Vital Energy Q1 2021 Earnings Report
Key Takeaways
Laredo Petroleum reported a net loss of $75.4 million, but generated $71 million in cash flows from operating activities and $22 million in free cash flow. The company reduced net debt by $30 million and increased oil production by 11% compared to the previous quarter, despite weather-related disruptions.
Generated $71 million of cash flows from operating activities and $22 million of Free Cash Flow.
Sold 723,579 shares at an average price of $38.75 for net proceeds of $26.9 million through the Company's at-the-market equity program.
Reduced Net Debt by $30 million during the quarter.
Produced an average of 24,261 barrels of oil per day, an increase of 11% from fourth-quarter 2020.
Vital Energy
Vital Energy
Vital Energy Revenue by Segment
Forward Guidance
Laredo Petroleum expects oil production growth of 9% - 13% versus first-quarter 2021. Total production is expected to be 83.0 - 86.0 MBOE per day and oil production is expected to be 26.5 - 27.5 MBOPD.
Positive Outlook
- Oil production in the second quarter of 2021 is expected to be positively impacted by production from the 12-well Trentino/Whitmire package in Howard County.
- Expected 9% - 13% oil production growth versus first-quarter 2021.
- Currently operating two drilling rigs and one completions crew in Howard County.
- Expected to complete the 13-well Davis package during the second quarter of 2021.
- Widened development spacing in the Wolfcamp formation to further enhance the capital efficiency of the Company's Howard County development program.
Challenges Ahead
- Net income (expense) of purchased oil ($4.3 MM)
- Lease operating expenses ($/BOE) $2.85
- Production and ad valorem taxes (% of oil, NGL and natural gas sales revenues) 7.00%
- Transportation and marketing expenses ($/BOE) $1.55
- General and administrative expenses (excluding LTIP, $/BOE) $1.50
Revenue & Expenses
Visualization of income flow from segment revenue to net income