VAALCO Energy Inc EGY

EPS est 1Q22

[BraddockTrail]

EPS 4Q21 was .58. Since then WTI has gone from about 80 to 95. Production is estimated to have increased from 7100 bopd to 8100. Proportionally EPS ought to be about .79 in 1Q22. Pending fixed and variable costs EPS could be maybe .03 or so higher. Let's see how it works out.

[BraddockTrail]

Upon further investigation EGY paid a negative income tax probably due to tax loss carryforwards. If it assumed that EGY would pay a 10% tax on an ongoing basis the EPS would be .36 rather than .58. Another problem with similar companies I have been following is that their 2001 earnings have been abnormally high due to impairment reversals. I think these one time extraordinary gains should be

[BraddockTrail]

Egg on my estimate. Operating earnings went from $26 million to $40. So far so good. But now to hedging losses. $2 million in 4Q21 to $32 in 1Q22. Horrible. EGY should learn about hedges from Cenovus which gave them up.