VAALCO Energy, Inc. Q2 FY2025 earnings call

• Q2 2025 financial results: net income $8.4M, adjusted EBITDAX $49.9M, production above guidance. - Entered a new reserve-based revolving credit facility with an initial commitment of $119M. - Côte d'Ivoire: FPSO refurbishment ahead of schedule, license extended, and farm-in agreement for CI-705 block. - Gabon: Positive production results, drilling program planned, and strong performance from Ebouri 4H well. - Egypt: Ongoing drilling and workover programs with strong safety record. - Equatorial Guinea: Venus Block P FEED study complete, awaiting final investment decision. - Canada: Postponed 2025 drilling program. - Hedging program moving to a more programmatic approach. - Cost management: Production costs low, G&A costs in line with guidance.

In Q2 2025, VAALCO Energy achieved net income of $8.4 million or $0.08 per share and adjusted EBITDAX of $49.9 million. NRI production was 16,956 BOE per day, working interest production 21,654 BOE per day, and NRI sales 19,393 BOE per day, all above guidance. In Côte d'Ivoire, the FPSO refurbishment is underway, the license on CI-40 was extended to 2038, and a farm-in agreement for the CI-705 block was entered. Gabon had positive production results, with a drilling program planned for late Q3 2025 and strong performance from the Ebouri 4H well. Egypt had ongoing drilling and workover programs with strong safety, and Equatorial Guinea's Venus Block P plan of development had a completed FEED study. Canada postponed its 2025 drilling program due to commodity price conditions.

• Full-year guidance remains unchanged. - Q3 2025 production guidance: working interest 18,900-20,800 BOE per day, NRI 14,400-15,600 BOE per day. - Q3 sales expected lower than Q2 due to fewer offshore liftings in Gabon. - Q3 CapEx expected to be between $70M and $90M, depending on Gabon rig arrival.

• Commodity price volatility could impact financial results. - Delays in projects such as Gabon drilling rig availability. - Uncertainty in exploration results for new blocks like CI-705.

Q: On Côte d'Ivoire, where are we with the FPSO project versus expectation?

A: The FPSO project is ahead of schedule, with the swivel arriving on August 12 and installation starting early September, projecting reconnection in late March 2026.

Q: Ron, on operating cash flow Q3 vs Q2?

A: Accounts receivable are expected to come down in Q3, leading to a positive working capital inflow in Q3.

Q: Côte d'Ivoire turret bearing?

A: The bearing is in Dubai in a climate-controlled warehouse, with the swivel arriving August 12 and installation commencing early September.

Q: Equatorial Guinea FID timeline?

A: Targeting a final investment decision by the end of 2025, but actual commitments will be well into the second half of 2026.

Q: Gabon drilling impact on production?

A: No material disruptions are expected, with planned downtime associated with rig movement aligned with budgeted periods.

Q: CI-705 block prospects?

A: Evaluation of seismic data is ongoing, focusing on an oil-bearing structure within the block, with a detailed geological analysis in progress.

Q: Egypt drilling program impact on CapEx?

A: Canadian CapEx planned for 2025 was moved, and Egypt's drilling costs are lower than guided, allowing maintenance of CapEx guidance.

Q: Côte d'Ivoire FPSO return to production?

A: Expected to start first oil production at the end of May 2025, with a ramp-up over 2-3 weeks to stable production.