Corporate Webpages VAALCO Energy, Inc.
When one selects stocks using a "stock screener" and inputs
values for p/e ratio, price/sales, debt, and revenue growth
using the same parameters, one is apt to get a series of
companies in the same industry group. Some of the fundamentally
strongest companies in our opinion are in the oil and gas
exploration and service equipment group. In particular, a
limited number of companies in the "international exploration"
group are favored. VAALCO Energy (EGY) is one of those. We
have recently reviewed Harvest Natural Resources, a competitor
in the same line of international business. It popped up using
the same screening criteria. Thus EGY has a very high Zenith
Index suggesting it has very strong fundamentals and growth potential.
But like all American companies drawing the bulk of their reveue
from overseas, especially in places like around Africa, it runs
the risks of fickle or unpredictable foreign governments,
especially those run by dictators. In that regard, Zenith often
quotes, "A contract is valid only as long as both parties
determine to honor it!" This, like peace treaties, trumps any
legalities when one deals with certain foreigners.
VAALCO and Harvest both have led the way in international oil
exploration ventures, where two have gone, more are sure to
follow. Noting their success, the "biggies" like Shell and
Exxon are also moving in.
VAALCO was founded rather recently in 1985, was listed on the
AMEX in 2004 and quickly graduated to the NYSE. In its early
days one hears about ventures in Montana, Texas the Gulf of
Mexico, India, and then in the Philippines. You don't hear much about
these lately, especially the Philippines or any ventures near
what China considers its "territorial" waters, as these
governments have proven to be very unreliable when dealing with foreigners.
So the company turned to offshore Africa, where is located the bulk of
its operations near Angola and Gabon. So far, so good, apparently there.
Although, we did note in a recent Chairman's Letter, concern
about the failure of a partner in the Angolan ventures, and the
search for a new one. We sought to define who that partner was
and were unsuccessful, although suspect it might have been InterOil
Exploration & Production ASA of Norway. The company also has to
deal with strict Gabonese Government regulations requiring the
hiring of local, not foreign workers.
We note the presence of Dimensional Fund Advisors among the
insitutional holders, always a positive sign, as we have great
confidence in DFA. Not so good was the presence of another
large shareholder, Nanes Delorme Partners LP, which successfully
placed pressure on VAALCO to separate the CEO and Chairman positions,
and change the CFO and COO, although it did not succeed in
getting the company to sell out after claiming it was mismanaged.
Like many oil exploration stocks, the share performance has been
weak of late, the industry group as a whole weak, and the
general stock market weak. Placing them altogether, it is hard
to get a strong rating on any stock these days when one adds in
a number of technical chart factors.
VAALCO is very capital intensive, from its strong fundamental
position with little or no debt. It manages its investments in
foreign oil ventures with many partners from its Houston headquarters.
There appears to us to be little "mismanagement" as claimed by
the one large institutional fund shareholder, and executive
compensation seems reasonable with good corporate governance in
other areas as well.
10-03-2011: VAALCO Energy, Inc. (EGY): Why Not Try Africa?
(WAIT FOR PAGE TO LOAD COMPLETELY BEFORE LINKS WORK.)
Company Profile
Company History
News
Comparison with Peers
Bond Issue
Zenith Index
Financial Statements
Financial Ratios
Market Grader
Intrinsic Value (Disc. CashFlow)
Intrinsic Value (Proj. Earnings)
Scout Stock Rating
Projected Earnings
Research Reports
Analysts' Opinions
Insider Activity
Institutional Activity
Sentiment
Short Interest
Stock Report
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Moving Average Chart
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Recommendation
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Company Profile |
Company History |
News |
Comparison |
Similar Companies Performance:
Bond Issue |
Zenith Index |
Under current market conditions, a Zenith Index Score of 1.20 or above is required for a positive rating on this factor. 1.21 -1.30 is considered acceptable, 1.30-1.40 is consider strong and > 1.40 is considered exceptionally strong. Accounting statements in this section often contain mistakes, especially in earlier years' totals, but data is deemed sufficient for us to give a rating. More accurate financial statements follow in the next section.
