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March 2020 Investor Presentation – Vaalco Energy Inc.

Vaalco Energy Inc. · Mar 10, 2020 · 50 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. March 2020 Investor Presentation – Vaalco Energy Inc. – slide 1
    Get better picture Leveraging From A Strong Platform To Deliver Ambitious Growth Updated Investor Presentation March 2020 VAALCO Energy, Inc. NYSE: EGY LSE: EGY
  2. March 2020 Investor Presentation – Vaalco Energy Inc. – slide 2
    Corporate Overview VAALCO Energy, Inc. NYSE: EGY LSE: EGY
  3. March 2020 Investor Presentation – Vaalco Energy Inc. – slide 3
    VAALCO Today Experienced Operator Undertaking Transformational Growth Our Strategy Maintain Operational Excellence at Etame Conclude Transformational Drilling Campaign Protect Cash Flow in Low Pricing Environment Capitalize on Value…
  4. March 2020 Investor Presentation – Vaalco Energy Inc. – slide 4
    Delivering Value Through Execution Turnaround Driven by Management Team 2017 to 2018 New strategy adopted by management team in 2017 Delivered on objectives to position the Company for sustainable growth Initiated Vision 2025 to…
  5. March 2020 Investor Presentation – Vaalco Energy Inc. – slide 5
    2019 and Recent Highlights Gaining Momentum Towards Strategic Objectives Multiple successes in 2019/2020 drilling program Etame 9P appraisal wellbore discovered oil-filled Dentale and Gamba reservoirs; each was 45 feet thick Etame…
  6. March 2020 Investor Presentation – Vaalco Energy Inc. – slide 6
    Significant Near-Term Catalysts Meaningful Production Growth 2019/2020 Program Potential Impact to 2020 Full Year Production Average Etame 9H well online in Q419 above pre-drill 16,300 18,500 expectations 1,400 Gross Gross 4,800…
  7. March 2020 Investor Presentation – Vaalco Energy Inc. – slide 7
    Operational Outlook VAALCO Energy, Inc. NYSE: EGY LSE: EGY
  8. March 2020 Investor Presentation – Vaalco Energy Inc. – slide 8
    Etame Track Record of Success Repeatedly Creating Value Gamba reservoir plus deeper Dentale resource potential 30 MMBO initial gross proven EUR at YE 2002 114 MMBO gross barrels of oil produced 131 MMBO gross proven EUR at YE…
  9. March 2020 Investor Presentation – Vaalco Energy Inc. – slide 9
    Fully Funded 2019/20 Work Program Meaningful Growth with Moderate Risk 2019/20 Drilling Results Etame Dentale Sub Crop: Etame 9P appraisal wellbore successful with gross 2C resources of 3.2 MMBO and gross prospective resources of…
  10. March 2020 Investor Presentation – Vaalco Energy Inc. – slide 10
    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…
  11. March 2020 Investor Presentation – Vaalco Energy Inc. – slide 11
    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…
  12. March 2020 Investor Presentation – Vaalco Energy Inc. – slide 12
    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…
  13. March 2020 Investor Presentation – Vaalco Energy Inc. – slide 13
    2019/20 Drilling Program: South East Etame 4P South East Etame Fault Compartment/Step Out Area South East Etame 4P appraisal well bore confirmed oil discovery in Step Out area, interpreted as an extension from the South East Etame…
  14. March 2020 Investor Presentation – Vaalco Energy Inc. – slide 14
    Reserves and Resources Organic Growth Opportunities East Ebouri Gamba Extensions: 3 South East Etame and 2 South Tchibala Gamba wells Etame Ebouri Gamba Leads/Prospects: 5 potential satellite prospects identified West Etame Dentale…
  15. March 2020 Investor Presentation – Vaalco Energy Inc. – slide 15
    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…
  16. March 2020 Investor Presentation – Vaalco Energy Inc. – slide 16
