Vaalco Energy, Inc. · NYSE:EGY
Vaalco Energy — Investor Day (May 2025)
67 slides from Vaalco Energy's investor day presentation, May 14, 2025
Slide 1: Unlocking Material Growth and Value Through Operational Excellence
Unlocking Material Growth and Value Through Operational Excellence Significant Organic Catalysts for Re-Rating Capital Markets Day – 14 May 2025
Slide 2: Disclaimer
Disclaimer Forward-Looking Statements Safe Harbor This presentation of Vaalco Energy, Inc. (“Vaalco”) 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 am
Slide 3: Who Are Vaalco?
Who Are Vaalco? A leading independent diversified oil & gas operator CANADA • Established in 1985, Listed on NYSE & LSE with 255 employees • Operating and developing successfully in five countries. Alberta Completing major development projects and keeping an average EGYPT uptime of 97% over all asse
Slide 4: Leadership Team with Proven Track Record of Delivering Value
Leadership Team with Proven Track Record of Delivering Value Continuous proven success in African focused E&P George Thor Ronald Casey Maxwell Pruckl Bain Donohue Chief Executive Officer EVP - Chief Operating EVP - Chief Financial EVP – Technical & and Director Officer Officer Business Development O
Slide 5: Key Takeaways
Key Takeaways Clear, Consistent Strategy with Four Years of Successful Execution and Delivery Highly Successful, Proven Operator & Management Team Material Organic Growth Opportunities, Growing Production 50% Over Next 12-18 Months and 250% Over Next Five Years(1) Existing Portfolio Has Significant
Slide 6: Vaalco's Revised Strategy Communicated in 2021
Vaalco’s Revised Strategy Communicated in 2021 Four years of successful delivery Successfully Execute Work Programs, Grow 1 Production and Reserves 2 Unlock Meaningful Potential in the Portfolio Diversified, Highly Accretive Inorganic Growth Opportunities 3 With Strategic Focus 4 Efficiency Focused
Slide 7: Four Years of Successful Strategic Delivery
Four Years of Successful Strategic Delivery Continuously accomplishing operational, financial and growth goals 2021 2022 2023 2024 2021 2022 2023 2024 • Began Phase 2 • Completed Phase 2 Drilling • Successful Drilling • Contracted Rig for 1 1 1 2 Drilling at Etame at Etame in Egypt Phase 3 in Etame,
Slide 8: Successful Execution of Multiple Work Programs Across Portfolio
Successful Execution of Multiple Work Programs Across Portfolio Increasing production and reserves materially year-on-year for four years 27,500 HIGHLIGHTS 25,000 Production (WI) 22,500 23,946 24,738 20,000 WI BOEPD 17,500 15,000 WI Production increased by 12,500 4.4x and 2P WI Reserves 10,000 12,17
Slide 9: Unlocking Meaningful Potential in the Portfolio
Unlocking Meaningful Potential in the Portfolio Vaalco has consistently unlocked reserves and value through dynamic organic growth Unlocking Gabon Reserves Reserves(1) Additions from HIGHLIGHTS Through Crude Sweetening Future Drilling Campaigns Ebouri Reserves & Resources Movements 2023 to 2024 (1)
Slide 10: Track Record for Value Accretive M&A
Track Record for Value Accretive M&A Three highly accretive transformative transactions in four years HIGHLIGHTS Sasol Transaction(1) TransGlobe Merger(1) Svenska Transaction(1) Feb 2021 Acquisition Cost $/bbl Acquisition Cost $/bbl Acquisition of 4 2.5 Sasol Gabon’s $3.70 27.8% WI in Etame 3.5 $2.1
Slide 11: Efficiency Focused & Strong Balance Sheet
Efficiency Focused & Strong Balance Sheet A robust approach to costs and corporate finance 1.2 1.1 HIGHLIGHTS Debt / EV (Multiple)(1) 1 0.9 0.8 0.8 0.8 0.6 0.6 <0.5 0.5 0.5 Peer leading 0.4 Leverage Ratios 0.2 0 0 Vaalco optimization of Peer 1 EGY Peer 2 Peer 3 Peer 4 Peer 5 Peer 6 Peer 7 Peer 8 dri
Slide 12: Achieving Significant Shareholder Returns
Achieving Significant Shareholder Returns By maximizing the value of, and free cash flow from, its existing resources HIGHLIGHTS Adjusted EBITDAX Cumulative Shareholder Returns 350 65.0% Actual EBITDA 120 Dividends Buyback Margin % Total Adjusted EBITDA grown by more than $104.7 300 60.0% Total $303
Slide 13: Continued Implementation of Growth Strategy
