Vaalco Energy, Inc. · NYSE:EGY
Vaalco Energy — EnerCom Denver Conference 2024
23 slides from Vaalco Energy's conference presentation, August 2024
Slide 1: EnerCom Denver Conference: Profitably and Sustainably Growing Value
www.vaalco.com ENERCOM DENVER Profitably CONFERENCE and Sustainably Growing Value August 2024
Slide 2: Safe Harbor Statement
SAFE HARBOR STATEMENT Forward Looking Statements www.vaalco.com This presentation includes “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”) and Section 21E of the Securities Exchange Act of 1934, as amended, which are int
Slide 3: Q2 2024 Global Portfolio
Q2 2024 GLOBAL PORTFOLIO www.vaalco.com ▪ Diversified and de-risked Canada portfolio of producing assets with individual routes to market and realizations ▪ African focused business with strong management experience in this market Egypt ▪ Concessions have recently been extended Cote d’Ivoire ▪ Oil &
Slide 4: Step Change in Total Production and Reserves
STEP CHANGE IN TOTAL PRODUCTION AND RESERVES Significant Increase in Size and Scale www.vaalco.com Production (WI) SEC Proved Reserves(1) (MMBOE) 27,500 35.0 30.0 25,000 25.0 25,050 20.0 27.9 28.6 22,500 23,946 15.0 10.0 20,000 5.0 11.2 - 17,500 VAALCO YE 2021 VAALCO YE 2022 VAALCO YE 2023 WI BOEPD
Slide 5: Q2 2024 Key Metrics
Q2 2024 KEY METRICS www.vaalco.com Sequential Year over Year Q2 2024 Change1 Change2 Reported Production 25,411 BOEPD 17% 2% (Avg. WI Daily Production Volumes) Adjusted EBITDAX3 $72.5 million 17% 11% Adjusted Net Income3 $22.6 million 245% 90% Adjusted Net Income per Share3 22 cents 267% 100% Net In
Slide 6: Svenska Acquisition Highlights
SVENSKA ACQUISITION HIGHLIGHTS www.vaalco.com FPSO Baobab Ivoirien MV10 Utilizing strong Cote d’Ivoire balance sheet to diversifies portfolio deliver value with new country accretive M&A entry in West Africa No issuance of debt or equity; Strategically complementary acquisition funded with a portion
Slide 7: Key Financial Acquisition Highlights
KEY FINANCIAL ACQUISITION HIGHLIGHTS Svenska Acquisition Immediately Accretive to Shareholders www.vaalco.com Adding Value to VAALCO’s Portfolio Value Per Flowing WI ($/BOEPD) 25,000 > Production at acquisition ~ 5,000 WI BOEPD (99% oil) 20,000 $19,100 > Strong realizations closely aligned with Bren
Slide 8: Significant Additions to Production and Reserves
SIGNIFICANT ADDITIONS TO PRODUCTION AND RESERVES Compelling Valuation Metrics at Highly Attractive Pricing www.vaalco.com WI Production (BOEPD) CI-40 Subsea Configuration 30,000 20,000 25,050 10,000 22,100 0 Prior 2024 Guidance Updated 2024 Guidance Note: 2024 guidance is midpoint production range b
Slide 9: Key Milestones and Catalysts Across Diversified Asset Base
Key Milestones and Catalysts Across Diversified Asset Base www.vaalco.com 2023 2024 2025+ 3 to 4 well drilling campaign with Long lead Items, Planning Successful Ebouri Field options GABON CSP Study Expression of interest for rig 3 well program Finalize Block G&H documentation including workovers Su
Slide 10: Strategically Expanding Our Diversified African-Focused Portfolio
STRATEGICALLY EXPANDING OUR DIVERSIFIED AFRICAN-FOCUSED PORTFOLIO www.vaalco.com Building Scale and Diversification with a Full-cycle, Low-risk, High Return Portfolio A Growing, Diversified Footprint in Africa Supported by High-Quality Organic Growth Opportunities Canadian Acreage Operated ✓ > Cote
Slide 11: Cote d'Ivoire: CI-40 License
COTE D’IVOIRE: CI-40 LICENSE Production from Multiple Reservoirs, and 9 Subsea Wells, with Upside from Identified Prospects www.vaalco.com CNR International VAALCO Petroci Holding Water Depth 900 – 1,300M Discovery year 2001 57.61% WI 27.39% WI 15.00% WI License term April 20381 Operator (10% carrie
Slide 12: Gabon Update
GABON UPDATE Production Optimization www.vaalco.com Asset Highlights 2Q 2024 Asset Stats ▪ Strong operational production uptime and optimization efforts, offsetting decline 8,566 BOEPD 100% / 0% / 0% WI Production Oil NGL Gas ‒ Achieved ~97% production uptime in 2023 ‒ Focus on back pressures post F
Slide 13: Egypt Update
EGYPT UPDATE Production & Drilling Optimization www.vaalco.com Asset Highlights 2Q 2024 Asset Stats ▪ 2Q 2024 performed four recompletions 10,474 BOEPD 100% / 0% / 0% ▪ In 3Q 2024 achieved 2 million man hours without a lost time incident WI Production Oil NGL Gas in Egypt ▪ Post quarter end, receive
Slide 14: Canada Update
CANADA UPDATE Optimizing Lateral Lengths, Frac Intensity and Facilities www.vaalco.com Asset Highlights 2Q 2024 Asset Stats ▪ Based on successful 2023 capital program, moving to longer laterals exclusively in the future 3,041 BOEPD 47% / 27% / 26% WI Production Oil NGL Gas ‒ Extending laterals to 2.
