Vital Energy reported record second-quarter 2024 production with 129.4 MBOE/d and 59.2 MBO/d in oil. The company achieved a net income of $36.7 million and increased its full-year 2024 production guidance to 127.0 – 131.0 MBOE/d. Vital Energy also announced the acquisition of Point Energy Partners’ assets, adding significant production and oil-weighted locations to its portfolio.
Here is a summary of Vital Energy’s second-quarter 2024 financial and operating results based on the provided document:
Key Highlights
- Production Records:
- Total production: 129.4 thousand barrels of oil equivalent per day (MBOE/d)
- Oil production: 59.2 thousand barrels of oil per day (MBO/d)
- Financial Performance:
- Net income: $36.7 million
- Adjusted net income: $55.0 million
- Cash flows from operating activities: $338.4 million
- Consolidated EBITDAX: $290.4 million
- Adjusted free cash flow: $44.7 million
- Capital Investments:
- Total capital investments: $210 million (excluding non-budgeted acquisitions and leasehold expenditures)
- Investments include drilling and completions ($171 million), infrastructure ($27 million), and other costs.
- Operational Highlights:
- Executed three horseshoe wells in Upton County.
- Added approximately 120 long-lateral horseshoe wells to the development inventory.
- Eliminated 84 short-lateral locations.
- Acquisitions:
- Announced acquisition of Point Energy Partners’ assets, expected to add 15.5 MBOE/d production and 68 oil-weighted locations.
- Increased 2025 oil hedges to 15.4 million barrels at approximately $75 per barrel WTI.
- Cost Management:
- Lease operating expenses (LOE): $9.66 per BOE.
- General and administrative expenses: $2.00 per BOE.
2024 Outlook
- Production Guidance:
- Increased full-year 2024 total production guidance to 127.0 – 131.0 MBOE/d.
- Full-year 2024 oil production raised to 59.0 – 61.0 MBO/d.
- Capital Investments:
- Adjusted to $820 – $870 million for full-year 2024.
- Operating Expenses:
- Second-half 2024 LOE expected to average approximately $9.15 per BOE.
- Third quarter LOE expected to be approximately $8.95 per BOE.
- Fourth quarter LOE expected to be approximately $9.35 per BOE.
Additional Information
- Vital Energy plans to host a conference call to discuss these results.
- The company remains focused on maintaining a strong capital structure and increasing well productivity.
Vital Energy’s robust second-quarter performance and strategic acquisitions highlight its continued growth and operational excellence. With increased production guidance and a strengthened inventory of low-breakeven locations, the company is well-positioned to maximize cash flow and shareholder value. As Vital Energy progresses through 2024, it remains focused on enhancing well productivity, maintaining a strong capital structure, and delivering long-term value.
