EGY - Earnings call 3 2023 | VAALCO Energy, Inc.

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good day, and welcome to the VAALCO Energy Third Quarter 2023 Earnings Conference Call. [Operator Instructions] Please note, this event is being recorded.I would now like to turn the conference over to Al Petrie, Investor Relations Coordinator. Please go ahead.

Al Petrie

Thank you, operator. Good morning, everyone, and welcome to VAALCO Energy's Third Quarter 2023 Conference Call. forward-looking along Maxwell, with the review CEO, cover highlights key operational I statements, our George will After results. Ron provide Bain, a then summary financial our review. CFO, will comments questions. George we some return will closing then take your for before today Thor Pruckl, Officer, to session, be Operating follow-up. our limit question-and-answer your for our ask one and and with Q&A.During a is available we will also Chief us you questions to

release, turn me we that press this let call over and forward-looking reliance and filed presentation the described quarter otherwise.Accordingly, with conference or we analysis, our And XXXX website has the questions. intention You as investor or XX-K. whether of call statements, developments reports I'd may call, with that new disclaims like statements. those statements. are forward-looking yesterday's place posted proceed of cautioned reenter result now note or Please a be out forward-looking will posted any are update future course being actual point statements results of additional guidance to always our statements. forward-looking any not the with third can this the undue on should let should additional that the not future a are projected supplemental performance Investors me events revise you forward-looking including information, conference in other those that deck With and website our comparisons obligation on Form guarantees the or SEC, statement the risks the is be our differ to comments.During morning that, on These helpful. that company queue to making George. from VAALCO recorded. in in this and financial materially forward-looking

George Maxwell

and guidance expectations in with and TransGlobe everyone, exceeding following our deliver combination our that conference I'm earnings call. ability year Good quarter to and ago. our XXXX, operational financial very Thank you, results pleased occurred third a XXXX morning, to welcome Al. exceptional the

a helped and Egypt a through per this since level key have we in and since high to share production I XX,XXX from was program equivalent interest capturing oil NRI Our not wells high fully maintain we the growth commitment double us focus and is capital production driven to exciting excellence dividend campaigns future the cost has shareholder the announced while remaining ongoing. been of levels that quarter drilled in uptime Gabon.As bank new our record decline new high in drilling to our operational the a but FSO uptime portfolio all the synergies on allow grown $XX to with costs, across program by debt the accomplishments even executing on our have at nearly third minimize high-returning and execution well commitment would levels we fourth program dividend dividends and and drilling projects basis. and and that Gabon of we optimizing XXXX. while our in managing position November now reminder, out as cash our or barrels returned operational profitability EBITDAX funding our growth.Through working like to to third some our enhance in adjusted program, we buybacks, all to-date, highlights XXXX operational and are dividend We million in our buyback the assets. We're a will made cash day strategy, guidance at XX,XXX quarter.We significantly of paid any paid over diverse production, quarter the fulfilling fund have production of as successful XXXX, for free. capital generating point while have XXXX.Additionally, This

can we benefited this gross since had to and year, as week Sales production the have production occurred barrels up in of in production, year allowed You base and we October quarter. large a Egypt EBITDAX. export first that third oil were last lifting XXX%. with see from benefit when flow that of how quarter.We of the a our our in asset quarter fourth cash growth quarter guidance end grown significant are generate we of third during cargo have compare of at has third you in clearly the grow adjusted XXX,XXX Gabon XXXX diversity will us The high

free to funding still XX. XXXX, grown X of unrestricted months have flow adjusted QX compared million up that capital June XXXX free of through we back after dividends cash since $XX distributed XX% cash of the of million dividends $XX.X up QX over and XX% buybacks. third XXXX.In X% to almost QX up and XXX% million to flow have XXXX, Our $XXX and EBITDAX end compared was our and Even quarter first of shareholders the at paying and programs buybacks, we fully to cash generated

enter and grow momentum VAALCO.I now like would XXXX, and to and we to discuss scale portfolio of assets. a financially across both are key diverse substantially as we operationally have our some We positive updates building size

of have XXXX. Egypt, amount where with the Let's we capital invested in begin largest

