VAALCO Energy, Inc. (EGY) AI Stock Analysis

VAALCO Energy, Inc. is an independent energy company focused on the acquisition, exploration, development, and production of crude oil and natural gas resources. Founded in 1985 and based in Houston, Texas, the company's primary asset is the Etame production sharing contract in the Etame Marin block offshore Gabon in West Africa. VAALCO also maintains interests in an undeveloped block located offshore Equatorial Guinea to expand its West African footprint. The company employs 281 people and concentrates on maximizing production from offshore reserves while pursuing new exploration ventures in the global energy market.

Between FY2021 and FY2024, VAALCO Energy grew revenue from $199.1M to $479.0M before revenue declined 25.0% to $359.3M in FY2025. Gross margin contracted from 48.6% in FY2021 to 22.9% in FY2025, while operating margin decreased from 39.7% to 13.0%. Net income moved from $81.8M in FY2021 to -$41.4M in FY2025, with EPS dropping from $1.58 to -$0.04. Over the 5-year period from FY2020 to FY2025, revenue achieved a CAGR of 35.9%. For the trailing twelve months ended June 30, 2026, revenue stood at $349.8M with an EPS of -$1.04, though quarterly revenue rose 39.5% year-over-year and quarterly earnings grew 389.6%.

As of June 30, 2026, VAALCO Energy held $30.4M in cash and short-term investments alongside total debt of $65.5M, resulting in net debt of $35.1M. Shareholders' equity was $380.3M against total assets of $968.6M, yielding a debt-to-equity ratio of 0.17 and a current ratio of 0.44. In FY2025, the company generated operating cash flow of $212.7M while recording free cash flow of -$43.2M. Capital expenditures reached $255.9M, dividends paid totaled $26.5M, and share buybacks amounted to $709,000.

At a closing price of $6.20 on October 16, 2026, VAALCO Energy has a market cap of $652.2M and an enterprise value of $845.7M. The stock trades at a forward P/E of 8.3x, below the 12.7x median of its US-listed Energy peers. Its EV to EBITDA multiple of 50.5x sits well above the peer median of 8.0x, while its price-to-sales of 1.9x compares with the peer median of 1.8x. Over the past year, EGY gained 75.0%, outperforming the S&P 500 benchmark return of 16.8%.

VAALCO Energy pays a forward annual dividend of $0.25, representing a dividend yield of 4.03%. The company pays dividends quarterly and has distributed them for 5 consecutive years, with its last ex-dividend date on August 21, 2026. The payout ratio stands at 92.6%.

Wall Street coverage on EGY includes 4 Strong Buy ratings, with 0 Buy, Hold, Sell, or Strong Sell ratings. The mean price target is $10.20, representing an upside of 64.5% from the last close of $6.20 on October 16, 2026. Analysts project an EPS of -$0.50 and revenue of $446.6M for the fiscal year ending December 31, 2026. Over the last 4 quarters, EGY recorded 0 EPS beats. The company's next earnings date is scheduled for November 9, 2026.

This page is an AI-written research summary of VAALCO Energy, Inc. (EGY). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

Related: EGY income statement, EGY balance sheet, EGY key metrics, EGY analyst forecast, EGY chart. See the EGY stock overview for the latest quote and news.