Vaalco Energy: The Growth Story Is Gaining Momentum

Vaalco 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.