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Mar 31
Vital Energy Q1 2025 Earnings Report
Vital Energy reported its financial and operating results for the first quarter of 2025.
Key Takeaways
Vital Energy reported a net loss of $18.8 million in the first quarter of 2025, primarily due to an impairment charge. However, the company achieved Adjusted Net Income of $89.5 million and generated strong cash flow from operating activities ($351.0 million) and Adjusted Free Cash Flow ($64.5 million). Production volumes were within guidance, and the company made progress on debt reduction.
Reduced total debt and Net Debt by $145.0 million and $133.5 million, respectively, through free cash flow, working capital changes, and asset sales.
Reported a net loss of $18.8 million but Adjusted Net Income of $89.5 million.
Generated cash flow from operating activities of $351.0 million and Adjusted Free Cash Flow of $64.5 million.
Achieved average daily production of 140.2 thousand BOE/d and oil production of 64.9 thousand BO/d, within guidance.
Vital Energy
Vital Energy
Vital Energy Revenue by Segment
Revenue by Segment
Oil Sales Revenue
CapyFin.comNGL Sales Revenue
CapyFin.comNatural Gas Sales Revenue
CapyFin.comOther Operating Revenues Revenue
CapyFin.com Forward Guidance
Vital Energy reaffirmed its full-year 2025 capital investment and production outlook, expecting to generate approximately $265 million of Adjusted Free Cash Flow at current oil prices and reduce Net Debt by around $300 million.
Positive Outlook
- Reaffirmed full-year capital investment and production outlook.
- Expects to generate approximately $265 million of Adjusted Free Cash Flow for the full year.
- Targets approximately $300 million Net Debt reduction for the full year.
- Holds a significant hedge position (~90% of expected oil production swapped at ~$71 WTI) reducing near-term price risk.
- Maintains significant flexibility to adjust development plans based on market conditions.
Challenges Ahead
- Borrowing base under the senior secured credit facility was reduced by $100 million to $1.4 billion.
- Outlook is based on current oil prices (~$59 WTI), which are subject to market volatility.
- Company is closely monitoring commodity prices and service costs.
- Development plans may be adjusted downwards if market conditions deteriorate.
- Second quarter total production guidance (133.0 - 139.0 MBOE/d) is slightly below actual Q1 production (140.2 MBOE/d).
Revenue & Expenses
Visualization of income flow from segment revenue to net income