VAALCO Energy, Inc. Q3 FY2025 earnings call

• Production and sales in Q3 2025 exceeded guidance, with NRI production 15,405 BOE per day (high end of guidance), working interest production 19,887 BOE (above midpoint), and NRI sales 12,831 BOE per day (high end of guidance). Full-year production and sales guidance raised by ~5%, capital guidance reduced by ~20%.
• Cote d'Ivoire: FPSO refurbishment underway, 10-year license extension for CI-40, farm-in agreement for CI-705 block.
• Gabon: Strong production performance despite no drilling for two years, drilling campaign delayed to late 2025/early 2026, maintenance shutdown in July 2025 to upgrade facilities.
• Egypt: Ongoing drilling and workover programs, evaluating exploration results in South Ghazalat.
• Equatorial Guinea: FEED study for Venus Block P plan of development, exploring subsea development.
• Canada: Postponed 2025 drilling program due to commodity price environment.
• Financial results: First 9 months of 2025 saw net income $17.2M and adjusted EBITDAX $130.5M.

VAALCO Energy's third quarter 2025 saw diverse segment performances. In Cote d'Ivoire, the FPSO refurbishment is underway with a 10-year license extension for CI-40 and a farm-in agreement for CI-705 block. Gabon had strong production performance despite no drilling for two years, with a drilling campaign delayed to late 2025/early 2026 and maintenance shutdown in July 2025. Egypt had ongoing drilling and workover programs, evaluating exploration results in South Ghazalat. Equatorial Guinea had a FEED study for Venus Block P plan of development, exploring subsea development. Canada postponed its 2025 drilling program due to commodity price environment.

• Raised midpoint of full-year production and sales guidance by ~5%, reduced full-year capital guidance by ~20%.
• Q4 2025 production guidance: Working interest BOE per day 20,300-22,200, NRI BOE per day 15,600-70,300.
• Q4 CapEx guidance: $90M-$110M, with continued spending in Cote d'Ivoire and Egypt.

• Risks related to drilling rig availability, as seen in the delay of Gabon's drilling campaign due to rig commitments.
• Commodity price volatility, impacting sales and pricing.
• Hedging program effectiveness, with moving towards a more programmatic hedging approach.
• Project execution delays, such as potential delays in Cote d'Ivoire's drilling campaign due to rig availability.

Q: Stephane Foucaud asked about CapEx mix across assets in 2025 and comparison of 2026 CapEx to 2025, and about South Ghazalat's potential size.

A: Ron Bain said ~$20M of reduced CapEx guidance is permanent, with efficiency gains in Egypt, and George Maxwell discussed South Ghazalat's well results and ongoing evaluation.

Q: Jeff Robertson asked about CapEx efficiency in Egypt being sticky and RBL reflecting asset performance.

A: Ron Bain said efficiency gains in Egypt are sticky, and RBL is more a reflection of current market liquidity.

Q: Christopher Wheaton asked about Gabon production drivers and 2026 CapEx priorities.

A: George Maxwell discussed Gabon's production drivers like reduced back pressure and well performance, and 2026 CapEx priorities with flexibility in Gabon's drilling program but significant production benefits.

Q: Charlie Sharp asked about Gabon drilling timetabling and 2026 drilling schedule.

A: George Maxwell said FPSO sail away date is end of January, hookup in late March/early April, back on production by end of April/early May, and Gabon drilling program starts with pilots on Etame field.

Q: William Dezellem asked about Cote d'Ivoire drilling campaign timing and Equatorial Guinea subsea completion.

A: George Maxwell said Cote d'Ivoire drilling campaign timing depends on rig availability, and Equatorial Guinea subsea completion is part of evaluating more efficient development opportunities.

Q: Jamie Wilen asked about H2S wells shut in a few years ago.

A: George Maxwell discussed the number and production volume of H2S wells and ongoing evaluation and work on related wells.