Vital Energy Q2 2024 Earnings Report
Key Takeaways
Vital Energy reported record quarterly total and oil production, with 129.4 MBOE/d and 59.2 MBO/d, respectively. Net income was $36.7 million, and Adjusted Free Cash Flow was $44.7 million. The company also increased its full-year 2024 total and oil production forecast and increased estimated sub-$50 WTI breakeven locations by ~45%.
Delivered Company-record quarterly total and oil production, producing 129.4 thousand barrels of oil equivalent per day and 59.2 thousand barrels of oil per day, respectively.
Reported net income of $36.7 million, Adjusted Net Income of $55.0 million and cash flows from operating activities of $338.4 million.
Generated Consolidated EBITDAX of $290.4 million and Adjusted Free Cash Flow of $44.7 million.
Announced the acquisition of the assets of Point Energy Partners in July, which is expected to add approximately 15.5 MBOE/d of production and 68 gross oil-weighted locations at closing.
Vital Energy
Vital Energy
Vital Energy Revenue by Segment
Forward Guidance
The Company increased its full-year 2024 total production guidance to 127.0 - 131.0 MBOE/d and oil production was raised to 59.0 - 61.0 MBO/d, including volumes in the fourth quarter associated with the Point acquisition. Full-year 2024 capital investments guidance was adjusted to $820 - $870 million, including capital in the fourth quarter associated with the Point acquisition. LOE for the second half of 2024 is expected to average approximately $9.15 per BOE.
Positive Outlook
- Full-year 2024 total production guidance increased to 127.0 - 131.0 MBOE/d.
- Full-year 2024 oil production raised to 59.0 - 61.0 MBO/d.
- Includes volumes in the fourth quarter associated with the Point acquisition.
- Full-year 2024 capital investments guidance adjusted to $820 - $870 million.
- Includes capital in the fourth quarter associated with the Point acquisition.
Challenges Ahead
- LOE for the second half of 2024 is expected to average approximately $9.15 per BOE.
- Third quarter LOE expected to be approximately $8.95 per BOE.
- LOE in the fourth quarter is expected to be approximately $9.35 per BOE, including operating expenses associated with the Point acquisition.
- Higher-than-expected workover activity on recently acquired acreage is offsetting recent reductions in water handling and chemical treating.
- No other specific negative guidance details provided.