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EGY, VAALCO Energy Inc.

Oil & Gas Producers capital-intensive Capital build-outCyclical

We are an independent energy company headquartered in Houston, Texas engaged in the acquisition, exploration, development and production of crude oil, natural gas and NGLs.

We have a diversified, African-focused portfolio of production, development and exploration assets located in Gabon, Egypt, Cote d'Ivoire, Equatorial Guinea, Nigeria, as well as, prior to the Canada Asset Divestment (defined below), producing properties in Canada.

For the year ended December 31, 2025, our producing properties in Gabon produced approximately 2,535 MBoe or 42% of our total 2025 production.

Latest annual: FY2025 10-K

EGY · VAALCO Energy Inc.

The business

What it sells, where the money comes from, the kind of company it is.

Revenue · FY2025

$359M

−25.0% YoY · 40% 5-yr CAGR

Vital signs · TTM, with 5-yr average

Revenue $312M 5-yr avg $369M

Operating margin −20.2% 5-yr avg 29.1%

ROIC −11% 5-yr avg 27%

Owner-earnings margin 12% 5-yr avg 17%

Free cash flow margin 12% 5-yr avg 10%

The business in brief

read the 10-K →

What this business is and what moves its needle, from its own SEC filings.

What it is: Revenue is led by Gabon (51%) and Egypt (39%), with 2 more segments behind.
Situation: Capital build-out. Capital spending has surged to 29% of sales, today's earnings are charged less depreciation than tomorrow's will be. Cyclical. Margins collapse and recover repeatedly across the record; a single year, good or bad, misstates the through-cycle earning power.
What moves the needle: Operating margin has run about 26% through the cycle, a wide margin for the work it does — whether that reflects a durable edge or one that can fade is what the record weighs. The margin is cyclical, swinging between −41% and 49% over the years, so the through-cycle figure carries more than any single year — and the balance sheet at the trough more than the peak. Capital spending runs about 15% of sales, so the return earned on what it sinks into that plant weighs as much as the margin. Read this kind of business on the commodity price, and the cost to lift a barrel. On its own account, the filing leans hardest on pricing power & competition, set against the numbers in what the filing emphasizes, below.
Is it a good business?: Return on capital has run in the teens (median 18%, above 15% in 6 of 8 years). Owner earnings agree: roughly 23% of revenue reaches owners as cash, consistently. Returns like these are solid but short of clear franchise economics; whether they hold is what the 10-K settles, not the multiple.

Every line is arithmetic on the company's filings, shown in full in the sections below.

Where the money comes from

read the 10-K →

Revenue spreads across 4 segments, the largest Gabon at 51%.

Revenue by reportable segment, FY2025

Gabon51%$182M
Egypt39%$140M
Canada5%$19M
Cote d'Ivoire5%$18M

From the segment footnote of the company's own 10-K. Shares are of total revenue; the profit bar shows each segment's share of segment operating profit, before unallocated corporate costs.

The record

Ten years of arithmetic, read across the cycle.

