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November 2019 Investor Presentation – Vaalco Energy Inc.

Vaalco Energy Inc. · Nov 7, 2019 · 49 slides

Investor presentation from the Shale Experts oil & gas presentation and slide database. Every page is imaged and its text indexed for search across operators, plays, basins and time.

Slides

  1. November 2019 Investor Presentation – Vaalco Energy Inc. – slide 1
    Get better picture Leveraging From A Strong Platform To Deliver Growth Updated Investor Presentation November 2019 VAALCO Energy, Inc. NYSE: EGY LSE: EGY
  2. November 2019 Investor Presentation – Vaalco Energy Inc. – slide 2
    Corporate Overview VAALCO Energy, Inc. NYSE: EGY LSE: EGY
  3. November 2019 Investor Presentation – Vaalco Energy Inc. – slide 3
    VAALCO Today Experienced Operator Entering an Ambitious Growth Phase International E&P focused on low-risk, producing assets in Africa Operator of Gabon offshore Etame license Etame Joint Owners(1): VAALCO (operator) 33.6%, Addax…
  4. November 2019 Investor Presentation – Vaalco Energy Inc. – slide 4
    Delivering Value Through Execution Turnaround Driven by Management Team New strategy adopted by management team in 2017 Delivered on objectives to position the Company for sustainable growth Initiated Vision 2025 to achieve material…
  5. November 2019 Investor Presentation – Vaalco Energy Inc. – slide 5
    2019 Recent Highlights Removing Creating and Growing Cash Financial Returning Flow Uncertainty Value Resumed drilling after 4 years of reduced activity with successful Etame 9P appraisal wellbore Currently drilling Etame 9H…
  6. November 2019 Investor Presentation – Vaalco Energy Inc. – slide 6
    Significant Near-Term Catalysts Meaningful Potential Production Growth with Moderate Risk 2019/2020 Program Potential Impact to 2020 Full Year Production Average 15,200 18,200 1,400 Gross Gross 4,000 7,000 Gross BOPD…
  7. November 2019 Investor Presentation – Vaalco Energy Inc. – slide 7
    Significant Near-Term Catalysts Meaningful Potential Reserve Growth with Moderate Risk YE 2018 Net Reserves(1,2) 16.7 MMBO Prospective 6.9 MMBO Contingent 9.7 MMBO 2P 2019/20 Drilling 2P Undeveloped 3.6 2019/20 drilling program…
  8. November 2019 Investor Presentation – Vaalco Energy Inc. – slide 8
    Operational Outlook VAALCO Energy, Inc. NYSE: EGY LSE: EGY
  9. November 2019 Investor Presentation – Vaalco Energy Inc. – slide 9
    Etame Track Record of Success Repeatedly Creating Value Gamba reservoir plus deeper Dentale resource potential 30 MMBO initial gross proven EUR at YE 2002 110 MMBO gross barrels of oil produced 123 MMBO gross proven EUR at YE…
  10. November 2019 Investor Presentation – Vaalco Energy Inc. – slide 10
    Fully Funded 2019/20 Work Program Meaningful Growth with Moderate Risk 2019/20 Drilling Objectives Etame Dentale Sub Crop: Etame 9P appraisal wellbore aims to prove up three Dentale sub crop development locations Etame Field…
  11. November 2019 Investor Presentation – Vaalco Energy Inc. – slide 11
    2019/20 Drilling Program: Etame 9P Etame Field Main Fault Sub Crop Dentale Appraisal Etame 9P appraisal wellbore successfully drilled and A B encountered Gamba and Dentale reservoirs Gamba and Dentale oil columns thicker than…
  12. November 2019 Investor Presentation – Vaalco Energy Inc. – slide 12
    2019/20 Drilling Program: Etame 9H Etame Field Main Fault Block Gamba Development Spud the Etame 9H development well in October The Etame 9H is a horizontal development well offsetting the Etame 4H and Etame 6H Reserve potential:…
