Vital Energy Q4 2022 Earnings Report
Key Takeaways
Vital Energy announced its fourth-quarter 2022 financial results, reporting a net income of $118.2 million and $191.1 million in Consolidated EBITDAX. The company's oil and total production averaged 35,887 BO/d and 77,947 BOE/d, respectively, exceeding guidance. Capital expenditures were $130 million, below guidance, and the company repurchased $37.3 million of common stock.
Reported net income of $118.2 million and Consolidated EBITDAX of $191.1 million.
Oil and total production exceeded guidance at 35,887 BO/d and 77,947 BOE/d, respectively.
Capital expenditures were $130 million, below guidance due to moderating inflationary pressures.
Repurchased $37.3 million of common stock at an average price of $76.02 per share.
Vital Energy
Vital Energy
Vital Energy Revenue by Segment
Forward Guidance
Vital Energy plans to invest $625 - $675 million in 2023, maintaining relatively flat year-over-year activity levels. The Company expects full-year 2023 oil production of 34.0 - 37.0 MBO/d and total production of 72.0 - 76.0 MBOE/d.
Positive Outlook
- Capital investments are planned between $625 - $675 million in 2023.
- Company expects to operate two drilling rigs and one completions crew for the majority of 2023.
- Capital plan focuses primarily on high-return projects in Howard County.
- Expects to turn-in-line approximately 55 development wells in Howard County.
- Oil production is expected to be 34.0 - 37.0 MBO/d for full-year 2023.
Challenges Ahead
- Estimated cost inflation of approximately 15% over 2022 averages.
- Production guidance does not include volumes associated with the recently announced acquisition.
- The Company plans to update FY-23 guidance post-closing of the acquisition.
- 2023 average oil production is relatively flat with fourth-quarter 2022 levels.
- No increase in prior-year activity levels is planned.
Revenue & Expenses
Visualization of income flow from segment revenue to net income