Vaalco Energy Inc. (EGY ) Sector: Basic Materials
4600 Post Oak Place Industry: Independent Oil & Gas
Suite 309 Exchange: NYSE
Houston, TX 77027
VAALCO Energy, Inc., together with its subsidiaries, engages in the
acquisition, exploration, development, and production of crude oil and
natural gas. The company owns producing properties and conducts
exploration activities as an operator of consortiums internationally in
Gabon and Angola; and as a non-operator in the British North Sea. It also
has interests onshore in Texas and Alabama; and in the offshore Texas and
Louisiana Gulf Coast area. The company owns a 30.35% interest in the
exploration acreage within the Etame Marin block; a 28.1% interest in the
development areas surrounding the Etame, Avouma, South Tchibala, and
Ebouri fields; interests in Mutamba Iroru block onshore Gabon; a 40%
working interest in approximately 1.4 million acre Block 5 offshore,
Angola; and a 70% working interest in 5,214 acres in Sheridan County,
Montana. VAALCO Energy, Inc. was founded in 1984 and is headquartered in
Houston, Texas.
Last Trade: 4.86 52-Week Range: 8.40 - 4.68
Trade Date: 10-02 Avg. Volume: 748,202 Shares
Index Membership: Employees: 89
Corporate Governance:
Audit (Low Concern), Board (Medium Concern), Compensation
(High Concern), Shareholder Rights (Low Concern).
EPS: 0.77 Dividend Amount: $ 0.00 Yield: 0.00%
Ex-Dividend Date: Jul 22, 20 Mkt Cap: $ 277,210K
Payout Ratio: 0.00%
Last Split Factor (new for old): N/A Split Date: N/A
Key Statistics:
Enterprise Value: $ 162,750K Revenue (ttm) : $ 176,110K
Gross Profit: $ 112,360K
Earnings before Income Tax, Depreciation and Amortization: $ 138,350K
Enterprise Value/Revenue (ttm): 0.92 Revenue per Share: $ 3.10
Enterprise Value/EBITDA (ttm): 1.18 Qtrly Rev Growth (y to y): 73.90%
P/E Ratio (fwd projected): 4.96 P/E Ratio (current): 6.31
P/E Growth Ratio (5 yr expected): 2.76 Operating Margin: 64.74%
Price/Sales Ratio: 1.57 Profit Margin: 25.19%
Price/Book Value: 1.27 Book Value: $ 3.81/sh.
Return on Assets: 29.82% Net Income Avl to Common: $ 44,360K
Return on Equity: 25.48% Diluted Earnings/Share: $ 0.77
Qrtly Earnings Growth (yoy): 17.40%
Balance Sheet Items : Cash Flow Items (ttm):
(most recent qrtr) (trailing 12 mo.)
