NYSE$VTLE

Vital Energy Inc · Q3 2021 earnings

Q3 2021 earnings · · Investor relations

Briefing

Laredo's Q3 2021 financial and operating results were announced, highlighting strategic acquisitions, increased oil production, and a focus on free cash flow generation.

Laredo Petroleum reported a net income of $136.8 million for Q3 2021, driven by strategic acquisitions and increased oil production. The company produced an average of 76,703 BOE per day, including 35,329 barrels of oil per day. Laredo closed the Sabalo Energy acquisition and a divestiture on July 1, 2021, and also closed the western Glasscock County acquisition on October 18, 2021. Capital expenditures totaled $137 million.

  • Announced second significant acquisition of 2021, agreeing to purchase ~20,000 net acres in western Glasscock County.
  • Closed the purchase of the assets of Sabalo Energy, LLC in north Howard County and divestiture of 37.5% of the Company's legacy proved developed reserves on July 1, 2021.
  • Produced an average of 76,703 barrels of oil equivalent per day and 35,329 barrels of oil per day, an increase of 41% versus the third quarter of 2020.
  • Increased the borrowing base on the Company's senior secured credit facility to $1 billion from $725 million during the facility's semi-annual redetermination

Headline financials

Total Revenue

$379M

Previous: $174M+118.5%
EPS (adj)

$1.84

Previous: $4.02-54.2%
Avg Daily Oil Equivalent Sales

76.7K

Previous: 87.9K-12.7%
Avg Daily Oil Sales

35.3K

Previous: 25.1K+40.6%
Capital Expenditures

-$906M

Previous: -$302M-200.1%
Free Cash Flow

-$619M

Previous: -$28.2M-2092.7%
Net Income

$137M

Previous: -$237M+157.6%
Operating Income

$266M

Previous: -$168M+258.5%
Gross Profit

$379M

Previous: $174M+118.5%
Cash & Equivalents

$51.4M

Previous: $40.3M+27.7%
Total Assets

$2.26B

Previous: $1.58B+42.9%
Stock-Based Comp

$1.81M

Previous: $2.04M-11.3%

Revenue & EPS history

Vital Energy · Revenue · Quarterly

$379M

Q3 2021+118.5%vs Q3 2020
Beat estimate in 12 of 16 quarters(75%)
ActualEstimate

Revenue by segment

Vital Energy · $311M total across 3 segments · Q3 2021

  • Oil Sales
    $229M+146.1%
  • NGL Sales
    $47.9M+92.1%
  • Natural Gas Sales
    $34M+137.3%

Forward guidance

Laredo Petroleum provided guidance for Q4 2021, anticipating total production between 80.3 and 83.3 MBOE per day and oil production between 39.0 and 41.0 MBOPD. Capital expenditures are expected to be $120 million.

Tailwinds

  • Total production (MBOE per day) 80.3 - 83.3
  • Oil production (MBOPD) 39.0 - 41.0
  • Oil (% of WTI) 100%
  • NGL (% of WTI) 40%
  • Natural gas (% of Henry Hub) 75%

Headwinds

  • Oil ($72 MM) Net settlements received (paid) for matured commodity derivatives
  • NGL ($44 MM) Net settlements received (paid) for matured commodity derivatives
  • Natural gas ($34 MM) Net settlements received (paid) for matured commodity derivatives
  • Net income (expense) of purchased oil($3.5 MM)
  • Lease operating expenses ($/BOE) $4.25

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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