Vital Energy(US:VTLE)2025-11-03 21:30Financial Performance - The company reported a net loss of $353.5 million, or $(9.35) per diluted share, impacted by a non-cash pre-tax impairment loss of $420.0 million on oil and gas properties [4]. - Adjusted Net Income was $57.6 million, or $1.52 per adjusted diluted share, with cash flows from operating activities amounting to $286.6 million [4]. - Net loss for Q3 2025 was $353.5 million, compared to a net income of $215.3 million in Q3 2024, indicating a significant decline [25]. - For the three months ended September 30, 2025, the net income loss was $(353,522) thousand, compared to a net income of $215,300 thousand for the same period in 2024 [27]. - Adjusted Net Income for the three months ended September 30, 2025, was $57,592 thousand, compared to $60,423 thousand in 2024, reflecting a decrease of 3.0% [33]. - The company reported a basic net income loss per common share of $(9.35) for the three months ended September 30, 2025, compared to $5.75 in 2024 [33]. Revenue and Sales - Oil sales for Q3 2025 were $367.5 million, a decrease of 16.8% from $416.7 million in Q3 2024 [25]. - Total revenues for the nine months ended September 30, 2025, were $1.36 billion, down from $1.42 billion in the same period of 2024, reflecting a decrease of 4.0% [25]. - Average daily oil equivalent sales volumes increased to 136,158 BOE/d in Q3 2025, compared to 133,339 BOE/d in Q3 2024, representing a growth of 2.1% [25]. - The average sales price of oil in Q3 2025 was $66.32 per barrel, down 13.5% from $76.51 per barrel in Q3 2024 [25]. - The average sales price of natural gas in Q3 2025 was $0.45 per Mcf, compared to a negative price of $0.48 per Mcf in Q3 2024, showing a recovery [25]. Expenses and Costs - Lease operating expenses totaled $114.3 million, with total general and administrative expenses at $25.0 million, including $6.9 million of transaction-related expenses [5]. - Lease operating expenses per BOE sold increased to $9.12 in Q3 2025 from $8.78 in Q3 2024, an increase of 3.9% [25]. - Interest expense for the three months ended September 30, 2025, was $49,994 thousand, compared to $40,119 thousand in 2024 [39]. - The company incurred organizational restructuring expenses of $4,627 thousand for the nine months ended September 30, 2025, with no such expenses in 2024 [37]. Capital Expenditures and Investments - Capital investments reported were $257.5 million, excluding non-budgeted acquisitions and leasehold expenditures [5]. - Total capital investments, excluding non-budgeted acquisition costs, were $257,475 thousand for the three months ended September 30, 2025, compared to $241,927 thousand in 2024, indicating a 6.4% increase [31]. Debt and Cash Flow - Total and Net Debt were reduced by $40.0 million and $24.5 million, respectively [5]. - Long-term debt decreased to $2.28 billion as of September 30, 2025, from $2.45 billion at the end of 2024, a reduction of 6.9% [23]. - Net Debt as of September 30, 2025, was $2,290,881 thousand, down from $2,440,399 thousand at the end of 2024 [41]. - The company reported a net cash provided by operating activities of $286,552 thousand for the three months ended September 30, 2025, compared to $246,165 thousand in 2024, representing a 16.4% increase [31]. - The company had a net cash used in investing activities of $(260,460) thousand for the three months ended September 30, 2025, compared to $(1,047,834) thousand in 2024, showing a significant reduction in cash outflow [27]. - The net cash provided by financing activities was $(41,589) thousand for the three months ended September 30, 2025, compared to $767,297 thousand in 2024, indicating a shift from inflow to outflow [27]. Impairment and Special Events - The company reported an impairment expense of $420 million in Q3 2025, compared to no impairment expense in Q3 2024 [25]. - The impairment expense for the three months ended September 30, 2025, was $419,955 thousand, with no impairment expense reported in the same period of 2024 [33]. - The impairment expense for the nine months ended September 30, 2025, was $1,005,242 thousand, with no impairment recorded in 2024 [37]. - A special meeting of Vital Energy stockholders is expected to be held on December 12, 2025, to vote on the merger transaction [7]. - The company will not provide guidance until the closing of the pending merger with Crescent Energy Company [5]. Operational Highlights - The company produced 136.2 thousand barrels of oil equivalent per day, including 60.2 thousand barrels of oil per day [5]. - The company turned-in-line 26 wells during the quarter and began flowing back a 12-horseshoe-well package in mid-October [5]. - Consolidated EBITDAX generated was $308.5 million, and Adjusted Free Cash Flow was $5.5 million [5]. - Consolidated EBITDAX for the three months ended September 30, 2025, was $308,478 thousand, slightly down from $309,506 thousand in 2024 [39]. - For the nine months ended September 30, 2025, the net cash provided by operating activities was $889,878 thousand, compared to $743,156 thousand for the same period in 2024 [39].