VAALCO Energy, Inc. (NYSE:EGY) Q2 2024 Earnings Conference Call August 8, 2024 11:00 AM ET

Company Participants

Al Petrie - Investor Relations
George Maxwell - CEO
Ronald Bain - CFO

Conference Call Participants

Stephane Foucaud - Auctus Advisors
Christopher Wheaton - Stifel
Jeff Robertson - Water Tower Research
Charlie Sharp – Canaccord
Bill Dezellem - Tieton Capital

Al Petrie

Thank you operator. Welcome to VAALCO Energy's Second Quarter 2024 Conference Call. After I cover the forward-looking statements, George Maxwell, our CEO, review key highlights of the second quarter. Ron Ban, our CFO, will then provide a more in-depth financial review. George will then return for some closing comments before we take your questions.

During our question-and-answer session, we ask you to limit your questions to one and a follow-up. You can always reenter the queue with additional questions. I'd like to point out that we posted a supplemental investor deck on our website that has additional financial analysis, comparisons and guidance that should be helpful.

With that, let me proceed with our forward-looking statement comments. During the course of this conference call, the Company will be making forward-looking statements. Investors are cautioned that forward-looking statements are not guarantees of future performance, and those actual results or developments may differ materially from those projected in the forward-looking statements. VAALCO disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Accordingly, you should not place undue reliance on forward-looking statements. These and other risks are described in our earnings release, the presentation posted on our website and in the reports we filed with the SEC, including our Form 10-K.

Please note that this conference call is being recorded. With that, let me turn the call over to George.

George Maxwell

Thank you, Al. Good morning, everyone, and welcome to our Second Quarter 2024 Earnings Conference Call. We began 2024 with positive operational and financial results, including strong earnings and adjusted EBITDAX generation.

Operational excellence and delivering consistent production is key to allowing us to grow adjusted EBITDAX. For the past two years, we have met or exceeded our quarterly production guidance. We are executing at a high level and continue to deliver results in line or above our guidance. This is due to strong drilling and workover results in Canada and Egypt, coupled with strong uptime in Gabon.

Also, in the second quarter, we closed the Svenska acquisition at the end of April, which helped us to increase our earnings to over $28 million or $0.27 per share and grow adjusted EBITDAX to $72.5 million. We continued to return cash to our shareholders in Q2 2024 through our quarterly dividend, and we announced a third quarter dividend as well.