Vital Energy(US:VTLE)2025-05-12 20:37Financial Performance - The company reported a net loss of $18.8 million, or $(0.50) per diluted share, impacted by a non-cash pre-tax impairment loss of $158.2 million on oil and gas properties[4] - Adjusted Net Income was $89.5 million, or $2.37 per adjusted diluted share, with cash flows from operating activities amounting to $351.0 million[5] - Total revenues for the three months ended March 31, 2025, increased to $512.18 million, up from $482.34 million in the same period of 2024, representing a growth of 6.9%[38] - The company reported a net loss of $18.84 million for the quarter, compared to a net loss of $66.13 million in the same quarter of 2024, indicating an improvement of 71.5%[38] - Net income (loss) for Q1 2025 was $(18,837,000), an improvement from $(66,131,000) in Q1 2024[48] - Adjusted Net Income for Q1 2025 was $89,514,000, up 31.5% from $68,081,000 in Q1 2024[48] - Consolidated EBITDAX for Q1 2025 reached $359,679,000, a 19.3% increase compared to $301,332,000 in Q1 2024[52] Production and Sales - The company produced an average of 140.2 thousand barrels of oil equivalent per day (MBOE/d) and 64.9 thousand barrels of oil per day (MBO/d), both within guidance[5] - Average daily oil equivalent sales volumes increased to 140,159 BOE/d, compared to 124,719 BOE/d in the previous year, reflecting a growth of 12.3%[38] - Oil sales reached $422.33 million, a slight increase from $415.78 million in the prior year, while NGL sales rose significantly to $61.74 million from $47.08 million, marking a 31% increase[38] - Second-quarter 2025 guidance estimates total production between 133.0 - 139.0 MBOE/d and oil production between 61.0 - 65.0 MBO/d[18] Expenses and Investments - General and Administrative expenses were reported at $22.7 million, or $1.80 per BOE, which was below guidance[10] - Total capital investments for the first quarter were $252.7 million, excluding non-budgeted acquisitions and leasehold expenditures[5] - Total capital investments for Q1 2025 were $252,671,000, compared to $217,900,000 in Q1 2024, reflecting a 15.9% increase[45] - The Company incurred impairment expenses of $158,241,000 in Q1 2025, compared to no impairment expenses in Q1 2024[52] - The Company’s interest expense for Q1 2025 was $50,380,000, an increase from $43,421,000 in Q1 2024[52] Debt and Cash Flow - The company reduced total and net debt by $145.0 million and $133.5 million, respectively, through free cash flow and asset sales[5] - Cash and cash equivalents decreased to $28.65 million from $40.18 million at the end of the previous year, a decline of 28.8%[36] - Net Debt as of March 31, 2025, was $2,306,929,000, down from $2,440,399,000 at the end of 2024[56] - Net Debt to Consolidated EBITDAX ratio is utilized for assessing the Company's leverage position and operational performance[57] - The Company reported cash flows from operating activities of $350,985,000 in Q1 2025, significantly higher than $158,590,000 in Q1 2024[54] Asset Management - The company closed the sale of non-core assets for $20.5 million, which included approximately 9,100 net acres and production of 1,300 BOE/d[7] - Total assets decreased to $5.71 billion from $5.88 billion, a reduction of 2.8%[36] - Long-term debt decreased to $2.31 billion from $2.45 billion, a decline of 5.8%[36] - The company reported an impairment expense of $158.24 million for the quarter, which was not present in the same period last year[38] Future Outlook - For full-year 2025, the company expects to generate approximately $265 million of Adjusted Free Cash Flow at current oil prices of ~$59 per barrel WTI[14] - Approximately 90% of expected oil production for the remainder of the year is hedged at an average price of $70.61 per barrel WTI[12]