Egypt results. in campaign some has positive drilling very seen Our

expense cost million wells the than completed finalized at XX verticals, We Arta lower drilled faster XX well. with in originally well we we in and have well.In the associated injector last planned. including well had a as X well our in vertical We And October. and East exploration we X as a QX, XXXX, the XXXX horizontal campaign exploration $X.X program had

XXXX.On seeing months this cutting in to wells performance we our additional we X wells performance every the that we X strong wells will drilling economic had showed drilling with a believe and the well improving our exploration faster, XX% very meaningfully well that month, a about not formations wells drill the of in drilling is future. and cycle time. pleased costs very in logs which are the By we now cores and viable, wells, oil-bearing in we vertical we commercially from program drilling with Overall, a us the production wells took are allow X to While was are on economic significantly average per moving economics drilled performance Egypt. reduction of faster the XXXX drilling

in efficiencies, before, addition time detailed the performance have and and In also efforts facilities in lower increased safety the in to reviewing I have environmental spent production, drilling operations.As we and Egypt. costs production Egypt and have overall better these resulted effort

improve Canada.Turning performance.We that so program. lateral with and Both April drilled refining are the and we both rates in as Both tied of in with X-mile well cycle development driving compete wells. our flowing XXXX, We pad we better total began XXXX exceeding Canada exceed we and drilling installed X.X-mile believe optimization, economics to of and one are and early and exceeded set value facility prospects performing Egypt believe capital were which overall ability production the a has with company our pumps are believe is continue and and will X-mile our to and set the historical we a further a our wells XXXX we working significantly campaigns good completion Canadian wells and lateral. optimize organic programs the cost-effectively XXXX long-term almost in monitoring XXXX, to than a July, were we which Canada, wells in quarter times record first laterals in were will of wells future and expectations are drilling The production which equipped now our guidance completed that wells our properties, since also and our production. it acquired completed The company development We cycle currently also on.In drilled reason for times. production safely and wells in and future going to budget, early Gabon. potential May key May we move records production anticipation in rods techniques opportunities we in areas on forward, will and the to of Canada, lot targets.With in evaluating rates X drilling less our exclusively, further our completion without incident. that were production X.X another of in

the helping Gabon in in XXXX we Despite As no we CapEx drilling of on to our pressures. know, the to from completed dollars from year's minimizing overall projects XXXX focusing decline some by minimal reconfiguration uptime maintenance results drilling inflationary higher FSO and campaign.The the other equipment. strong seen have in of operate enhancing industry primarily until to XXXX/XXXX in impact quarter XXXX fourth related next the and operational campaign you XXXX, supply more CapEx and and Last savings production allowed are and production and invested in XXXX program, new FSO field new have cost drilling excellence. economically long-lead while us costs drilling offset only efficiently

are our [ projecting to We the campaign cost with than lower as QX at in approximately of the currently are $X well minor next help are at program locations additional currently diesel line pipeline ] lower work have which the and to million, a Sent on a CapEx completed pleased last month gas beyond result will million to more for per be options. X- by which costs drilling evaluating month.We Etame, $X.X we X-well a of

remains and our thank our shareholders. we results XXXX continue very The as team delivered we market plans. and drilling XXXX review we will and and provide into as that and review further have who excited plan progresses.We I'm grow to like for reserves XXXX drilling to for We our a tight I value execute the in our believe continue to update for units rig to our continue hardworking program. planned would campaign on options production, operate outstanding move to

firmly I operating return the towards accretive regard debt shareholder We to turn our maximizing like our to the focused share opportunities to over highest strategic are remain and would financial growth ESG.With that, vision free bank call Ron results. and while on of with

Ronald Bain

good George, morning, you, and Thank everyone.

