Here are 1-3 brief analogies to describe VAALCO Energy (EGY):

• A regional ConocoPhillips, specializing in West African offshore oil.
• A boutique Chevron focused on West African offshore oil production.
• An independent oil producer, like a micro-ExxonMobil focused solely on offshore West Africa.

• Crude Oil Production: Extraction and sale of crude oil from its offshore oil fields in West Africa.
• Natural Gas Production: Extraction and sale of natural gas, often associated with crude oil production, from its operational blocks.
• Oil and Gas Exploration: Activities involved in identifying and assessing potential new crude oil and natural gas reserves.
• Oil and Gas Development: Processes for planning, constructing, and managing infrastructure to bring discovered crude oil and natural gas reserves into production.

VAALCO Energy (EGY) is an independent energy company focused on crude oil and natural gas exploration and production. As such, it sells its crude oil production to other companies, primarily international commodity traders.

According to VAALCO Energy's latest financial filings, its major customers, each representing 10% or more of its total revenues, include:

• Glencore Energy UK Ltd. (a subsidiary of Glencore plc, which trades under the symbol GLEN on the London Stock Exchange)
• Vitol SA (a privately held company)

• MPF Corporation Limited
• Vantage Drilling International (VTGDF)

Mr. Maxwell has over 25 years of experience in the oil and gas industry. He founded Eland Oil & Gas Plc. in 2009, serving as its Chief Executive Officer from September 2014 to December 2019, Chief Financial Officer from 2010 to 2014, and as a board member from 2009 to 2019. Eland Oil & Gas Plc. was acquired by Seplat Petroleum Development Company Plc. in December 2019. Prior to founding Eland, he was business development manager and commercial manager for Addax Petroleum. He also worked with ABB Oil & Gas as Vice President of Finance.

Mr. Bain joined VAALCO in June 2021 and has over 25 years of oil industry experience, including capital markets and statutory reporting, taxation, and compliance in numerous African countries. Prior to VAALCO, he served as Finance Director of Boskalis Subsea Services and was Chief Financial Officer and a board member of Eland Oil & Gas Plc from July 2017 until its acquisition by Seplat Petroleum Development Plc in December 2019. He worked closely with George Maxwell at Eland Oil & Gas.

Mr. Pruckl joined Vaalco in 2019 as Executive Vice President of International Operations, overseeing the company's activities in West Africa. He brings over 40 years of domestic and international experience in upstream and midstream operations across onshore and offshore environments, covering the full project lifecycle from seismic exploration to drilling and production.

Mr. Cozens joined Vaalco Energy in November 2021 and has over fifteen years of experience in the energy industry. Prior to Vaalco, he served as General Manager, Commercial at Eland Oil & Gas, where he oversaw the commercial, economics, and corporate finance teams, and played a key role in the company's growth until its acquisition by Seplat Petroleum Development Company in 2019.

Ms. Willis has served as VAALCO's Chief Accounting Officer and Controller since April 10, 2024. She has over 30 years of diversified accounting and finance experience in the oil and gas industry, including with international and emerging companies, as well as public accounting experience. Before joining the Company, Ms. Willis served as an independent consultant from April 2020 to October 2023, providing accounting and financial reporting assistance to various energy companies.

The key risks to VAALCO Energy's business are primarily associated with the inherent nature of crude oil and natural gas exploration and production, its concentrated geographic operations in West Africa, and the successful execution of capital-intensive projects.

1. Commodity Price Volatility: As an independent energy company, VAALCO Energy's revenues and cash flows are highly sensitive to fluctuations in global crude oil and natural gas prices. A significant, sustained drop in commodity prices could severely impact unhedged volumes and overall revenue, affecting profitability and financial stability.
2. Geopolitical and Operational Risks in West Africa: VAALCO Energy's production is predominantly tied to its assets in African countries, including Gabon, Egypt, Equatorial Guinea, and Côte d'Ivoire. This geographic concentration exposes the company to significant geopolitical risks, such as political instability, regulatory changes, and potential shifts in government policies towards foreign companies exploiting resources. Operational challenges are also present, as demonstrated by mixed drilling results where exploration wells encountered water-bearing sands, leading to the abandonment of certain sections.
3. Project Execution and Capital Expenditure Risk: The company's growth strategy and future production hinge on the successful execution of large-scale, capital-intensive projects, such as drilling campaigns and infrastructure rebuilds (e.g., the Baobab FPSO refurbishment in Côte d'Ivoire). There is a risk of project delays, cost overruns, or technical challenges, which could impact projected revenues and margins. Increased cost estimates for projects, and the need for significant capital expenditure, pose a financial risk and can affect profitability sustainability.

