Vital Energy (VTLE) Update - Oct 13

[dan_s]

Vital Energy, Inc.

Total and oil production exceed outlook with capital investments below low end of guidance

Company provides third-quarter 2023 earnings and conference call details

TULSA, OK, Oct. 11, 2023 (GLOBE NEWSWIRE) -- Vital Energy, Inc. (NYSE: VTLE) ("Vital Energy" or the "Company") today provided select preliminary results for third-quarter 2023, including average daily total and oil production and incurred capital investments. Details for the Company’s third-quarter 2023 earnings release and conference call are provided within this release.

Third-Quarter 2023 Preliminary Production and Capital Expenditures

Production. The Company’s third-quarter 2023 total production averaged approximately 101.3 thousand barrels of oil equivalent per day ("MBOE/d"), above guidance of 94.0 - 98.0 MBOE/d. Oil production for the quarter averaged approximately 48.7 thousand barrels of oil per day ("MBO/d"), above guidance of 45.5 - 48.5 MBO/d. Production results were primarily driven by outperformance of recently turned-in-line wells on the Driftwood and Forge acquisitions and in Howard County. < This is a SIGNIFICANT BEAT of my Q3 production forecast of 94,000 Boepd with oil production of 46,500 BOPD.

Capital Investments. Total incurred capital expenditures during third-quarter 2023 were approximately $162 million, excluding non-budgeted acquisitions and leasehold expenditures, below the low end of guidance of $165 - $180 million. < Also bullish, as it compares to my updated Adjusted Operating Cash Flow forecast of $230.4 million, so Vital should be reporting free cash flow for Q3 of approximately $68 million.

Third-Quarter 2023 Average Shares Outstanding

For the three months ended September 30, 2023, diluted weighted-average shares outstanding was approximately 18.6 million. Total shares of common stock outstanding on September 30, 2023 was 21.8 million.

Share counts include the issuance of 2.75 million shares of common stock in a public offering on September 19, 2023 and subsequent issuance of 412,500 shares of common stock upon the exercise of the underwriters’ 30-day purchase option. Share counts exclude 0.9 million shares of common stock and 0.9 million shares of preferred stock issued into escrow accounts pursuant to the purchase and sale agreements entered into on September 13, 2023. < After Vital closes three more Delaware Basin acquisitions in Q4, total outstanding shares should be ~32,000 million at 12/31/2023. Using a combination of stock + cash to close significant acquisitions is a "Good Thing" because it keeps the balance sheet "in balance".
We do not want small-caps funding aggressive growth entirely with debt.

Third-Quarter 2023 Earnings Release and Conference Call Details

Vital Energy plans to report complete third-quarter 2023 financial and operating results after market close on Thursday, November 2, 2023, and host a conference call and webcast at 7:30 a.m. CT on Friday, November 3, 2023.

To participate in the call, dial 800.715.9871, using conference code 9523356 or listen to the call via the Company's website at www.vitalenergy.com, "Investor Relations | News & Presentations | Upcoming Events." A replay will be available following the call via the Company’s website.

About Vital Energy

Vital Energy, Inc. is an independent energy company with headquarters in Tulsa, Oklahoma. Vital's business strategy is focused on the acquisition, exploration and development of oil and natural gas properties in the Permian Basin of West Texas.

[dan_s]

My updated forecast/valuation model for VTLE will be posted to the EPG website later today.