NYSE$VTLE

Vital Energy Inc · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

Reported second-quarter 2023 financial and operating results, raised estimates for full-year 2023 oil and total production, and reduced expectations for 2023 capital investments.

Vital Energy reported strong second-quarter 2023 results, exceeding production expectations while controlling capital investments and operational expenses. The company generated over $60 million in Free Cash Flow and closed two accretive, high-value oil acquisitions. Increased expectations for full-year 2023 production and reduced capital investment guidance.

  • Reported 2Q-23 net income of $294.8 million, Adjusted Net Income of $78.6 million and cash flows from operating activities of $248.9 million.
  • Generated 2Q-23 Consolidated EBITDAX of $239.5 million and Free Cash Flow of $60.7 million.
  • Reported 2Q-23 oil and total production that exceeded the high-end of Company guidance, producing 44.4 thousand barrels of oil per day, a Company record, and 90.0 thousand barrels of oil equivalent per day.
  • Reported 2Q-23 incurred capital expenditures below the low-end of guidance, investing $149 million, excluding non-budgeted acquisitions and leasehold expenditures.

Headline financials

Total Revenue

$335M

Previous: $560M-40.2%
EPS (adj)

$4.35

Previous: $7.50-42.0%
Avg Daily Oil Equivalent Sales

90.0K

Previous: 87.0K+3.4%
Avg Daily Oil Sales

44.4K

Previous: 40.6K+9.4%
Capital Expenditures

-$836M

Previous: -$291M-187.7%
Free Cash Flow

-$471M

Previous: $248M-289.7%
Net Income

$295M

Previous: $263M+12.3%
Operating Income

$121M

Previous: $371M-67.3%
Gross Profit

$335M

Previous: $560M-40.2%
Cash & Equivalents

$71.7M

Previous: $148M-51.4%
Total Assets

$3.82B

Previous: $2.87B+32.8%
Stock-Based Comp

$2.89M

Previous: $2.6M+11.1%

Revenue & EPS history

Vital Energy · Revenue · Quarterly

$335M

Q2 2023-40.2%vs Q2 2022
Beat estimate in 10 of 15 quarters(67%)
ActualEstimate

Revenue by segment

Vital Energy · $334M total across 3 segments · Q2 2023

  • Oil Sales
    $299M-27.1%
  • NGL Sales
    $25.9M-64.3%
  • Natural Gas Sales
    $8.95M-86.6%

Forward guidance

Vital Energy expects to maintain 2023 production levels in 2024 while holding investment levels relatively flat and growing full-year 2024 Free Cash Flow to approximately $175 million, at current strip commodity prices.

Tailwinds

  • Maintain full-year 2023 production levels.
  • Hold investment levels relatively flat.
  • Grow full-year 2024 Free Cash Flow to approximately $175 million.
  • Operate three drilling rigs across the Midland and Delaware basin assets.
  • Complete and TIL 70 - 75 gross (58 - 62 net) wells in 2024, a slight increase versus 2023.

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 2023

Historical avgQ2 2023

-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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