Vaalco Energy, Inc. · NYSE:EGY
Vaalco Energy — Q2 2023 Earnings Presentation
14 slides from Vaalco Energy's earnings presentation, Aug 10, 2023
Slide 1: Q2 2023 Supplemental Information: Profitably and Sustainably Growing Value
www.vaalco.com Q2 2023 Supplemental Information PROFITABLY AND SUSTAINABLY GROWING VALUE AUGUST 9, 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: Q2 2023 Key Metrics
Q2 2023 KEY METRICS www.vaalco.com Q2 2023 Change1 Reported Production 24,863 BOEPD 7% (Avg. WI Daily Production Volumes) Adjusted EBITDAX2 $65.3 million 37% Adjusted Earnings per share2 11 cents 63% Diluted Earnings per share 6 cents 100% Cash flow from operations $35.6 million -15% Cash Capital In
Slide 4: Recent Highlights
RECENT HIGHLIGHTS www.vaalco.com 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 $10 YTD 2023 vs. YTD 2022 million at midpoin
Slide 5: Q2 2023 Global Portfolio
Q2 2023 GLOBAL PORTFOLIO www.vaalco.com ▪ Diversified and de-risked Canada portfolio of producing assets with individual routes to market and realization ▪ African focused business with strong management experience in this market Egypt ▪ Concessions have recently been extended ▪ Oil & Gas friendly f
Slide 6: Gabon Update
GABON UPDATE Production Optimization www.vaalco.com 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
Slide 7: Egypt Update
EGYPT UPDATE Production & Drilling Optimization www.vaalco.com 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
Slide 8: Canada Update
CANADA UPDATE Optimizing Lateral Lengths, Frac Intensity and Facilities www.vaalco.com 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,
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) YTD Summary – Sales, Realized Pricing and Net Revenue 25,000 $ in thousands Six Months Ended June 30, 2023 Gabon Egypt Canada Total 23,600 Oil Sales $ 130,079 $
Slide 10: Debt Free Balance Sheet, Strong Financial Foundation
DEBT FREE BALANCE SHEET, STRONG FINANCIAL FOUNDATION Fully Funding Shareholder Returns and Capital Programs www.vaalco.com 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 $
Slide 11: 2023 Full Year Guidance
2023 FULL YEAR GUIDANCE (As of August 9, 2023) www.vaalco.com 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
Slide 12: 2023 Netbacks at Different Price Scenarios
2023 NETBACKS AT DIFFERENT PRICE SCENARIOS www.vaalco.com 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
Slide 13: Reconciliations
RECONCILIATIONS www.vaalco.com 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 CONDENS
Slide 14: 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