The record, 2016–2025

realized figures from each filing · older years to the left

2016’16	2017’17	2018’18	2019’19	2020’20	2021’21	2022’22	2023’23	2024’24	2025’25	TTMTTMMar 2026
											Income statement
$60M	$77M	$105M	$85M	$67M	$199M	$354M	$455M	$479M	$359M	$312M	RevenueRevenue
16%	13%	11%	18%	16%	7%	3%	5%	6%	9%	10%	SG&A / revenueSG&A/rev
($4M)	$20M	$51M	$21M	($27M)	$79M	$171M	$159M	$136M	($21M)	($63M)	Operating incomeOp. inc.
−7.3%	25.9%	48.9%	25.1%	−40.6%	39.7%	48.3%	34.9%	28.5%	−5.7%	−20.2%	Operating marginOp. mgn
($27M)	$10M	$98M	$3M	($48M)	$82M	$52M	$60M	$58M	($41M)	($143M)	Net incomeNet inc.
—	52%	—	—	—	—	58%	60%	58%	—	—	Effective tax rateTax rate
											Cash flow & returns
($79K)	$9M	$37M	$26M	$27M	$50M	$129M	$224M	$114M	$213M	$141M	Operating cash flowOp. cash
$7M	$6M	$6M	$7M	$9M	$21M	$48M	$115M	$143M	$110M	$98M	DepreciationDeprec.
$19M	($8M)	($69M)	$13M	$66M	($55M)	$27M	$45M	($92M)	$138M	$180M	Working capital & otherWC & other
$9M	$2M	$14M	$10M	$20M	$17M	$160M	$97M	$103M	—	$103M	CapexCapex
14.6%	2.4%	13.5%	12.2%	29.8%	8.3%	45.1%	21.4%	21.5%	—	33.1%	Capex / revenueCapex/rev
($7M)	$7M	$32M	$19M	$18M	$34M	$81M	$126M	$11M	—	$38M	Owner earningsOwner earn.
−11.7%	9.3%	30.1%	22.9%	26.9%	16.9%	22.8%	27.8%	2.2%	—	12.1%	Owner earnings marginOE mgn
($9M)	$7M	$23M	$16M	$7M	$34M	($31M)	$126M	$11M	—	$38M	Free cash flowFCF
−14.7%	9.3%	22.0%	19.1%	11.1%	16.9%	−8.8%	27.8%	2.2%	—	12.1%	Free cash flow marginFCF mgn
$6M	$0	—	—	—	—	—	—	—	—	$0	AcquisitionsAcquis.
—	—	—	—	$0	$0	$9M	$27M	$26M	$26M	$27M	Dividends paidDiv. paid
$51K	$20K	$58K	$4M	$992K	$1M	$4M	$24M	$7M	$709K	—	BuybacksBuybacks
—	—	67%	17%	-158%	83%	20%	22%	16%	-4%	-11%	ROICROIC
—	94%	89%	2%	-78%	57%	11%	13%	12%	-9%	-41%	Return on equityROE
—	—	—	—	−78%	57%	9%	7%	6%	−15%	−49%	Retained to equityRetained/eq
											Balance sheet
$20M	$20M	$33M	$46M	$48M	$49M	$37M	$121M	$83M	$59M	$48M	Cash & investmentsCash+inv
$7M	$4M	$12M	$14M	—	$22M	$52M	$45M	$95M	$40M	$25M	ReceivablesReceiv.
$19M	$12M	$8M	$16M	$17M	$19M	$60M	—	—	—	$60M	Accounts payablePayables
($12M)	($8M)	$4M	($2M)	—	$4M	($8M)	$45M	$95M	$40M	($35M)	Operating working capitalOper. WC
$38M	$36M	$59M	$70M	$64M	$88M	$200M	$228M	$238M	$133M	$116M	Current assetsCur. assets
$56M	$47M	$41M	$64M	$53M	$84M	$162M	$127M	$182M	$192M	$226M	Current liabilitiesCur. liab.
0.7×	0.8×	1.4×	1.1×	1.2×	1.0×	1.2×	1.8×	1.3×	0.7×	0.5×	Current ratioCurr. ratio
$81M	$80M	$166M	$212M	$141M	$263M	$856M	$823M	$955M	$913M	$921M	Total assetsAssets
$14M	$9M	—	—	—	—	$0	$0	$0	$60M	$158M	Total debtDebt
($6M)	($11M)	—	—	—	—	($37M)	($121M)	($83M)	$1M	$110M	Net debt / (cash)Net debt
-1.7×	14.1×	353.7×	—	—	—	—	—	—	—	-434.0×	Interest coverageInt. cov.
($358K)	$10M	$110M	$110M	$61M	$144M	$466M	$479M	$502M	$443M	$345M	Shareholders’ equityEquity
0.3%	1.4%	2.3%	4.1%	0.2%	1.2%	0.6%	0.6%	0.9%	1.7%	2.0%	Stock comp / revenueSBC/rev
											Per share
58.4M	58.7M	60.0M	59.1M	57.6M	58.8M	70.0M	107M	104M	104M	104M	Shares out (diluted)Shares
$1.02	$1.31	$1.75	$1.43	$1.17	$3.39	$5.06	$4.27	$4.62	$3.45	$2.99	Revenue / shareRev/sh
$-0.45	$0.16	$1.64	$0.04	$-0.84	$1.39	$0.74	$0.57	$0.56	$-0.40	$-1.37	EPS (diluted)EPS
$-0.12	$0.12	$0.53	$0.33	$0.31	$0.57	$1.15	$1.19	$0.10	—	$0.36	Owner earnings / shareOE/sh
$-0.15	$0.12	$0.38	$0.27	$0.13	$0.57	$-0.44	$1.19	$0.10	—	$0.36	Free cash flow / shareFCF/sh
—	—	—	—	$0.00	$0.00	$0.13	$0.25	$0.25	$0.25	$0.26	Dividends / shareDiv/sh
$0.15	$0.03	$0.24	$0.17	$0.35	$0.28	$2.28	$0.91	$0.99	—	$0.99	Cap. spending / shareCapex/sh
$-0.01	$0.18	$1.83	$1.86	$1.07	$2.46	$6.66	$4.49	$4.83	$4.26	$3.31	Book value / shareBVPS