    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…
  17. March 2020 Investor Presentation – Vaalco Energy Inc. – slide 17
    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…
  18. March 2020 Investor Presentation – Vaalco Energy Inc. – slide 18
    Stakeholder Engagement VAALCO Energy, Inc. NYSE: EGY LSE: EGY
  19. March 2020 Investor Presentation – Vaalco Energy Inc. – slide 19
    Health, Safety, Security & Environment Our Commitment to World Class Safety Health & Safety Distinguished health and safety record with only one serious incident in past 3 years Aligning the safety management systems with…
  20. March 2020 Investor Presentation – Vaalco Energy Inc. – slide 20
    Social License to operate Our 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…
  21. March 2020 Investor Presentation – Vaalco Energy Inc. – slide 21
    Governance Our Commitment to High Ethical Standards Long-standing governance practices designed in conformance with SEC and UK Corporate Governance Codes Majority independent Board oversight Code of conduct, code of ethics,…
  22. March 2020 Investor Presentation – Vaalco Energy Inc. – slide 22
    Financial Overview VAALCO Energy, Inc. NYSE: EGY LSE: EGY
  23. March 2020 Investor Presentation – Vaalco Energy Inc. – slide 23
    Financial Snapshot(1) Full Year 2019 US 84.5 MM US 37.5 MM US 18.6 MM Revenues Adjusted EBITDAX Adjusted Net Income US 26.5 MM 3,476 BOPD US29.70 Cash from Operations NRI Production Volume per day Production cost per…
  24. March 2020 Investor Presentation – Vaalco Energy Inc. – slide 24
    VAALCO Free Cash Flow Overview (2020E) Maximize Margins Through Cost Discipline 2020 Operational Margin Per Barrel 2020 Free Cash Flow Per Barrel 60.00 60.00 19.5 50.00 26.8 50.00 10.5 17.9 1.5 1.0 1.0 40.00 8.9 40.00 1.0…
  25. March 2020 Investor Presentation – Vaalco Energy Inc. – slide 25
    Key Performance Metrics Profitable Results Build Financial Strength NRI Production by Quarter 4,000 Adjusted EBITDAX 15 3,500 3,000 2,500 10 NRI BOPD 2,000 MM 3,496 3,664 3,664 1,500 3,081 12.9 5 9.7 10.4 1,000 500…
  26. March 2020 Investor Presentation – Vaalco Energy Inc. – slide 26
    Strong Cash Flow Generation Adj. EBITDAX Exceeding Capex and Share Repurchases 2019 Full Year Results Generated 33.1 million Adjusted EBITDAX in 2019 Repurchased 2.1 million of outstanding VAALCO 40 shares in 2019 for 3.7 million…
  27. March 2020 Investor Presentation – Vaalco Energy Inc. – slide 27
    Working Capital From Continuing Operations Liquidity Position Remains Strong 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 18.3 15.0 30.00 15.0 13.0 13.3 11.0…
  28. March 2020 Investor Presentation – Vaalco Energy Inc. – slide 28
    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…
  29. March 2020 Investor Presentation – Vaalco Energy Inc. – slide 29
    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…
  30. March 2020 Investor Presentation – Vaalco Energy Inc. – slide 30
    Major Shareholders Top 20 Shareholders as of December 31, 2019 % of Large, stable shareholder base Shareholder Shares Held Outstanding Radoff, Bradley + Fondren Management, L.P. 4,494,905 7.7% Tieton Capital Management, LLC…
  31. March 2020 Investor Presentation – Vaalco Energy Inc. – slide 31
    Vision 2025 Strategy VAALCO Energy, Inc. NYSE: EGY LSE: EGY
  32. March 2020 Investor Presentation – Vaalco Energy Inc. – slide 32
    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…
  33. March 2020 Investor Presentation – Vaalco Energy Inc. – slide 33
    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…
  34. March 2020 Investor Presentation – Vaalco Energy Inc. – slide 34
    Appendix VAALCO Energy, Inc. NYSE: EGY LSE: EGY
