Why Shares of VAALCO Energy Inc. Popped Today

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of independent oil and gas company VAALCO Energy  (NYSE: EGY  ) jumped as much as 20% today after reporting earnings.

So what: Fourth-quarter revenue was up 9% to $58.3 million and the company swung from a loss a year ago to a $26.4 million profit. On a per-share basis earnings were $0.46, coming in well ahead of the $0.34 that analysts expected.  

Now what: Margins expanded significantly in 2013 and expansion plans are under way. The cash flow is encouraging and the stock now trades at just over 9 times trailing earnings. Given the opportunities in Gabon and Angola I think shares continue to have room to run.

An energy stock for massive profits
There are a number of great ways to play energy and we have one great opportunity for you. Imagine a company that rents a very specific and valuable piece of machinery for $41,000... per hour (that's almost as much as the average American makes in a year!). And Warren Buffett is so confident in this company's can't-live-without-it business model, he just loaded up on 8.8 million shares. An exclusive, brand-new Motley Fool report reveals the company we're calling OPEC's Worst Nightmare. Just click HERE to uncover the name of this industry-leading stock and join Buffett in his quest for a veritable LANDSLIDE of profits!


Read/Post Comments (0) | Recommend This Article (1)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2876505, ~/Articles/ArticleHandler.aspx, 10/23/2014 1:30:56 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated Moments ago Sponsored by:
DOW 16,716.44 255.12 1.55%
S&P 500 1,953.96 26.85 1.39%
NASD 4,455.47 72.63 1.66%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

10/23/2014 1:15 PM
EGY $8.32 Up +0.65 +8.47%
VAALCO Energy, Inc… CAPS Rating: *****

Advertisement