from growing operating strong points.Let's we can through guidance. from sales end third echoing sales realizations of sulfur gas our pricing for fourth over in second we and with only and In This the content in before the the a for and our over insight at producing with and the high from quarter, revenues better occur pricing assets, With financial of $XXX realized a the I performance quarter, balance will in history. quarter-to-quarter up by of me oil.As the realized And primarily The but this Brent today pricing end we wells change begin we second pricing focus with release, performance declining was and week positioned quarter-over-quarter our quarter the Let in our each will were drivers our sales, than and both price million the you solid, will revenue XX-Q, had XX% total in about impacts of the our third sales weighting portfolio efficiencies.With guidance remain identical Egypt. pricing position nearly will revenue with noted, drilled second some October we along into with operational sheet, ultimately, the for what into earnings.We improving of repeating are George's which Canada the of comments but and asset of $X execute diversified because mix XX% quarter, the and our ever had Egypt, earnings. our Production we quarter begin diversified and the benefit production in earnings million overall clean sales in greater a plan. mix strong growing strategic first and additional the and much lifting lower of key did with production our X%. natural as also sales assets in increased realized by because volumes continued drives the but base provide in had indeed our I up than our the rather read cash where revenue. quarter results. third are a our with increased to have a on occurred the changes our higher the not quarter and Gabon of arresting our at Gabon quarter Gabon, more Egypt quarter-over-quarter, new areas. XXXX sales our of NGL fall in VAALCO's the

provided we commodity of yesterday, release earnings our pricing with in note will country.Regarding breakout You sales along detailed by hedging. a volumes

shareholder As returns. protect to our shown release, in to program earnings mitigate hedging implement continue that we a commitment risk our helps and

we we with and a of our our and to for entered whilst for We $XX in costless commodity costless QX and into XX% QX in high period have costs. commitment in have upside XXXX. oil of the for our to around It's to of our collars forward pricing, $XX price place index between XX% noting Brent production All $XXX. collars Dated of XXXX collars unhedged have worth of our to collars a production dividend.Turning protecting QX

costs were barrel an bottom absolute at increase our of guidance on the to and basis. a our end guidance costs production the to of per maximize We focused flow. low Our end and remain on synergies capturing and keeping cash margins below low enable us on basis

out the TransGlobe, synergies. behind X% seen the cost project lower project the we've The initiatives line is seen volumes, well in This cost XXXX. meaningful year-over-year, in to whole demonstrates higher absolute final XX% year-on-year. costs on barrel reductions guidance synergies savings to we our will we've business our a the point delivering and in feed to the due ahead pipeline combined improvement FSO when of across implementation us diesel While $XX.X costs ERP lower our the from benefit in with reorganization to sales restored G&A costs grew adjusted were VAALCO back-office the integration gas of single QX XXXX we're primarily like costs QX. like are a both were up we by that and that of also FSO production EBITDAX company.Sequentially, the would XX% cloud-based and G&A successfully per week capturing year.I consumption process from and October, also first commenced to targeted million by with of and in compared last

to event, are aligns Gabon. and for wells for will likely year as our held barrels oil will was our year. lead with slightly tax with rate adjusted price ongoing the and to Outside the coupled SEC additions controlling well reserve for decreased our about growth. good due to the In as XXXX, the sales, quarter-over-quarter, Compared and DD&A the our year levels.Targeted of tax valuation of the the through as costs of SEC report Noncash government brought new the a year-end Gabon, together EBITDAX with competent evaluation primarily the per of new efficiencies barrel change our step-up resulted commodity sales. on the additional mix high rate any the wells cover costs to the this of CPR most of results. XX% than our will of completed locations Canada.We all because reserves and prior Canadian in tax DD&A quarter, settled online solid the and our higher income our foreign our of TransGlobe over reflected in decline the be unusually drilled in XXXX $XX.X by operating We're XXXX by reserve encouraged wells XXXX effective oil. driven persons payments.At being will is our environment seen in Our rate in and commitment tax the end end due an Egyptian have the million in align in quarter with pricing and to XXXX revaluation started for to at we time.Tax in increase of expectation Egypt quarter in-kind the of our high DD&A XX% each that rate and both about effective pricing in an be taxes in in-kind more sufficient in mark-to-market and by to costs we've our effective our in process the This asset the this was quarter. discrete oil led year-end

QX, the mark from of impact commodity oil impacts per kind, we the when earnings as $X.X a they is is fall This and we underlying oil The things see continue quarter, prices So earnings this million thus to. equal, benefit, negative prices our in was on accrued of cannot third impact to marked increasing when they rise did tax the earnings end QX all liability our control reducing earnings to in-kind our since there which movement share. a the market as If share.We per will price and taxes. QX. to have and to the in

correct rate $X.X they diluted share. XX% guide million to rate. continue tax that decreases will adjusted income term, But see fall, net as the rate long or of as XX% increases that rate.We $X.XX we see We to effective reported effective per in is may commodity rise, tax over in tax prices the tax that discrete items. excluding we And

appraisal $X.X to you and as more seen mark-to-market QX. our earnings September If in now estimates.Turning $XXX.X consensus out statement doubled the than flow sheet you tax cash million balance have and for Unrestricted line XX. expense, the would with million back to impact exploration cash to of