The diluted share count moved ×1.52 into 2023 — shares issued, not a split the totals corroborate — and the per-share figures carry the counts as filed.

Per-share growththe realized rate an owner's share compounded

	9-yr	5-yr
Revenue / share	+14.5%/yr	+24.2%/yr
Owner earnings / share	—	−20.6%/yr
Capital spending / share	+26.7%/yr (8-yr)	+41.5%/yr
Book value / share	—	+31.9%/yr

The record, charted

FY2016–2025

Each measure over its full record; the current point and the worst year marked.

Share count

104Mpeak FY2023

ROIC

−4%low FY2020

Net debt ÷ owner earnings

-7.7×peak FY2022

Owner earnings vs. net income

Owner earningsNet income

The accountant's number, and the cash an owner can take; the gap is the tell.

$11Mowner earningsvs.$58Mnet incomelow FY2016

Where the cash went

ReinvestBuybacksDividendsAcquisitionsRetained

Each year's operating cash, by what management did with it: the mix, and how it drifts.

FY2017FY2025

Owner-earnings bridge

FY2020–FY2024cash-flow statement, SEC EDGAR →

Net income is the accountant's number; owner earnings is the cash an owner could take out. The walk between them, off the cash-flow statement, and whether the gap is widening or holding.

In fiscal 2024 the business reported $58M of profit but $11M of owner earnings: $48M less than the profit line, taken out by capital spending and the timing of cash.

Reported net income$58M

Owner earnings$11M · 2% of revenue

	FY2024	FY2023	FY2022	FY2021	FY2020
Reported net income	$58M	$60M	$52M	$82M	($48M)
Depreciation & amortizationnon-cash charge added back	+$143M	+$115M	+$48M	+$21M	+$9M
Stock-based compensationreal costnon-cash, but a real cost	+$4M	+$3M	+$2M	+$2M	+$114K
Working capital & othertiming of cash in and out, other non-cash items	−$92M	+$45M	+$27M	−$55M	+$66M
Cash from operations	$114M	$224M	$129M	$50M	$27M
Maintenance capital expenditurethe spending needed just to hold position and volume	−$103M	−$97M	−$48M	−$17M	−$9M
Owner earnings	$11M	$126M	$81M	$34M	$18M
Growth capital expenditurediscretionary; spent to get bigger, not to stand still	—	—	−$112M	—	−$11M
Free cash flow	$11M	$126M	($31M)	$34M	$7M
Owner-earnings marginowner earnings ÷ revenue	2%	28%	23%	17%	27%

Owner earnings is the cash an owner could pull out without starving the business: operating cash less the capital it must spend to hold its position . The cash-flow statement also adds stock comp back as non-cash, but it is a real cost paid in shares; counted as the expense it is (less $4M), owner earnings is nearer $6M.

Much of fiscal 2024's profit didn't arrive as operating cash; it sits in “working capital & other” above. That can be a real inventory or timing swing, or profit that doesn't run through operating cash at all: a heavy tax year, equity-method earnings, or investment income booked through investing. For a year like this, owner earnings understates the cash earned; the full cash-flow statement carries the rest.

