Vaalco Energy: The Growth Story Is Gaining Momentum
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Ronald Ferrie3.74K FollowersFollow5ShareSavePlay(11min)CommentsFollow us on Google for the latest stock newsFollow Seeking Alpha on Google for the latest stock newsSummaryVaalco Energy is entering a major production growth phase, driven by the return of its FPSO and strong drilling results in Gabon.EGY is upgraded to Strong Buy, trading at just 2.5x 2027 EBITDA, with significant upside from conservative production guidance and oil market tailwinds.Recent well results in Gabon and the Cote d'Ivoire FPSO ramp are expected to drive substantial production and revenue growth into 2027.Despite near-term cash outflows from heavy 2026 capex, EGY's unhedged exposure to high oil prices and future production scale support a robust long-term outlook.
Abstract Aerial Art/DigitalVision via Getty Images Vaalco Energy (EGY) is entering the first leg of its production growth story. The company is in the process of bringing its FPSO vessel and Cote d'Ivoire field back online, resulting in the returnThis article was written byRonald Ferrie3.74K FollowersFollowI am a Licensed Professional Engineer who works in the Nuclear Power industry. I use my professional working knowledge of the power/energy industries to aid in evaluating potential equities worthy of long-term investment. I invest in income producing equities and rental real estate properties for cash flow and long-term appreciation. My articles are to serve as a platform for presenting the underlying fundamentals and long-term potential of each equity/business.Analyst’s Disclosure: I/we have a beneficial long position in the shares of EGY either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.