Research from Water Tower Research, Water Tower Research

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.

Research from Water Tower Research

Equity Research Firm

Equity Bottom-Up

<ul><li>The midpoint of Vaalco’s updated FY26 capex range is $243 million, 20% lower than the original guide, while the midpoint of NRI sales guidance is 16.5 MBoe/d, 6% above the original guide.</li><li> Lower capex is primarily attributable to pulling back from Canadian development due to low prices, a delayed start to the Phase 3 drilling campaign in Gabon, and operational efficiencies in Egypt. </li><li>About $10 million of capex was added to the FY25 plan to keep the Baobab FPSO upgrade and maintenance program on track for a late January sale away from drydock</li></ul>

The midpoint of Vaalco’s updated FY26 capex range is $243 million, 20% lower than the original guide, while the midpoint of NRI sales guidance is 16.5 MBoe/d, 6% above the original guide. Lower capex is primarily attributable to pulling back from Canadian development due to low prices, a delayed start to the Phase 3 drilling campaign in Gabon, and operational efficiencies in Egypt. About $10 million of capex was added to the FY25 plan to keep the Baobab FPSO upgrade and maintenance program on track for a late January sale away from drydock

Upcoming Development Activity in Gabon and Cote D'Ivoire Expected to Drive Production in 2H26/27

VAALCO Energy

Upcoming Development Activity in Gabon and Cote D'Ivoire Expected to Drive Production in 2H26/27