAX of $49.9 million” — CEO George Maxwell .
Cost efficiency: Production expense fell 10% q/q to $40.3M and $22.87/BOE (−12% q/q), driven by Côte d’Ivoire segment reduction .
Egypt execution: Six wells completed in Q2 with strong drilling efficiency (as low as 8 days) and plan to fracture three wells in Q3; eight additional wells planned for 2H to support exit-rate uplift .

What Went Wrong

Pricing headwind: Realized commodity price per BOE fell to $54.87 (−15% q/q; −17% y/y), compressing revenue and EBITDAX despite higher volumes .
Year-over-year comparability: Net income down 70% y/y ($8.38M vs $28.15M), largely due to lower realized prices and absence of the prior-year $19.9M bargain purchase gain .
Côte d’Ivoire offline: Baobab FPSO refurbishment took CI production offline since January 31, 2025 (last lifting in Feb), delaying contribution until 2026; near-term sales and DD&A dynamics impacted .

Financial Results

Quarterly comparatives

Metric	Q2 2024	Q1 2025	Q2 2025
Revenue ($USD Millions)	$116.78	$110.33	$96.89
Net Income ($USD Millions)	$28.15	$7.73	$8.38
Diluted EPS ($USD)	$0.27	$0.07	$0.08
Adjusted EBITDAX ($USD Millions)	$72.48	$56.96	$49.89
NRI Production (BOEPD)	20,588	17,764	16,956
NRI Sales (BOE)	1,764,000	1,717,000	1,765,000
Realized Price ($/BOE, NRI)	$66.05	$64.27	$54.87
Production Expense ($/BOE)	$29.74	$26.10	$22.89
DD&A ($/BOE)	$18.78	$17.65	$16.02
Net Income Margin (%)	24.10%	7.00%	8.65%
Adjusted EBITDAX Margin (%)	62.07%	51.64%	51.51%

Note: Margins computed from cited revenue and net income/Adjusted EBITDAX.

Actual vs Consensus (Q2 2025)

Metric	Actual	Consensus*	Surprise
Revenue ($USD)	$96,893,000	$97,342,500*	−$449,500
Adjusted EBITDA ($USD)	$45,855,000	$43,817,500*	+$2,037,500
Diluted EPS ($USD, reported)	$0.08	N/A	N/A
Primary EPS (S&P) ($USD)	$0.02*	$0.03*	−$0.01

Values with * retrieved from S&P Global.

Segment breakdown — Net Revenue

Segment Net Revenue ($USD Thousands)	Q1 2025	Q2 2025
Gabon	$52,187	$58,567
Egypt	$33,920	$33,257
Canada	$6,180	$4,715
Côte d’Ivoire	$18,042	$354
Total	$110,329	$96,893

KPIs and balance sheet

KPI	Q1 2025	Q2 2025
WI Production (BOEPD)	22,402	21,654
NRI Production (BOEPD)	17,764	16,956
NRI Sales (BOE)	1,717,000	1,765,000
Realized Price ($/BOE, NRI)	$64.27	$54.87
Production Expense ($/BOE)	$26.10	$22.89
DD&A ($/BOE)	$17.65	$16.02
Cash and Equivalents ($MM)	$40.91	$67.87
Total Debt ($MM)	$0.00	$60.00
Net Cash ($MM)	N/A	$7.90
Working Capital ($MM)	$23.16	$62.81
Adjusted Working Capital ($MM)	$40.41	$79.88

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Production (BOEPD, WI)	Q3 2025	—	18,900–20,800	New
Production (BOEPD, NRI)	Q3 2025	—	14,400–15,600	New
Sales Volume (BOEPD, WI)	Q3 2025	—	16,000–17,900	New
Sales Volume (BOEPD, NRI)	Q3 2025	—	11,900–13,100	New
Production Expense ($MM)	Q3 2025	—	$26.5–$35.0	New
Cash G&A ($MM)	Q3 2025	—	$6.0–$8.0	New
CAPEX excl. acquisitions ($MM)	Q3 2025	—	$70–$90	New
DD&A ($/BOE, NRI)	Q3 2025	—	$16.00–$20.00	New
CAPEX excl. acquisitions ($MM)	FY 2025	$250–$300	$250–$300	Maintained
Cash G&A ($MM)	FY 2025	$25.0–$31.0	$25.0–$31.0	Maintained
Production Expense ($MM)	FY 2025	$148.5–$161.5	$148.5–$161.5	Maintained
Production Expense ($/BOE, NRI)	FY 2025	$24.00–$28.00	$24.00–$28.00	Maintained
DD&A ($/BOE, NRI)	FY 2025	$16.00–$20.00	$16.00–$20.00	Maintained
Dividend per share	Q3 2025	$0.0625 (Q2)	$0.0625	Maintained

