Vital Energy (VTLE) Q3 Results - Nov 7
Posted: Thu Nov 07, 2024 9:58 am
Q3 Highlights
Closed the Point Energy acquisition for total cash consideration of $815 million, exclusive of transaction- related expenses and post-closing adjustments
Reported net income of $215.3 million, Adjusted Net Income of $60.4 million < Beat my forecast of $44.8 million Adjusted Net Income.
and cash flows from operating activities of $246.2 million < Beat my forecast.
Generated Consolidated EBITDAX of $309.5 million and Adjusted Free Cash Flow of $34.0 million
Reduced lease operating expense ("LOE") to $8.78 per BOE, below guidance of $8.95 per BOE
Produced Company-record 133.3 thousand barrels of oil equivalent per day ("MBOE/d") and oil production of 59.2 thousand barrels of oil per day ("MBO/d") < Q3 production beat my forecast of 125,000 Boepd with 56,875 bbls of oil per day.
Reported capital investments of $241.9 million, excluding non-budgeted acquisitions and leasehold expenditures
Increased 2025 oil hedges to approximately 16.1 million barrels at $74.79 per barrel NYMEX WTI
Reduced methane intensity by 90% from 2019 baseline, as of YE-23
"We delivered strong results as we closed the largest single acquisition in our history and continued to optimize operations on acquisitions closed late last year," stated Jason Pigott, President and Chief Executive Officer. "Higher production from both standalone Vital Energy assets and the assets acquired from Point Energy, operating cost reductions and disciplined capital investments drove strong Adjusted Free Cash Flow in the quarter. Today, we raised our fourth quarter expectations for both total and oil production. Importantly, we plan to deliver this higher production without increasing capital investments."
"Our operational momentum will carry us into 2025," continued Mr. Pigott. "We have increased flexibility to allocate capital to our highest return projects, which will enhance our capital efficiencies. We expect to invest about $900 million in 2025 and maintain oil production of approximately 66,500 barrels per day. We believe that sustainable development efficiencies will benefit Adjusted Free Cash Flow and allow us to maintain a leverage ratio of about 1.5x through year-end 2025."
I will be updating my forecast/valuation model for VTLE this afternoon.
Closed the Point Energy acquisition for total cash consideration of $815 million, exclusive of transaction- related expenses and post-closing adjustments
Reported net income of $215.3 million, Adjusted Net Income of $60.4 million < Beat my forecast of $44.8 million Adjusted Net Income.
and cash flows from operating activities of $246.2 million < Beat my forecast.
Generated Consolidated EBITDAX of $309.5 million and Adjusted Free Cash Flow of $34.0 million
Reduced lease operating expense ("LOE") to $8.78 per BOE, below guidance of $8.95 per BOE
Produced Company-record 133.3 thousand barrels of oil equivalent per day ("MBOE/d") and oil production of 59.2 thousand barrels of oil per day ("MBO/d") < Q3 production beat my forecast of 125,000 Boepd with 56,875 bbls of oil per day.
Reported capital investments of $241.9 million, excluding non-budgeted acquisitions and leasehold expenditures
Increased 2025 oil hedges to approximately 16.1 million barrels at $74.79 per barrel NYMEX WTI
Reduced methane intensity by 90% from 2019 baseline, as of YE-23
"We delivered strong results as we closed the largest single acquisition in our history and continued to optimize operations on acquisitions closed late last year," stated Jason Pigott, President and Chief Executive Officer. "Higher production from both standalone Vital Energy assets and the assets acquired from Point Energy, operating cost reductions and disciplined capital investments drove strong Adjusted Free Cash Flow in the quarter. Today, we raised our fourth quarter expectations for both total and oil production. Importantly, we plan to deliver this higher production without increasing capital investments."
"Our operational momentum will carry us into 2025," continued Mr. Pigott. "We have increased flexibility to allocate capital to our highest return projects, which will enhance our capital efficiencies. We expect to invest about $900 million in 2025 and maintain oil production of approximately 66,500 barrels per day. We believe that sustainable development efficiencies will benefit Adjusted Free Cash Flow and allow us to maintain a leverage ratio of about 1.5x through year-end 2025."
I will be updating my forecast/valuation model for VTLE this afternoon.