Maintenance capex is estimated as depreciation where a growing business invests above it; free cash flow is the figure the scorecard's free-cash margin reads.

III

Quality & stewardship

Returns, the balance sheet, capital allocation, and pay.

Owner’s Scorecard

FY2025 10-K · source on SEC EDGAR →

Will it survive?

Can it pay its interest? -142.1×

Does not cover its interest

Operating income ($21M) ÷ interest expense $145K

What this means
A full year of operating profit didn't cover the interest bill. This is the zombie zone: the business depends on refinancing, asset sales, or forbearance to service its debt.
How heavy is the debt, net of cash? $8M

Net debt against an operating loss

Cash $59M − debt $67M

What this means
Netting $59M of cash and short-term investments against $67M of debt leaves $8M owed, with no operating profit this year to measure it against — understand that combination before anything else about the company. Net debt is the leverage figure that matters: the cash is already set against the debt. Strategic or illiquid investments aren't counted here.
How long is cash tied up? —

Not enough data

What this means
The filing data didn't include the inputs for this check.

Is it a good business?

Return on invested capital 17%

High through the cycle

8-yr median, range -158%–83%; -4% latest = NOPAT ($16M) ÷ invested capital $451M

Industry peers: median 6%

What this means
The rate the business earns on the money tied up in it, Buffett's north star, because over time a stock tracks the ROIC beneath it. Above ~15% sustained hints at a moat; a return below the cost of capital (~8%) erodes value as a business grows rather than building it — the test Buffett weighs most. The headline is the median of the last 8 years (it ran -4% most recently), so one peak or trough year doesn't set the verdict. Asset-light businesses (R&D expensed, little capital) read artificially high, pair this with Owner Earnings.
Owner-earnings margin 23%

High through the cycle

9-yr median margin, range -12%–30%; latest $110M = operating cash $213M − maintenance capex $103M

Industry peers: median 50%

What this means
What an owner could take out without starving the business: operating cash less the maintenance capital it must spend to hold its position — Buffett's owner earnings. That's 31% of revenue this year, a 23% median across 9 years. Treating stock comp as the real expense it is (less $6M of SBC) leaves $103M.
Are earnings backed by cash? $213M

Loss, but cash-generative

Net income ($41M) · cash from operations $213M

What this means
The company reported a net loss, so a conversion ratio isn't meaningful. What matters then is whether operations still threw off cash, here, they did.

How is the cash used?

Where do the earnings go? 25%

Reinvests most of it

Dividends + buybacks $27M ÷ Owner Earnings $110M

What this means
Of $110M Owner Earnings, $27M (25%) went back to shareholders, $26M dividends, $709K buybacks. But the buybacks barely exceed stock issued to employees ($6M SBC), net of dilution, little was truly returned. Returning most of it is the mark of a mature business with little left to reinvest at a high return; reinvesting most could mean a long runway, or empire-building. The split doesn't say which; the return earned on it (see ROIC) does.
Investing or harvesting? 0.94×

Maintaining

Capex $103M ÷ depreciation $110M

What this means
Descriptive, not a grade. Above ~1× means investing faster than assets wear out (growth, or, sustained for years, today's earnings carrying less depreciation than tomorrow's will). Below means spending less than it's wearing out (efficiency, or a melting asset base). The ratio won't tell you which; the filings will.

Graham’s defensive tests · 0 of 6 met

Graham’s numerical criteria for the defensive investor (The Intelligent Investor, ch. 14), run on the filings. A floor of safety, not a buy signal; many fine modern businesses fail his strictest liquidity rules by design.

Adequate size Miss

Revenue ≥ $2B · $359M

What this means
Big enough to weather a storm. Graham's 1972 floor was ~$100M of sales (≈ $700M today); we use a $2B revenue line as a conservative modern stand-in.
Strong liquidity Miss

Current ratio ≥ 2× · 0.69×

What this means
Current assets at least twice current liabilities, near-term bills covered without touching the business. Strict by design: many cash-rich modern firms run leaner and miss it, holding their cushion in longer-dated securities.
Conservative debt Miss