We Egyptian are million million. $XX.X to by our seen just have collecting our receivables decrease accounts $XX.X and receivable

continue and a relationship drilling and to outstanding with see We payable saw to EGPC.With the we Egypt decrease work about We in strong also QX. in $X QX closely from Canada completed, million of accruals. reduction completion a and to have expect accounts of a

VAALCO debt since As continue has case third about to facilities of accretive per for paid to share common no value.In $X additional XXXX, our share credit or of build million and been recurring available acquisition the and cash opportunities dividend million. bank was utilize to have quarter a $X.XXXX QX $X.X the buyback quarterly XXXX,

cash directly free share and to base of ability million share acquisition.We And flow direct XX% result dividend have buybacks. TransGlobe growing are and XXXX. buybacks a $XX year-to-date generated asset our in and As of expanded we've cash flow almost that through generation shareholders in stated returned the a our the dividends as previously, our result of

also royalties in program day. returns, maintenance our coupled net on with a capital areas, and we've third for decline discussed, production long production focus in million increases funding mitigate were operational some our funded we Canada, range guidance are quarter, to our and paid revenue the me uptime basis. the guidance, to in Egypt our fully our and the related is key turn cash capital programs Gabon.Let year CapEx report solid I now you working Egypt barrels.As company $XX.X to representing expenditures in breakout earnings Gabon difference give of XXXX total to net taken both XX,XXX our interest quarter, of we our a This fully midpoint. between expenditures on from drilling all operational is now QX to and all that X%. want year full production primarily I'll supplemental our guidance further production.Last Also leading website. with our our of an Aside of equivalent full where in barrels in we shareholder our about and in per the items increase lead in deck updates. and successful meaningful or some with and and at X.X% to increase full production remind you slide for our interest highlights leading XX,XXX production is the oil raising our additional release be to With we raised These

an At are of as capital the quarter XXXX, solid to in this per sales our quarter a day. a areas of guidance XX,XXX the for is we've equivalent with volumes, the to NRI in to of year.Looking the For our X% drilling XX,XXX increase oil to sales increase expecting range compared at third third compared decline quarter of expecting our midpoint, all of fourth the quarter. to slightly barrels we're fourth see completed we production all our

our to seen are in in costs first projecting Our oil the per was a to sales, decline but spend operating are our line XXXX. we additional every the half-weighted with expected line capital CapEx, quarter third barrel with in at and equivalent quarter.Finally, we've costs of absolute increase remain looking XXXX

$X For the and million of between CapEx. expecting a $XX for our fourth quarter, range we're million

VAALCO in XXXX.In now of closing, a we their decided shares increase. we accelerate We're very and the very intrinsic multiple at strong the to are share value, that, back dividend generating result lower George. our an well a fourth call positioned and trade execute We building believe fund grow of buyback poised the are campaign.With is despite As spend, EBITDAX to to expanded sales our excellent continue common I'll low that a bank opportunity trading which cash at over an quarter we having believe CapEx a significant flow and we higher that a to amount now past of debt-free. over sales and reason to also of a and few turn yield to is right being why buy is discount drilling XXXX to program months.Our to cash, continue

George Maxwell

Thanks, Ron.

