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Mar 31, 2025
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.
Revenue by Segment
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.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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