Debt ≤ working capital · $67M vs ($59M) WC

What this means
Graham's rule that borrowings not exceed net current assets. Capital-heavy and buyback-heavy firms routinely fail it, read it next to interest coverage, not alone.
Earnings stability Miss

A profit every year (10-yr record) · 3 loss years

What this means
Graham wanted earnings in each of the past ten years, the stability a defensive owner leans on.
Dividend record Miss

Uninterrupted dividends · 4 of 10 yrs

What this means
An unbroken dividend was Graham's mark of durability. He wanted twenty years; the filings show about ten, and a single suspension breaks the streak. Non-payers, many fine modern compounders, fall outside his defensive net by design.
Earnings growth Miss

Earnings +33% over the record · −5%

What this means
At least a third more earnings than a decade ago, averaging three years at each end. Net income (not per-share), so stock splits don't distort it, buybacks and dilution show up in the share-count line instead.
Moderate price —

P/E ≤ 15 and P/E × P/B ≤ 22.5 · decided by the price

What this means
Graham's valuation gate, the wall he kept between a sound business and a sound investment. Three-year average earnings are $0.25/share (latest year $-0.40), the averaged base the calculator's gate runs on, and book value is $4.25/share. Enter a price in “What the price implies” just below for the P/E, P/B, and whether it clears. But this is the rule Buffett outgrew: there's no hard P/E law, and a wonderful business can deserve a far richer multiple if the thesis holds, treat it as the bargain-hunter's floor, not a verdict on the price.

Durability & moat, 2016–2025

Whether the record’s returns held, and what the capital reinvested earned.

Profitable years 7 of 10

What this means
Lost money in 3 year(s), look at what happened there before trusting the average.
Return on capital ≥ 15% 3 of 4 yrs

What this means
A moat shows up as a high return on invested capital that holds year after year, not one good vintage.
Operating margin 22% → 19% (3-yr avg ends)

What this means
Through the cycle the operating margin slipped — about 22% early to 19% lately, median 26% — competition or costs are biting in.
Reinvestment, incremental ROIC returns capital

What this means
The capital base barely grew: this business returns cash through dividends and buybacks rather than reinvesting. Judge it on the cash returned, not on compounding.
Owner earnings growth +137%/yr

What this means
Owner earnings grew about 137% a year over the record.
Worst year 2020 · −40.6% op. margin

What this means
Operations went underwater in 2020, understand why before trusting the good years.
Share count +6.6%/yr

What this means
The share count is rising, dilution works against you on a per-share basis.
Dividend record rising

What this means
Paid and raised the dividend across the record, the continuity Graham prized.

Does AI threaten the moat?

Low contestability

The moat is physical, regulated or balance-sheet-funded, the kind AI cuts costs within but does not contest.

AI is unlikely to contest a moat that is physical, regulated or balance-sheet-funded; here it reads more as a cost tool than a threat.

Read from the filing's own risk factors, paired with the industry's structure under its SIC code; the durability is read above, the price below.

All figures as filed; the source filing is linked above.

Current Position

as of the latest quarter, Mar 31, 2026

Can the business pay what it owes this year, off the freshest balance sheet: the quality of the assets, the debt actually coming due, and what a low ratio means here.

Current assets$116M

Cash & short-term investments$48M
Receivables$25M
Other current assets$43M

Current liabilities$226M

Debt due within a year$6M
Accounts payable$60M
Other current liabilities$160M

Current ratio0.51×all current assets ÷ what's due · Graham looked for 2×

Quick ratio—inventory untagged this quarter, so withheld rather than shown equal to the current ratio

Cash ratio0.21×strictest: cash alone against what's due

Working capital($110M)the cushion left after near-term bills

Debt due this year vs. cash$6M due · $48M cash covered by cash on hand, no refinancing forced · both figures from the Mar 31, 2026 balance sheet

Revenue, latest quarter vs. a year ago−43.3%the freshest read on whether the business is still growing

Current ratio, recent quarters1.2× → 0.5×

Deeper floors

Tangible book value$345Mequity stripped of goodwill & intangibles

Net current asset value($460M)Graham's net-net: current assets less all liabilities

Debt incl. operating leases$180M$22M of it operating leases

From the company's latest filing.