Drivers: Q3 guide-down reflects planned Gabon maintenance, natural decline and fewer offshore liftings; FY25 ranges reiterated after a 10% CAPEX reduction announced in Q1 without impacting full-year production/sales .

Earnings Call Themes & Trends

Topic	Previous Mentions (Q4’24 & Q1’25)	Current Period (Q2’25)	Trend
Pricing & hedging	Softening commodities; opportunistic collars; added Q2/Q3 oil hedges	Shift to more programmatic hedging under RBL; added 2025–2026 oil/gas hedges	More systematic risk management
Côte d’Ivoire Baobab FPSO	Ceased production 1/31/25; tow to Dubai; drilling to start mid-2026	Project ahead of schedule; turret bearing in Dubai; swivel arrival Aug 12; reconnection planned Mar 2026	On-track, slightly accelerated spend
Gabon drilling	Rig secured (Dec’24); start in Q3’25; minimal downtime in guidance	Firm 5 wells + 5 options; begin late Q3; brief platform curtailment aligned to planned downtime	Execution readiness
Egypt drilling & receivables	Q1: five wells completed; receivable collections improving	Six wells in Q2; plan eight more in 2H; EGPC payments reducing aging; improved working capital outlook	Operational and financial progress
Tariffs/supply chain	Not highlighted previously	Tariffs referenced as source of chaos; critical turret bearing/swivel on schedule	Managed risk
Equatorial Guinea Block P (Venus)	FEED progressing; FID targeted in 2025	FEED complete; awaiting report; targeting FID by year-end; optimizing capex/op-ex mix	De-risking toward FID

Management Commentary

“We continue to consistently deliver successful quarterly results that either meet or exceed our guidance… net income of $0.08 per diluted share and Adjusted EBITDAX of $49.9 million” — CEO George Maxwell .
“Production costs… $40.4 million… a 10% reduction quarter over quarter and on a per barrel basis $22.87… G&A fell 9% q/q” — CFO Ron Bain .
“This is a transitional year… Baobab FPSO offline in Q1… drilling program in Gabon won’t begin until late Q3… meaningful production uplift in 2026–27” — CEO .
“We are moving towards a more programmatic hedging program… added multiple hedges in 2025 and 2026” — CFO .
“FPSO refurbishment remains ahead of schedule… reconnection March 2026” — CEO .

Q&A Highlights

Working capital: Q3 expected inflow as Gabon receivable collected in July and EGPC continues to reduce aging; next Gabon state tax lifting expected in 2026, supporting WC normalization .
Côte d’Ivoire hardware: Turret bearing stored in Dubai; swivel expected Aug 12; installation in September; ramp to stable production ~2–3 weeks after FPSO return; capacity unchanged post-refurbishment .
Egypt program: Eight wells planned in 2H; strong drilling efficiency lowering costs; one Western Desert commitment well for appraisal .
Gabon operations: Minimal production disruption from rig moves; downtimes aligned to planned maintenance .

Estimates Context

Q2 2025 vs consensus (S&P Global): Revenue $96.89M vs $97.34M*, slight miss; Adjusted EBITDA $45.86M vs $43.82M*, beat; S&P “Primary EPS” actual $0.02 vs $0.03*, while reported diluted EPS was $0.08 (different definitions/basis) [GetEstimates Q2 2025]*.
Forward context: Q3 estimates reflect expected maintenance impact (consensus revenue $62.50M*, EBITDA $22.90M*, S&P “Primary EPS” −$0.10*), consistent with company guidance on lower sales in Q3 [GetEstimates Q3 2025]* .