Vaalco Energy (EGY)

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VAALCO Energy (EGY)

Market Cap: $402 million

Adjusted Earnings Yield: 25.2%

Adjusted Return on Capital: 67.6%

Cash / Debt / Current Ratio: $91.2m / $0 / 3.95

5-year Expected Growth Rate: 2%

Dividend Yield: N/A

Piotroski Score: 7.5

Comments: VAALCO is a small, independent oil driller, operating four fields offshore of Gabon, Africa. Several new Gabon wells were drilled in 2010 that should allow the company to start increasing production after several years of stagnation. The recent acquisition of 640 acres on the Granite Wash formation in Texas are expected to be drilled this year. Higher production and higher crude prices are a good combination for higher stock prices, and VAALCO's strong balance sheet provides protection in the event of a downturn in oil.