VAALCO Energy (EGY) investor relations material

Executive summary

• Q2 2026 net income was $42.4 million ($0.39 per diluted share), with adjusted EBITDAX of $54.8 million, driven by higher realized prices, increased production, and sales across diversified African assets.

• NRI sales volumes rose 47% from Q1 2026 to 17,812 BOEPD, with production growth from successful drilling in Gabon and Egypt and Baobab field restart in Côte d'Ivoire.

• Portfolio diversification, operational efficiency, and cost control underpin confidence in continued growth and value creation.

• Completed divestment of Canadian assets in February 2026, marking a full exit from Canadian operations.

• Major asset developments included Baobab FPSO refurbishment and production restart, and expanded drilling in Gabon and Egypt.

Financial highlights

• Q2 2026 net income was $42.4 million, with adjusted EBITDAX of $54.8 million and net revenue of $135.2 million, up 116% from Q1 2026.

• Q2 2026 NRI sales averaged 17,812 BOEPD, WI production at 21,796 BOEPD, up 10% sequentially.

• Average realized price per BOE was $80.77, up from $57.21 in Q1 2026.

• Q2 2026 production expense per BOE was $28.06, up 8% from Q1 2026.

• Cash at June 30, 2026, was $30.4 million; net debt was $146.6 million, with $123 million available under the RBL facility.

Outlook and guidance

• Full-year 2026 NRI production and sales guidance raised by 8% and 12% respectively at the midpoint.

• Q3 2026 NRI production expected at 19,600–21,600 BOPD, with sales volumes forecasted at 17,200–18,900 NRI BOPD.

• Q3 2026 production costs expected at $25–$29 per NRI barrel.

• 2026 capital budget guidance maintained at $290–$360 million, with Q2 CapEx at $103.6 million.

• Sufficient liquidity expected through cash, operating cash flow, and RBL facility to support operations and projects.