Vaalco Energy (EGY) AI Stock Analysis

• Market Cap: $385.17M
• Dividend Yield: 6.74%
• Average Volume (3M): 1.05M
• Price to Earnings (P/E): 6.7
• Beta (1Y): 0.75
• Revenue Growth: 3.02%
• EPS Growth: -8.43%
• Country: US
• Employees: 230
• Sector: Energy
• Sector Strength: 47
• Industry: Oil & Gas Exploration & Production
• EPS (TTM): 0.06
• Shares Outstanding: 103,819,046
• 10 Day Avg. Volume: 984,668
• 30 Day Avg. Volume: 1,049,519
• PEG Ratio: -0.13
• Price to Book (P/B): 0.68
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -10.22
• Enterprise Value/Market Cap: 0.96
• Enterprise Value/Revenue: 0.19
• Enterprise Value/Gross Profit: 1.86
• Enterprise Value/Ebitda: 0.33
• 1Y Price Target: $8.64
• Price Target Upside: 122.68% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 75 Outperform
• Price Target: $4.00 ▲(3.09%Upside)

Vaalco Energy's overall stock score is supported by strong financial performance and attractive valuation, despite some mixed technical indicators. The earnings call presents a solid outlook, albeit with challenges due to commodity price volatility.

Positive Factors

Debt Facility

VAALCO announced a new $300 million revolving credit facility to replace the existing undrawn facility and provide funding flexibility as the group executes their planned investment campaigns over the next few years.

Mergers and Acquisitions

VAALCO highlighted its M&A credentials with significant deals over the past few years, expanding in Gabon, acquiring production in Egypt, Canada, and Cote D'Ivoire.

Shareholder Returns

Shareholder returns are a cornerstone commitment with VAALCO expecting robust free cash flow generation to provide scope for potential dividend growth from 2026 onwards.

Negative Factors

Free Cash Flow

Although the company is forecasted to deliver lower FCF in 2025E than previously forecast, minimal change is made to the 2026E FCF forecast.

Production Guidance

Production for 2Q25E is guided to be sequentially down at 20-22.1kboe/d.

Production Shutdown

FY25E production guidance reflects the shutdown of Cote d'Ivoire for the FPSO redevelopment project and the loss of its approximately 4kboe/d of production until some time in 2026.

Vaalco Energy Business Overview & Revenue Model

Company Description

Vaalco Energy, Inc. (EGY) is an independent energy company primarily engaged in the acquisition, exploration, development, and production of crude oil and natural gas. Headquartered in Houston, Texas, Vaalco operates primarily in West Africa, with significant assets in Gabon, Equatorial Guinea, and Angola. The company's core focus is on maximizing the value of its existing resources while strategically pursuing new opportunities to expand its portfolio and enhance shareholder value.

How the Company Makes Money

Vaalco Energy generates revenue through the exploration, development, and production of oil and natural gas. The company's primary revenue stream comes from the sale of crude oil extracted from its offshore assets, particularly in the Etame Marin block offshore Gabon. Vaalco sells its produced oil to various customers, including international oil trading companies and refineries, often through long-term contracts or spot market sales. The company's revenue is influenced by several factors, including global oil prices, production levels, operational efficiency, and the successful execution of exploration and development projects. Strategic partnerships and joint ventures with other energy companies also play a crucial role in sharing risks and enhancing operational capabilities, contributing to Vaalco's earnings.

Vaalco Energy Financial Statement Overview

Summary

Vaalco Energy shows strong financial performance with robust revenue growth and profitability. The company's low leverage, strong cash flow management, and efficient operations contribute to its resilience, despite slight declines in EBIT margin and return on equity.

Income Statement

Vaalco Energy demonstrates strong revenue growth and profitability. The TTM (Trailing-Twelve-Months) data shows a robust gross profit margin of 40.6% and a healthy net profit margin of 11.9%. Despite a slight decline in EBIT margin from 28.5% to 26.4%, the company's revenue has grown steadily over the years. The EBITDA margin remains strong at 54.7%, indicating operational efficiency.

