Vaalco Energy (EGY) AI Stock Analysis

• Market Cap: $384.71M
• Dividend Yield: 6.65%
• Average Volume (3M): 706.22K
• Price to Earnings (P/E): 10.0
• Beta (1Y): 0.88
• Revenue Growth: -2.71%
• EPS Growth: -54.82%
• Country: US
• Employees: 230
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Exploration & Production
• EPS (TTM): 0.02
• Shares Outstanding: 104,258,255
• 10 Day Avg. Volume: 680,088
• 30 Day Avg. Volume: 706,217
• PEG Ratio: 0.00
• Price to Book (P/B): 0.90
• Price to Sales (P/S): 0.95
• P/FCF Ratio: 42.25
• Enterprise Value/Market Cap: 1.19
• Enterprise Value/Revenue: 0.98
• Enterprise Value/Gross Profit: 2.87
• Enterprise Value/Ebitda: 1.77
• 1Y Price Target: $7.53
• Price Target Upside: 100.27% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 73 Outperform
• Price Target: $4.50 ▲(19.68% Upside)

Vaalco Energy's overall stock score reflects a stable financial position with strong operational efficiency and a reasonable valuation. The company's consistent production guidance and high dividend yield are significant strengths. However, recent declines in revenue growth and profitability, along with challenges from commodity price volatility and project delays, temper the outlook.

Positive Factors

Consistent Production Guidance

Consistently meeting production guidance demonstrates operational reliability, enhancing investor confidence and supporting long-term growth.

New Credit Facility

The new credit facility provides financial flexibility to support organic growth initiatives, enabling strategic investments and operational expansion.

Return of Capital to Shareholders

Returning capital to shareholders via dividends and buybacks reflects strong cash flow management and commitment to shareholder value.

Negative Factors

Decline in Revenue Growth

Declining revenue growth can signal market challenges or operational inefficiencies, potentially impacting long-term financial performance.

Impact of FPSO Project Delays

Delays in the FPSO project can hinder production increases, affecting revenue and operational efficiency in the near to medium term.

Commodity Price Volatility

Volatility in commodity prices can lead to unpredictable revenue streams, impacting financial stability and strategic planning.

Vaalco Energy Business Overview & Revenue Model

Company Description

Vaalco Energy, Inc. is an independent energy company focused on the exploration, development, and production of oil and natural gas. Headquartered in Houston, Texas, Vaalco primarily operates in West Africa, particularly in Gabon, where it has a strong presence in offshore oil fields. The company's core services include the drilling and development of oil wells, as well as the production and sale of crude oil. Vaalco aims to enhance shareholder value through efficient resource management and strategic investments in its oil operations.

How the Company Makes Money

Vaalco Energy generates revenue primarily through the sale of crude oil produced from its offshore oil fields in Gabon. The company employs a revenue model based on the production and sale of hydrocarbons, where it sells its crude oil to various buyers at market prices. Key revenue streams include the production from its operated fields, where it has significant ownership stakes, and the potential for future production increases through exploration and development activities. Additionally, Vaalco may benefit from strategic partnerships with other energy companies, which can provide capital, technology, and expertise to enhance its operational efficiency and expand its production capabilities. The company's earnings are also influenced by global oil prices, operational efficiency, and regulatory factors in the regions where it operates.

Vaalco Energy Financial Statement Overview

Summary

Vaalco Energy shows strong operational efficiency with a solid EBIT and EBITDA margin. However, recent declines in revenue growth and net profit margin, along with a need for improved cash flow efficiency, highlight areas for improvement. The balance sheet is healthy with manageable debt levels.

Income Statement

Vaalco Energy's income statement shows a solid performance with a strong EBIT and EBITDA margin, indicating efficient operations. However, the recent decline in revenue growth rate and net profit margin suggests some challenges in maintaining profitability.

Balance Sheet

The balance sheet reflects a healthy debt-to-equity ratio, indicating manageable leverage. However, the return on equity has decreased over time, suggesting a need for improved profitability to enhance shareholder returns.

Cash Flow

The cash flow statement reveals a positive free cash flow growth rate, but the operating cash flow to net income ratio indicates potential inefficiencies in converting income into cash. The free cash flow to net income ratio is moderate, suggesting room for improvement in cash generation.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	469.28M	478.99M	455.07M	354.33M	199.07M	67.18M
Gross Profit	159.94M	172.45M	186.61M	193.52M	95.18M	16.89M
EBITDA	259.80M	286.56M	276.54M	173.49M	80.84M	19.50M
Net Income	38.76M	58.49M	60.35M	51.89M	81.84M	-48.08M
Balance Sheet
Total Assets	964.92M	954.95M	823.22M	855.64M	263.09M	141.23M
Cash, Cash Equivalents and Short-Term Investments	67.87M	82.65M	121.00M	37.20M	48.67M	47.85M
Total Debt	152.14M	98.17M	90.80M	89.06M	10.23M	22.56M
Total Liabilities	453.36M	453.37M	344.43M	389.54M	118.79M	79.77M
Stockholders Equity	511.56M	501.58M	478.78M	466.11M	144.30M	61.46M
Cash Flow
Free Cash Flow	41.51M	10.72M	126.37M	-31.05M	11.05M	3.12M
Operating Cash Flow	143.37M	113.72M	223.60M	128.85M	50.12M	27.45M
Investing Cash Flow	-160.89M	-102.12M	-97.22M	-123.21M	-39.06M	-24.33M
Financing Cash Flow	13.44M	-43.05M	-56.82M	-17.95M	-57.00K	-929.00K

