Vital Energy Q4 2024 Earnings Report
Key Takeaways
Vital Energy reported a net loss of $359.4 million, but achieved Adjusted Net Income of $86.5 million. The company produced a record 147.8 thousand barrels of oil equivalent per day and oil production of 69.8 thousand barrels of oil per day. They also successfully integrated Point Energy assets and are focused on cost reduction and debt repayment in 2025.
Successfully integrated Point Energy assets, exceeding production expectations and achieving operating cost reductions.
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 a Company-record 147.8 thousand barrels of oil equivalent per day and oil production of 69.8 thousand barrels of oil per day.
Vital Energy
Vital Energy
Vital Energy Revenue by Segment
Forward Guidance
Vital Energy plans to invest $825 - $925 million in 2025, excluding non-budgeted acquisitions and leasehold expenditures, and expects total production of 134.0 - 140.0 MBOE/d and oil production of 62.5 - 66.5 MBO/d. The Company expects to generate approximately $330 million of Adjusted Free Cash Flow at $70 per barrel WTI.
Positive Outlook
- Efficiencies and lower costs are driving capital investments approximately 3% lower than earlier projections while expecting to complete approximately the same net lateral feet as in 2024.
- The Company has made significant progress reducing operating expenses through integration of its Point Energy assets.
- Average LOE for the two quarters is expected to be around $9.20 per BOE, putting the Company on pace to achieve LOE below $9.00 per BOE by the end of 2025.
- Vital Energy had approximately 925 locations with an average breakeven WTI oil price of around $50 WTI.
- Approximately 400 of these locations breakeven below $50 per barrel WTI.
Challenges Ahead
- Vital Energy's 2025 outlook has lower capital investment levels and slightly lower oil production.
- Production is approximately 3% lower than earlier projections.
- The shortfall is related to operational delays and the underperformance of a seven-well development package in Upton County.
- Some workover expense was deferred from fourth-quarter 2024 into the first quarter of 2025.
- General risks relating to Vital Energy include, but are not limited to, continuing and worsening inflationary pressures and associated changes in monetary policy that may cause costs to rise; changes in domestic and global production, supply and demand for commodities