Jan. 21 at 11:58 PM
$EGY The Bull Case (Why it's undervalued)
Drilling Success (The Real Catalyst): The "Phase 3" drilling program in the Etame field (Gabon) is performing better than expected.
The Data: Recent pilot wells (ET-15P) confirmed high-quality reservoir sands and "reservoir continuity" (meaning the oil pool is connected and easier to pump).
The Impact: They estimate 2.4–3.2 million barrels of oil in place in this specific sector. A new production well is scheduled to come online in Q1 2026 (this quarter), which will immediately boost revenue.
Production Beat: Despite the earnings miss, they actually beat their production guidance for 2025, pumping ~22,100 barrels per day (top of guidance). This suggests operational efficiency is high.
The Dividend Safety Net: EGY pays a quarterly dividend of
$0.0625 (~5.2% annual yield). For a small-cap E&P (Exploration & Production) company, paying a consistent dividend is a strong signal of management's confidence in cash flow.