  13. November 2019 Investor Presentation – Vaalco Energy Inc. – slide 13
    Additional Etame Opportunities Moderate Risk Growth E Ebouri South Tchibala Extension: South Tchibala 3H Gamba well and proves up a future development location Etame Ebouri Gamba Leads/Prospects: Five potential satellite…
  14. November 2019 Investor Presentation – Vaalco Energy Inc. – slide 14
    Gamba Satellite Prospects High Upside Potential with Relatively Lower Risk Five potential satellite prospects identified (1) (2) High upside potential prospective resources with relatively low geological risk as assessed by NSAI,…
  15. November 2019 Investor Presentation – Vaalco Energy Inc. – slide 15
    Equatorial Guinea Significant Upside Potential Block P suspension lifted; awaiting approval of transfer Noble 210 MMboe of GEPetrols WI VAALCO will seek partner on a promoted basis to drill exploratory well required under terms to…
  16. November 2019 Investor Presentation – Vaalco Energy Inc. – slide 16
    Inorganic Growth Achieving 5x Value Seeking to complement organic growth with value accretive M&A opportunities Strategic focus on producing assets in Africa Seeking merger candidates of similar size and corporate strategy…
  17. November 2019 Investor Presentation – Vaalco Energy Inc. – slide 17
    Stakeholder Engagement VAALCO Energy, Inc. NYSE: EGY LSE: EGY
  18. November 2019 Investor Presentation – Vaalco Energy Inc. – slide 18
    Corporate Social Responsibility Partnering with the Communities Where We Operate Underpinning growth is maintaining our social license to operate Strong governmental relationships Technical, commercial and policy Builds ease of access…
  19. November 2019 Investor Presentation – Vaalco Energy Inc. – slide 19
    HSE and Governance Our Commitment to Society Health and safety record One recordable incident YTD 2019 with TRIR of 0.31 across 666,000 manhours Strong government relationship and involvement in programs HSE activities and…
  20. November 2019 Investor Presentation – Vaalco Energy Inc. – slide 20
    Financial Overview VAALCO Energy, Inc. NYSE: EGY LSE: EGY
  21. November 2019 Investor Presentation – Vaalco Energy Inc. – slide 21
    Financial Snapshot(1) Delivering Strong Cash Flow and Financial Results US 34.6 MM US 56.3 MM US 37.2 MM Adjusted Net Income Adjusted EBITDAX Cash from Operations 242% 81% 315% FY 2018 FY 2018 FY 2018 US25.04 US 104.9 MM 3,751…
  22. November 2019 Investor Presentation – Vaalco Energy Inc. – slide 22
    VAALCO Free Cash Flow Overview (2019E) Maximize Margins Through Cost Discipline 2019 Operational Margin Per Barrel 2019 Free Cash Flow Per Barrel 70.00 70.00 19.5 60.00 28.1 60.00 11.0 19.6 2.5 1.7 1.7 50.00 11.1 50.00 1.7 3.3…
  23. November 2019 Investor Presentation – Vaalco Energy Inc. – slide 23
    Key Performance Metrics Profitable Results Build Financial Strength Production by Quarter 4,000 Adjusted EBITDAX 3rd party DT 200 BO/d 20 3,500 3,000 15 2,500 BOPD 2,000 MM 3,717 3,496 3,664 10 1,500 3,081 17.1 1,000…
  24. November 2019 Investor Presentation – Vaalco Energy Inc. – slide 24
    Strong Cash Flow Generation Adj. EBITDAX Exceeding Capex and Share Repurchases 2019 YTD Results Generated 27.1 million Adjusted EBITDAX in first 9 months of 2019 Repurchased 1.3 million of outstanding VAALCO 30 shares in first 9…
  25. November 2019 Investor Presentation – Vaalco Energy Inc. – slide 25