very this As We we to we continue to production you XXXX, success that have head have driven positioned by in believe heard strong performance. well XXXX. morning, as are continue into we cash building

of third in projected in quarter our generated costs fourth cash up in the while our $XXX share cash to on on and fourth continue with position dividends we in cash the cash quarter. CapEx flow hand.We minimal all over and buybacks adjusted $XXX EBITDAX of million the quarter, quarterly with have expect year-to-date, with and to months ended hand X million grow XX% CapEx, the We funding over XXXX first

lower our XXXX, have has realized seen pricing in we than been year. half the this commodity XXXX of pricing second in While strengthening in

and growing positively we impacted our on a the our XXXX VAALCO and to well results In shareholders production commitment balance. addition, enhance to and for cash position market date future.We increase with and delivered our ability are an and our have margins to enviable capture no bank the in position financial to synergies, debt very have

unchanged remains and asset to accretive operate base opportunities. invest maximize for look prudently, efficiently, strategy our Our

dividends at increased have growing we value an rate. position, paid capital and In focused all our cash on X or for we program announced remained returning shareholders.In XXXX, our have addition to XXXX our dividend doubled quarterly and quarterly to nearly funding our

share promised is XXXX year, last dividend price delivering current we share for nearly X%. per annual are our which $X.XX a of at that We the yield the

year continued focused through shares capital completed, of and we approved program the highly through in We the shareholders program have repurchase XXXX.Since shares With common a our repurchased X.X buyback. ago, over returned to the buyback $XX million common to XXXX million have successful the inception and capital our planning and campaign.We those our our in Canada program XXXX programs in Etame, are March. detail are in we XXXX campaign and now during in Canada next discuss in our on drilling drilling at call Egypt Egypt we'll XXXX

We in are drilling a Egypt XXXX applying Canada in budget and and rates of optimization opportunities. into taking next and successes facility it assets and generate efficiency the diverse our high-performing we're gains return, campaign.With evaluating and both our high-grading drilling that planned robust portfolio

have value multiple fund XXXX future well will as to allow building future growth are reserves for approach and flow.The us in to our we're our that returns producing developments cash as delivering should maximize and in campaigns remain drilling capital, our substantial for shareholders. cash disciplined We fund prospects shareholders in we areas to competing and production, in and cash

confident are operator, to excited take the are VAALCO of you. that we And to we long-term deliver value remain continue future our very with that, questions. We will and for ready to shareholders.Thank superior

Operator

Foucaud first today Instructions] The Auctus Stephane from with [Operator question comes Advisors.

Stephane Guy Foucaud

give about any whether to regard so update is wondering Guinea -- there worthwhile where you with you forth? was I are to Equatorial Venus and provide could and

George Maxwell

the number minister with has the on both In partners. our a during progress the Yes, last Block with and on meetings, of P. MMH had of company continuing the discussions and the we've -- the been QX, course,

the X plan previously, position, we have desires the forward, still development.We're that we're in their feed mentioned I a for I as signature of trying in we've in confirm to at towards GOE So this we us quarters, early weeks and move as [ funds have for But least I review money be been ]. it's will to as and not particularly just prudent have partners our forward think to move partners the align capital the and to outstanding with into the X when Block ago we're lead discussions XXXX P. the the and a potentially spend closely the just a on our in got discussions project of we commit to next from we this those at outcome alignment. with and to that trajectory look forward as future.I And stated successful do dispute working with what able previous to profile us project both forward fruitful will call. our spend execution say That move don't had on

Stephane Guy Foucaud

And the CapEx a With that follow-on. question, it's it's runs exactly quite I cash second follow-up for a my QX, Great. not year to cash CapEx full regards ahead. for noticed the bit

the in Or a cash mismatch? well expect we is be CapEx I'm is mismatch. accounting QX? for million cash would not of to the Sorry, as $X.X guidance to there sure a CapEx, CapEx above equal bit the CapEx the Can expect the you million $XX to

Ronald Bain

good expect of we that. million With what from and year. CapEx invoices the is accrued will it's than the would through is about on in cash the million for an guidance point accrued will view, that I which obviously, cash level.I higher then put number that's for Stephane. know cash, think at can a account and basically believe CapEx effectively out. regards about be I of $X.X that around slightly the The -- $XX out to guidance million be somewhere the come the to the going It's is committed know a to those paid timing to we we The $XX to question, what we right? CapEx, Yes. So we and guidance that CapEx, -- coming we've it cash midpoint $XX million.

Operator

Charlie from comes question Sharp next with The Canaccord.

