Vital Energy, Inc. (NYSE: VTLE) ("Vital Energy" or the "Company")
today announced its fourth-quarter 2022 financial and operating
results and provided its 2023 outlook. Supplemental slides have
been posted to the Company's website and can be found at
www.vitalenergy.com. A conference call and webcast to discuss the
results is planned for 7:30 a.m. CT, Wednesday, February 22, 2023.
Complete details can be found within this release.
Financial Highlights
- Reported 4Q-22 and Company-record FY-22 net income of $118.2
million and $631.5 million, respectively
- Reported 4Q-22 and Company-record FY-22 cash flows from
operating activities of $108.9 million and $829.6 million,
respectively
- Generated 4Q-22 and Company-record FY-22 Consolidated EBITDAX1
of $191.1 million and $913.5 million, respectively
- Generated 4Q-22 and Company-record FY-22 Free Cash Flow1 of
$36.5 million and $219.9 million, respectively
- Divested certain non-operated properties for ~$110 million
- Repurchased $284.8 million face value of term-debt at 99.3% of
par value during FY-22
- Repurchased $37.3 million of common stock at an average price
of $76.02 per share during FY-22
- Reduced Net Debt1/Consolidated EBITDAX1 ratio to 1.18x from
2.14x at year-end 2021
Operational Highlights
- Produced 35.9 thousand barrels of oil per day ("MBO/d") and
77.9 thousand barrels of oil equivalent per day ("MBOE/d") in
4Q-22, both above the high-end of guidance
- Incurred capital expenditures of $130 million, excluding
non-budgeted acquisitions and leasehold expenditures, in 4Q-22,
below guidance range
- Grew 2022 oil production 19% over prior year, primarily related
to the acquisition and development of oil-weighted properties
- Maintained approximately eight years of oil-weighted inventory
at current activity levels, organically adding locations in
Glasscock County
- Published 2022 ESG and Climate Risk Report, reporting Scope 1
GHG emissions intensity and methane intensity reductions of 34% and
63%, respectively, compared to 2019 baseline levels
1Non-GAAP financial measure; please see
supplemental reconciliations of GAAP to non-GAAP financial measures
at the end of this release.
"Our strong financial performance in 2022 was a
direct result of the execution of our strategy to create
shareholder value by acquiring and developing oil-weighted
properties," commented Jason Pigott, President and Chief Executive
Officer. "The assets we acquired since 2019 enabled Vital Energy to
capitalize on higher oil prices, drive higher margins, and generate
$220 million in Free Cash Flow in 2022. We utilized our Free Cash
Flow and divestiture proceeds to reduce term-debt by $285 million
and repurchase $37 million of common stock while cutting our
leverage ratio almost in half."
"We enter 2023 positioned to build on our recent
momentum," continued Pigott. "Both production and capital
outperformed expectations in the fourth quarter of 2022 and our
2023 development plan is focused on our top-tier assets in northern
Howard County. We recently announced an accretive oil-weighted
acquisition that expands our Midland Basin footprint into a
prolific area of Upton County, adding additional high-margin
production and inventory. Our disciplined development and
acquisition strategies have delivered improved financial results
and a strengthened balance sheet, laying the foundation for
sustainable Free Cash Flow generation and shareholder returns."
Fourth-Quarter 2022 Financial and
Operations Summary
Financial Results. The Company reported net income
attributable to common stockholders of $118.2 million, or $7.13 per
diluted share. Adjusted Net Income1 was $57.8 million, or $3.49 per
adjusted diluted share. Consolidated EBITDAX was $191.1
million.
Production. Consistent with preliminary volumes
disclosed in early January, Vital Energy's oil and total production
during the period averaged 35,887 BO/d and 77,947 BOE/d,
respectively. Both oil and total production in fourth-quarter 2022
were above the top-end of Company guidance, driven by
outperformance from its base production and the productivity of new
wells, as well as less than expected downtime related to
offset-operator completions.
Capital Investments. Total incurred capital
expenditures were $130 million, excluding non-budgeted acquisitions
and leasehold expenditures, below the low-end of guidance as
inflationary pressures moderated. Investments included $112 million
in drilling and completions, $6 million in infrastructure,
including Vital Midstream Services investments, $7 million in other
capitalized costs and $5 million in land, exploration and data
related costs. Non-budgeted acquisitions and leasehold expenditures
(including surface land) totaled $2 million. Vital Energy completed
and turned-in-line ("TIL") 13 wells during fourth-quarter 2022.
Operating Expenses. Lease operating expenses
("LOE") during the period were $6.53 per BOE, in line with
guidance.
General and Administrative Expenses. General and
administrative ("G&A") expenses, excluding long-term incentive
plan ("LTIP") expenses, for fourth-quarter 2022 were $2.20 per BOE.
