VAALCO Energy, Inc. (NYSE:EGY) is featured among the top dividend stocks trading under $20. In its latest quarterly report, the company announced it had secured a new revolving credit facility with an initial commitment of $190 million, which could potentially increase to $300 million, backed by specific company assets. Additionally, VAALCO reduced its full-year capital spending forecast by about 10% but maintained its production and sales targets.
For the first quarter of 2025, VAALCO reported revenue of $110.3 million, a 10% increase from the previous year, exceeding analysts’ expectations by $5.19 million. The company also noted that sales were near the high end of its guidance, and net revenue interest (NRI) production performed above expectations. This contributed to a net income of $0.07 per diluted share and an adjusted EBITDAX of $57 million.
At the end of the quarter, VAALCO held approximately $41 million in cash and cash equivalents. Operating cash flow was $32.7 million, higher than the $21.8 million reported for the same quarter last year. The company pays a quarterly dividend of $0.0625 per share, which reflects a dividend yield of 7.08% as of July 21.
Financial commentary suggests that while VAALCO has growth potential, there may be other opportunities in sectors such as artificial intelligence with a higher risk-reward profile.