Slide 15: Equatorial Guinea: Future Growth Potential
EQUATORIAL GUINEA: FUTURE GROWTH POTENTIAL Maximizing the value in VAALCO’s portfolio www.vaalco.com VENUS EUROPA SW GRANDE DISCOVERY DISCOVERY PROSPECT Potential to add: Upside potential: Upside potential: 2P CPR reserves Unrisked Unrisked Prospective 2C resource Resources Material Development Oppo
Slide 16: Solid Financial Foundation with No Bank Debt
SOLID FINANCIAL FOUNDATION WITH NO BANK DEBT Fully Funding Shareholder Returns and Capital Programs www.vaalco.com Strong Adjusted EBITDAX Generation (US$ millions) Unrestricted Cash (US$ millions) Returning Cash to Shareholders (US$ millions) $120.00 $14.00 $100.00 $12.00 $12.6 $12.6 $12.0 $95.9 $1
Slide 17: Environmental, Social, Governance
Environmental, Social, Governance Cultural alignment and shared track record for environmental stewardship enhances Combined www.vaalco.com Company’s ability to deliver an effective ESG agenda Track Record and Commitment of Combined Group VAALCO Select ESG Performance > Zero significant reportable e
Slide 18: Accelerating Shareholder Returns and Value Growth
Accelerating Shareholder Returns and Value Growth A world-class African-focused E&P supporting sustainable shareholder returns and growth www.vaalco.com Building a diversified, African- Robust net cash balance sheet Step change in production and focused E&P with meaningful providing a strong foundat
Slide 19: Appendix
www.vaalco.com APPENDIX Slide 19 EnerCom Denver Conference: Profitably and Sustainably Growing Value August 2024
Slide 20: 2024 Full Year Guidance
2024 FULL YEAR GUIDANCE (As of August 6, 2024) Includes impact of acquisition www.vaalco.com Q3 2024 FY 2024 WI Production1 (BOEPD) Gabon 8,300 - 9,300 8,300 - 9,600 Egypt 9,700 - 10,700 9,800 - 10,600 Canada 2,700 - 3,000 2,700 - 3,200 Cote d’Ivoire 4,200 – 4,600 2,800 – 3,100 Total VAALCO WI Produ
Slide 21: 2024 Netbacks at Different Price Scenarios
2024 NETBACKS AT DIFFERENT PRICE SCENARIOS Significant Increase in Size and Scale www.vaalco.com Total Company Blended Netback on Working Interest Basis ▪ Strong profitability in current Brent pricing environment ▪ Forecasted 2024 netbacks improved by Cote d’Ivoire acquisition ▪ 2024 forecasted netb
Slide 22: Reconciliations of Non-GAAP Measures
RECONCILIATIONS OF NON-GAAP MEASURES www.vaalco.com Slide 22 EnerCom Denver Conference: Profitably and Sustainably Growing Value August 2024 Please refer to Q2 2024 Earnings Release for additional reconciliations
Slide 23: Contact
CONTACT www.vaalco.com CORPORATE OFFICES BRANCH OFFICES United States VAALCO Gabon SAs TransGlobe Egypt 9800 Richmond Avenue, B.P. 1335, Port Gentil, Gabon 6 Badr Towers Suite 700, Houston, Texas 77042 SPE CI AB T +241-(0)1-56-55-29 Ring Road, Maadi Succursale de Côte d’Ivoire T 713.623.0801 Cairo,