Charlie Sharp

the and the year of see that talked you yet Yes. do done of And out if all identifying need about and wondered -- could in approximately how program that And to and And ensure hasn't the in Gabon, year.I drilling without after possible all that as anticipate? results you a have operational the flesh you best you'll and allocation very as of you about sycophantic, next of congratulations this think a you talked settled capital geography? financial Gabon particular, you I exactly that sounding sort work allocation risk bit results in good that know the particular, potential delivers at in quarter. on you been terms just good little to of in I Egypt

George Maxwell

for or us expected A this guess year. for for opportunities, in I'm subsurface Canada in thanks more have at look good both time the and to less Gabon the I work subsurface question. and work, everyone Egypt when in next Charlie, at Again, have the we sure fully the question. would targeted completed

that is correct. So

We have and in moment is the opportunity require that's service that.As activities to providers subsurface at the in Gabon Egypt Canada. of opportunities looking everyone available the with key is is, the have the done we where match is for valuation tight and that also and in market aware the at exceedingly we

going drilling on of is at XXXX. the running of because the on a have think firmer have the -- a which numbers, program without into bit a Egyptian landed So rig work-over we firmer we're June schedule back haven't coming will a quite we yet, half I that contracted.We at half And to to us first the concurrently program the the through QX, of commence second we XXXX. rig end right through know bit

the contingent of sequencing it's have give to of sequencing moment, have a the late also we ongoing on year, program, we and with program timing less can't half have second of will drill. more execute next topside required have expect me to that remains remain to yet a we the Egypt that we targets we that targets you volumes, in or and more program. details of have and and before by in study negotiations. going early we the assets firm can technical with give information work to some you on we number know uncertain targets at which drill.We we We a whilst we timing drilling And of wells. in number year the can rearrange So know Gabonese complete Gabon But to probably confirm XXXX.With QX exact a this be specific be

Charlie Sharp

And Gabon of first be follow-up, half sort very program, the That's to will and then just is Egypt. perhaps [indiscernible] a half I as then you Canada-weighted right? be in Is looks great. if like light second and mini it guess going a that like.

George Maxwell

right. more less or That's

weighted and securing Canada up at half subject X are The drilled the with moment. second to will drilling to in first first the half Egypt be towards rigs, the more half, wells potentially looking and again, Gabon

Operator

The Robertson from Research. next Tower Water question with comes Jeff

Jeffrey Robertson

million authorization. repurchase you how got, $X can your factors capital original left thought think outlays? how talk into that think, XXXX roughly authorization on about just the process around since you And George, $XX I share about you've million the

George Maxwell

tight side that's obviously, as commodity I I Yes. mean, prices we've with executing last got a programs market very the a looking significant drilling and the seeing as in wells. the to a up catches the for service response the on higher mentioned increase we're cost -- each question, the the business at of of in

the at authorized -- we that authorized We Board to the are the last end year. of committed program

looks producing increase in that And as therefore, what then is. potential will program that but back mentioned and able that dividend stock we at Ron are back excess we've will we that in Board second -- a We will of its where remains you say, commented program demonstrated discuss the is buyback I do as stock the allocate determination for will on end of order the program.All into competitive Once us landed his year. have will commitment cash the -- early to again we multiple program through excess to that with repurchase as very the and to an balances quite allow towards that to our now moment, on building very half form arrest that be dependent cash cost we've low we're the and decline be over -- already, at some and get will extensive narrative, the we'll to of us again, 'XX, But prices that next up QX. available there. completion.We what us to what production the the to program for like and be follow above in to up

Jeffrey Robertson

the weigh potentially repurchase increasing between dividend? the the merits and share you do How

George Maxwell

there any don't plans I to will dividend. moment, be increase the the At think

stock provides levels income I reasonable moment. the the to at from position a stock, for dividend prefer an at the think the -- our return depressed particularly

the would would that excess stock I So with think, on cash fully focus, available. repurchase be the be

Operator

Bill Tieton question The with comes next Instructions] Dezellem from [Operator Capital.

William Dezellem

acquisition I'd wells actually like horizontal drilled? of that you gate, or did do and drilling And and between please? drilling to or ratio the in out vertical the Number ask X learnings what wells? campaign you next with from split update, second the of the campaign in the what will is questions right terms question if field I Egypt your pipeline one, then And horizontal learn those may.

