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Water Tower Research

Research from Water Tower Research

Water Tower Research is a leading equity research firm that provides research on micro, small and mid cap companies.

Water Tower Research was founded by Wall Street veterans after witnessing a fundamental shift in the investment research industry with the result being a declining knowledge base among investors, a lack of awareness and a shrinking pool of fundamental research being conducted on companies across the small-cap and micro-cap spectrum. The same issues are now increasingly occurring in the mid-cap space. This sea change within the investment community is impacting not only the companies themselves but also current shareholders and potential investors. With significantly less active sell-side sponsorship by Wall Street, a substantial information gap has developed between companies and various constituents in the financial community. The net result is fewer channels for insight and information to flow between companies and investors.

Equity Research Firm

Equity Bottom-Up

VAALCO Energy, Inc. acquires, explores, and develops crude oil and natural gas properties. The Company owns producing properties and conducts exploration activities in the Philippines and Gabon, and has interest in the Texas Gulf Coast area. VAALCO, through participation in a partnership, has additional international exploration interests in South and North America and Africa.

<ul><li>Our updated estimates include the impact of the Svenska acquisition, which closed on April 30, 2024, and was included in management’s latest guidance update following the release of 1Q24 financial and operating results.</li><li>The acquisition added a 27.39% non- operated working interest in the CI-40 license located offshore Côte d’Ivoire.</li><li>On May 7, 2024, management increased the midpoint of FY24 working interest (WI) production guidance to ~25.0 MBOE/d from 22.1 MBOE/d.</li></ul>

Our updated estimates include the impact of the Svenska acquisition, which closed on April 30, 2024, and was included in management’s latest guidance update following the release of 1Q24 financial and operating results.The acquisition added a 27.39% non- operated working interest in the CI-40 license located offshore Côte d’Ivoire.On May 7, 2024, management increased the midpoint of FY24 working interest (WI) production guidance to ~25.0 MBOE/d from 22.1 MBOE/d.

VAALCO Energy, Inc. - Estimate Update Including Cote D'Ivoire Contribution

Talos Energy Inc. operates as an oil and gas company. The Company engages in exploration, development, and production of oil and natural gas properties. Talos Energy serves customers worldwide.

<ul><li>We are updating our estimates to reflect actual 2Q24 NYMEX reference prices of $80.66/bbl for oil and $2.32/MMBtu for natural gas.</li><li>We have also increased our 2Q24 lease operating cost estimate to reflect workover activity and bumped our DD&amp;A estimate.</li><li>Talos’s latest guidance and our updated estimates are outlined in Figures 1 – 4.</li></ul>

We are updating our estimates to reflect actual 2Q24 NYMEX reference prices of $80.66/bbl for oil and $2.32/MMBtu for natural gas.We have also increased our 2Q24 lease operating cost estimate to reflect workover activity and bumped our DD&amp;A estimate.Talos’s latest guidance and our updated estimates are outlined in Figures 1 – 4.

Talos Energy Inc. - Estimate Update/Stepping Up to the Plate

Aspira Women's Health Inc. operates as a biotech company. The Company develops and discovers testing and treatments for gynecologic issues. Aspira Women's Health serves customers in the State of Texas.

<ul><li>OvaWatch mass monitoring completes OvaSuite portfolio.</li><li>With the recent launch of longitudinal or serial adnexal mass monitoring for OvaWatch, physicians and patients could assess ongoing malignancy risk for all women with a mass.</li><li>Collaboration opportunities for biobank. Aspira completed a full inventory of its biobank, identifying about 70K patient samples, which would be available for secondary research and potential collaboration opportunities. The biobank is a significant competitive advantage in developing solutions for ovarian cancer and other gynecologic diseases.</li></ul>

OvaWatch mass monitoring completes OvaSuite portfolio.With the recent launch of longitudinal or serial adnexal mass monitoring for OvaWatch, physicians and patients could assess ongoing malignancy risk for all women with a mass.Collaboration opportunities for biobank. Aspira completed a full inventory of its biobank, identifying about 70K patient samples, which would be available for secondary research and potential collaboration opportunities. The biobank is a significant competitive advantage in developing solutions for ovarian cancer and other gynecologic diseases.

Aspira Women's Health, Inc. - Water Tower Hour Recap

Enovix Corporation provides electronic components. The Company focuses on development and production of advanced silicon-anode lithium-ion batteries. Enovix serves customers worldwide.

<ul><li>The WTR Sustainable Index was up 7.0% W/W versus the S&amp;P 500 Index (up 0.9%), the Russell 2000 Index (up 6.0%), and the Nasdaq Index (down 0.3%).</li><li>Energy Technology (15.1% of the index) was up 15.5%, while Industrial Climate and Ag Technology (58.5% of the index) was up 4.7%, ClimateTech Mining was down 3.4% and Advanced Transportation Solutions (21.2% of index) was up 9.0%.</li><li>Top 10 Performers: ARVL, ZAPP, NAAS, VMC, PEGY, QS, <span style="font-size: var(--content-font-size);">LCID, OUST, EVGO, COMM</span></li></ul>

The WTR Sustainable Index was up 7.0% W/W versus the S&amp;P 500 Index (up 0.9%), the Russell 2000 Index (up 6.0%), and the Nasdaq Index (down 0.3%).Energy Technology (15.1% of the index) was up 15.5%, while Industrial Climate and Ag Technology (58.5% of the index) was up 4.7%, ClimateTech Mining was down 3.4% and Advanced Transportation Solutions (21.2% of index) was up 9.0%.Top 10 Performers: ARVL, ZAPP, NAAS, VMC, PEGY, QS, LCID, OUST, EVGO, COMM

Sustainable Investing Surveyor - Focus on Enovix Corporation (ENVX)

W&T Offshore, Inc. is an independent oil and natural gas company focused primarily on the Gulf of Mexico area in the United States.

<ul><li>We are updating our 2Q24 estimates to reflect actual oil and natural gas prices.</li><li>Our reference oil price averaged $80.66 during 2Q24, and our reference natural gas price averaged $2.33/MMBtu.</li><li>For 2Q24, we estimate total revenue of $139.1 million based on estimated average production of ~35.0 MBOE/d, including ~14.1 MB/d of oil. </li></ul>

We are updating our 2Q24 estimates to reflect actual oil and natural gas prices.Our reference oil price averaged $80.66 during 2Q24, and our reference natural gas price averaged $2.33/MMBtu.For 2Q24, we estimate total revenue of $139.1 million based on estimated average production of ~35.0 MBOE/d, including ~14.1 MB/d of oil. 