Vaalco Energy, Inc. · NYSE:EGY
Vaalco Energy — Q2 2024 Earnings Presentation
21 slides from Vaalco Energy's earnings presentation, Aug 7, 2024
Slide 1: Q2 2024 Supplemental Information
www.vaalco.com Q2 2024 Profitably SUPPLEMENTAL and Sustainably INFORMATION 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 Key Metrics
Q2 2024 KEY METRICS www.vaalco.com Q2 2024 Change1 Reported Production 25,411 BOEPD 17% (Avg. WI Daily Production Volumes) Adjusted EBITDAX2 $72.5 million 17% Adjusted Net Income2 $22.6 million 245% Adjusted Net Income per Share2 22 cents 267% Net Income $28.2 million 266% Diluted Net Income per Sha
Slide 4: Q2 2024 Global Portfolio
Q2 2024 GLOBAL PORTFOLIO www.vaalco.com ▪ Diversified and de-risked Canada portfolio of producing assets with individual routes to market and realizations ▪ African focused business with strong management experience in this market Egypt ▪ Concessions have recently been extended Cote d’Ivoire ▪ Oil &
Slide 5: Strategically Expanding Our Diversified African-Focused Portfolio
STRATEGICALLY EXPANDING OUR DIVERSIFIED AFRICAN-FOCUSED PORTFOLIO www.vaalco.com Building Scale and Diversification with a Full-cycle, Low-risk, High Return Portfolio A Growing, Diversified Footprint in Africa Supported by High-Quality Immediately Accretive Cote d’Ivoire Acquisition Canadian Acreage
Slide 6: Svenska Acquisition Highlights
SVENSKA ACQUISITION HIGHLIGHTS www.vaalco.com FPSO Baobab Ivoirien MV10 Utilizing strong Cote d’Ivoire balance sheet to diversifies portfolio deliver value with new country accretive M&A entry in West Africa No issuance of debt or equity; Strategically complementary acquisition funded with a portion
Slide 7: Key Financial Highlights
KEY FINANCIAL HIGHLIGHTS Svenska Acquisition Immediately Accretive to Shareholders www.vaalco.com Adding Value to VAALCO’s Portfolio Value Per Flowing WI ($/BOEPD) 25,000 > Production at acquisition ~ 5,000 WI BOEPD (99% oil) 20,000 $19,100 > Strong realizations closely aligned with Brent pricing 15
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: 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 10: 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 11: 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 12: 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 13: Equatorial Guinea Update
EQUATORIAL GUINEA UPDATE Block P Finalized Documentation www.vaalco.com Highlights of Amendment 1P CPR(1) Reserve Waterfall ▪ On March 22nd the 3rd Amendment to the Block P JOA was executed 10.0 ▪ Details VAALCO’s acquisition of further equity from Atlas in return for a carry with both Atlas and GEP
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 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 15: 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 16: Strong Financial Foundation with No Bank Debt
STRONG FINANCIAL FOUNDATION WITH NO BANK DEBT Fully Funding Shareholder Returns and Capital Programs www.vaalco.com Cash Movement March 31, 2024 to June 30, 2024 (US$ millions) Initiated Sustainable Dividend Program (US$/share) $0.07 To be Paid in Sept’24 $250.0 $0.06 $0.06 $0.06 $0.06 $0.06 $0.06 $
Slide 17: 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 18: 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 19: 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 did not have 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 20: Reconciliations of Non-GAAP Measures
RECONCILIATIONS OF NON-GAAP MEASURES www.vaalco.com Slide 20 Q2 2024 Supplemental Information: Profitably and Sustainably Growing Value August 2024 Please refer to Q2 2024 Earnings Release for additional reconciliations
Slide 21: 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