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February 2020 Investor Presentation – Vaalco Energy Inc.

Vaalco Energy Inc. · Feb 10, 2020 · 51 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. February 2020 Investor Presentation – Vaalco Energy Inc. – slide 1
    Get better picture Leveraging From A Strong Platform To Deliver Ambitious Growth Updated Investor Presentation February 2020 VAALCO Energy, Inc. NYSE: EGY LSE: EGY
  2. February 2020 Investor Presentation – Vaalco Energy Inc. – slide 2
    Corporate Overview VAALCO Energy, Inc. NYSE: EGY LSE: EGY
  3. February 2020 Investor Presentation – Vaalco Energy Inc. – slide 3
    VAALCO Today Experienced Operator Undertaking Transformational Growth 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. February 2020 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. February 2020 Investor Presentation – Vaalco Energy Inc. – slide 5
    Recent Highlights Gaining Momentum Towards Strategic Objectives Removing Creating and Growing Cash Financial Returning Flow Uncertainty Value Multiple successes in 2019/2020 drilling program Etame 9P appraisal wellbore…
  6. February 2020 Investor Presentation – Vaalco Energy Inc. – slide 6
    Significant Near-Term Catalysts Meaningful Production Growth with Moderate Risk 2019/2020 Program Potential Impact to 2020 Full Year Production Average Etame 9H well online in Q419 above pre-drill 15,200 18,200 expectations 1,400…
  7. February 2020 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. February 2020 Investor Presentation – Vaalco Energy Inc. – slide 8
    Operational Outlook VAALCO Energy, Inc. NYSE: EGY LSE: EGY
  9. February 2020 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 113 MMBO gross barrels of oil produced 123 MMBO gross proven EUR at YE…
  10. February 2020 Investor Presentation – Vaalco Energy Inc. – slide 10
    Fully Funded 2019/20 Work Program Meaningful Growth with Moderate Risk 2019/20 Drilling Results Etame Dentale Sub Crop: Etame 9P appraisal success with gross recoverable resources of 3.9 to 14.9 MMBO(2) Etame 9H Development Well:…
  11. February 2020 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. February 2020 Investor Presentation – Vaalco Energy Inc. – slide 12
    2019/20 Drilling Program: Etame 9H Etame Field Main Fault Block Gamba Development Etame 9H development well successfully drilled and brought online in December 2019 Pre-drill expected stabilized IP rate: ETAME-9H 2,500 3,500 gross…
  13. February 2020 Investor Presentation – Vaalco Energy Inc. – slide 13
    2019/20 Drilling Program: Etame 11H Etame Field Main Fault Block Gamba Development Etame 11H development well successfully drilled and brought online in January 2020 Pre-drill expected stabilized IP rate: 2,500 3,500 gross BOPD…
  14. February 2020 Investor Presentation – Vaalco Energy Inc. – slide 14
    2019/20 Drilling Program: South East Etame 4P South East Etame Fault Compartment/Step Out Area South East Etame 4P appraisal well bore will evaluate the Step Out area, interpreted as an extension from the South East Etame 2H The…
  15. February 2020 Investor Presentation – Vaalco Energy Inc. – slide 15
    Additional Etame Opportunities Moderate Risk Growth East Ebouri South Tchibala Extension: South Tchibala 3H Gamba well and proves up a future development location Etame Ebouri Gamba Leads/Prospects: Five potential satellite…
  16. February 2020 Investor Presentation – Vaalco Energy Inc. – slide 16
    Gamba Satellite Prospects High Upside Potential with Relatively Lower Risk Five potential satellite prospects identified (1) West Etame High upside potential prospective resources with relatively (2) South West Etame South East…
  17. February 2020 Investor Presentation – Vaalco Energy Inc. – slide 17
    Equatorial Guinea Significant Upside Potential Block P suspension lifted; awaiting approval of transfer of Noble 210 MMboe GEPetrols WI Executed a Memorandum of Understanding with Levene regarding potential commercial relationship…
  18. February 2020 Investor Presentation – Vaalco Energy Inc. – slide 18
    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…
  19. February 2020 Investor Presentation – Vaalco Energy Inc. – slide 19
    Stakeholder Engagement VAALCO Energy, Inc. NYSE: EGY LSE: EGY
  20. February 2020 Investor Presentation – Vaalco Energy Inc. – slide 20
    Health, Safety, Security & Environment Commitment to World Class Safety Health & Safety Complying with all applicable health and safety regulations resulting in only one serious incident on Company operated facilities in the past…
  21. February 2020 Investor Presentation – Vaalco Energy Inc. – slide 21
    Social License to Operate Commitment to Society Diversified workforce VAALCO is committed to supporting the socioeconomic development of the communities in which we operate Colleagues and members of local communities engaging to…
  22. February 2020 Investor Presentation – Vaalco Energy Inc. – slide 22
