Vaalco Energy, Inc. · NYSE:EGY
Vaalco Energy — Q3 2023 Earnings Presentation
15 slides from Vaalco Energy's earnings presentation, Nov 8, 2023
Slide 1: Profitably and Sustainably Growing Value
www.vaalco.com Q3 2023 Supplemental Information PROFITABLY AND SUSTAINABLY GROWING VALUE NOVEMBER 7, 2023
Slide 2: Safe Harbor Statement
SAFE HARBOR STATEMENT 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 intended to be covered by the
Slide 3: Q3 2023 Key Metrics
Q3 2023 KEY METRICS www.vaalco.com 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
Slide 4: Recent Highlights
RECENT HIGHLIGHTS www.vaalco.com 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 ~$10 million at midpoint Highly successful 2023
Slide 5: Q3 2023 Global Portfolio
Q3 2023 GLOBAL PORTFOLIO www.vaalco.com ▪ Diversified and de-risked Canada portfolio of producing assets with individual routes to market and realizations ▪ African focused business with strong management experience in this market Egypt ▪ Concessions have recently been extended ▪ Oil & Gas friendly
Slide 6: Gabon Update
GABON UPDATE Production Optimization www.vaalco.com Asset Highlights 3Q 2023 Asset Stats ▪ Production at the high end of Q3 guidance range and only down 2% sequentially, despite no drilling campaign in 2023 9,901 BOEPD 100% / 0% / 0% WI Production Oil NGL Gas ▪ Strong operational production uptime a
Slide 7: Egypt Update
EGYPT UPDATE Production & Drilling Optimization www.vaalco.com Asset Highlights 3Q 2023 Asset Stats ▪ Production up 1% sequentially and at the high end of Q3 guidance range 11,691 BOEPD 100% / 0% / 0% WI Production Oil NGL Gas ▪ Continued drilling success with 2023 capital program reaching drilling
Slide 8: Canada Update
CANADA UPDATE Optimizing Lateral Lengths, Frac Intensity and Facilities www.vaalco.com Asset Highlights 3Q 2023 Asset Stats ▪ Successfully and safely drilled 2 wells in Q1 2023 ‒ Drilled a 1.5 mile lateral well 2,835 BOEPD 45% / 28% / 27% WI Production Oil NGL Gas ‒ Drilled a 2.75 mile lateral well,
Slide 9: Production and Sales Growth
PRODUCTION AND SALES GROWTH Driving Revenue Despite Lower Realized Pricing YTD 2023 www.vaalco.com Production (WI) FY 2023 Guidance (BOEPD) 30,000 25,000 23,925 22,400 20,000 Updated Guidance 15,000 Original Guidance 10,000 10,075 10,600 11,150 9,400 Updated Updated Guidance Original Guidance Origin
Slide 10: Strong Financial Foundation with No Bank Debt
STRONG FINANCIAL FOUNDATION WITH NO BANK DEBT Fully Funding Shareholder Returns and Capital Programs www.vaalco.com Strong Liquidity at Sept. 30, 2023 (US$m) Initiated Sustainable Dividend Program (US$/share) Share Buyback Program (US$m) Cash and Cash Equivalents RBL Availability $0.07 To be $7.00 P
Slide 11: 2023 Full Year Guidance
2023 FULL YEAR GUIDANCE (As of November 7, 2023) www.vaalco.com 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 expecte
Slide 12: Sept YTD 2023 Netbacks, Delivering Strong Results
SEPT YTD 2023 NETBACKS, DELIVERING STRONG RESULTS www.vaalco.com 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.
Slide 13: 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 www.vaalco.com ▪ 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
Slide 14: Reconciliations of Non-GAAP Measures
RECONCILIATIONS OF NON-GAAP MEASURES Three Months Ended Nine Months Ended www.vaalco.com Reconciliation of Net Income to Adjusted September September June 30, September September EBITDAX 30, 2023 30, 2022 2023 30, 2023 30, 2022 Net income $ 6,141 $ 6,868 $ 6,752 $ 16,363 $ 34,136 Add back: Impact of
Slide 15: Contact
CONTACT www.vaalco.com CORPORATE OFFICE BRANCH OFFICES 9800 Richmond Avenue, VAALCO Gabon SAs TransGlobe Egypt Suite 700, Houston, Texas 77042 B.P. 1335, Port Gentil, Gabon 6 Badr Towers Ring Road, Maadi T 713.623.0801 T +241-(0)1-56-55-29 Cairo, Egypt F 713.623.0982 VAALCO Equatorial Guinea T +03 4