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
Revenue & EPS history
Vital Energy · Revenue · Quarterly
$560M
Revenue by segment
Vital Energy · $549M total across 3 segments · Q2 2022
- Oil Sales$410M+160.3%74.7%
- NGL Sales$72.5M+66.8%13.2%
- Natural Gas Sales$66.6M+113.3%12.1%
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
-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
| Quarter | Report date | Reaction (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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