    Governance Commitment to High Ethical Standards Long-standing governance practices designed in conformance with SEC and UK Corporate Governance Code Majority independent Board oversight Code of conduct, code of ethics, employee…
  23. February 2020 Investor Presentation – Vaalco Energy Inc. – slide 23
    Financial Overview VAALCO Energy, Inc. NYSE: EGY LSE: EGY
  24. February 2020 Investor Presentation – Vaalco Energy Inc. – slide 24
    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…
  25. February 2020 Investor Presentation – Vaalco Energy Inc. – slide 25
    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…
  26. February 2020 Investor Presentation – Vaalco Energy Inc. – slide 26
    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…
  27. February 2020 Investor Presentation – Vaalco Energy Inc. – slide 27
    Strong Cash Flow Generation Adj. EBITDAX Exceeding Capex and Share Repurchases 2019 YTD Results Thru Q3 Generated 27.1 million Adjusted EBITDAX in first 9 months of 2019 30 Repurchased 1.3 million of outstanding VAALCO shares in…
  28. February 2020 Investor Presentation – Vaalco Energy Inc. – slide 28
    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…
  29. February 2020 Investor Presentation – Vaalco Energy Inc. – slide 29
    Hedging Ensure Sufficient Cash Flow to Fund Future Drilling Campaigns May 2019: Swaps for 500,000 BBLS at 66.70 dated Brent for the July 2019 to June 2020 period Volumes represent approximately one-third of net sales for the…
  30. February 2020 Investor Presentation – Vaalco Energy Inc. – slide 30
    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…
  31. February 2020 Investor Presentation – Vaalco Energy Inc. – slide 31
    Major Shareholders Top 20 Shareholders as of September 30, 2019 % of Large, stable shareholder base Shareholder Shares Held Outstanding Radoff, Bradley + Fondren Management, L.P. Tieton Capital Management, LLC 4,494,905 3,819,456…
  32. February 2020 Investor Presentation – Vaalco Energy Inc. – slide 32
    Vision 2025 Strategy VAALCO Energy, Inc. NYSE: EGY LSE: EGY
  33. February 2020 Investor Presentation – Vaalco Energy Inc. – slide 33
    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…
  34. February 2020 Investor Presentation – Vaalco Energy Inc. – slide 34
    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…
  35. February 2020 Investor Presentation – Vaalco Energy Inc. – slide 35
    Appendix VAALCO Energy, Inc. NYSE: EGY LSE: EGY
  36. February 2020 Investor Presentation – Vaalco Energy Inc. – slide 36
    2019 Full Year Guidance (As of November 6, 2019, Except Production) WI(1) NRI(1) Production (BOPD) 4,000(3) 3,476(3) Q4 2019 Production (BOPD) 4,217(3) 3,664(3) Sales Volume (BOPD) 3,900 4,350 3,400 3,800 Production Expense(2) 37 -…
  37. February 2020 Investor Presentation – Vaalco Energy Inc. – slide 37
    Non-GAAP Reconciliations VAALCO Energy, Inc. NYSE: EGY LSE: EGY 38
  38. February 2020 Investor Presentation – Vaalco Energy Inc. – slide 38
    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%…
  39. February 2020 Investor Presentation – Vaalco Energy Inc. – slide 39
    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 40 (1) Assumes unrecovered costs are enough to claim…
  40. February 2020 Investor Presentation – Vaalco Energy Inc. – slide 40
    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…
  41. February 2020 Investor Presentation – Vaalco Energy Inc. – slide 41
    Additional Etame Technical Detail VAALCO Energy, Inc. NYSE: EGY LSE: EGY
  42. February 2020 Investor Presentation – Vaalco Energy Inc. – slide 42
    Etame Complex A World Class Asset With Material Upside Potential Gross Reserves and Resources Producing Wells Undeveloped Reserves 113 MMBO produced 2019/20 Gamba to date Drilling: 13.4 MMBO(1) 12.5 MMBO proved 2P reserves(1) South…
  43. February 2020 Investor Presentation – Vaalco Energy Inc. – slide 43
    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…
  44. February 2020 Investor Presentation – Vaalco Energy Inc. – slide 44
    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…
  45. February 2020 Investor Presentation – Vaalco Energy Inc. – slide 45
    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 Successfully brought online at 5,500…
  46. February 2020 Investor Presentation – Vaalco Energy Inc. – slide 46
    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…
  47. February 2020 Investor Presentation – Vaalco Energy Inc. – slide 47
    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…
  48. February 2020 Investor Presentation – Vaalco Energy Inc. – slide 48
    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…
  49. February 2020 Investor Presentation – Vaalco Energy Inc. – slide 49
    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…
  50. February 2020 Investor Presentation – Vaalco Energy Inc. – slide 50
    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…
  51. February 2020 Investor Presentation – Vaalco Energy Inc. – slide 51
    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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