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    Christopher Wheaton • Stifel

    Christopher Wheaton's questions to VAALCO Energy Inc (EGY) leadership

    Christopher Wheaton's questions to VAALCO Energy Inc (EGY) leadership • Q1 2025

    Question

    Christopher Wheaton questioned the scale of the working capital swing expected later in the year after the government lifting in Gabon and asked if the cumulative outflow over the last two years could be structural. He also followed up on the collection of Egyptian receivables and whether it implies a quid pro quo for increased CapEx in Egypt.

    Answer

    Executive Ronald Bain clarified the Q1 working capital outflow was driven by a ~$31 million state oil lifting for taxes, which is not expected to repeat in 2025, suggesting a future working capital improvement. Executive George Maxwell added that the net reduction in Egyptian receivables was closer to $10 million, not $32 million. He also confirmed that VAALCO has fulfilled its near-term drilling commitments to EGPC, implying no immediate obligation for further CapEx in exchange for the collections.

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    Christopher Wheaton's questions to VAALCO Energy Inc (EGY) leadership • Q4 2024

    Question

    Christopher Wheaton from Stifel asked about the potential production uplift from the upcoming Gabon drilling campaign, the allocation of Cote d'Ivoire CapEx between the FPSO and drilling, and the potential for a working capital reversal in 2025.

    Answer

    CEO George Maxwell and executive Thor Pruckl explained that the Gabon drilling program was expanded from four to five wells with five options due to enhanced field performance, which should significantly impact future volumes. Maxwell noted that most of the Cote d'Ivoire CapEx is for the FPSO refurbishment, with long-lead drilling items already purchased. CFO Ronald Bain addressed working capital, stating he expects a reversal as Cote d'Ivoire receivables are collected and collections in Egypt are now outpacing revenues due to improved processes.

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    Christopher Wheaton's questions to VAALCO Energy Inc (EGY) leadership • Q3 2024

    Question

    Christopher Wheaton of Stifel asked for more clarity on the timing and spending for the Cote d'Ivoire FPSO restart and drilling campaign. He also questioned the recurring working capital outflow and the reason for the sequential increase in DD&A per unit.

    Answer

    George Maxwell (executive) confirmed the Cote d'Ivoire Q1 2025 FPSO disconnection is on schedule, with detailed project costs expected by early Q1 2025. Ronald Bain (executive) explained the working capital outflow was due to reduced CapEx accruals and higher receivables. He clarified that the higher DD&A was due to the accelerated depletion of the Svenska acquisition's PDP reserves, which are being amortized over a short period until the FPSO disconnects.

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