Research from Water Tower Research, Water Tower Research

Water Tower Research

Research from Water Tower Research

Water Tower Research is a leading equity research firm that provides research on micro, small and mid cap companies.

Water Tower Research was founded by Wall Street veterans after witnessing a fundamental shift in the investment research industry with the result being a declining knowledge base among investors, a lack of awareness and a shrinking pool of fundamental research being conducted on companies across the small-cap and micro-cap spectrum. The same issues are now increasingly occurring in the mid-cap space. This sea change within the investment community is impacting not only the companies themselves but also current shareholders and potential investors. With significantly less active sell-side sponsorship by Wall Street, a substantial information gap has developed between companies and various constituents in the financial community. The net result is fewer channels for insight and information to flow between companies and investors.

Equity Research Firm

Thematic (Sector/Industry)

<ul><li>LNG importers look to diversify supply options. We recently wrote on the potential for global oil importers to look to diversify supplies going forward as a result of the Iran war-related massive supply disruption across the Middle East.</li><li>It appears that liquefied natural gas (LNG) importers could also be considering doing the same thing. Bloomberg reported last week that sideline discussions at Gastech—the world’s largest natural gas conference that was held earlier this month in Thailand—focused on the industry’s need to look to supply diversification.</li><li>That line of thinking is being driven by concerns that after more than six months into the US-Iran war, there is still no sign of LNG flowing again through the Strait of Hormuz and industry worries over whether LNG traffic through Hormuz will ever fully return to normal. </li></ul>

LNG importers look to diversify supply options. We recently wrote on the potential for global oil importers to look to diversify supplies going forward as a result of the Iran war-related massive supply disruption across the Middle East.It appears that liquefied natural gas (LNG) importers could also be considering doing the same thing. Bloomberg reported last week that sideline discussions at Gastech—the world’s largest natural gas conference that was held earlier this month in Thailand—focused on the industry’s need to look to supply diversification.That line of thinking is being driven by concerns that after more than six months into the US-Iran war, there is still no sign of LNG flowing again through the Strait of Hormuz and industry worries over whether LNG traffic through Hormuz will ever fully return to normal. 

Energy Roundup : US LNG Plugging Global Supply Gap; Oil Prices Dip on Renewed Middle East Optimism

Equity Capital Markets and Advisory Business, Auctus Advisors

Auctus Advisors

Equity Capital Markets and Advisory Business

Auctus Advisors is a specialist Equity Capital Markets and Advisory business with a focus in the Energy Sector. The partners have complementary skill sets, with decades of experience across Equity Capital Markets, Investment Banking and the Energy industry. We have worked at Société Générale, Canaccord Capital, BMO Capital Markets and Schlumberger. Most recently we have worked together for many years at GMP FirstEnergy. Auctus has been set up at the beginning of a new decade in which we see significant opportunities in the Energy space. Globally, demand for energy is at record levels and continues to grow. Conversely, investment in traditional energy sources has been severely constrained. We believe this imbalance creates opportunities for both companies and investors. Auctus provides Corporate Broking, Equity Research and Investment Banking services.

Equity Bottom-Up

<ul>
<li>The Ebouri-5H development well delivered 8 mbbl/d gross (4.7 mbbl/d WI) initial production from a 300 m net lateral pay in high-quality Gamba sands.</li>
<li>This is Vaalco’s strongest well result to date in Gabon.</li>
<li>For comparison, the recently drilled Etame 14H delivered ~4,850 bbl/d (2,850 bbl/d net), while Etame 15H‑ST, Avouma 3H‑ST and Etame 8H‑ST flowed at ~2,000 bbl/d, ~3,100 bbl/d and ~5,000 bbl/d respectively.</li>
</ul>


The Ebouri-5H development well delivered 8 mbbl/d gross (4.7 mbbl/d WI) initial production from a 300 m net lateral pay in high-quality Gamba sands.
This is Vaalco’s strongest well result to date in Gabon.
For comparison, the recently drilled Etame 14H delivered ~4,850 bbl/d (2,850 bbl/d net), while Etame 15H‑ST, Avouma 3H‑ST and Etame 8H‑ST flowed at ~2,000 bbl/d, ~3,100 bbl/d and ~5,000 bbl/d respectively.


