NYSE$VTLE

Vital Energy Inc · Q2 2022 earnings

Q2 2022 earnings · · Investor relations

Briefing

Reported strong financial results driven by a multi-year strategic transformation, including record Adjusted EBITDA and Free Cash Flow.

Laredo Petroleum announced strong second-quarter 2022 financial results, including a net income of $262.5 million. The company reported record Adjusted EBITDA and Free Cash Flow, and introduced a plan to return capital to shareholders through a $200 million equity repurchase program.

  • Reported net income of $262.5 million and cash flows from operating activities of $368.1 million, generating Adjusted EBITDA of $278.4 million and Free Cash Flow of $110.5 million.
  • Produced 40,553 barrels of oil per day ("BOPD") and 87,032 barrels of oil equivalent per day ("BOEPD"), increases of 53% and 1%, respectively, compared to second-quarter 2021.
  • Increased total liquidity to $1.148 billion from $646 million in first-quarter 2022.
  • Reduced Net Debt/Consolidated EBITDAX ratio to 1.4x from 1.9x in first-quarter 2022.

Headline financials

Total Revenue

$560M

Previous: $294M+90.3%
EPS (adj)

$7.50

Previous: $1.71+338.6%
Avg Daily Oil Equivalent Sales

87.0K

Previous: 85.9K+1.3%
Avg Daily Oil Sales

40.6K

Previous: 26.4K+53.4%
Capital Expenditures

-$291M

Previous: -$166M-75.0%
Free Cash Flow

$248M

Previous: $21.6M+1048.8%
Net Income

$263M

Previous: -$133M+297.9%
Operating Income

$371M

Previous: $108M+242.6%
Gross Profit

$560M

Previous: $294M+90.3%
Cash & Equivalents

$148M

Previous: $194M-23.8%
Total Assets

$2.87B

Previous: $1.79B+60.8%
Stock-Based Comp

$2.6M

Previous: $1.73M+50.5%

Revenue & EPS history

Vital Energy · Revenue · Quarterly

$560M

Q2 2022+90.3%vs Q2 2021
Beat estimate in 10 of 15 quarters(67%)
ActualEstimate

Revenue by segment

Vital Energy · $549M total across 3 segments · Q2 2022

  • Oil Sales
    $410M+160.3%
  • NGL Sales
    $72.5M+66.8%
  • Natural Gas Sales
    $66.6M+113.3%

Forward guidance

Full-year 2022 total and oil production was revised from a range of 82.0 - 86.0 MBOEPD and 39.5 - 42.5 MBOPD, respectively, to 82.0 - 83.5 MBOEPD and 38.0 - 39.0 MBOPD, respectively. Free Cash Flow for full-year 2022 is projected to be approximately $280 million at $100 WTI for the remainder of the year versus previous projections of $350 million. At $90 WTI for full-year 2023, Free Cash Flow is expected to be approximately $560 million.

Tailwinds

  • Company expects to complete 11 wells and TIL 13 wells during the third quarter of 2022.
  • Company expects to complete 13 - 15 wells and TIL 12 - 17 wells during the fourth quarter of 2022.
  • Laredo expects incurred capital expenditures for full-year 2022 to be in-line with its previously updated capital budget of $550 million.
  • Laredo anticipates operated activity levels in 2023 will be comparable to 2022 with an annual average of approximately two drilling rigs and 1.4 completions crews.
  • Company expects that its planned investments in 2023 will result in low single-digit oil growth.

Headwinds

  • Production guidance for the remainder of 2022 has been adjusted to reflect the current range of outcomes for the Leech wells.
  • No additional completions are planned in the area until 2024.
  • Full-year 2022 total and oil production was revised from a range of 82.0 - 86.0 MBOEPD and 39.5 - 42.5 MBOPD, respectively, to 82.0 - 83.5 MBOEPD and 38.0 - 39.0 MBOPD, respectively.
  • Free Cash Flow for full-year 2022 is projected to be approximately $280 million at $100 WTI for the remainder of the year versus previous projections of $350 million.
  • Total capital expenditures, based on current service costs and anticipated activity levels, are expected to be approximately $585 million.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 15 quarterly earnings reports · overlaid with Q2 2022

Historical avgQ2 2022

-0.7%

Avg return

Earnings day

-1.7%

Avg return

5 days after

+0.8%

Avg return

30 days after

46%

26 / 56 earnings

Positive

+12.7%

Q3 2024

Best reaction

-23.2%

Q2 2022

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026
Q3 2025+5.1%+20.9%+26.1%
Q2 2025-9.4%-8.8%-0.4%
Q1 2025+7.6%-3.5%+18.7%
Q4 2024-12.1%-20.2%-36.6%
Q3 2024+12.7%+14.7%+8.3%
Q2 2024+2.8%+2.3%-22.8%
Q1 2024-4.1%-10.1%-17.0%
Q4 2023+5.0%+3.9%+9.5%
Q3 2023+6.3%-3.4%-8.8%
Q2 2023+5.2%+5.4%+11.6%
Q1 2023-0.9%-3.3%+5.4%
Q4 2022-3.2%+6.5%-16.9%
Q3 2022+5.2%+6.1%-3.2%
Q2 2022-23.2%-26.0%-15.2%
Q1 2022-6.9%-19.1%+45.2%
Q4 2021+7.1%+7.5%+8.6%
Q3 2021-4.5%
Q2 2021-12.7%
Q1 2021-12.4%
Q4 2020+5.3%
Q3 2020+3.7%
Q2 2020-1.2%
Q1 2020-2.0%
Q4 2019-0.6%
Q3 2019-1.2%
Q2 2019+3.9%
Q1 2019+10.6%
Q4 2018+6.1%
Q3 2018+7.6%
Q2 2018-6.8%
Q1 2018-17.8%
Q4 2017+10.0%
Q3 2017-10.3%
Q2 2017-1.1%
Q1 2017-6.7%
Q4 2016+1.0%
Q3 2016+9.4%
Q2 2016+11.8%
Q1 2016+7.7%
Q4 2015-6.1%
Q3 2015-5.2%
Q2 2015+2.8%
Q1 2015-6.7%
Q4 2014-8.5%
Q3 2014+4.7%
Q2 2014-6.8%
Q1 2014-3.7%
Q4 2013-4.9%
Q3 2013-11.8%
Q2 2013+6.7%
Q1 2013-4.0%
Q4 2012+7.0%
Q3 2012-2.2%
Q2 2012-2.4%
Q4 2011+2.2%
Q1 2012+2.2%

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