Cash and non-cash LTIP expenses were $(0.04) per BOE and $0.25 per
BOE, respectively. Cash LTIP expense was below guidance due to the
stock price decline in fourth-quarter 2022.
Liquidity. At December 31, 2022, the Company had
$70 million drawn on its $1.0 billion senior secured credit
facility and cash and cash equivalents of $44 million. At February
17, 2023, the Company had $135 million drawn on its senior secured
credit facility and cash and cash equivalents of $16 million.
2023 Outlook
Capital Investments. The 2023 outlook reflects the
Company's ongoing focus on capital discipline and maximizing Free
Cash Flow. Vital Energy plans to invest $625 - $675 million in
2023, maintaining relatively flat year-over-year activity levels.
The Company has estimated cost inflation of approximately 15% over
2022 averages.
Vital Energy expects to operate two drilling rigs
throughout the year, two completions crews for the first quarter
and one completions crew for the remaining nine months of 2023. The
Company's capital plan in 2023 remains focused primarily on
high-return projects in Howard County. All ~55 development wells
Vital Energy expects to TIL in 2023 are anticipated to be in Howard
County.
Production. The Company's activities are expected
to result in full-year 2023 oil production of 34.0 - 37.0 MBO/d and
total production of 72.0 - 76.0 MBOE/d. Production expectations
exclude volumes associated with the Company's recently announced
acquisition of producing properties (see below).
Driftwood Acquisition. On February 14, 2023, Vital
Energy announced the acquisition of oil-weighted production and
inventory from Driftwood Energy for consideration of ~1.58 million
shares of Vital Energy common stock and $127.6 million in cash.
Upon closing, which is expected in early April 2023, Vital Energy
does not anticipate any changes to its activity levels or capital
budget. The Company plans to update FY-23 guidance post-closing of
the acquisition.
"Our disciplined 2023 investment plan focuses on
maximizing Free Cash Flow by concentrating development on our most
capital-efficient leasehold," commented Pigott. "This plan holds
full-year 2023 average oil production relatively flat with
fourth-quarter 2022 levels with no increase in prior-year activity
levels. Upon closing of the Driftwood acquisition, we expect to
incorporate any activity on the acquired leasehold within our
current plan. The Driftwood acquisition furthers our strategy of
making accretive acquisitions that extend oil-weighted inventory
and grow production without increasing activity levels."
Oil-Weighted Inventory
Vital Energy continues to focus on the strategic
acquisition and development of oil-weighted inventory to improve
capital efficiency and Free Cash Flow generation. As of year-end
2022, the Company had ~445 high-quality, development ready
locations in the Midland Basin with an average breakeven WTI oil
price of <$60 per barrel at 2022 average well costs. In 2022,
Vital Energy organically replaced a majority of wells developed
during the year, adding ~35 oil-weighted locations.
2022 Proved Reserves
Vital Energy's total proved reserves were 302.3
MMBOE (39% oil, 74% developed) at year-end 2022. The standardized
measure of discounted net cash flows was $4.8 billion based on SEC
benchmark pricing of $90.15 per barrel for oil and $5.20 per MMBtu
for natural gas. The PV-10 value was $5.5 billion, utilizing the
same benchmark prices.
Proved reserves decreased 16.3 MMBOE from year-end
2021. The decrease is primarily related to forecast revisions of
producing wells in the Company's legacy acreage, changes in the
development schedule and the divestiture of non-operated
properties.
Commitment to ESG
A strong commitment to ESG excellence is a core
operating principle of Vital Energy. This commitment is reflected
in the board of directors' oversight of programs and policies
related to ESG matters and the Company's annual publication of its
ESG and Climate Risk Report utilizing standards aligned with five
different reporting frameworks. In the Company's 2022 ESG and
Climate Risk Report, Vital Energy demonstrated substantial progress
towards its 2025 emissions intensity goal of 12.5 metric tons of
CO2 equivalent per MBOE produced ("mtCO2/MBOE"), reporting 2021
Scope 1 emissions intensity of 17.26 mtCO2/MBOE. The Company also
introduced a 2030 combined Scope 1 & 2 emissions intensity goal
of 10.0 mtCO2/MBOE.
Additionally, Vital Energy has incorporated a
combination of environmental and safety metrics into executive
compensation for four consecutive years, demonstrating the
importance of operating sustainably and prioritizing the health of
our employees and contractors. In 2022, environmental and safety
goals comprised 20% of the executive short-term incentive plan
goals. Significantly, in 2022, Vital Energy reported zero employee
incidents.