Vaalco Energy (NYSE: EGY): Very high flow rates in Gabon and Egypt suggest upside to FY26 guidance

<ul>
<li>Production at the Baobab field on Block CI‑40 has restarted.</li>
<li>Four wells are currently onstream, with the remaining three producers expected online shortly.</li>
<li>Field performance is in line with Vaalco’s expectations.</li>
</ul>


Production at the Baobab field on Block CI‑40 has restarted.
Four wells are currently onstream, with the remaining three producers expected online shortly.
Field performance is in line with Vaalco’s expectations.


Vaalco Energy (NYSE: EGY): Côte D’Ivoire Back Online

<div><ul><li>In the face of uncertainty, management teams continue to emphasize capital discipline.</li><li>On the margin, activity could inch up as cash flow benefits from higher prices.</li><li>Incremental cash flow from elevated oil prices could help some companies accelerate their debt reduction goals.</li></ul></div>

In the face of uncertainty, management teams continue to emphasize capital discipline.On the margin, activity could inch up as cash flow benefits from higher prices.Incremental cash flow from elevated oil prices could help some companies accelerate their debt reduction goals.

WTR Small-Cap Spotlight Recap : Navigating Volatile Commodity Markets

<ul><li>• 1Q26 WI production averaged 19,884 boe/d, broadly in line with our forecast of 19,640 boe/d and the company’s guidance range of 18.7–20.6 mboe/d.</li><li>• Following the recently announced positive drilling results in Gabon, WI production is expected to increase from 7.5 mbbl/d in 1Q26 to 9.9–10.9 mbbl/d in 2Q26.</li><li>• In Egypt, Vaalco commenced drilling in May.</li></ul>

• 1Q26 WI production averaged 19,884 boe/d, broadly in line with our forecast of 19,640 boe/d and the company’s guidance range of 18.7–20.6 mboe/d.• Following the recently announced positive drilling results in Gabon, WI production is expected to increase from 7.5 mbbl/d in 1Q26 to 9.9–10.9 mbbl/d in 2Q26.• In Egypt, Vaalco commenced drilling in May.

Vaalco Energy (NYSE: EGY): FY26 production guidance increased by ~10%. Production growth to accelerate

United States

VAALCO Energy, Inc. acquires, explores, and develops crude oil and natural gas properties. The Company owns producing properties and conducts exploration activities in the Philippines and Gabon, and has interest in the Texas Gulf Coast area. VAALCO, through participation in a partnership, has additional international exploration interests in South and North America and Africa.

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VAALCO Energy (EGY US)

Energy Roundup : US LNG Plugging Global Supply Gap; Oil Prices Dip on Renewed Middle East Optimism

We recently wrote on the potential for global oil importers to look to diversify supplies going forward as a result of the Iran war-related massive...

Water Tower Research

Vaalco Energy (NYSE: EGY): Very high flow rates in Gabon and Egypt suggest upside to FY26 guidance

The Ebouri-5H development well delivered 8 mbbl/d gross (4.7 mbbl/d WI) initial production from a 300 m net lateral pay in high-quality Gamba sands.

Auctus Advisors

Vaalco Energy (NYSE: EGY): Côte D’Ivoire Back Online

Production at the Baobab field on Block CI‑40 has restarted.Four wells are currently onstream, with the remaining three producers expected online...

Auctus Advisors

WTR Small-Cap Spotlight Recap : Navigating Volatile Commodity Markets

In the face of uncertainty, management teams continue to emphasize capital discipline. On the margin, activity could inch up as cash flow benefits...

Water Tower Research

Vaalco Energy (NYSE: EGY): FY26 production guidance increased by ~10%. Production growth to accelerate

• 1Q26 WI production averaged 19,884 boe/d, broadly in line with our forecast of 19,640 boe/d and the company’s guidance range of 18.7–20.6...

Auctus Advisors

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