Continued Implementation of Growth Strategy Increasing planned production by a further 50% in under 18 months and driving value 2025 2026 2027 and beyond • Commence Gabon • Complete Gabon 2025/2026 • Further Infill Drilling in 1 1 1 2025/2026 Drilling Campaign Drilling Campaign Gabon, CDI and Egypt
Slide 14: Diversified, Full-Cycle Portfolio
Diversified, Full-Cycle Portfolio Vaalco Energy 14
Slide 15: A Diverse Africa Focused Portfolio
A Diverse Africa Focused Portfolio Production focused with material organic growth opportunities and upside Gabon CANADA Canada 2024: 8,741 BOEPD (WI) 2024: 2,749 BOEPD (WI) Alberta 100% Oil EGYPT 40% Oil 31% NGL’s 29% Natural Gas 11.1 MMBOE 8.1 MMBOE YE 2024 net SEC proved reserves(1) YE 2024 net S
Slide 16: Gabon
WS Naalco Gabon
Slide 17: Gabon Overview
Gabon Overview Vaalco has been producing from Etame for over 22 years › Etame Marin Block Material ‐ Vaalco (Op, 58.81%) Position ‐ Continuous block under single Etame Marin Across 3 PSC after 2021 renegotiation Blocks › Niosi and Guduma Exploration Licenses ‐ BWE (Op.), Vaalco (37.5% WI) › Producti
Slide 18: Gabon Subsurface
Gabon Subsurface Gamba & Dentale stratigraphic context › Gamba sands are Gamba Depositional regionally extensive and Model of excellent quality Gamba Sands ‐ Deposited in a braided fluvial environment, directly above Vembo mudstones the Dentale Unconformity › Vaalco making strides in understanding o
Slide 19: Gabon Phase 3 Program Update
Gabon Phase 3 Program Update Further unlocking of Etame’s potential › Expected spud date September 2025 › Rig booked for 5 firm and 5 contingent well slots › Gamba focused program › Currently Planned ‐ Ebouri Infill ‐ Two Workovers at Ebouri ‐ Etame Infill (preceded by 2 pilot holes) ‐ SE Etame Infi
Slide 20: Monetizing Ebouri Resource with New Technology
Monetizing Ebouri Resource with New Technology Proactive and dynamic operations to drive value › The Ebouri field was discovered in 2004 and brought online in 2009 › Initial oil production (2009) showed no H2S › In 2012 H2S detected at EEBOM-3H and –4H wells; both wells shut in › EEBOM-2H continued
Slide 21: Etame Marin Future Opportunities
Etame Marin Future Opportunities Phase 4 drilling campaign (2028-2029) 1 Contingent Resources Resources(1) Production (MMBO) 1 Ebouri Infill (Gamba) 1.2 Etame Infill (Gamba) 1.5 Dentale Subcrop 1 2.2 2 1 Dentale Subcrop 2 2.2 ETSEM-C (Gamba) 1.2 3 2 D-9 oil (N Tchibala) 1.5 2 3 Prospective Resources
Slide 22: New Exploration Blocks in Gabon
New Exploration Blocks in Gabon Niosi Marin & Guduma Marin › Combined area is 4,918 km2 and adjacent to Etame Marin and Dussufu Marin › Primary reservoirs are Gamba and Dentale › Costs are PSC commitment total costs for the block (Vaalco @ 37.5%) license Niosi Marin Guduma Marin BWE (op)/ Vaalco / P
Slide 23: Niosi Marin Exploration Block
Niosi Marin Exploration Block Prospect example: Elili (Updip from GBO-2X well) Elili Prospect Dentale Volumes (all units) (1) › Significant tilted Dentale structure with 4-way closure Unit P90 P50 P10 ‐ Overlying Gamba structure with 4-way closure STOOIP 55 127 284 ‐ Downdip GBO-2X well shows ~60 m
Slide 24: Côte d'Ivoire
WS Naalco Céte d’lvoire
Slide 25: Côte d'Ivoire Overview
Côte d’Ivoire Overview Opportunity for growth under favorable investment terms Cash Generative › CI-40 Baobab and Kossipo gross 2P 85.9 MMBOE(1) and 2C 166.4 MMBOE(2) Material Asset Base › Low recovery factor ~14% with potential to with Significant Upside increase to +30% (3) Baobab Continued › Effi
Slide 26: CI-40 Overview
CI-40 Overview Offshore Côte d’Ivoire License Summary › Baobab field was discovered in 2001 and is located in the western Water depth 400-1,600 m half of the CI-40 license, 30km offshore Côte d’Ivoire License Term April 2038 › Operated by Canadian Natural Resources (CNR) (57.6% WI), First Oil August
Slide 27: Baobab: A solid foundation for a successful future