Total Cash: $ 114,470K Operating Cash Flow:$ 71,600K
Total Debt: $ 0K Lvgd Free Cash Flow:$ 43,720K
Total Debt/Equity: 0.00
Total Cash/Share: $ 2.01
Current Ratio: 8.28
Share Statistics: Stock Price History:
Shares Outstanding: 57,040K Stk 52-Week Change: -14.74%
Float: 50,410K S&P 500 52-Wk Chng: -1.29%
Sh. Short % of Float: 0.00% 50-Day Moving Avg: 5.91
Short Ratio: 7.90 200-Day Moving Avg: 6.47
% Held by Institutions: 74.20% Beta: 0.61
% Held by Insiders: 5.83%
Analysts' Estimates: Cur. Qtr Next Qtr Cur. Year Next Year
___________________________ Sep 11 Dec 11 Dec 11 Dec 12
Average Earnings Estimate 0.25 0.24 0.88 0.98
Average Revenue Estimate 3M 53M 210M 229M
Factors Comparing This Company to Its Industry Leader (1.0 = Average):
Long Term EPS Growth Rate (5 yr): 4.793 EPS Growth (Qrtly YoY): 6.488
PEG Ratio (ttm, 5 yr expected): 192.670 P/E Ratio (ttm): 84.188
Revenue Growth (Qrtly YoY): 7.093
Annual Income Statements: All numbers in thousands)
Period Ending Dec31,2010 Dec31,2009 Dec31,2008
Total Revenue 134,472 115,298 169,525
Cost of Revenue 22,112 21,978 33,340
Gross Profit 112,360 93,320 136,185
Operating Expenses:
Research & Development 0 0 0
Selling, General & Administrative 7,403 3,077 10,776
Non-Recurring Expenses 6,813 36,464 0
Other Operating Expenses 20,021 20,760 18,937
Total Operating Expenses 0 0 0
Operating Income or Loss 78,123 33,019 106,472
Income from Continuing Operations:
Total Other Income/Expenses Net -476 189 2,515
Earnings Before Interest & Taxes 77,647 33,208 108,987
Interest Expense 0 450 240
Income Before Taxes 77,647 32,758 108,747
Income Tax Expense 35,260 36,902 73,014
Minority Interest -5,047 -3,745 -6,011
Net Income from Continuing Op.s 37,340 -7,889 29,722
Non-recurring Events:
Discontinued Operations 0 0 0
Extraordinary Items 0 0 0
Effect of Accounting Changes 0 0 0
Other Items 0 0 0
Net Income 37,340 -7,889 29,722
Preferred Stock & Other Adjustmnts 0 0 0
Net Income Avail To Common Shares 37,340 -7,889 29,722
Quarterly Income Statements: All numbers in thousands)
Period Ending Jun30,2011 Mar31,2011 Dec31,2010 Sep30,2010
Total Revenue 58,547 46,772 38,187 32,604
Cost of Revenue 5,807 5,233 6,231 4,815
Gross Profit 52,740 41,539 31,956 27,789
Operating Expenses:
Research & Development 0 0 0 0
Selling, General & Adminis. 2,495 2,980 1,548 949
Non-Recurring Expenses 1,189 1,119 4,699 695
Other Operating Expenses 6,545 6,098 7,161 4,542
Total Operating Expenses 0 0 0 0
Operating Income or Loss 42,511 31,342 18,548 21,603
Income from Continuing Operations:
Total Other Income/Expenses Net 639 -158 -11 -301
Earnings Before Int. & Taxes 43,150 31,184 18,537 21,302
Interest Expense 0 0 0 0
Income Before Taxes 43,150 31,184 18,537 21,302
Income Tax Expense 29,641 18,288 8,421 7,369
Minority Interest -1,723 -1,657 -1,231 -1,482
Net Income from Continuing Op.s 11,786 11,239 8,885 12,451
Non-recurring Events:
Discontinued Operations 0 0 0 0
Extraordinary Items 0 0 0 0
Effect of Accounting Changes 0 0 0 0
Other Items 0 0 0 0
Net Income 11,786 11,239 8,885 12,451
Preferred Stock & Other Adj.s 0 0 0 0
Net Income Avail To Common Shs 11,786 11,239 8,885 12,451
Annual Balance Sheets: All Numbers in Thousands
Period Ending Dec31,2010 Dec31,2009 Dec31,2008
Current Assets:
Cash & Cash Equivalents 96,166 86,142 125,425
Short Term Investments 0 0 7,445
Net Receivables 40,660 26,904 15,383
