VAALCO Energy (EGY) Lytham Partners Fall 2025 Investor Conference summary

Strategic growth, achievements, and portfolio diversification

• Expanded from a single asset in Gabon to operations in five countries through acquisitions and investments, focusing on Africa with additional assets in North America.

• Achieved a fivefold increase in production from 5,500 to 25,000 barrels per day between 2020 and 2024, and a tenfold increase in 2P reserves to nearly 100 million barrels.

• Completed major acquisitions, including Sasol, TransGlobe, and Svenska, doubling production and tripling 1P reserves.

• Diversification strategy has reduced risk and increased cash flow stability, leveraging management’s extensive African experience.

• Maintains strong host government relationships and favorable contractual terms across all jurisdictions.

Operational highlights and project updates

• Gabon: Ongoing field upgrades, Phase 3 development targeting first oil in late 2025, and a Q4 2025 drilling campaign with up to 10 wells; Etame field production exceeds 15,000 barrels per day.

• Côte d’Ivoire: FPSO refurbishment to restore production by March/April 2026; Baobab Phase 5 to deliver first oil in 2H26, with license extended to 2038.

• Egypt: Continuous drilling program with reduced well completion times and consistent production growth since 2022.

• Equatorial Guinea: Venus offshore development targeting 18,000–20,000 barrels per day, with rapid payback expected; first oil from Block P targeted by end-2028.

• Canada: Stable production base in the Cardium play, with 48 identified drilling locations and future investment potential tied to oil price recovery.

Financial performance and shareholder returns

• Adjusted EBITDA/EBITDAX surpassed $300 million in 2024, with the company remaining net cash positive and debt-free for four years.

• Initiated and sustained a quarterly dividend since 2022, currently yielding 6.4%, and completed a $30 million buyback program.

• Over $100 million returned to shareholders between 2022 and Q2 2025, with more than 75% of free cash flow distributed.

• Accretive M&A activity, including the Svenska and TransGlobe transactions, delivered significant synergies and reserve growth at low cost per barrel.

• Free cash flow at $65 oil over the next four years is projected to match or exceed current market cap; anticipated free cash flow for equity from mid-2026 to mid-2030 exceeds current market valuation.