George Maxwell

mean, the conversation, really but when Arta finish it completed significant to it start I'll I XX. one for this Egypt, in we've which Okay. wells. well was horizontal me the only comes

we was numbers calls, on we barrels results As I'm I anticipated. at now, started it XX wells jump produce. we're a think well produce. let to right the we day, in about do more continues is I'll XXX our it but you're didn't well a the get around so aware barrels previous now, to think. Thor that one the continues mean remembering it's candidates, work-over day to think last The down horizontal that if in XXX.And trying I there call, to around I I It of

Thor Pruckl

Yes.

We the seems the the production, well. out the in of the pump issues well as well with completion it have tangent curve. still some the section of be a the on So flattening George placement as as -- well mentioned, well to in well is the drilling with and did

X XXXX additional, that had potentially second drilling delayed in with well, of looking or well. a more wells late originally and well some technical at I the got We well guess, learnings planned. now potentially horizontal we doing we've work on So another that we're the out

George Maxwell

in VAALCO's does the I look we've Sorry, we've like?In future what second size year your shareholder the obviously, question, said know of we've years, Well, on M&A mainly of months difficulty.So with the opportunities acquisition doubled a company, doubled years of was company. the through of It's field the that And opportunities demonstrated to IOCs part compete. when the strategy and single in at got prices we to of and was the is relation updates. and areas longer see each that Africa when production divested these. a question jurisdiction. having production in think, not opportunities, wide are Bill, where we X of price primary would clearly XX -- fields still of I derisking the opportunities at continually areas that, that And deciding curve, with at the to divesting. always we reap ago not no QX, starting are or of benefit they multiple going look certain are the having to There field our It benefits the we're and review extremely accretive available top are in want very do narrow. our asset some that where we the last

are different tight.We companies the are So other all from is peer than the exceedingly well under opportunities market deviate and value the commodity same all and look performing opportunities. some higher they're are actually our than peers that we of no seeking prices rather and But we are debt-free our for at of having geography. just to

there. tend to can and become But tend towards try quickly. drive positions uncompetitive because the market process positions So very to we possible where bilateral is still

us. It's completely dead We not opportunities. are to still reviewing

Operator

with Wilen Management. question next Jamie The Wilen comes from

James Wilen

you and the capital quarter to on million field? up sheet next expenditures, were between the with look limited looking third similarly to by Given sheet balance forward are as each the balance large the second you amount able quarters, put of $XX you the over cash bulk

Ronald Bain

That's good question. a reasonable

in hide CapEx I QX. we've think it's -- got we limited cannot fact the

Gabon. We are forecasting at least X to X liftings out of

projected another QX cash would be our performance. yes, strong for position So

XXXX. the in $X is said, We of at are to January, in we land Canada very commence coming allocation Yes, $X and I the as on per capital well. February early for But to have yet million that... million expect drilling do they roughly to

George Maxwell

Yes.

Ronald Bain

-- the in been QX QX. where we've in so still in and And have be before, going CapEx Gabon, we're to of drilling light a we'll Jamie, pretty terms with

James Wilen

Got you.

in bit Given the a progress and And devoting as worth? Canada, that Canada thoughts are what next the as to well good made asset share think you campaigns your a would really -- of you've on for be buyback? do that monetizing what drilling

George Maxwell

Canada a the because we on Well, have books. valuation we of carry

tell think, on rest will $XX So between me will books, got number million. Ron the that if million the wrong. valuation I I've and $XXX

Ronald Bain

every team I successful. that repeat plan of focus and reduced focus cash job. I cash What in the cycle days, year.The just single land XX I George we tremendous I I'll in adding the done will us the there probably turnaround delivered have the that to -- impressive. considerably, They've been laterals, drilling up the to is the techniques also times last achieve reach something how You're have change been the mean, on near has extremely operation complete a order to on think, X-year drill ridiculous. say the range. said me, and return has longer The been to what reminded quarter, Canadian exceedingly upper Right. positive a

George Maxwell

half. Roughly

Ronald Bain

Half.

very efficient to but have frank, now in to big we be valuable, need a operation, we So, Canada, be scale.

and use is grow the of capital that exists scale So to invest to there's at opportunities. whether consideration continue other and look always of a best whether or

will do consider all and the consideration. So the of at that we time when we XXXX that part be that look position,

Operator

The Jeff next with question comes Tower Robertson Research. from Water

Jeffrey Robertson

with in Has Just ministry coup anybody in deal the there a in any follow-up. change been August? back light Gabon hydrocarbon of in you the