Baobab : A solid foundation for a successful future Experienced operator with long production history › Baobab field has been producing since 2005 under the operatorship of CNR an experienced global operator › The Baobab field development has taken place in 4 development drilling phases having recov
Slide 28: Near Term Production Growth – Baobab Phase 5
Near Term Production Growth – Baobab Phase 5 Advanced development project in proven reservoir planned for 2026 Well locations › Phase 5 gross reserves: 2P 32.7 MMBOE (WI 9.0 MMBOE)(1) › 4 producers and 3 water injectors tied into existing subsea infrastructure › 4D seismic acquired in 2023 › All key
Slide 29: CI-40 Kossipo Discovery Overview
CI-40 Kossipo Discovery Overview Further low risk growth beyond the Baobab field › The Kossipo discovery sits 8 km to the south-east of Baobab › High-quality oil: 34.6°API and 836 scf/stb › Discovered in 2002 with the Kossipo-1X well › Appraised in 2019 with Kossipo-2A well › Reprocessing of a 3D se
Slide 30: CI-40 Further Development Phases – Baobab Phase 6
CI-40 Further Development Phases – Baobab Phase 6 Baobab 2C resources of 71.5 MMBBL to be developed post Phase 5 supporting the Phase 6 campaign Well Locations – Phase 6 › Further development drilling phases are planned in Vaalco’s view in order to take the ultimate recovery of the field to over 30%
Slide 31: CI-705 Expanding and Diversifying Vaalco's Footprint
CI-705 Expanding and Diversifying Vaalco’s Footprint in Cote D’Ivoire Q1 2025 Vaalco became an operator with 70% interest in CI-705 CI-705 Details License Group Vaalco (Op.,70%), ICE (20%), Petroci (10%) Block Size 2,289 sq km WD Range 0 – 2500m Wells To Date 3 (Barracuda, K-1 and K-2) › Proven hydr
Slide 32: Egypt
Egypt Vaalco Energy 32
Slide 33: Egypt Overview
Egypt Overview Strong › Following Vaalco’s entry in 2022, consistent production growth through drilling programs and recompletion Production campaigns Base with › Currently producing circa. 11,000 BOEPD Growth › Active drilling program targets further production gains › Near field exploration to bri
Slide 34: Eastern Desert Brown Field Development
Eastern Desert Brown Field Development Enhancing performance and unlocking potential › Using improved well design and new technology to drill multi-target deviated wells › Evaluating the deep targets in existing fields › Utilizing new interpretation and evaluation technology to discover new reservoi
Slide 35: Egypt Upside Potential
Egypt Upside Potential South Ghazalat and North West Gharib NW Gharib - Near Top Nukhul Depth Map › Seismic re-interpretation using seismic NWG-51-2 spectral decomposition Nose Prospect › Identified upside potential at SGZ-7B structure in addition to two new prospects NWG-51-1 › Plan to drill 1 appr
Slide 36: Equatorial Guinea
WS Naalco Equatorial Guinea
Slide 37: Equatorial Guinea Block P Overview
Equatorial Guinea Block P Overview Near term first production for Vaalco in Equatorial Guinea › Block P, 30 km NW of the City of Bata, Equatorial Guinea › Two discoveries on block in proven but underexplored Rio Muni oil basin Excellent Oil › Vaalco as operator holds 60% interest in Block P and Qual
Slide 38: Venus Field
Venus Field Material production and value offshore Equatorial Guinea › Discovered in 2005, two appraisal wells Top Green Sand drilled E › High quality U. Cretaceous deepwater turbidite sands P-2 P-2 P-2ST-1 P-2ST-1 ‐ Average Porosity = 26% ‐ Average Permeability = 570 md (sands up to 3000 md) P-3 ›
Slide 39: Canada
Canada Vaalco Energy 39
Slide 40: Canada Overview
Canada Overview › Oil-focused natural gas exploration and production operation › Developing the prolific Cardium formation in Proven Play in central Alberta's Western Canadian the WCSB Sedimentary Basin ‐ Newer completions techniques allow exploitation of previously under-developed Cardium Upper Sho
Slide 41: Cardium Production Type Curves & Single Well Economics
Cardium Production Type Curves & Single Well Economics Proven well performance underpins the forward inventory Cardium Type Curves Well Length 1-Mile 2-Mile 2.75-Mile › Drilling in South Harmattan 450 1-Mile 2-Mile 2.75-Mile has proven the type curve 50% 64% Crown Crown that supports the forward 400
