Vaalco Energy (EGY) AI Stock Analysis

• Market Cap: $410.78M
• Dividend Yield: 6.56%
• Average Volume (3M): 761.43K
• Price to Earnings (P/E): 10.7
• Beta (1Y): 0.83
• Revenue Growth: -2.71%
• EPS Growth: -54.82%
• Country: US
• Employees: 230
• Sector: Energy
• Sector Strength: 66
• Industry: Oil & Gas Exploration & Production
• EPS (TTM): 0.02
• Shares Outstanding: 104,258,255
• 10 Day Avg. Volume: 758,467
• 30 Day Avg. Volume: 761,426
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.12
• Enterprise Value/Revenue: 0.98
• Enterprise Value/Gross Profit: 2.87
• Enterprise Value/Ebitda: 1.77
• 1Y Price Target: $6.38
• Price Target Upside: 61.93% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3

• Rating: 72 Outperform
• Price Target: $4.00 ▲(1.52% Upside)

Vaalco Energy's overall stock score reflects strong financial performance and attractive valuation, supported by a solid dividend yield. The company's consistent production guidance and new credit facility are positive, but challenges like FPSO project delays and commodity price volatility pose risks. Technical indicators suggest stability, contributing to a balanced outlook.

Positive Factors

Debt Facility

A new $300 million revolving credit facility provides funding flexibility for future acquisitions and supports dividend maintenance.

Mergers and Acquisitions

VAALCO's significant deals in Gabon, Egypt, Canada, and Cote D'Ivoire highlight its strong M&A credentials.

Shareholder Returns

Robust free cash flow generation is expected to provide scope for potential dividend growth.

Negative Factors

Free Cash Flow

The company is forecasted to deliver lower free cash flow in 2025E than previously anticipated.

Production Disruption

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.

Production Guidance

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

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	135.06M	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	141.58M	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: Positive
• Last Price: 3.94
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 3.94 is above the 20-day moving average (MA) of 3.76, above the 50-day MA of 3.71, and above the 200-day MA of 3.83, indicating a bullish trend. The MACD of 0.07 indicates Negative momentum. The RSI at 58.15 is Neutral, neither overbought nor oversold. The STOCH value of 62.91 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
SD	74 Outperform	$444.70M	5.92	16.72%	3.73%	13.75%	87.48%
EGY	72 Outperform	$410.78M	10.71	7.60%	6.56%	-2.71%	-54.82%
GFR	72 Outperform	$375.73M	2.50	25.41%	―	-11.62%	―
Sector *	66 Neutral	$15.26B	7.30	3.22%	5.27%	4.16%	-60.82%
GPRK	63 Neutral	$337.11M	7.78	22.94%	9.13%	-25.23%	-56.59%
SJT	61 Neutral	$269.40M	251.97	-6.27%	0.40%	-99.72%	-101.28%
ANNA	45 Neutral	$332.88M	―	-65.43%	―	―	-935.70%

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.