VAALCO Energy (EGY) investor relations material

Executive summary

• Divested Canadian assets for $25.5 million, streamlining the portfolio and confirming operatorship of the Kossipo field in Côte d'Ivoire with a 60% interest and a field development plan due late 2026.

• Achieved significant operational milestones in Q1 2026, including successful well completions in Gabon and Côte d'Ivoire, and full mooring of the Baobab FPSO, with production restart expected in Q2 2026.

• Net loss of $93.8 million in Q1 2026, driven by $71 million in derivative losses and $22.4 million in exploration expense, with revenues declining to $62.6 million.

• Production and sales volumes exceeded guidance, leading to increased full-year 2026 production and sales guidance, while capital expenditure remains flat.

• Portfolio rationalization and operational execution position the company for significant production growth into 2027.

Financial highlights

• Q1 2026 net loss of $93.8 million, with adjusted EBITDAX of $11.6 million and adjusted net loss per share of $(0.45).

• Q1 2026 revenue was $62.6 million, down from $110.3 million year-over-year, with NRI production and sales above guidance midpoint.

• Q1 production: 15,110 NRI BOEPD (19,884 WI BOEPD); sales: 12,157 NRI BOEPD.

• Q1 production costs and G&A below guidance; cash G&A at $6.9 million.

• Q1 capital expenditures: $78.1 million (cash basis), $73.3 million (accrual basis), mainly in Gabon and Côte d'Ivoire.

Outlook and guidance

• Q2 2026 production guidance: 21,600–23,800 WI BOEPD; 16,800–18,700 NRI BOEPD, with sales volumes expected to be 44% higher than Q1.

• Full-year 2026 production and sales NRI volumes raised by 8% and 12% at midpoint; capital guidance unchanged at $290–$360 million.

• Q2 production costs expected at $26–$31 per NRI BOE; Q2 exploration expense forecasted at $2–$3 million, a 90% reduction from Q1.

• 2026 production expense per BOE expected at $18–$22.

• Sufficient liquidity expected for the next 12 months, supported by cash, operations, and credit facility.