Slide 42: Material, Near-term, Fully-funded Projects to Deliver Step-change in Organic Growth
Material, Near-term, Fully- funded Projects to Deliver Step- change in Organic Growth Key Projects Vaalco Energy 42
Slide 43: A Diverse Growth Portfolio
A Diverse Growth Portfolio We plan to invest between $250 and $300 million in 2025 as we: Execute the 2025 FPSO Refurbishment in Côte d’ivoire Prepare for the Next Drilling Program at Baobab Begin Our Next Drilling Campaign in Gabon Complete the FEED for Venus, Equatorial Guinea Continue Drilling in
Slide 44: Investing For Growth
Investing For Growth 2025/2026 development providing significant production and value to stakeholders MV-10 Refurbishment Baobab Phase 5 Drilling Gabon Phase 3 Drilling Equatorial Guinea Significant production Self funding within Unlocking material Currently in FEED with increase dropping breakeven
Slide 45: Preparing for the Future – FPSO Baobab Ivoirien Refurbishment
Preparing for the Future – FPSO Baobab Ivoirien Refurbishment FPSO refurbishment ongoing to secure a long future › FPSO Baobab Ivoirien was converted in 2003 with Baobab first oil in 2005 and was on station for 20 years › The FPSO has been purchased and is JV owned since Q1 2025 › FPSO is a converte
Slide 46: FPSO Baobab Ivoirien - Refurbishment Project
FPSO Baobab Ivoirien - Refurbishment Project Vessel arrived at Drydocks World, Dubai ahead of schedule Drydocks World Dubai Baobab Ivoirien Execution Location › The dry dock project is being executed under an EPC agreement with MODEC › The shipyard performing the refurbishment project is Drydocks Wo
Slide 47: Preparing for the Future – FPSO Baobab Ivoirien Refurbishment
Preparing for the Future – FPSO Baobab Ivoirien Refurbishment Over 8,000 nautical miles completed safely › FPSO Baobab Ivoirien tow has reached Dubai › Distance covered from departure: 8159.2 nm › Turned over to Drydocks World Dubai May 13, 2025 Vaalco Capital Markets Day | May 2025 Vaalco Energy 47
Slide 48: Baobab Phase 5 Drilling Project
Baobab Phase 5 Drilling Project Baobab drilling in 2026 › 4 producers and 3 water injectors DCN › The new Phase 5 wells will tie back to the existing North and South manifolds and pipelines › Phase 5 infrastructure plan expands seabed footprints at Drill Centre North and Drill Centre South › The des
Slide 49: Gabon Drilling Campaign
Gabon Drilling Campaign Continuing to unlock Gabon’s value › Rig Contract Executed for Five Firm Plus 5 Options Borr Norve In-Field Drilling in 2022 › Highlights ‐ Further development at Ebouri recovering further reserves through crude sweetening including the drilling of an infill well and working
Slide 50: Equatorial Guinea Venus Development
Equatorial Guinea Venus Development Moving forward to first oil in the near term › Plan of Development obtained government approval › 2 Production wells, 10,000 BOEPD (Gross) per well and 1 Water Injector › Assessment of Venus Plan of Development (POD) remains ongoing with FEED study nearing complet
Slide 51: Egypt Operations
Egypt Operations Efficient low cost well operations EDC-64 › 25 wells so far have been drilled by Vaalco to Q1 2025 Drilling Rig › Fully compliant with environmental regulations › Increased efficiency of rig move process, reducing cost and accelerating production growth › Delivering 2 wells/month &
Slide 52: Environment, Social and Governance
Environment, Social and Governance Integrated approach › We actively manage emissions and continue to drive down absolute emissions and 2024 HIGHLIGHTS emissions intensity from our operations › We take a robust approach to assessing infrastructure and › Conducted physical and decarbonization investm
Slide 53: Enviable Balance Sheet Underpins Organic & Inorganic Growth Ambitions
Enviable Balance Sheet Underpins Organic & Inorganic Growth Ambitions and Commitment to Sustainable Shareholder Returns Finance Highlights Vaalco Energy 53
Slide 54: Financial Highlights