VAALCO Energy (EGY) anticipates several key drivers for future revenue growth over the next 2-3 years, primarily centered around increasing production volumes through drilling, strategic acquisitions, and the development of new and existing fields across its West African and Egyptian operations.

Here are the expected drivers of future revenue growth:

1. Increased Production from Ongoing Drilling Campaigns in Gabon and Egypt: VAALCO Energy is actively engaged in drilling programs across its key operational areas. In Gabon, a five-well drilling campaign commenced in December 2025, with development wells, such as Etame 15H-ST, successfully brought online in January 2026, contributing to increased production. Similarly, in Egypt, a drilling campaign initiated in December 2024 and concluded in Q4 2025, including successful development wells and an exploration well that opened a new development area. These sustained drilling efforts are expected to continue yielding production uplifts in both regions through 2026 and 2027.
2. Enhanced Production and Development from the Côte d'Ivoire Assets: The acquisition of Svenska Petroleum Exploration AB in April 2024 significantly diversified VAALCO's portfolio by adding interests in Côte d'Ivoire, including the producing Baobab field and the substantial Kossipo discovery on Block CI-40. The company quickly realized a 1.8x payback on its initial investment in Côte d'Ivoire by year-end 2024. VAALCO has secured operatorship of the Kossipo field and plans to complete a field development plan in the second half of 2026. A drilling program on the Baobab field is also anticipated to commence as soon as the Floating, Storage, and Offloading (FPSO) vessel returns to station in Q2 2026.
3. Restart of Production at the Baobab Field in Côte d'Ivoire: A significant driver for 2026 revenue is the successful restart of production from the Baobab field. Production from Côte d'Ivoire was temporarily offline in Q1 2025 due to an FPSO project. The FPSO is projected to be back in the field, with production restored by the second half of 2026, potentially as early as the end of May. This resumption of production is a critical factor for the company's performance in the coming year.
4. Future Development of Discoveries in Equatorial Guinea: VAALCO Energy holds interests in an undeveloped block offshore Equatorial Guinea, which includes the Venus and Europa discoveries on Block P. The company has completed a FEED (Front-End Engineering Design) study, confirming the technical viability of its development plan for these discoveries. A final investment decision and potential drilling are anticipated post-2026, with target identification for a drill program around 2027, indicating future growth potential beyond the immediate 2-3 year horizon but laying the groundwork for it.

Share Repurchases

• VAALCO Energy announced a share buyback program of up to $30 million in November 2022, which was completed in Q1 2024.
• The company has returned over $115 million to shareholders through dividends and share buybacks since Q4 2021.

Share Issuance

• In October 2022, approximately 49.3 million VAALCO shares were issued to TransGlobe shareholders as part of a stock-for-stock business combination.

Outbound Investments

• In July 2022, VAALCO Energy entered into an agreement to acquire TransGlobe Energy Corporation in a stock-for-stock transaction valued at approximately $307 million, which closed in October 2022.
• VAALCO diversified its portfolio by acquiring a 27.4% non-operated working interest in Block CI-40 offshore Côte d'Ivoire in 2024, followed by a 70% working interest and operatorship in the CI-705 block offshore Côte d'Ivoire in 2025.
• In February 2026, VAALCO agreed to divest all its producing properties in Canada for approximately $25.5 million.

Capital Expenditures

• Full-year 2025 capital expenditures were $236 million, with 59% allocated to Côte d'Ivoire, 26% to Gabon, and 12% to Egypt.
• For 2026, VAALCO has set a capital budget ranging from $290 million to $360 million, primarily focused on Gabon (35-40%) and Côte d'Ivoire (55-60%), for drilling campaigns and FPSO hookup.
• The company invested over $100 million in developmental capital expenditures, including initiating a 5-well drilling campaign in Gabon in December 2025 and preparing for a Phase 5 drilling campaign in Côte d'Ivoire in 2026.