Key Statistics
- VAALCO is an Africa-focused exploration and production company whose primary focus has been on producing assets offshore Gabon and exploration opportunities offshore Gabon and Equatorial Guinea. On October 14, 2022, VAALCO closed the stock-for-stock acquisition of TransGlobe Energy Corporation. The combined entity owns a diversified portfolio of producing assets and prospects in Gabon, Egypt, Canada, and Equatorial Guinea.
- The acquisition increased VAALCO’s pro forma proved reserves (1P) to 32 MMBOE from 11 MMBOE and proved plus probable (2P) reserves to 51 MMBOE from 17 MMBOE. Management forecasts a year-end 2022 production exit rate of 19.5-20.0 MBOE/d, the midpoint of which more than doubles VAALCO’s 3Q22 output.
- The diversified asset portfolio exposes VAALCO to stable producing assets in Gabon, Egypt, and Canada, and future exploratory growth opportunities, and provides expanded capital allocation options.
- The acquisition should drive significant production, EBITDA, and free cash flow growth in 2023. Management has not provided a 2023 operating outlook yet. Our estimates incorporate average sales volumes of ~18.5 BOE/d and an average Brent oil price of $90/bbl to generate $351 million of EBITDA and $127 million of free cash flow.
- Management is committed to enhancing cash returns to shareholders. It has indicated that the annualized dividend will be increased to $0.25/share beginning in 1Q23 from $0.13/share currently. The board has also authorized a $30-million share repurchase plan.
- VAALCO is an Africa-focused exploration and production company whose primary focus has been on producing assets offshore Gabon and exploration opportunities offshore Gabon and Equatorial Guinea. On October 14, 2022, VAALCO closed the stock-for-stock acquisition of TransGlobe Energy Corporation. The combined entity owns a diversified portfolio of producing assets and prospects in Gabon, Egypt, Canada, and Equatorial Guinea.
- The acquisition increased VAALCO’s pro forma proved reserves (1P) to 32 MMBOE from 11 MMBOE and proved plus probable (2P) reserves to 51 MMBOE from 17 MMBOE. Management forecasts a year-end 2022 production exit rate of 19.5-20.0 MBOE/d, the midpoint of which more than doubles VAALCO’s 3Q22 output.
- The diversified asset portfolio exposes VAALCO to stable producing assets in Gabon, Egypt, and Canada, and future exploratory growth opportunities, and provides expanded capital allocation options.
- The acquisition should drive significant production, EBITDA, and free cash flow growth in 2023. Management has not provided a 2023 operating outlook yet. Our estimates incorporate average sales volumes of ~18.5 BOE/d and an average Brent oil price of $90/bbl to generate $351 million of EBITDA and $127 million of free cash flow.
- Management is committed to enhancing cash returns to shareholders. It has indicated that the annualized dividend will be increased to $0.25/share beginning in 1Q23 from $0.13/share currently. The board has also authorized a $30-million share repurchase plan.
• VAALCO is an Africa-focused exploration and production company whose primary focus has been on its producing asset offshore Gabon and exploration opportunities offshore Gabon and Equatorial Guinea. On October 14, 2022, VAALCO closed the stock-for-stock acquisition of TransGlobe Energy Corporation. The combined entity owns a diversified portfolio of producing assets and prospects in Gabon, Egypt, Canada, and Equatorial Guinea.
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