    Working Capital From Continuing Operations Liquidity Position Continues to Improve 45.0 80.00 40.0 38.1 70.00 35.0 33.8 60.00 29.7 29.0 30.0 50.00 25.0 40.00 Millions per barrel 20.0 15.0 30.00 15.0 13.0 13.3 11.0…
  26. November 2019 Investor Presentation – Vaalco Energy Inc. – slide 26
    Hedging Ensure Sufficient Cash Flow to Fund Future Drilling Campaigns May 2019: Swaps for 500,000 BBL at 66.70 dated Brent for the July 2019 to June 2020 period Volumes represent approximately one-third of net sales for the…
  27. November 2019 Investor Presentation – Vaalco Energy Inc. – slide 27
    Share Repurchase Program Returning Value to Shareholders On June 20, 2019 the Board authorized a stock repurchase program VAALCO can repurchase up to 10 million of the currently outstanding shares of common stock The program period…
  28. November 2019 Investor Presentation – Vaalco Energy Inc. – slide 28
    Vision 2025 Strategy VAALCO Energy, Inc. NYSE: EGY LSE: EGY
  29. November 2019 Investor Presentation – Vaalco Energy Inc. – slide 29
    Vision 2025 Roadmap to Transformational Growth Achieve material increase in scale 2019/20 Etame License Work Program as a premier Africa operator Maintain operational excellence, cost Future Etame License discipline and strong…
  30. November 2019 Investor Presentation – Vaalco Energy Inc. – slide 30
    Vision 2025 Building Blocks to Achieve Growth 2019/20 Etame License Work Program Future Etame License Work Programs One Dentale appraisal wellbore to evaluate Five Gamba development wells sub crop reservoirs Five Gamba near field…
  31. November 2019 Investor Presentation – Vaalco Energy Inc. – slide 31
    Appendix VAALCO Energy, Inc. NYSE: EGY LSE: EGY
  32. November 2019 Investor Presentation – Vaalco Energy Inc. – slide 32
    2019 Full Year Guidance (As of November 6, 2019) WI(1) NRI(1) Production (BOPD) 3,800 4,500 3,300 3,900 Q4 2019 Production (BOPD) 3,575 4,025 3,100 3,500 Sales Volume (BOPD) 3,900 4,350 3,400 3,800 Production Expense(2) 37 - 39 MM…
  33. November 2019 Investor Presentation – Vaalco Energy Inc. – slide 33
    Non-GAAP Reconciliations VAALCO Energy, Inc. NYSE: EGY LSE: EGY 34
  34. November 2019 Investor Presentation – Vaalco Energy Inc. – slide 34
    Etame PSC Contractual Summary PSC Terms Gabon - Etame Royalty Rate 13% Cost Oil 80% through Sept. 2028, 70% thereafter Profit Oil Split/Income Tax See Table Below Government back-in - Tullow 7.5% carried through June 2026, 10%…
  35. November 2019 Investor Presentation – Vaalco Energy Inc. – slide 35
    Etame Fiscal Terms Etame Marin Working Participating Net Royalty Block Interest Interest % Interest% Interest % VAALCO 31.1% 33.6% 27.1% VAALCO Energy, Inc. NYSE: EGY LSE: EGY 36 (1) Assumes unrecovered costs are enough to claim…
  36. November 2019 Investor Presentation – Vaalco Energy Inc. – slide 36
    Management Team Deep Industry, Technical and Financial Experience Cary Bounds Chief Executive Officer and Director Joined VAALCO in 2015 as COO and was named CEO in December 2016. Mr. Bounds began his career at Conoco in 1991. Most…
  37. November 2019 Investor Presentation – Vaalco Energy Inc. – slide 37
    Additional Etame Technical Detail VAALCO Energy, Inc. NYSE: EGY LSE: EGY
  38. November 2019 Investor Presentation – Vaalco Energy Inc. – slide 38
    Etame Complex A World Class Asset With Material Upside Potential Gross Reserves and Resources Producing Wells Undeveloped Reserves 110 MMBO produced 2019/20 Gamba to date Drilling: 13.4 MMBO(1) 12.5 MMBO proved 2P reserves(1) South…
