NYSE$VTLE

Vital Energy Inc · Q4 2021 earnings

Q4 2021 earnings · · Investor relations

Briefing

Announced fourth-quarter and full-year 2021 financial and operating results.

Laredo Petroleum reported strong Q4 2021 results, marked by increased oil production, strategic acquisitions, and a focus on capital efficiency and leverage reduction. The company exceeded guidance ranges for both oil and total production, driven by strong well performance in Howard and western Glasscock counties.

  • Generated Adjusted EBITDA of $182.2 million and Free Cash Flow of $24.8 million.
  • Produced 41,080 barrels of oil per day (BOPD) and 85,240 barrels of oil equivalent per day (BOEPD), exceeding guidance ranges.
  • Increased oil cut as a percentage of total production to 48% versus 27% in fourth-quarter 2020.
  • Completed 18 wells with 26 turn-in lines (TIL) during the quarter with capital expenditures of $142 million, excluding non-budgeted acquisitions and leasehold expenditures.

Headline financials

Total Revenue

$470M

Previous: $188M+150.0%
EPS (adj)

$3.39

Previous: $3.22+5.3%
Avg Daily Oil Equivalent Sales

85.2K

Previous: 82.6K+3.3%
Avg Daily Oil Sales

41.1K

Previous: 21.9K+87.3%
Free Cash Flow

$24.8M

No prior period
Net Income

$216M

Previous: -$166M+230.3%
Operating Income

$243M

Previous: -$78M+412.0%
Gross Profit

$470M

Previous: $188M+150.0%
Cash & Equivalents

$56.8M

Previous: $48.8M+16.5%
Total Assets

$2.55B

Previous: $48.8M+5133.8%
Stock-Based Comp

$2.07M

Previous: $2.11M-1.9%

Revenue & EPS history

Vital Energy · Revenue · Quarterly

$470M

Q4 2021+150%vs Q4 2020
Beat estimate in 10 of 15 quarters(67%)
ActualEstimate

Revenue by segment

Vital Energy · $401M total across 3 segments · Q4 2021

  • Oil Sales
    $291M+244.1%
  • NGL Sales
    $58.5M+105.1%
  • Natural Gas Sales
    $51.9M+148.7%

Forward guidance

Laredo Petroleum's outlook for 2022 is strong, with a focus on capital-efficient development, free cash flow generation, and leverage reduction. The company expects to achieve its initial leverage target of 1.5x Net Debt/Adjusted EBITDA in the third quarter of 2022 and to be below 1.0x by the second half of 2023, positioning them to return cash to shareholders in early 2023.

Tailwinds

  • Capital efficient development
  • Generation of Free Cash Flow
  • Leverage reduction
  • Achieve initial leverage target of 1.5x Net Debt/Adjusted EBITDA in Q3 2022
  • Below 1.0x leverage by the second half of 2023

Headwinds

  • Industry-wide oil field service inflation
  • Additional non-operated investments
  • Net settlements paid for matured commodity derivatives: Oil($82 MM)
  • Net settlements paid for matured commodity derivatives: NGL($11 MM)
  • Net settlements paid for matured commodity derivatives: Natural gas($9 MM)

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 Q4 2021

Historical avgQ4 2021

-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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