Vaalco Energy, Inc. · NYSE:EGY
Vaalco Energy — Investor Presentation (November 2023)
25 slides from Vaalco Energy's investor presentation, November 2023
Slide 1: A Diversified African-Focused E&P Business
A Diversified African-Focused E&P Business November Investor Update November 2023 Profitably And Sustainably Growing Value
Slide 2: Safe Harbor Statements
Safe Harbor Statements 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 intended to be covered by the safe harbors c
Slide 3: A Diversified African-Focused E&P
A Diversified African-Focused E&P Complementary businesses coming together to create a stronger, Pan-African entity A Growing, Diversified Footprint in Africa Supported by High-Quality Gabon (offshore) P D A E Canadian Acreage Etame Marin Permit Q3’23 Prod (NRI)(1)(2): 8.6 mbopd Operated ✓ WI 58.8%
Slide 4: 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 Building a diversified, African- Robust net cash balance sheet Step change in production and focused E&P with meaningful providing a strong foundation for cash fl
Slide 5: Key Asset Milestones and Catalysts
Key Asset Milestones and Catalysts 2023 2024 2025+ Long lead Items, Planning 3 to 4 well drilling campaign with options GABON Expression of interest for rig Finalize Block G&H documentation Successfully completed D&C program Ongoing capital program similar to 2023 with 10-15 EGYPT Production optimiz
Slide 6: Adding Future Value Through Synergies
Adding Future Value Through Synergies Unlocking additional value through cost reductions and operational optimization through the use of best practices Immediate Cost Synergies Medium-Term Cost Synergies Operational Synergies Within 6 months post closing 18-24 months post closing > Combination enhan
Slide 7: Recent Highlights
Recent Highlights Captured meaningful synergies Increased FY production guidance, on TGA combination raised guidance in all production areas Significant Reduction in combined G&A Lowered FY 2023 Capital Guidance by YTD 2023 vs. YTD 2022 ~$10 million at midpoint Highly successful 2023 drilling progra
Slide 8: Q3 2023 Key Metrics
Q3 2023 KEY METRICS Q3 2023 Change1 Reported Production 24,430 BOEPD -2% (Avg. WI Daily Production Volumes) Adjusted EBITDAX2 $71.4 million 9% Adjusted Net Income per share2 7 cents -36% Diluted Net Income per share 6 cents 0% Cash flow from operations $94.2 million 165% Cash Capital Expenditures $2
Slide 9: Gabon: Etame Offshore License
Gabon: Etame Offshore License Production from multiple reservoirs, wells and platforms, with upside from identified prospects VAALCO Sinopec (Addax) PetroEnergy 58.8% WI(1) 31.4% WI 2.3% WI Operator Asset Overview > Operator of Etame licences in Gabon with 63.6%(1) participating interest > Located i
Slide 10: Gabon Update
Gabon Update Production Optimization Asset Highlights 3Q 2023 Asset Stats ▪ Production at the high end of Q3 guidance range and only down 2% 9,901 BOEPD 100% / 0% / 0% sequentially, despite no drilling campaign in 2023 WI Production Oil NGL Gas ▪ Strong operational production uptime and optimization
Slide 11: Egypt: Eastern Desert Merged Concession
Egypt: Eastern Desert Merged Concession Newly merged concession offering attractive fiscal terms to enable further development 100% WI Operator Asset Overview > Located onshore in Egypt’s Eastern Desert with 52,500 gross acreage position > Three previous PSCs were combined into one concession, ratif
Slide 12: Egypt Update
Egypt Update Production & Drilling Optimization Asset Highlights 3Q 2023 Asset Stats ▪ Production up 1% sequentially and at the high end of Q3 guidance 11,691 BOEPD 100% / 0% / 0% range WI Production Oil NGL Gas ▪ Continued drilling success with 2023 capital program reaching drilling efficiency mile
Slide 13: Canada: Harmattan Cardium Assets
Canada: Harmattan Cardium Assets A core play in the Western Canadian Sedimentary Basin (WCSB) with substantial potential remaining Asset Overview > Cardium assets in the WCSB covering about 75,400 gross acres > Profitable operations with low costs, contributing to total Company free cash flow genera