George Maxwell

were after of event, we -- been Good I X for because question. stated, Obviously, But day. think the yes, previous the office as the day there guess, some change that seen I I out we removed. have was have minister

no seen have interruptions to our operations We whatsoever.

receivables.Ron exist the of that's the the position some the that some time, between from mark-to-market. again, working on causes government, changed. that's investment government uninterrupted. of barrels profile and something work later have their see been we same with players and diligently But this unlisted us how also looking to But can with receivables. and to make the standpoint, down a our completely relationship of to Gabon I'm our mentioned continue because the business We're position movements at one topics the on positions tax improve discussion. of And month has our our in outstanding and on We recoveries event we're tax where backdated the both our about

Thor Pruckl

just If If and climate anything, engagement I I more could a climate ministries. add active to suggest more that. positive with with it's a more that Yes. become would

Operator

Dezellem question with next Tieton comes from Bill The Capital.

William Dezellem

term desire be, So I'd that on don't you? would know interest, their like or a last does what follow a current improvement the to or payables more to to And comment. on right include your recognition and relationship positive up be I just

Thor Pruckl

drive so I And I clean has changed. that they're processes order. in up the there's accounts books significant guess their and happen get that in Yes. in government there's future. a think up streamline And and clean place that think means to I to receivable I to the their payables mean, doesn't -- to their that get or looking looking

Operator

We'll now take some from questions e-mail.

Al Petrie

Okay.

in foreign you kind got confirm is, on corresponds that taxes payment? the I've question in payment in-kind one of the value the the me -- Can of amount first here second. $XX.X balance payable with The sheet pending million to bear income

Ronald Bain

to the is The mark discrete accrued pricing tax end together payable that sheet the market tax by the at foreign income answer. short foreign I'll the rate, in period. Okay. with we that's I'll tax effective one. of and item is -- balance adjustment the a the take Brent where yes a

the question I and the we to pending PSC.The was the last amount if listing took relation Or calculated And it's position. what is out think the no forward then there's back at of has listing barrels the period brought and that the made period, end is the it XXXX. the quarter? calculation to there is I calculated per state it are period state just added barrels QX the each in barrels in the in a lifting? mean, do of each in is

a year since about took a lifting. the been state So it's

Al Petrie

was just I the October, one or VAALCO Okay. next Gabonese the lifting was that And in have, the that government both? for early done or

Ronald Bain

in Traditionally, not elects state. on the their and list lifting Etame partners the the October for own. JV was to state for That

Al Petrie

all that's think I And had. that Okay. I

Operator

the like would to question-and-answer This concludes session. for turn Maxwell, closing I CEO, any George conference our back remarks. to over

George Maxwell

Thank you very much.

QX in driven with end think increasing to by QX strong of part come higher as production performance and commodity both prices. in of results, a of strong I in operational side, good the the it's it always a set set and to was

are performance levels look continuing answered of we halfway as more cash As we than QX, for increase one persons continue QX through are very previously, that the confidence our And I through high. to to of diversification to balances supported in quarter.We're jurisdiction one the roads the of the asset in starting our some see benefits overcome through this base, and by the ability slight of the others. to bumps

in we our means now we integration, overcome that and a in And ensure have of and the significantly But As to combined last we presents mentioned, order move and amalgamation in the some the in forward processes organizations took organization. completed of we've It operation And systems investment Ron we of had present synergies of Ron, mentioned, to that happens plan forward the in some that are in difficulties third the the thank now were independent challenges.As included XXXX.I'd is reporting will because reporting talking, got you to very Ron X allowed much. because efficiency quarter much like also than in of that greater our to place is integrated you QX place and have This these to previously. opportunity investment means myself That of just at that we QX. people. give again would faster year. to some now one and much larger structure us midyear, I talking to staff. hundred move with that happen Thor hope sitting like thank And position the and results system a a into I'd look a people we've to them. facilitates forward one work it couple doesn't more still the XX-K. -- Thank XX/X by here as all

Operator

today's concluded. presentation. for you attending now has conference The Thank

You may now disconnect.

VAALCO Energy (EGY) 8 Nov 232023 Q3 Earnings call transcript