Vaalco Energy (EGY) AI Stock Analysis

• Market Cap: $392.44M
• Dividend Yield: 6.61%
• Average Volume (3M): 927.51K
• Price to Earnings (P/E): 6.8
• Beta (1Y): 0.76
• Revenue Growth: 3.02%
• EPS Growth: -8.43%
• Country: US
• Employees: 230
• Sector: Energy
• Sector Strength: 48
• Industry: Oil & Gas Exploration & Production
• EPS (TTM): 0.06
• Shares Outstanding: 103,819,046
• 10 Day Avg. Volume: 1,011,120
• 30 Day Avg. Volume: 927,507
• PEG Ratio: N/A
• Price to Book (P/B): 0.75
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 3.81
• Enterprise Value/Market Cap: 1.09
• Enterprise Value/Revenue: 0.22
• Enterprise Value/Gross Profit: 2.16
• Enterprise Value/Ebitda: 0.38
• 1Y Price Target: $8.87
• Price Target Upside: 134.66% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 75 Outperform
• Price Target: $4.50 ▲(19.05%Upside)

Vaalco Energy's strong financial performance and attractive valuation are significant strengths, supporting a favorable stock outlook. The company faces commodity price challenges and project delays, but maintains robust operational and financial strategies. Technical indicators suggest stability, and the earnings call highlights positive production outcomes despite external pressures.

Positive Factors

Company Expansion

VAALCO's M&A activities have expanded their operations into Gabon, Egypt, Canada, and Cote D'Ivoire, demonstrating strong growth and diversification capabilities.

Debt Facility

The new $300 million revolving credit facility enhances funding flexibility and supports the potential to maintain dividends while pursuing investment opportunities.

Shareholder Returns

VAALCO's operational success is expected to generate significant free cash flow, which supports ongoing shareholder returns and potential dividend growth.

Negative Factors

Free Cash Flow

The forecasted free cash flow for 2025 is lower than previously expected, though minimal changes are anticipated for 2026.

Production Guidance

Guidance for FY25E anticipates a reduction in production due to the FPSO redevelopment project in Cote d'Ivoire, resulting in a temporary loss of approximately 4kboe/d.

Working Capital Outflow

In FY24, significant working capital outflow of approximately $70 million resulted in a low free cash flow of just $1.5 million.

Vaalco Energy Business Overview & Revenue Model

Company Description

VAALCO Energy, Inc., an independent energy company, acquires, explores for, develops, and produces crude oil and natural gas. The company holds Etame production sharing contract related to the Etame Marin block located offshore in the Republic of Gabon in West Africa. It also owns interests in an undeveloped block offshore Equatorial Guinea, West Africa. VAALCO Energy, Inc. was incorporated in 1985 and is headquartered in Houston, Texas.

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. Despite a slight decline in EBIT margin and return on equity, the company maintains efficiency and a resilient balance sheet with low leverage.

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

Vaalco Energy Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3.78
• 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 3.78 is above the 20-day moving average (MA) of 3.73, above the 50-day MA of 3.59, and below the 200-day MA of 4.15, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 54.60 is Neutral, neither overbought nor oversold. The STOCH value of 28.50 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	$309.71M	2.30	25.10%	―	38.46%	―
EGY	75 Outperform	$392.44M	6.79	11.83%	6.61%	3.02%	-8.43%
Sector *	67 Neutral	$15.23B	9.43	6.27%	5.39%	4.07%	-71.82%
GPRK	66 Neutral	$357.12M	4.54	38.79%	8.45%	-14.94%	-25.19%
SD	61 Neutral	$380.81M	5.94	14.68%	4.24%	-15.94%	2.90%
SJT	61 Neutral	$268.93M	251.97	39.61%	0.40%	-85.94%	-88.55%
ANNA	45 Neutral	$307.28M	―	-73.54%	―	―	-280.78%

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.