Financial Highlights Material cashflow, value and returns coupled with a peer group leading balance sheet 1 Significant Portfolio Value and Potential Upside 2 Continued Considerable Return of FCF to Shareholders 3 Highly Cash Generative Production Out Beyond 2030 Fully Funded Development Campaign wh
Slide 55: Significant Portfolio Value and Potential Upside
Significant Portfolio Value and Potential Upside Vaalco share price sits at a material discount USD Million 1200 $10.56/share HIGHLIGHTS 329.5 1096.1 1000 At NPV10 Vaalco currently trades at $7.38/share below year-end cash 800 387.1 766.6 766.6 plus 1P reserves 600 Vaalco trades at more than a 50% d
Slide 56: Strong Cash Flow From Assets
Strong Cash Flow From Assets Sustaining capital allocation optionality Capital Investment Sustainable Dividend › Investments ranked and prioritised for returns › Vaalco implemented a sustainable dividend in 2022 › Strong production and reserves replacement with reducing break-evens › Primary mode of
Slide 57: Highly Generative Cashflow
Highly Generative Cashflow Anticipated near-term free cash flow for equity exceeds current valuation Free Cash Flow(1) Generation (mid-2026 to mid-2030) USD Million, cumulative HIGHLIGHTS 700 600 High free cash flow generation anticipated $80/bbl following CDI, Gabon and 500 oil price Egypt 2025/202
Slide 58: Continued Considerable Return of FCF to Shareholders
Continued Considerable Return of FCF to Shareholders Strong free cash flow driving further returns Shareholder Returns Total Dividends Buyback $48.1 Total ? ? millions of $ $21.5 $31.4 ? ? $5.5 Total $12.3 $26.6 $25.9 $26.0 $26.0 $26.0 $3.0 $9.3 2022 2023 2024 2025E 2026E 2027E Delivering Competitiv
Slide 59: Peer Leading Debt Ratios
Peer Leading Debt Ratios Conservative approach to debt for investment sets company up for long-term success HIGHLIGHTS 1.2 1.1 Debt / EV (Multiple)(1) 1 0.9 0.8 0.8 0.8 0.6 0.6 <0.5 0.5 0.5 After planned material 0.4 investment in 2025 and 2026, Vaalco expects to 0.2 0 continue to have peer 0 leadin
Slide 60: Hedging Philosophy
Hedging Philosophy Hedges are locked in at corporate level to optimize for fiscal regimes at the asset level Past Unleveraged Approach Post-Financing Opportunistic or tactical Moving towards a more approach. Protecting a Floor to programmatic hedging program support operating cash flow and as per RB
Slide 61: Proven Organic and Inorganic Growth Success
Proven Organic and Inorganic Growth Success Vaalco Energy 61
Slide 62: Anticipated Material Organic Production Growth
Anticipated Material Organic Production Growth Planned growth driven by proven reserves base and discovered resource 60 Cote d’Ivoire Development of Kossipo FPSO Development of Discovery in Cote d’Ivoire Returns and Venus Field EG Production 50 Back Online Working Interest Production mmbbls/d 40 Cot
Slide 63: Vaalco Key Acquisition Criteria
Vaalco Key Acquisition Criteria A robust and proactive approach to acquisitions has proven successful for Vaalco Opportunity to bring Vaalco’s proven operating experience 1 and success to make acquisition viable or add value through the advantages this brings versus peers 1 2 3 4 Technically robust
Slide 64: Key Takeaways
Key Takeaways Highly successful, proven management team and operator Diversified, lower risk portfolio of organic development opportunities under favorable PSCs Peer group leading balance sheet and fully funded 2025/2026 development campaign on three assets Planned production to increase by 50% by s
Slide 65: Appendix
Appendix Vaalco Energy 65
Slide 66: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures Net Income to Adjusted EBITDAX Year-End Reconciliation of Net Income to Adjusted EBITDAX 12/31/2024 12/31/2023 12/31/2022 12/31/2021 12/31/2020 Net income $ 58,490 $ 60,354 $ 51,890 $ 81,836 $ (48,181) Add back: Impact of discontinued operations — — 72 98 98 Inter
Slide 67: For More Information
For More Information Vaalco.com Corporate Office Investor Contacts Country Business Address Vaalco Energy Cote d’Ivoire SPE AB Vaalco Energy Canada 2500 Citywest Blvd., Suite 400 United States Immeuble Rive Droite, Bureau No. 6, 4ème étage Suite 900 - 444 5th Ave SW, Houston, TX 77042 Al Petrie Rue