Balance Sheet

The balance sheet reflects a stable financial position with a debt-to-equity ratio of 0.19, indicating low leverage. The equity ratio is solid at 54.4%, suggesting a strong equity base. However, return on equity has decreased slightly, reflecting the need for improved net income relative to equity. Overall, the company maintains a healthy balance between debt and equity.

Cash Flow

Cash flow analysis shows a positive trajectory with a free cash flow growth rate of 867.4% from the previous year. The operating cash flow to net income ratio is strong at 2.14, showcasing effective conversion of earnings into cash. The free cash flow to net income ratio is also healthy at 1.71, demonstrating good cash flow management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	489.16M	478.99M	455.07M	354.33M	199.07M	67.18M
Gross Profit	198.56M	172.45M	186.61M	184.66M	96.76M	20.48M
EBITDA	267.38M	286.56M	276.54M	183.41M	77.33M	14.09M
Net Income	58.31M	58.49M	60.35M	51.89M	81.84M	-48.08M
Balance Sheet
Total Assets	927.10M	954.95M	823.22M	855.64M	263.09M	141.23M
Cash, Cash Equivalents and Short-Term Investments	40.91M	82.65M	121.00M	37.20M	48.67M	47.85M
Total Debt	96.36M	98.17M	90.80M	89.06M	10.23M	22.56M
Total Liabilities	423.01M	453.37M	344.43M	389.54M	118.79M	79.77M
Stockholders Equity	504.09M	501.58M	478.78M	466.11M	144.30M	61.46M
Cash Flow
Free Cash Flow	99.74M	10.72M	126.37M	-31.05M	11.05M	3.12M
Operating Cash Flow	124.59M	113.72M	223.60M	128.85M	50.12M	27.45M
Investing Cash Flow	-144.28M	-102.12M	-97.22M	-123.21M	-39.06M	-24.33M
Financing Cash Flow	-43.38M	-43.05M	-56.82M	-17.95M	-57.00K	-929.00K

Vaalco Energy Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3.88
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• 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 Positive. The current price of 3.88 is above the 20-day moving average (MA) of 3.70, above the 50-day MA of 3.48, and below the 200-day MA of 4.28, indicating a neutral trend. The MACD of 0.08 indicates Positive momentum. The RSI at 61.25 is Neutral, neither overbought nor oversold. The STOCH value of 38.82 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for EGY.

Vaalco Energy Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GFR	77 Outperform	$313.93M	2.42	25.10%	―	38.46%	―
EGY	75 Outperform	$385.17M	6.66	11.83%	6.74%	3.02%	-8.43%
PNRG	74 Outperform	$249.01M	7.12	28.43%	―	69.21%	47.13%
Sector *	67 Neutral	$14.88B	9.77	6.38%	5.30%	4.12%	-66.77%
GPRK	66 Neutral	$339.67M	4.31	38.79%	8.88%	-14.94%	-25.19%
SD	61 Neutral	$397.32M	6.20	14.68%	4.06%	-15.94%	2.90%
CLNE	60 Neutral	$437.54M	―	-30.25%	―	6.50%	-151.25%

Vaalco Energy Corporate Events

Vaalco Energy Holds Annual Stockholders Meeting

On June 5, 2025, Vaalco Energy, Inc. held its Annual Meeting of Stockholders, where 77,038,848 shares were represented. During the meeting, stockholders approved the election of five directors for a one-year term, ratified the appointment of KPMG LLP as the independent public accounting firm for the fiscal year ending December 31, 2025, and approved the compensation of the company’s named executive officers.

The most recent analyst rating on (EGY) stock is a Buy with a $744.00 price target. To see the full list of analyst forecasts on Vaalco Energy stock, see the EGY Stock Forecast page.