Slide 14: Canada Update
Canada Update Optimizing Lateral Lengths, Frac Intensity and Facilities Asset Highlights 3Q 2023 Asset Stats ▪ Successfully and safely drilled 2 wells in Q1 2023 ‒ Drilled a 1.5 mile lateral well 2,835 BOEPD 45% / 28% / 27% WI Production Oil NGL Gas ‒ Drilled a 2.75 mile lateral well, the longest to
Slide 15: Equatorial Guinea: Future Growth Potential
Equatorial Guinea1: Future Growth Potential Maximizing the value in VAALCO’s portfolio 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 Opportunity with F
Slide 16: Strong Financial Foundation with No Bank Debt
STRONG FINANCIAL FOUNDATION WITH NO BANK DEBT Fully Funding Shareholder Returns and Capital Programs Strong Liquidity at Sept. 30, 2023 (US$m) Initiated Sustainable Dividend Program (US$/share) Share Buyback Program (US$m) Cash and Cash Equivalents RBL Availability $0.07 To be $7.00 Paid in Liquidit
Slide 17: Sept YTD 2023 Netbacks, Delivering Strong Results
Sept YTD 2023 NETBACKS, Delivering strong results Liquids $/BBL Netback by Area Total Company Blended Netback on Working Interest Basis Gabon Canada Egypt $40.00 Sept YTD 2023 Margins at ~$81.75 Average Brent Oil $34.89 $35.00 $31.02 $30.00 $16.16 $14.73 $13.55 $7.53 $2.20 $27.58 $25.00 $23.73 $20.0
Slide 18: Environmental, Social, Governance
Environmental, Social, Governance Cultural alignment and shared track record for environmental stewardship enhances Combined Company’s ability to deliver an effective ESG agenda Track Record and Commitment of Combined Group VAALCO Select ESG Performance > Zero significant reportable environmental in
Slide 19: Appendix
APPENDIX Creating a Diversified African E&P Business Supporting Sustainable Growth & Shareholder Returns
Slide 20: 2023 Full Year Guidance
2023 Full Year Guidance (As of November 7, 2023) Q4 2023 FY 2023 FY Commentary WI Production1 (BOEPD) Gabon 9,400 - 10,100 9,950 - 10,200 Increased range due to production optimization and improved uptime Egypt 11,100 - 11,800 10,900 - 11,400 Increased range due to better than expected 2023 drilling
Slide 21: Etame: PSC Terms
Etame: PSC Terms Attractive PSC with 80% Cost Recovery Until 2028 Etame: Key Terms Gross Production Barrels Oil Key Terms 7.5% carried through June 2026, Government back-in - Tullow 10% thereafter Royalty 13% Abandonment fund fully funded Abandonment Net Production 87% of gross production through op
Slide 22: Etame: Accounting for In-Kind Taxes
ETAME: Accounting for in-kind taxes Foreign Income Taxes are Settled by the Government Through In-kind Oil Payments ▪ In 2023, the Gabonese government has not had a lifting of in-kind oil to settle VAALCO’s tax payment ▪ At the end of each quarter, the amount of in-kind oil increases until a lifting
Slide 23: Egypt: Eastern Desert PSC Terms
Egypt: Eastern Desert PSC Terms Improved PSC terms enhance sustainable future investment Gross Production Production (quarterly average) Barrels Oil Brent Price > 10,000 Bopd > 15,000 Bopd > 5,000 Bopd > 25,000 US$/bbl ≤ 5,000 Bopd and and ≤ 15,000 and ≤ 25,000 40% 60% ≤ 10,000 Bopd Bopd Bopd Bopd E
Slide 24: Reconciliations of Non-GAAP Measures
Reconciliations of Non-GAAP Measures Three Months Ended Nine Months Ended Three Months Ended Nine Months Ended Reconciliation of Net Income to Adjusted September September June 30, September September Reconciliation of Net Income to Adjusted Net September September June 30, September September EBITD
Slide 25: Contact
CONTACT www.vaalco.com CORPORATE OFFICE BRANCH OFFICES 9800 Richmond Avenue, VAALCO Gabon SA VAALCO Canada Suite 700, Houston, Texas 77042 B.P. 1335, Port Gentil, 900, 444 – 5th Avenue S.W. Gabon Calgary, Alberta, Canada T2P 2T8 T 713.623.0801 T +241-(0)1-56-55-29 T +1.403.264.9888 F 713.623.0982 E
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