NYSE$VTLE

Vital Energy Inc · Q3 2020 earnings

Q3 2020 earnings · · Investor relations

Briefing

Laredo Petroleum announced its third-quarter 2020 results, reporting a net loss attributable to common stockholders of $237.4 million, or $20.32 per diluted share, and adjusted net income of $47.0 million, or $4.02 per adjusted diluted share.

Laredo Petroleum reported a net loss of $237.4 million, or $20.32 per diluted share, but generated $71 million in free cash flow and reduced net debt by $64 million. The company also increased its fourth-quarter and full-year 2020 oil and total production guidance while maintaining its full-year capital expenditure guidance.

  • Generated Free Cash Flow of $71 million and reduced net debt by $64 million during third-quarter 2020
  • Received $58.2 million from settlements of matured/terminated commodity derivatives, resulting in an average hedged sales price of $22.76 per barrel of oil equivalent, a 39% increase versus an average unhedged sales price of $16.39 per BOE in the same period
  • Added 6,800 barrels of oil per day of 2021 oil hedges at a weighted-average swap price of $45.55 Brent, increasing 2021 oil hedges to 22,150 BOPD, equivalent to 80% of anticipated 2021 oil production
  • Lowered lease operating expenses to $2.45 per BOE, an 18% decrease from third-quarter 2019

Headline financials

Total Revenue

$174M

Previous: $194M-10.3%
EPS (adj)

$4.02

Previous: $4.20-4.3%
Avg Daily Oil Equivalent Sales

87.9K

No prior period
Avg Daily Oil Sales

25.1K

No prior period
Capital Expenditures

-$302M

Previous: -$371M+18.7%
Free Cash Flow

-$28.2M

Previous: -$4.19M-572.9%
Net Income

-$237M

Previous: -$265M+10.3%
Operating Income

-$168M

Previous: -$350M+52.2%
Gross Profit

$174M

Previous: $247K+70161.9%
Cash & Equivalents

$40.3M

Previous: $31.7M+27.0%
Total Assets

$1.58B

Previous: $2.28B-30.6%
Stock-Based Comp

$2.04M

Previous: -$1.74M+217.4%

Revenue & EPS history

Vital Energy · Revenue · Quarterly

$174M

Q3 2020-10.3%vs Q3 2019
Beat estimate in 12 of 16 quarters(75%)
ActualEstimate

Revenue by segment

Vital Energy · $132M total across 3 segments · Q3 2020

  • Oil Sales
    $93.2M
  • NGL Sales
    $25M
  • Natural Gas Sales
    $14.3M

Forward guidance

Laredo Petroleum increased its fourth-quarter and full-year guidance for total and oil production for 2020. The increase in total production guidance for fourth-quarter and full-year 2020 reflects the continued outperformance versus expectations of natural gas production on the Company's established acreage position.

Tailwinds

  • Total production for 4Q-20 is expected to be 82.0 - 84.0 MBOE per day.
  • Total production for FY-20 is expected to be 87.6 - 88.1 MBOE per day.
  • Oil production for 4Q-20 is expected to be 21.0 - 23.0 MBOPD.
  • Oil production for FY-20 is expected to be 26.6 - 27.1 MBOPD.
  • Average oil sales price realization (% of WTI) is expected to be 95%.

Headwinds

  • Net income (expense) of purchased oil is expected to be ($4.3) MM.
  • Lease operating expenses are expected to be $2.80/BOE.
  • Production and ad valorem taxes are expected to be 7.25% of oil, NGL and natural gas sales revenues.
  • Transportation and marketing expenses are expected to be $1.95/BOE.
  • General and administrative expenses (excluding LTIP) are expected to be $1.25/BOE.

Historical earnings impact

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

Avg. return before/after earnings

Based on 15 quarterly earnings reports

Historical avg

-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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