How the cash was used, 2016–2024

Over the record, the business generated $616M of operating cash; how management split it reads as a reinvestor, most operating cash is plowed back into the business.

Reinvested$432M · 70%
Dividends$62M · 10%
Buybacks$41M · 7%
Retained (debt / cash)$82M · 13%

Returned to owners$103M
32% of the owner earnings the business produced over the span, $62M as dividends and $41M as buybacks.
Source of fundingOperating cash
Operating cash covered reinvestment and returns; over the span debt rose $143M and cash and short-term investments rose $28M.
Average price paid for buybacks—
Buybacks ran $41M over the span, but the filings don't tag the share count needed to deduce the average price paid.
Net change in share count78.6%
The diluted count rose from 58M to 104M: issuance (stock pay, deals) outran any buybacks, so owners were diluted on net.
Dividend record$0.25/sh
Paid in 3 of the years on record. It was never cut over the span.
Return on what it retained33%
Of the earnings it kept rather than paid out ($185M over the span), annual owner earnings (first three years vs last three) grew $62M, so each retained $1 added about 0.33 of yearly owner earnings. Buffett's test, run on owner earnings instead of market value.

Buybacks are gross of stock issued to staff; the share-count line above is the net of that, the figure that decides whether owners gained. The average price paid blends a year of purchases (and any accelerated repurchase), so it is close, not exact. The record of where the cash went and on what terms.

Management, ownership & pay

read the proxy →

From the proxy: how much of the business the people running it own, and how they are paid, beside what the business earned for its owners in the same years.

Fiscal year	Chief executive	Pay, as filed	“Actually paid”	Owner earnings
2021	George Maxwell	$657k	$657k	$34M
2021	George Maxwell	$2.3M	$1.3M	$34M
2022	George Maxwell	$1.7M	$1.6M	$81M
2023	George Maxwell	$2.0M	$2.0M	$126M
2024	George Maxwell	$3.0M	$2.4M	$11M
2025	George Maxwell	$3.0M	$2.2M	—

Both pay figures are the company’s own, from the pay-versus-performance table its proxy statement files. “As filed” is the Summary Compensation Table total: salary, bonus, and equity awards at their value on the day of grant. “Actually paid” is the SEC’s prescribed recalculation, which re-marks those equity awards to what they became as they vested; it can swing far above or below the filed figure in either direction, and negative years occur. Owner earnings are the whole business's, from the record above, for the same fiscal years.

Insider ownership3%
The stake all directors and executive officers hold together, per the 2026 proxy: skin in the game, the first thing Munger reads.
CEO pay ratio43:1
What the chief earns for every dollar the median employee makes, per the 2026 proxy. A high ratio alone settles nothing; some businesses are genuinely top-heavy in scarce skill. A runaway figure is where Buffett starts asking whether the board is doing its job.
Stock-based compensation$6M
The slice of the business handed to employees in shares this year, 2% of revenue. Buffett's oldest accounting fight: this is compensation, compensation is an expense, real whether or not the headline earnings admit it. One trap: the cash-flow statement adds SBC back, so the operating cash, and the owner earnings drawn from it, are flattered by exactly this amount; counted as the cost it is, what an owner keeps is lower.

Inverting the record

Invert: instead of why VAALCO Energy Inc. is a good business, the question is what would make owning it a mistake, and whether those marks are in the record. Disconfirming tests across 2016–2025.

2 of the 6 tests turned up something to look into; the other 4 came back clean.

Look hereDid the share count rise anyway?78.6%
Diluted shares grew 78.6% over 2016–2024, even as the company spent $41M on buybacks. The repurchases were outrun by issuance — to staff, in a raise, or in a deal — and the filing says which; owners' slice still shrank. Read the buyback line beside this one, not on its own.
Look hereDid debt outgrow the business?$14M → $158M
Debt rose from $14M to $158M while owner earnings went from about $11M to $73M — about 1.4 years of owner earnings in debt then, about 2.2 now: measured against what the business earns, the balance sheet carries more debt than it did. Debt raised for buybacks or deals rather than growth is the kind that bites in a downturn.

And these came back clean

Is it less profitable than it was?
Did reported profit become cash?
Did receivables and inventory outpace sales?
Are "one-time" charges a yearly habit?

