Vital Energy (VTLE) Q4 Results - Feb 21

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dan_s
Posts: 34470
Joined: Fri Apr 23, 2010 8:22 am

Vital Energy (VTLE) Q4 Results - Feb 21

Post by dan_s »

Q4 results were strong and very close to my forecast, but production guidance for 2023 a bit less than I expected. I will update my forecast/valuation model tomorrow morning. My valuation should be close to $120/share since detailed guidance for 2023 increases my confidence in the model and therefore justifies a higher multiple of operating cash flow.
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TULSA, OK, Feb. 21, 2023 (GLOBE NEWSWIRE) -- Vital Energy, Inc. (NYSE: VTLE) ("Vital Energy" or the "Company") today announced its fourth-quarter 2022 financial and operating results and provided its 2023 outlook. Supplemental slides have been posted to the Company's website and can be found at www.vitalenergy.com. A conference call and webcast to discuss the results is planned for 7:30 a.m. CT, Wednesday, February 22, 2023. Complete details can be found within this release.

Financial Highlights

Reported 4Q-22 and Company-record FY-22 net income of $118.2 million and $631.5 million, respectively

Reported 4Q-22 and Company-record FY-22 cash flows from operating activities of $108.9 million and $829.6 million, respectively

Generated 4Q-22 and Company-record FY-22 Consolidated EBITDAX1 of $191.1 million and $913.5 million, respectively

Generated 4Q-22 and Company-record FY-22 Free Cash Flow1 of $36.5 million and $219.9 million, respectively

Divested certain non-operated properties for ~$110 million

Repurchased $284.8 million face value of term-debt at 99.3% of par value during FY-22

Repurchased $37.3 million of common stock at an average price of $76.02 per share during FY-22

Reduced Net Debt1/Consolidated EBITDAX1 ratio to 1.18x from 2.14x at year-end 2021

Operational Highlights

Produced 35.9 thousand barrels of oil per day ("MBO/d") and 77.9 thousand barrels of oil equivalent per day ("MBOE/d") in 4Q-22, both above the high-end of guidance

Incurred capital expenditures of $130 million, excluding non-budgeted acquisitions and leasehold expenditures, in 4Q-22, below guidance range

Grew 2022 oil production 19% over prior year, primarily related to the acquisition and development of oil-weighted properties

Maintained approximately eight years of oil-weighted inventory at current activity levels, organically adding locations in Glasscock County
Dan Steffens
Energy Prospectus Group
ChuckGeb
Posts: 945
Joined: Thu Nov 21, 2013 2:46 pm

Re: Vital Energy (VTLE) Q4 Results - Feb 21

Post by ChuckGeb »

Bought back $37.3 million of their thinly traded stock for $76.02 per share. Now trades at $47.22. Might as well send some funds to Ukraine! Good to see their stellar Climate Risk Report!
dan_s
Posts: 34470
Joined: Fri Apr 23, 2010 8:22 am

Re: Vital Energy (VTLE) Q4 Results - Feb 21

Post by dan_s »

Fourth-Quarter 2022 Financial and Operations Summary

Financial Results. The Company reported net income attributable to common stockholders of $118.2 million, or $7.13 per diluted share. Adjusted Net Income was $57.8 million, or $3.49 per adjusted diluted share. Consolidated EBITDAX was $191.1 million. < Adjusted Net Income compares to my forecast of $61.1 million, or $3.61 per share.

Production. Consistent with preliminary volumes disclosed in early January, Vital Energy's oil and total production during the period averaged 35,887 BO/d and 77,947 BOE/d, respectively. Both oil and total production in fourth-quarter 2022 were above the top-end of Company guidance, driven by outperformance from its base production and the productivity of new wells, as well as less than expected downtime related to offset-operator completions. < Compares to my forecast of 35,500 bpd of oil and 77,500 Boepd.

Capital Investments. Total incurred capital expenditures were $130 million, excluding non-budgeted acquisitions and leasehold expenditures, below the low-end of guidance as inflationary pressures moderated. Investments included $112 million in drilling and completions, $6 million in infrastructure, including Vital Midstream Services investments, $7 million in other capitalized costs and $5 million in land, exploration and data related costs. Non-budgeted acquisitions and leasehold expenditures (including surface land) totaled $2 million. Vital Energy completed and turned-in-line ("TIL") 13 wells during fourth-quarter 2022.

Operating Expenses. Lease operating expenses ("LOE") during the period were $6.53 per BOE, in line with guidance. < Compares to my LOE forecast of $6.50/boe.

General and Administrative Expenses. General and administrative ("G&A") expenses, excluding long-term incentive plan ("LTIP") expenses, for fourth-quarter 2022 were $2.20 per BOE. Cash and non-cash LTIP expenses were $(0.04) per BOE and $0.25 per BOE, respectively. Cash LTIP expense was below guidance due to the stock price decline in fourth-quarter 2022.

Liquidity. At December 31, 2022, the Company had $70 million drawn on its $1.0 billion senior secured credit facility and cash and cash equivalents of $44 million. At February 17, 2023, the Company had $135 million drawn on its senior secured credit facility and cash and cash equivalents of $16 million. < This is a big deal. VTLE is free cash flow positive and they has no liquidity problems.
Dan Steffens
Energy Prospectus Group
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