Inventory 1,049 446 1,806
Other Current Assets 1,482 1,217 2,351
Total Current Assets 139,357 114,709 152,410
Long-Term Investments 874 10,873 15,637
Property, Plant & Equipt 108,266 81,018 82,287
Goodwill 0 0 0
Intangible Assets 0 0 0
Accumulated Amortization 0 0 0
Other Assets 0 502 347
Deferred Long Term Asset Charges 1,349 1,349 1,349
Total Assets 238,400 202,999 252,030
Current Liabilities:
Accounts Payable 26,702 33,728 63,167
Short/Current Long Term Debt 0 0 0
Other Current Liabilities 0 0 0
Total Current Liabilities 26,702 33,728 63,167
Long Term Debt 0 0 5,000
Other Liabilities 15,455 12,166 10,071
Deferred LT Liability Charges 0 0 0
Minority Interest 4,718 5,664 7,914
Negative Goodwill 0 0 0
Total Liabilities 46,875 51,558 86,152
Stockholder Equity:
Misc. Stocks Options Warrants 0 0 0
Redeemable Perferred Stock 0 0 0
Preferred Stock 0 0 0
Common Stock 6,282 6,157 6,112
Retained Earnings 146,594 109,249 117,205
Treasury Stock -25,665 -21,515 -11,422
Capital Surplus 64,314 57,550 53,983
Other Stockholder Equity 0 0 0
Total Stockholder Equity 191,525 151,441 165,878
Net Tangible Assets 191,525 151,441 165,878
Quarterly Balance Sheets: All Numbers in Thousands
Period Ending Jun30,2011 Mar31,2011 Dec31,2010 Sep30,2010
Current Assets:
Cash & Cash Equivalents 125,510 103,995 96,166 96,766
Short Term Investments 0 0 0 0
Net Receivables 32,934 38,367 40,660 35,830
Inventory 1,363 1,196 1,049 1,003
Other Current Assets 2,363 3,212 1,482 1,878
Total Current Assets 162,170 146,770 139,357 135,477
Long-Term Investments 874 874 874 10,874
Property, Plant & Equipt 94,166 92,939 108,266 107,917
Goodwill 0 0 0 0
Intangible Assets 0 0 0 0
Accumulated Amortization 0 0 0 0
Other Assets 0 0 0 0
Deferred LT Asset Charges 1,349 1,349 1,349 1,349
Total Assets 258,559 241,932 238,400 234,497
Current Liabilities:
Accounts Payable 19,597 14,699 26,702 34,304
Current Portion LT Debt 0 0 0 0
Other Current Liabilities 0 0 0 0
Total Current Liabilities 19,597 14,699 26,702 34,304
Long Term Debt 0 0 0 0
Other Liabilities 16,822 17,308 15,455 13,568
Deferred LT Liab. Charges 0 0 0 0
Minority Interest 4,901 4,876 4,718 4,985
Negative Goodwill 0 0 0 0
Total Liabilities 41,320 36,883 46,875 52,857
Stockholder Equity:
Misc. Options, WarrantS 0 0 0 0
Redeemable Perferred Stock 0 0 0 0
Preferred Stock 0 0 0 0
Common Stock 6,305 6,302 6,282 6,230
Retained Earnings 169,619 157,833 146,594 137,710
Treasury Stock -25,665 -25,665 -25,665 -24,472
Capital Surplus 66,980 66,579 64,314 62,172
Other Stockholder Equity 0 0 0 0
Total Stockholder Equity 217,239 205,049 191,525 181,640
Net Tangible Assets 217,239 205,049 191,525 181,640
Annual Cash Flow: All Numbers in Thousands
Period Ending Dec31,2010 Dec31,2009 Dec31,2008
Net Income 37,340 11,239 29,722
Operating Activites:
Depreciation 20,021 20,760 19,062
Adjustments to Net Income 3,909 34,898 17,794
Changes in Accounts Recv'bls -10,450 -1,821 15,252
Changes in Liabilities -9,950 -28,590 25,486
Changes in Inventories -603 1,360 -540
Changes in Other Op'ing Actv's 0 1,030 -198
Total Cash Flow fr Operations 45,515 23,493 106,578
Investing Activities:
Capital Expenditures -40,012 -61,340 -34,922
Investments 0 0 -7,447
Other Cash Flows fr Investing 0 12,374 0
Total Cash Flows fr Investing -39,373 -48,966 -42,369
Financing Acitivies:
Dividends Paid -5,993 -5,994 -6,494
Sale or Purchase of Stock 510 -8,322 -8,740