First-Quarter and Full-Year 2023
Guidance
The table below reflects the Company's guidance
for total and oil production and incurred capital expenditures for
first-quarter and full-year 2023. Production guidance does not
include volumes associated with the recently announced
acquisition.
|
|
1Q-23E |
|
FY-23E |
Total
production (MBOE per day) |
|
72.5 - 76.5 |
|
72.0 - 76.0 |
Oil
production (MBOPD) |
|
33.0 -
36.0 |
|
34.0 -
37.0 |
Incurred
capital expenditures, excluding non-budgeted acquisitions ($
MM) |
|
$210 -
$230 |
|
$625 -
$675 |
The table below reflects the Company's guidance
for select revenue and expense items for first-quarter 2023.
|
1Q-23E |
Average
sales price realizations (excluding derivatives): |
|
Oil (% of WTI) |
102% |
NGL (% of WTI) |
24% |
Natural gas (% of Henry
Hub) |
51% |
|
|
Net
settlements received (paid) for matured commodity derivatives ($
MM): |
|
Oil |
($1) |
NGL |
$0 |
Natural gas |
($2) |
|
|
Selected
average costs & expenses: |
|
Lease operating expenses
($/BOE) |
$7.50 |
Production and ad valorem taxes (% of oil, NGL and natural gas
sales
revenues) |
7.50% |
Transportation and marketing expenses
($/BOE) |
$1.70 |
General and administrative expenses (excluding LTIP,
$/BOE) |
$2.40 |
General and administrative expenses (LTIP cash,
$/BOE) |
$0.25 |
General and administrative expenses (LTIP non-cash,
$/BOE) |
$0.30 |
Depletion, depreciation and amortization
($/BOE) |
$12.25 |
|
|
Conference Call Details
Vital Energy plans to host a conference call at
7:30 a.m. CT on Wednesday, February 22, 2023, to discuss its
fourth-quarter financial and operating results and management's
outlook, the content of which is not part of this earnings release.
A slide presentation providing summary financial and statistical
information will be posted to the Company's website. The Company
invites interested parties to listen to the call via the Company's
website at www.vitalenergy.com, under the tab for "Investor
Relations | News & Presentations." Portfolio managers and
analysts who would like to participate on the call should dial
800.715.9871, using conference code 5063785. A replay will be
available following the call via the Company's website.
About Vital
Vital Energy, Inc. is an independent energy
company with headquarters in Tulsa, Oklahoma. Vital's business
strategy is focused on the acquisition, exploration and development
of oil and natural gas properties in the Permian Basin of West
Texas.
Additional information about Vital may be found on
its website at www.vitalenergy.com.
Forward-Looking Statements This
press release and any oral statements made regarding the contents
of this release, including in the conference call referenced
herein, contain forward-looking statements as defined under Section
27A of the Securities Act of 1933, as amended, and Section 21E of
the Securities Exchange Act of 1934, as amended. All statements,
other than statements of historical facts, that address activities
that Vital Energy assumes, plans, expects, believes, intends,
projects, indicates, enables, transforms, estimates or anticipates
(and other similar expressions) will, should or may occur in the
future are forward-looking statements. The forward-looking
statements are based on management’s current belief, based on
currently available information, as to the outcome and timing of
future events. Such statements are not guarantees of future
performance and involve risks, assumptions and uncertainties.
General risks relating to Vital Energy include,
but are not limited to, continuing and worsening inflationary
pressures and associated changes in monetary policy that may cause
costs to rise; changes in domestic and global production, supply
and demand for commodities, including as a result of the
coronavirus ("COVID-19") pandemic, actions by the Organization of
Petroleum Exporting Countries and other producing countries
("OPEC+") and the Russian-Ukrainian military conflict, the decline
in prices of oil, natural gas liquids and natural gas and the
related impact to financial statements as a result of asset
impairments and revisions to reserve estimates, reduced demand due
to shifting market perception towards the oil and gas industry;
competition in the oil and gas industry; the ability of the Company
to execute its strategies, including its ability to successfully
identify and consummate strategic acquisitions at purchase prices
that are accretive to its financial results and to successfully
integrate acquired businesses, assets and properties, pipeline
transportation and storage constraints in the Permian Basin, the
effects and duration of the outbreak of disease, such as the
COVID-19 pandemic, and any related government policies and actions,
long-term performance of wells, drilling and operating risks, the
possibility of production curtailment, the impact of new laws and
regulations, including those regarding the use of hydraulic
fracturing, the impact of legislation or regulatory initiatives
intended to address induced seismicity on our ability to conduct
our operations; hedging activities, tariffs on steel, the impacts
of severe weather, including the freezing of wells and pipelines in
the Permian Basin due to cold weather, possible impacts of
litigation and regulations, the impact of the Company's
transactions, if any, with its securities from time to time, the
impact of new environmental, health and safety requirements
applicable to the Company's business activities, the possibility of
the elimination of federal income tax deductions for oil and gas
exploration and development and other factors, including those and
other risks described in its Annual Report on Form 10-K for the
year ended December 31, 2022 and those set forth from time to time
in other filings with the Securities and Exchange Commission
("SEC"). These documents are available through Vital Energy's
website at www.vitalenergy.com under the tab "Investor Relations"
or through the SEC's Electronic Data Gathering and Analysis
Retrieval System at www.sec.gov. Any of these factors could cause
Vital Energy's actual results and plans to differ materially from
those in the forward-looking statements. Therefore, Vital Energy
can give no assurance that its future results will be as estimated.
