Vital Energy (VTLE) Update - April 11
Posted: Tue Apr 11, 2023 2:08 pm
Vital Energy Provides Select Preliminary First-Quarter 2023 Results and Increases Expectations for Full-Year 2023 Production
Vital Energy, Inc.
Mon, April 10, 2023 at 5:45 AM CDT
First-quarter 2023 production exceeds high-end of guidance
Capital investments for first-quarter 2023 below guidance expectations
Company provides first-quarter 2023 earnings and conference call details
TULSA, OK, April 10, 2023 (GLOBE NEWSWIRE) -- Vital Energy, Inc. (NYSE: VTLE) ("Vital Energy" or the "Company") today provided an update on first-quarter 2023 expected average production and incurred capital investments. As a result of strong performance in the first quarter and closing of the Driftwood Energy Operation, LLC ("Driftwood") acquisition, Vital Energy updated its expectations for full-year 2023 production. The Company also scheduled its first-quarter 2023 earnings release and conference call with details provided within this release.
First-Quarter 2023 Preliminary Production and Capital Expenditure Results
Production. The Company’s first-quarter 2023 total production averaged ~80.2 thousand barrels of oil equivalent per day ("MBOE/d"), above guidance of 72.5 - 76.5 MBOE/d. Oil production for the quarter averaged ~38.3 thousand barrels of oil per day ("MBO/d"), above guidance of 33.0 - 36.0 MBO/d. Production outperformance was primarily related to earlier than expected production from new completions, less than expected production downtime related to offset completions activity and improved uptime of wells and production facilities from field-level process improvements.
Capital Investments. Total incurred capital expenditures during the first quarter were ~$200 million, excluding non-budgeted acquisitions and leasehold expenditures, below guidance of $210 - $230 million. Lower than expected investment levels were related to moderating inflationary pressures and a one-week deferral of completions in February related to severe weather.
Driftwood Acquisition Closed
On April 3, 2023, Vital Energy closed its previously announced transaction to acquire the assets (inclusive of derivative positions) of Driftwood for aggregate consideration, after closing price adjustments, of $120.4 million in cash and 1,578,948 shares of Vital Energy common stock.
Updated Full-Year 2023 Production Guidance is now 76 to 80 MBoepd, which looks extremely conservative to me.
First-Quarter 2023 Earnings Release and Conference Call Details
Vital Energy plans to report complete first-quarter 2023 financial and operating results after market close on Tuesday, May 9, 2023, and host a conference call and webcast at 7:30 a.m. CT on Wednesday, May 10, 2023.
To participate in the call, dial 800.715.9871, using conference code 1077806 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.
Vital Energy, Inc.
Mon, April 10, 2023 at 5:45 AM CDT
First-quarter 2023 production exceeds high-end of guidance
Capital investments for first-quarter 2023 below guidance expectations
Company provides first-quarter 2023 earnings and conference call details
TULSA, OK, April 10, 2023 (GLOBE NEWSWIRE) -- Vital Energy, Inc. (NYSE: VTLE) ("Vital Energy" or the "Company") today provided an update on first-quarter 2023 expected average production and incurred capital investments. As a result of strong performance in the first quarter and closing of the Driftwood Energy Operation, LLC ("Driftwood") acquisition, Vital Energy updated its expectations for full-year 2023 production. The Company also scheduled its first-quarter 2023 earnings release and conference call with details provided within this release.
First-Quarter 2023 Preliminary Production and Capital Expenditure Results
Production. The Company’s first-quarter 2023 total production averaged ~80.2 thousand barrels of oil equivalent per day ("MBOE/d"), above guidance of 72.5 - 76.5 MBOE/d. Oil production for the quarter averaged ~38.3 thousand barrels of oil per day ("MBO/d"), above guidance of 33.0 - 36.0 MBO/d. Production outperformance was primarily related to earlier than expected production from new completions, less than expected production downtime related to offset completions activity and improved uptime of wells and production facilities from field-level process improvements.
Capital Investments. Total incurred capital expenditures during the first quarter were ~$200 million, excluding non-budgeted acquisitions and leasehold expenditures, below guidance of $210 - $230 million. Lower than expected investment levels were related to moderating inflationary pressures and a one-week deferral of completions in February related to severe weather.
Driftwood Acquisition Closed
On April 3, 2023, Vital Energy closed its previously announced transaction to acquire the assets (inclusive of derivative positions) of Driftwood for aggregate consideration, after closing price adjustments, of $120.4 million in cash and 1,578,948 shares of Vital Energy common stock.
Updated Full-Year 2023 Production Guidance is now 76 to 80 MBoepd, which looks extremely conservative to me.
First-Quarter 2023 Earnings Release and Conference Call Details
Vital Energy plans to report complete first-quarter 2023 financial and operating results after market close on Tuesday, May 9, 2023, and host a conference call and webcast at 7:30 a.m. CT on Wednesday, May 10, 2023.
To participate in the call, dial 800.715.9871, using conference code 1077806 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.