  39. November 2019 Investor Presentation – Vaalco Energy Inc. – slide 39
    VAALCO Offshore Gabon Etame Reservoirs Located in prolific South Gabon basin in shallow water (85m) Numerous undrilled opportunities at moderate drilling depths (1800m TVD to 2900m TVD) Continuous overlying salt sheet provides an…
  40. November 2019 Investor Presentation – Vaalco Energy Inc. – slide 40
    VAALCO Etame Offshore License Operator with 31.1% WI and 27.1% NRI (net of royalty) Joint Owners: Sinopec (Addax), Sasol, PetroEnergy Current producing wells: 12.5 MMBO of proved and 7.7 MMBO probable gross developed reserves at YE…
  41. November 2019 Investor Presentation – Vaalco Energy Inc. – slide 41
    2019/20 Work Program Creating Value through Development Drilling 2019 Development Drilling Locations Etame 9H well: Gamba horizontal between the two highest gross producing wells in Etame Marin Etame 11H well: Gamba horizontal well to…
  42. November 2019 Investor Presentation – Vaalco Energy Inc. – slide 42
    2019/20 Drilling Program: Etame Field Main Fault Block Gamba Development The Etame 11H is a horizontal development well to optimize production in the east side of the main fault block Reserve potential: 7.2 MMBO gross 2P(1) 2.0…
  43. November 2019 Investor Presentation – Vaalco Energy Inc. – slide 43
    Fully Funded 2019/20 Work Program Creating Value through Appraisal Drilling 2019 Appraisal Locations Etame 9P: Successfully drilled with estimated gross recoverable oil resources of 3.9 to 14.9 MMBO (1) present in subcropping Dentale…
  44. November 2019 Investor Presentation – Vaalco Energy Inc. – slide 44
    2019/20 Drilling Program: SE Etame Fault Compartment/Step Out Area SE Etame 4P appraisal well bore will evaluate the Step Out area, interpreted as an extension from the SE Etame 2H The SE Etame 4H will be drilled into the Step Out…
  45. November 2019 Investor Presentation – Vaalco Energy Inc. – slide 45
    Additional Etame Gamba Opportunities Probable Drilling Location: South Tchibala 3H: Gamba horizontal 2P reserves 2.4 MMBO gross/0.6 MMBO NRI reserves(1) Prospective Step Out Locations: SEENT Platform: Three Gamba wells (7.7 MMBO…
  46. November 2019 Investor Presentation – Vaalco Energy Inc. – slide 46
    Additional Etame Dentale Opportunities Additional Prospective Locations: Etame Platform: Six Dentale infills (10.2 MMBO gross)(1) SEENT Platform: Three Dentale infills (4.5 MMBO gross)(1) Avouma Platform: Two Dentale infills…
  47. November 2019 Investor Presentation – Vaalco Energy Inc. – slide 47
    Crude Sweetening Project (CSP) 3 wells drilled and shut in due to H2S in Ebouri and Etame fields Ebouri 3H and Ebouri 4H existing wells, Ebouri 5H potential future well: 5.3 MMBO gross contingent resource(1) Initial tests of 800…
  48. November 2019 Investor Presentation – Vaalco Energy Inc. – slide 48
    Etame Marin Gross Contingent Resources Upside Resources Beyond 2028 Etame Marin Contingent Resources (2C) Etame Platform: (3.9 MMBO gross)(1) SEENT Platform: (0.5 MMBO gross)(1) Avouma Platform: (7.2 MMBO gross)(1) Ebouri…
  49. November 2019 Investor Presentation – Vaalco Energy Inc. – slide 49
    Contact Corporate Office Branch Office 9800 Richmond Avenue, VAALCO Gabon SA Suite 700, Houston, Texas 77042 B.P. 1335, Port Gentil, Gabon T 713.623.0801 F 713.623.0982 E vaalcovaalco.com T +241-(0)1-56-55-29 Investor…

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