Vital Energy offsets $66 million loss with strong production in the Permian Basin

The first quarter financial results for Tulsa’s Vital Energy might have shown a net loss of $66.1 million or $(1.87) per diluted share, but the company still had record oil production, thanks to a large drilling effort in the Permian Basin.

Vital’s adjusted net income for the quarter totaled $68.1 million or $1.84 per adjusted diluted share and it had cash flows from operating activities of $158.6 million. It also generated EBITDAX of $301.3 million and adjusted free cash flow of $43.3 million.

The firm’s first quarter total and oil production exceeded the high-end of its guidance with production of 124.7 thousand barrels of oil eqivalent a day and 58.5 thousand barrels of oil a day. Vital said it had production outperformance in a 20-well package of long-lateral wells in W. Glassccock County being completed ahead of schedule and producing far more than originally expected.

During the quarter, Vital also drilled three horseshoe wells in Upton County and one is belieed to have set an industry record with a total measured depth of 23,650 feet.

“Our focus on capital-efficient development is driving sustainable gains in well productivity and lowering capital costs,” stated Jason Pigott, President and Chief Executive Officer.

“Results in the Southern Delaware position we built last year are far exceeding industry results. Recent success drilling horseshoe wells in the Midland Basin is expected to significantly increase returns on a large portion of our inventory.”

As a result, Vital leadership still believes its 2024 total and oil production guidance will be close to 121.5 MBOE/d and up to 59 MBO/d. It also believes nearly 60% of its wells will be turned to sales in the first half of 2024.

Full-year guidance of capital investments is unchanged at $750 million to $850 million but it also believes development activity in the second half of the year will moderate. In the second quarter, Vital said it will operate four drilling rigs and two completions crews and turn in line 24 wells.

The post Vital Energy offsets $66 million loss with strong production in the Permian Basin first appeared on Oklahoma Energy Today.