Vaalco Energy Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 3.76
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EGY, the sentiment is Negative. The current price of 3.76 is below the 20-day moving average (MA) of 3.93, below the 50-day MA of 3.93, and above the 200-day MA of 3.73, indicating a neutral trend. The MACD of -0.07 indicates Positive momentum. The RSI at 42.98 is Neutral, neither overbought nor oversold. The STOCH value of 31.50 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for EGY.

Vaalco Energy Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SD	75 Outperform	$414.56M	5.52	16.72%	3.95%	13.75%	87.48%
EGY	73 Outperform	$384.71M	10.03	7.60%	6.65%	-2.71%	-54.82%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
GPRK	65 Neutral	$307.86M	7.11	22.94%	8.80%	-25.23%	-56.59%
GFR	64 Neutral	$316.04M	2.15	25.41%	―	-11.62%	―
SJT	61 Neutral	$263.34M	―	-6.27%	―	-99.72%	-101.28%
ANNA	45 Neutral	$340.32M	―	-65.43%	―	―	-935.70%

Vaalco Energy Corporate Events

Vaalco Energy Announces Q3 2025 Earnings Release and Conference Call Schedule

Vaalco Energy announced the schedule for its third quarter 2025 earnings release and conference call. The earnings release will be issued on November 10, 2025, after the close of trading on the New York Stock Exchange, with a conference call to discuss financial and operational results scheduled for November 11, 2025. This announcement is significant for stakeholders as it provides an opportunity to gain insights into the company’s financial health and operational performance, potentially impacting investor decisions and market positioning.

Vaalco Energy’s Earnings Call Highlights Strong Performance and Strategic Challenges

The recent earnings call for Vaalco Energy reflected a robust financial and operational performance, demonstrating the company’s ability to meet production guidance, secure financial flexibility, and return value to shareholders. Despite these achievements, the company acknowledged challenges such as production delays in Côte d’Ivoire and lower commodity prices impacting their operations.

Vaalco Energy’s Contractual Constraints: A Barrier to Strategic Acquisitions and Shareholder Value

The provisions embedded within Vaalco Energy’s production sharing contracts and joint operating agreements present a significant business risk by potentially deterring third-party acquisitions. These agreements impose restrictions such as consent requirements, preemption rights, and bonus payments, which complicate or elevate the cost of asset assignments. Such constraints may discourage interested parties from pursuing acquisition opportunities, ultimately depriving shareholders of potential premium offers for their stock. This risk factor highlights a potential barrier to maximizing shareholder value through strategic acquisitions.

Vaalco Energy Reports Strong Q2 2025 Results

Vaalco Energy, Inc. is an independent energy company based in Houston, Texas, engaged in the exploration, development, and production of oil and natural gas across several countries including Gabon, Egypt, Côte d’Ivoire, Equatorial Guinea, Nigeria, and Canada.

Vaalco Energy Declares Third Quarter 2025 Dividend Amid Growth Plans

Vaalco Energy, Inc. has declared a quarterly cash dividend of $0.0625 per share for the third quarter of 2025, marking its 15th consecutive quarterly dividend. Despite weaker commodity prices, the company remains committed to providing significant returns to shareholders and is investing in a capital program aimed at boosting production and revenue over the next 18 months.

Vaalco Energy Reports Strong Q2 2025 Results and Strategic Growth Plans

Vaalco Energy reported strong financial results for the second quarter of 2025, with net income of $8.4 million and production exceeding guidance. The company is advancing its strategic vision with ongoing and planned drilling campaigns across its global assets, including significant projects in Côte d’Ivoire and Gabon. Vaalco is well-positioned for future growth, supported by a new reserves-based credit facility and a commitment to shareholder returns.

Vaalco Energy Schedules Q2 2025 Earnings Release and Conference Call

Vaalco Energy announced the schedule for its second quarter 2025 earnings release and conference call. The earnings release will be issued on August 7, 2025, after market close, followed by a conference call on August 8, 2025, to discuss financial and operational results. This announcement provides stakeholders with a timeline for when they can expect to receive detailed insights into the company’s recent performance.