On August 7, 2024, Vital Energy (VTLE, Financial) released its 8-K filing detailing its second-quarter 2024 financial and operating results. Vital Energy, an independent energy company focused on the acquisition, exploration, and development of oil and natural gas properties in the Permian Basin of West Texas, reported significant achievements and challenges in this period.
Performance Overview
Vital Energy reported a net income of $36.7 million, or $0.98 per diluted share, falling short of the analyst estimate of $2.35 per share. However, the company fell short of revenue expectations, reporting $476.37 million against the estimated $482.37 million. The company achieved record quarterly production, with total production averaging 129.4 thousand barrels of oil equivalent per day (MBOE/d) and oil production averaging 59.2 thousand barrels of oil per day (MBO/d).
Financial Achievements
Vital Energy's financial highlights for Q2 2024 include:
- Capital investments of $210.0 million, excluding non-budgeted acquisitions and leasehold expenditures.
- Adjusted Net Income of $55.0 million, or $1.46 per adjusted diluted share.
- Cash flows from operating activities of $338.4 million.
- Consolidated EBITDAX of $290.4 million.
- Adjusted Free Cash Flow of $44.7 million.
Operational Highlights
Vital Energy successfully executed three horseshoe wells in Upton County and added approximately 120 long-lateral horseshoe wells to its development inventory. The company also announced the acquisition of Point Energy Partners' assets, expected to add approximately 15.5 MBOE/d of production and 68 gross oil-weighted locations at closing.
Income Statement Highlights
| Metric | Q2 2024 | Q2 2023 |
|---|---|---|
| Oil Sales | $441.67 million | $299.09 million |
| NGL Sales | $39.87 million | $25.89 million |
| Natural Gas Sales | -$5.37 million | $8.95 million |
| Total Revenues | $476.37 million | $335.06 million |
| Net Income | $36.7 million | $294.81 million |
Balance Sheet and Cash Flow
As of June 30, 2024, Vital Energy had $56 million in cash and cash equivalents and $90 million drawn on its $1.35 billion senior secured credit facility. The company reported total assets of $5.26 billion and total liabilities of $2.43 billion.
Operational Expenses
Lease operating expenses (LOE) for the quarter were $9.66 per BOE, driven by workover activity, chemical treating, and water expenses on properties acquired in late 2023. General and administrative expenses were $2.00 per BOE, with cash LTIP expenses at $0.03 per BOE and non-cash LTIP expenses at $0.30 per BOE.
Outlook and Guidance
Vital Energy raised its full-year 2024 total production guidance to 127.0 - 131.0 MBOE/d and oil production guidance to 59.0 - 61.0 MBO/d. The company also adjusted its capital investments guidance to $820 - $870 million for the year.
"Our team continues to deliver strong results as our optimized development strategy enhances well productivity on acquired properties," stated Jason Pigott, President and Chief Executive Officer. "In addition to achieving record quarterly production, we are organically adding low-breakeven inventory locations across our leasehold as we successfully implement the technology to drill long-lateral horseshoe wells."
For more detailed information, please refer to the full 8-K filing.
Explore the complete 8-K earnings release (here) from Vital Energy for further details.