Net Borrowings 0 -5,000 0
Other Cash Flows fr Financing 0 -66 0
Total Cash Flows fr Financing -5,478 -19,382 -15,234
Effect of Exchange Rate Change 0 0 0
Change in Cash & Cash Equiv.s 664 -44,855 48,975
Quarterly Cash Flow: All Numbers in Thousands
Period Ending Jun30,2011 Mar31,2011 Dec31,2010 Sep30,2010
Net Income 11,786 11,239 8,885 12,451
Operating Activites:
Depreciation 6,545 6,098 7,161 4,542
Adjustments to Net Income 263 1,370 2,701 902
Changes in Accounts Recv'bls 488 3,175 8,967 -4,080
Changes in Liabilities 5,779 -7,889 -18,708 3,863
Changes in Inventories -167 -147 -46 -261
Changes in Other Oper'g Acts 0 -1,708 392 1,052
Total Cash Flow f Operations 27,266 13,795 10,583 19,951
Investing Activities:
Capital Expenditures -5,850 -5,475 -20,071 -6,519
Investments 0 0 0 0
Other Cash Flows fr Investing 0 3,546 611 -4
Total Cash Flows fr Investing -5,507 -1,929 -19,460 -6,523
Financing Acitivies:
Dividends Paid 0 -1,499 -1,498 -2,997
Sale or Purchase of Stock 99 1,008 387 0
Net Borrowings 0 0 0 0
Other Cash Flows fr Financing 0 0 -1 1
Total Cash Flows fr Financing 99 -491 -1,112 -2,996
Effect of Exchange Rate Chg 0 0 0 0
Change in Cash & Cash Equiv. 21,858 11,375 -9,989 10,432
EGY Vaalco Energy Inc. [Indices near +3.0 or near zero,
or < zero bear special attention.]
P/E Ratio Tests:
Current P/E Ratio < 28? 3.0000 P/E Ratio > 5? 1.0000
P/E Ratio Vs Growth Rate: 3.0000 Forward P/E Ratio < 28? 3.0000
Sales Tests:
Price/Sales Ratio < 2.3? 1.4650 Inventory/Sales < 5%? 3.0000
Sales < $1 billion? 3.0000 Operating Margin < 7.5%? 0.1158
Balance Sheet Tests:
Debt/Equity < 0.40? 1.0000 Long-Term Debt Service: 3.0000
LTD Being Reduced? 1.0000 Short-Term Debt Service: 3.0000
Current Ratio > 2? 3.0000 Working Capital >= 1.5? 0.2417
Leverage Ratio < 20%? 3.0000 Debt / Assets < 1? 1.0000
Quick Ratio > 1? 3.0000 Inventory Turnover > 1? 0.1332
Shares Out Decreasing? 0.6000 Market Cap.> 1.5 Billion? 3.0000
Profit Margin > 7.5%? 3.0000
Income Tests:
Dividend Yield > 2.0%? 0.0000 EPS Annual Growth > 10%? 3.0000
Enterprise Value/Revenue: 0.6133 EPS 5-yr Growth > 20%? 1.1920
Enterprise Value/EBITDA: 0.1686 EPS Growth Consistent? 1.8000
EPS Qrtly Growth > 10%? 1.7400 Collection < 45 days? 0.4077
Rev. Qtrly Growth > 15%? 3.0000 Gross Pft/Cur. LTD < 1? 3.0000
EPS Annual Growth > 10%? 3.0000 Borrowing Int. Rate< 6%? 1.0000
Stock Performance Tests:
Volatility > 25%? 2.2752 % Held by Insiders < 5%? 0.8576
Beta > 1.25? 0.4880 % Held by Institut. < 50? 0.6739
50 Da MA > 200 Da MA? -0.3457 % Held by Institut. > 30? 2.4733
52-Wk Change vs. S&P 500: -0.0860 Short Ratio > 5? 1.5800
Price/Book Value < 3? 2.7300 Short % of Float > 20? 0.0000
Return on Assets > 17%? 1.7541 Average Volume > 100,000? 3.0000
Cash Flow Tests:
Oper. C.F. > Lever'd C.F: 1.6377 Positive Free Cash Flow? 1.0000
Positive Oper. Cash Flow? 1.0000 Price to C.F./sh. Ratio: 0.4529
Cash Flow / Assets >.10? 1.6909
EGY Vaalco Energy Inc. Overall Zenith Index: 1.6869
Financial Statements |
Financial Ratios |
. . . . . . . . . . . . 1 = Highest , 10 = Lowest
Market Grader |
Intrinsic Value (DCF) |
Intrinsic Value by Discounted Cash Flow Method:
Intrinsic Value (PEG) |
Intrinsic Value by Projected Earnings Growth Method:
Stock Scout |
We find "Scout" to be a bit biased toward the high end, so anything under a 6 is considered a negative, 6 and above, positive.
