VAALCO Energy (EGY) Status Update summary

Strategic growth and portfolio diversification

• Expanded from a single-asset, single-country focus to a diversified portfolio across Gabon, Egypt, Equatorial Guinea, Côte d'Ivoire, and Canada, increasing working interest production from 5,000 to 25,000 bbls/day over four years.

• Achieved significant reserve growth, with SEC 1P reserves at 45 million bbls and 2P reserves near 100 million bbls, both approximately five times higher than four years ago.

• Maintained a debt-free balance sheet while executing value-accretive acquisitions and operational improvements.

• Institutional shareholding increased to over 60%, and the company entered the Russell 3000 index.

• Focused on operational safety, achieving over 3 million man-hours LTI-free.

Financial performance and shareholder returns

• Delivered record revenues, production, and profitability, with 2024 EBITDA exceeding $300 million.

• Introduced a quarterly dividend in 2021, currently yielding over 8%, and completed a $30 million buyback in 2024.

• Returned over $100 million to shareholders in the past 2.5–3 years through dividends and buybacks.

• Maintains over $250 million in liquidity and remains debt-free, with a new $190 million facility available.

• Trades at low multiples, with enterprise value at just over 1.4x 2024 EBITDA.

Operational updates and forward plans

• Entering a heavy CapEx phase in 2025–2026, with major drilling campaigns planned in Gabon, Egypt, and Côte d'Ivoire.

• Gabon: Five firm and five optional wells planned, including the restart of the Ebouri field and expansion of Etame and Sendji fields.

• Egypt: Efficiency improvements reduced D&C time to 15 days and well costs by half; ongoing drilling and workover programs aim to sustain and grow production.

• Canada: Shifted to longer laterals, improving IRR to above 125% and reducing overheads by 60%.

• Equatorial Guinea: Advancing Venus development with a FEED study, targeting FID in Q3 2025.

• Côte d'Ivoire: FPSO refurbishment ongoing, with production expected to resume in Q2 2026; investment returns of $1.25 per dollar invested.