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Dec 31, 2024
Vital Energy Q4 2024 Earnings Report
Vital Energy reported its fourth-quarter and full-year 2024 financial and operating results, achieving record total and oil production for the quarter and updating its development inventory to over 11 years of oil-weighted locations.
Key Takeaways
Vital Energy reported a net loss of $359.4 million for Q4 2024, with an Adjusted Net Income of $86.5 million. The company achieved record total production of 147.8 MBOE/d and oil production of 69.8 MBO/d, exceeding guidance. Lease operating expenses were below guidance, and the company successfully integrated Point Energy assets.
Successfully integrated Point Energy assets, with acquired production exceeding expectations and operating cost reductions in-line with expectations.
Reported a net loss of $359.4 million, Adjusted Net Income of $86.5 million, and cash flows from operating activities of $257.2 million.
Generated Consolidated EBITDAX of $383.5 million and Adjusted Free Cash Flow of $110.8 million.
Produced Company-record 147.8 thousand barrels of oil equivalent per day (MBOE/d) and oil production of 69.8 thousand barrels of oil per day (MBO/d).
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's 2025 development plan aims to maximize cash flow for debt repayment, supported by a robust hedge position, with lower capital investment levels and slightly lower oil production compared to earlier projections.
Positive Outlook
- Expected to generate approximately $330 million of Adjusted Free Cash Flow at $70 per barrel WTI.
- Capital investments are projected to be approximately 3% lower than earlier projections due to efficiencies and lower costs.
- Company expects to complete approximately the same net lateral feet as in 2024.
- Average LOE for Q1 and Q2 2025 is expected to be around $9.20 per BOE, with a target to achieve LOE below $9.00 per BOE by the end of 2025.
- Increased oil-weighted inventory to ~925 locations, with ~400 breaking even below $50 per barrel WTI.
Challenges Ahead
- Total production is expected to be 134.0 - 140.0 MBOE/d, approximately 3% lower than earlier projections.
- Oil production is expected to be 62.5 - 66.5 MBO/d, approximately 3% lower than earlier projections.
- The shortfall in production is related to operational delays and the underperformance of a seven-well development package in Upton County.
- Some workover expense was deferred from Q4 2024 into Q1 2025, impacting LOE in the near term.
- Capital investments are planned to be $825 - $925 million, excluding non-budgeted acquisitions and leasehold expenditures.
Revenue & Expenses
Visualization of income flow from segment revenue to net income