  35. March 2020 Investor Presentation – Vaalco Energy Inc. – slide 35
    2020 Full Year Guidance (As of March 9, 2020) WI(1) NRI(1) Production (BOPD) 5,100 5,750 4,400 5,000 Q1 2020 Production (BOPD) 5,400 - 5,750 4,700 - 5,000 Sales Volume (BOPD) 5,100 5,750 4,400 5,000 Production Expense(2) 37 - 42 MM…
  36. March 2020 Investor Presentation – Vaalco Energy Inc. – slide 36
    Supplemental Non-GAAP Financial Measures This presentation contains crude oil and natural gas metrics which do not have standardized meanings or standard methods of calculation as classified by the SEC and therefore such measures may not…
  37. March 2020 Investor Presentation – Vaalco Energy Inc. – slide 37
    Non-GAAP Reconciliations Three Months Ended Year Ended March 31, September 30, December 31, December 31, Reconciliation of Net Income (Loss) to Adjusted EBITDAX 2019 June 30, 2019 2019 2019 2019 Net income (loss) 6,501 (1,033) (3,919)…
  38. March 2020 Investor Presentation – Vaalco Energy Inc. – slide 38
    Non-GAAP Reconciliations Year Ended Reconciliation of Changes in Working Capital from Continuing Operations December 31, 2019 December 31, 2018 December 31, 2017 Current assets 69,758 58,794 36,452 Current assets - discontinued…
  39. March 2020 Investor Presentation – Vaalco Energy Inc. – slide 39
    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%…
  40. March 2020 Investor Presentation – Vaalco Energy Inc. – slide 40
    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 41 (1) Assumes unrecovered costs are enough to claim…
  41. March 2020 Investor Presentation – Vaalco Energy Inc. – slide 41
    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…
  42. March 2020 Investor Presentation – Vaalco Energy Inc. – slide 42
    Additional Etame Technical Detail VAALCO Energy, Inc. NYSE: EGY LSE: EGY
  43. March 2020 Investor Presentation – Vaalco Energy Inc. – slide 43
    Etame Complex A World Class Asset With Material Upside Potential Gross Reserves and Resources Producing Wells Undeveloped Reserves 114 MMBO produced South Tchibala to date Extension: 1.6 MMBO(1) 32.7 MMBO 2P CPR 2P CPR undeveloped…
  44. March 2020 Investor Presentation – Vaalco Energy Inc. – slide 44
    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…
  45. March 2020 Investor Presentation – Vaalco Energy Inc. – slide 45
    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: 32.7 gross MMBO 2019 2P CPR developed and 1.6 MMBO 2P CPR…
  46. March 2020 Investor Presentation – Vaalco Energy Inc. – slide 46
    Additional Etame Gamba Opportunities 2P CPR Drilling Location: South Tchibala 3H: Gamba horizontal 2P CPR undeveloped reserves 1.6 MMBO gross(1) Prospective Step Out Locations: SEENT Platform: Three Gamba wells (8.0 MMBO…
  47. March 2020 Investor Presentation – Vaalco Energy Inc. – slide 47
    Additional Etame Dentale Opportunities Additional Prospective Locations: Etame Platform: Four Dentale infills (7.7 MMBO gross)(1) SEENT Platform: One Dentale infills (2.5 MMBO gross)(1) Avouma Platform: Two Dentale infills (3.0…
  48. March 2020 Investor Presentation – Vaalco Energy Inc. – slide 48
    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 with 4.4 MMBO gross contingent resource(1) Etame 8H existing well: 0.4 MMBO gross contingent…
  49. March 2020 Investor Presentation – Vaalco Energy Inc. – slide 49
    Etame Marin Gross Contingent Resources Upside Resources Beyond 2028 Etame Marin Contingent Resources (2C) Etame Platform: 7.7 MMBO gross(1) SEENT Platform: 1.1 MMBO gross(1) Avouma Platform: 6.4 MMBO gross(1) Ebouri Platform: 0.4…
  50. March 2020 Investor Presentation – Vaalco Energy Inc. – slide 50
    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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