Vaalco Energy, Inc. · NYSE:EGY
Vaalco Energy — EnerCom Denver (August 2023)
24 slides from Vaalco Energy's conference presentation, August 2023
Slide 1: A Diversified African-Focused E&P Business
A Diversified African-Focused E&P Business August 2023 Profitably And Sustainably Growing Value
Slide 2: Safe Harbor Statements
Safe Harbor Statements Forward Looking 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 co
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 Q2’23 Prod (NRI)(1): 8.9 mbopd Operated ✓ WI 58.8% (Op
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 on TGA Increased FY production guidance 7%, combination in H1 2023 v H1 2022 raising guidance in all production areas Reduction in combined G&A of ~ $13 mm Lowering FY 2023 Capital Guidance by YTD 2023 vs. YTD 2022 $10 million at midpoint Highly succes
Slide 8: Q2 2023 Key Metrics
Q2 2023 KEY METRICS Q2 2023 Change1 Reported Production 24,863 BOEPD 7% (Avg. WI Daily Production Volumes) Adjusted EBITDAX2 $65.3 million 37% Adjusted Earnings per diluted share2 11 cents 63% Diluted Earnings per share 6 cents 100% Cash flow from operations $35.6 million -15% Cash Capital Investmen
Slide 9: Gabon: Etame Offshore License
Gabon: Etame Offshore License Production from multiple reservoirs, wells and platforms, with recovery factors ~50% 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 in prolific
Slide 10: Gabon Update
Gabon Update Production Optimization Asset Highlights 2Q 2023 Asset Stats ▪ Production at the high end of Q2 guidance range and only down 2% sequentially, despite no drilling campaign in 2023 10,262 BOEPD 100% / 0% / 0% WI Production Oil NGL Gas ▪ Strong operational production uptime and optimizatio
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 2Q 2023 Asset Stats ▪ Production up 15% sequentially and at the high end of Q2 guidance range 11,579 BOEPD 100% / 0% / 0% WI Production Oil NGL Gas ▪ Continued drilling success with 2023 capital program reaching drilling efficiency mil
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 TGL Rights 2022 Drills > Cardium assets in the WCSB covering 75,400 gross acres HARMATTAN Production & Reserves > 2023 Q2 production (NRI) of 2.8 mboepd >
Slide 14: Canada Update
Canada Update Optimizing Lateral Lengths, Frac Intensity and Facilities Asset Highlights 2Q 2023 Asset Stats ▪ Successfully and safely drilled 2 wells in Q1 2023 ‒ Drilled a 1.5 mile lateral well 3,021 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 Guinea: 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 Fu
Slide 16: Debt Free Balance Sheet, Strong Financial Foundation
DEBT FREE BALANCE SHEET, STRONG FINANCIAL FOUNDATION Fully Funding Shareholder Returns and Capital Programs Strong Liquidity at June 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 $6.00 Paid in Se
Slide 17: 2023 Netbacks at Different Price Scenarios
2023 NETBACKS AT DIFFERENT PRICE SCENARIOS Liquids $/BBL Netback by Area Total Company Blended Netback on Working Interest Basis Gabon Canada Egypt FY2023 Margins at $90 Realized Oil and Midpoint of Guidance $40.00 $33.85 $34.82 $34.02 $35.00 $32.18 $31.47 $28.93 $30.00 $17.31 $21.13 $11.55 $7.87 $2
Slide 18: Environmental, Social, Governance
Environmental, Social, Governance Cultural alignment and shared track record for environmental stewardship enhances Combined Company’s ability to deliver an effective ESG agenda Track Record and Commitment of Combined Group VAALCO Select ESG Performance > Zero significant reportable environmental in
Slide 19: Appendix
APPENDIX Creating a Diversified African E&P Business Supporting Sustainable Growth & Shareholder Returns
Slide 20: 2023 Full Year Guidance
2023 Full Year Guidance (As of August 9, 2023) Q3 2023 FY 2023 FY Commentary WI Production1 (BOEPD) Gabon 9,400 - 10,100 9,700 - 10,100 Increased range due to production optimization and improved uptime Egypt 10,900 - 11,800 10,000 - 11,500 Increased range due to better than expected 2023 drilling r
Slide 21: Etame: PSC Terms
Etame: PSC Terms Attractive PSC with 80% Cost Recovery Until 2028 Etame: Key Terms Gross Production Barrels Oil Key Terms 7.5% carried through June 2026, Government back-in - Tullow 10% thereafter Royalty 13% Abandonment fund fully funded Abandonment Net Production 87% of gross production through op
Slide 22: Egypt: Eastern Desert PSC Terms
Egypt: Eastern Desert PSC Terms Improved PSC terms enhance sustainable future investment Gross Production Production (quarterly average) Barrels Oil Brent Price > 10,000 Bopd > 15,000 Bopd > 5,000 Bopd > 25,000 US$/bbl ≤ 5,000 Bopd and and ≤ 15,000 and ≤ 25,000 40% 60% ≤ 10,000 Bopd Bopd Bopd Bopd E
Slide 23: Reconciliations
Reconciliations Three Months Ended Six Months Ended Non-GAAP Measure Reconciliation CASH RECONCILIATION OF FREE CASH FLOW FOR EQUITY Reconciliation of Net Income to Adjusted EBITDAX 30-Jun-23 30-Jun-22 31-Mar-23 30-Jun-23 30-Jun-22 HOLDERS & SHAREHOLDER RETURNS Please refer to CONDENSED CONSOLIDATED
Slide 24: 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