Vaalco Energy, Inc. · NYSE:EGY
Vaalco Energy — Q4 2023 Earnings Presentation
22 slides from Vaalco Energy's earnings presentation, Apr 14, 2024
Slide 1: Q4 & Full Year 2023 Supplemental Information
www.vaalco.com Q4 & FULL YEAR 2023 Profitably SUPPLEMENTAL and Sustainably INFORMATION Growing Value March 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 and Section 21E of the Securities Exchange Act of 1934, which are intended to be covered by the safe harbors created
Slide 3: Q4 2023 Key Metrics
Q4 2023 KEY METRICS www.vaalco.com Q4 2023 Change1 Reported Production 23,330 BOEPD -5% (Avg. WI Daily Production Volumes) Adjusted EBITDAX2 $95.9 million 34% Adjusted Net Income per Share2 37 cents 429% Diluted Net Income per Share 41 cents 583% Cash flow from Operations $51.8 million -45% Cash Cap
Slide 4: Transformative Results Through Focused Execution
TRANSFORMATIVE RESULTS THROUGH FOCUSED EXECUTION www.vaalco.com Revenue & Price Total Revenues ($millions) 30% Avg Realized Price (US$/BOE) 28% 2023 $455 2022 $354 2023 $66 2022 $95 Crude Sales 6,832 MBls up 86% Strong average realized Brent pricing Production & Reserves Production (MBOE) SEC Proved
Slide 5: Q4 2023 Global Portfolio
Q4 2023 GLOBAL PORTFOLIO www.vaalco.com ▪ Diversified and de-risked Canada portfolio of producing assets with individual routes to market and realizations ▪ African focused business with strong management experience in this market Egypt ▪ Concessions have recently been extended ▪ Oil & Gas friendly
Slide 6: Strategically Expanding Our Diversified African-Focused Portfolio
STRATEGICALLY EXPANDING OUR DIVERSIFIED AFRICAN-FOCUSED PORTFOLIO www.vaalco.com Building Scale and Diversification with a Full-cycle, Low-risk, High Return Portfolio A Growing, Diversified Footprint in Africa Supported by High-Quality Immediately Accretive Acquisition Canadian Acreage Current 4,500
Slide 7: Svenska Acquisition Highlights
SVENSKA ACQUISITION HIGHLIGHTS www.vaalco.com FPSO Baobab Ivoirien MV10 Utilizing strong Cote d’Ivoire balance sheet to diversifies portfolio deliver value with new country accretive M&A entry in West Africa No issuance of debt or equity; Strategically complementary acquisition to be funded with a a
Slide 8: Key Financial Highlights
KEY FINANCIAL HIGHLIGHTS Svenska Acquisition Immediately Accretive to Shareholders www.vaalco.com Adding Value to VAALCO’s Portfolio Value Per Flowing WI ($/BOEPD) 25,000 > Current production ~ 4,500 WI BOEPD (99% oil) 20,000 $19,100 > Strong realizations closely aligned with Brent pricing 15,000 $1
Slide 9: 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 4,500 23,950 20,000 10,000 0 EGY FY2023 WI Production Acq. WI Current Production Acquisition WI CPR Reserves1 (MMBOE) 25 2
Slide 10: 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 Canadian Natural Resources 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 (1
Slide 11: Gabon Update
GABON UPDATE Production Optimization www.vaalco.com Asset Highlights 4Q 2023 Asset Stats ▪ Strong operational production uptime and optimization efforts, offsetting decline 9,641 BOEPD 100% / 0% / 0% WI Production Oil NGL Gas ‒ Achieved ~97% production uptime in 2023 ‒ Focus on back pressures post F
Slide 12: Egypt Update
EGYPT UPDATE Production & Drilling Optimization www.vaalco.com Asset Highlights 4Q 2023 Asset Stats ▪ Continued drilling success with 2023 capital program reaching drilling efficiency milestones 11,126 BOEPD 100% / 0% / 0% WI Production Oil NGL Gas ‒ Successfully drilled 18 vertical wells in 2023 an
Slide 13: Canada Update
CANADA UPDATE Optimizing Lateral Lengths, Frac Intensity and Facilities www.vaalco.com Asset Highlights 4Q 2023 Asset Stats ▪ Successfully and safely drilled 2 wells in Q1 2023 ‒ Drilled a 1.5 mile lateral well 2,563 BOEPD 33% / 34% / 33% WI Production Oil NGL Gas ‒ Drilled a 2.75 mile lateral well,
Slide 14: 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 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 15,000
Slide 15: Production and Reserves by Asset
PRODUCTION AND RESERVES BY ASSET Diversified Portfolio Adds Value www.vaalco.com Production (WI) 2023 Full Year Actuals SEC Proved Reserves(1) (MMBOE) 27,500 30 25,000 28.6 20 22,500 23,946 20,000 10 9.1 10.6 9.0 17,500 0 Gabon Egypt Canada VAALCO WI BOEPD 15,000 12,500 2P CPR WI Reserves(2) (MMBOE)
Slide 16: Year-End 2023 Reserves
YEAR-END 2023 RESERVES SEC Proved Reserve Reconciliation 2022 to 2023 (MMBOE) www.vaalco.com 40.0 35.0 1.9 6.8 30.0 5.6 27.9 28.6 25.0 20.0 15.0 10.0 5.0 0.0 Year End 2022 Positive Revisions Extensions and Additions 2023 Production Year End 2023 Increased SEC Proved Reserves 3%, Despite Lower SEC Pr
Slide 17: 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 Dec. 31, 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 Pa
Slide 18: 2024 Full Year Guidance
2024 FULL YEAR GUIDANCE (As of March 13, 2024) Does not include impact of Svenska acquisition www.vaalco.com Q1 2024 FY 2024 WI Production1 (BOEPD) Gabon 9,100 - 9,300 8,300 - 9,600 Egypt 10,200 - 10,600 9,800 - 10,600 Canada 2,400 - 2,500 2,700 - 3,200 Total VAALCO WI Production 21,700 - 22,400 20,
Slide 19: Etame Tax Scenarios
ETAME TAX SCENARIOS Understanding the PSC Cost Recovery and Tax www.vaalco.com Scenario 1) Capital-intensive year with unrecovered cost oil Scenario 2) Capital-intensive year with no unrecovered cost oil Scenario 3) Limited capital spend with no unrecovered cost oil (Per barrel) Scenario 1 Scenario
Slide 20: 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 21: Reconciliations of Non-GAAP Measures
RECONCILIATIONS OF NON-GAAP MEASURES www.vaalco.com Slide 21 Q4 and Full Year 2023 Supplemental Information: Profitably and Sustainably Growing Value March 2024 Please refer to Q4 2023 Earnings Release for additional reconciliations
Slide 22: 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