Projected Earnings |
Research Reports |
Analysts' Opinions |
Insider Activity |
Institutional Activity |
Institutional Orders to Buy or Sell:
Sentiment |
Zenith uses the "sentiment" score above or below 50 to award a positive or negative point in the Decision Matrix.
Short Interest Ratio |
As the short interest rises as a percentage of average daily share volume (Days to Cover), this is considered a measure of negative sentiment. Similarly, a decrease in that percentage is considered positive sentiment.
Stock Report |
Management's Discussion of Results of Operations Excerpts |
Moving Average Chart |
Right Time Study |
Channeling Potential |
The summary below includes a value for `Degree,' which refers on a
scale of 1 to 10 the range of a channel in the period under consi-
deration compared to the total range of price movement. It also looks
for the last closing price to be within the channel, otherwise zeroed.
The `Index' is the `Degree' weighted for volatility. Generally, the
the higher the index, the more suitable is the stock for trading as
a `rolling stock' between channel high and low points.
Results for Vaalco Energy:
Symbol? EGY
Total Months Available: 86
Months in Cycle? 4
Months Covered by Periods: 12
Period 1 Period 2 Period 3
H1 L1 H2 L2 H3 L3
8.17 5.54 8.40 6.09 7.36 4.80
RANGE = 8.40 TO 4.80 Close = 4.85
CHANNEL = 7.36 TO 6.09 Degree = 4
Volatility = 26.19% Index = 10
Intraday Chart |
20 Days:
Stock Fetcher |
Point & Figure Chart |
Wall Street Analyzer |
Marketspace Chart |
Time Series Forecast |
Neural Network Prediction |
"Neurostock" can only track long trades. Therefore its performance, as tracked by itself on stocks which are consistently falling, may not appear as good as it could if each "sell" signal were a "short sale."
Ultimate Trading Systems |
The corresponding trades for the above chart are shown in tabular form below.
Recommendation |
| Factors | Weighted Points |
|---|---|
| News | + 1 |
| Comparison | - 1 |
| Industry | - 1 |
| Bond Issue | 0 |
| Zenith Index | + 1 |
| Non-GAAP vs. GAAP Earnings < 1% | + 1 |
| Cash Flow | + 1 |
| Ratios | + 1 |
| Market Grader | + 1 |
| Intrinsic Value DCF | + 1 |
| Intrinsic Value DDM | 0 |
| Stock Scout | - 1 |
| Projected Earnings | + 1 |
| Research Reports | - 1 |
| Analysts | + 1 |
| Executive Perquisites | + 1 |
| Insider Activity | - 1 |
| Institutional Activity | + 1 |
| Management Reporting | + 1 |
| Short Interest | - 1 |
| Sentiment | - 1 |
| Standard & Poor's | - 1 |
| Moving Average | - 1 |
| Right Time Study | - 1 |
| Stock Fetcher | + 1 |
| Point & Figure | - 1 |
| Wall Street Analyzer | + 1 |
| Marketspace Chart | - 1 |
| Time Series Chart | + 1 |
| Neural Network | + 1 |
| Stock Options | + 1 |
| Ultimate Trading Systems | + 1 |
| Total | + 6 |
Place 6,000 shares of VAALCO Energy, Inc. (EGY)I on the Active List.