Each test is read from the filings and is noisy alone; a flag can mark a cyclical trough or a year of heavy investment as easily as a problem. The filing says which.

What an owner would ask, FY2025

read the 10-K →

Which reported numbers are a judgment call?
Management names Income taxes, Acquisitions as critical estimates
each rests partly on management's judgment; the filing's note sets out the assumptionsverify →

The questions the record and the charts do not answer on their own; each carries the figure and the place to look.

Peers, Oil & Gas Producers

The same industry, side by side on owner economics. Each figure is a through-cycle median, so a peak or trough year can’t distort it; the group median at the foot is the line to read each against.

Company	Revenue	Gross margin	Op. margin	ROIC	Owner earn. margin
GRNTGranite Ridge Resources Inc.	$450M	—	19.3%	9%	56%
BSMBlack Stone Minerals L.P. Common	$422M	—	50.6%	—	65%
REPXRiley Exploration Permian Inc.	$392M	—	21.7%	10%	31%
TXOTXO Partners L.P. Common	$363M	—	-5.7%	—	25%
EGYVAALCO Energy Inc.	$359M	—	27.2%	18%	23%
INRInfinity Natural Resources Inc.	$350M	—	33.0%	3%	69%
KRPKimbell Royalty Partners	$334M	—	20.1%	—	39%
VTSVitesse Energy Inc.	$274M	—	15.9%	4%	50%
Group median	—	—	20.9%	9%	45%

The price

What a price has to assume.

What the price implies

reverse-DCF

Type today's close and see the owner-earnings growth you'd have to believe to justify it, beside what VAALCO Energy Inc. has delivered.

VAALCO Energy Inc.’s latest year runs above its own through-cycle margin — the reported figure may flatter a peak. So the tool opens on the through-cycle base, Graham’s averaging cutting both ways; clear the toggle below to read the latest year exactly as reported.

Today’s price $

Through the cycle, VAALCO Energy Inc. earns about $82M on its 22.9% median owner-earnings margin. This year’s 30.5% margin runs above that; the reported figure may flatter a peak you'd be paying on. Normalize, below, values the price on that through-cycle figure rather than the latest year. It comes pre-checked here for that reason, the same rule that already normalizes a trough; clear it to price the year as filed.

Base Normalize · through-cycle ($82M) Net of stock comp (−$6M)

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The assumptions Required return 9% Years of high growth 10 Terminal growth 2.5%

9.0% = the 4.55% 10-year Treasury (Jul 15, 2026) + 4.45 points of equity premium. The rate you require is yours to set.

Enter a price above to run it.

Implied by the price—

Owner-earnings growth · ’20→’24+28%/yr

Owner-earnings growth · since FY2023−92%/yr

Owner-earnings yield—

P/E (3-yr earnings ’23–’25)—

P/B—

Graham’s price gate—

Graham capped the multiple at 15×; Buffett and Munger let that rule go: a wonderful business can deserve 50× if the thesis holds. The gate marks the bargain-hunter's floor.

Against a high-grade bond: Graham’s yardstick bond yield%

Prefilled with the 10-year Treasury (4.55%, as of Jul 15, 2026). Edit it for today’s exact figure, or a AAA corporate yield.

Graham measured a stock against the bond you could own instead, the heart of his margin of safety. Enter a price above to weigh the owner-earnings yield against this bond.

Owner earnings $38M on 104M shares outstanding, per the 10-Q cover, as of 2026-05-06; net debt $110M. The base opens on the through-cycle figure (the latest year sits above the record’s own median, and Graham’s averaging cuts both ways); clear Normalize to use the year as filed. Net of stock comp treats option pay as the expense it is. The dials set the multiple a growth belief justifies; the price, and every dollar on this page, is yours.

Weigh EGY against another business →

The owners of EGY: the meeting and the votes →

Cite: Owner Scorecard, "VAALCO Energy Inc. (EGY), the owner's record," https://ownerscorecard.com/c/EGY, data as of 2026-07-09.

Manual order: ← EGP its page in the Manual EHC →

Industry order: ← EC the Oil & Gas Producers chapter EOG →