Any forward-looking statement speaks only as of the date on which
such statement is made. Vital Energy does not intend to, and
disclaims any obligation to, correct, update or revise any
forward-looking statement, whether as a result of new information,
future events or otherwise, except as required by applicable
law.
The SEC generally permits oil and natural gas
companies, in filings made with the SEC, to disclose proved
reserves, which are reserve estimates that geological and
engineering data demonstrate with reasonable certainty to be
recoverable in future years from known reservoirs under existing
economic and operating conditions, and certain probable and
possible reserves that meet the SEC's definitions for such terms.
In this press release and the conference call, the Company may use
the terms "resource potential," "resource play," "estimated
ultimate recovery" or "EURs," "type curve" and "standardized
measure," each of which the SEC guidelines restrict from being
included in filings with the SEC without strict compliance with SEC
definitions. These terms refer to the Company’s internal estimates
of unbooked hydrocarbon quantities that may be potentially
discovered through exploratory drilling or recovered with
additional drilling or recovery techniques. "Resource potential" is
used by the Company to refer to the estimated quantities of
hydrocarbons that may be added to proved reserves, largely from a
specified resource play potentially supporting numerous drilling
locations. A "resource play" is a term used by the Company to
describe an accumulation of hydrocarbons known to exist over a
large areal expanse and/or thick vertical section potentially
supporting numerous drilling locations, which, when compared to a
conventional play, typically has a lower geological and/or
commercial development risk. "EURs" are based on the Company’s
previous operating experience in a given area and publicly
available information relating to the operations of producers who
are conducting operations in these areas. Unbooked resource
potential and "EURs" do not constitute reserves within the meaning
of the Society of Petroleum Engineer’s Petroleum Resource
Management System or SEC rules and do not include any proved
reserves. Actual quantities of reserves that may be ultimately
recovered from the Company’s interests may differ substantially
from those presented herein. Factors affecting ultimate recovery
include the scope of the Company’s ongoing drilling program, which
will be directly affected by the availability of capital, decreases
in oil, natural gas liquids and natural gas prices, well spacing,
drilling and production costs, availability and cost of drilling
services and equipment, lease expirations, transportation
constraints, regulatory approvals, negative revisions to reserve
estimates and other factors, as well as actual drilling results,
including geological and mechanical factors affecting recovery
rates. "EURs" from reserves may change significantly as development
of the Company’s core assets provides additional data. In addition,
the Company's production forecasts and expectations for future
periods are dependent upon many assumptions, including estimates of
production decline rates from existing wells and the undertaking
and outcome of future drilling activity, which may be affected by
significant commodity price declines or drilling cost increases.
"Type curve" refers to a production profile of a well, or a
particular category of wells, for a specific play and/or area. The
"standardized measure" of discounted future new cash flows is
calculated in accordance with SEC regulations and a discount rate
of 10%. Actual results may vary considerably and should not be
considered to represent the fair market value of the Company’s
proved reserves.
This press release and any accompanying
disclosures include financial measures that are not in accordance
with generally accepted accounting principles ("GAAP"), such as
Consolidated EBITDAX, Adjusted Net Income and Free Cash Flow. While
management believes that such measures are useful for investors,
they should not be used as a replacement for financial measures
that are in accordance with GAAP. For a reconciliation of such
non-GAAP financial measures to the nearest comparable measure in
accordance with GAAP, please see the supplemental financial
information at the end of this press release.
Unless otherwise specified, references to "average
sales price" refer to average sales price excluding the effects of
the Company's derivative transactions.
All amounts, dollars and percentages presented in
this press release are rounded and therefore approximate.
Vital Energy, Inc.
Selected operating data
|
Three months ended December 31, |
|
Year ended
December 31, |
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
2021 |
|
(unaudited) |
|
(unaudited) |
Sales
volumes: |
|
|
|
|
|
|
|
Oil (MBbl) |
|
3,302 |
|
|
|
3,779 |
|
|
|
13,838 |
|
|
11,619 |
NGL (MBbl) |
|
1,900 |
|
|
|
1,976 |
|
|
|
8,028 |
|
|
8,678 |
Natural gas (MMcf) |
|
11,812 |
|
|
|
12,516 |
|
|
|
49,259 |
|
|
57,175 |
Oil equivalents (MBOE)(1)(2) |
|
7,171 |
|
|
|
7,842 |
|
|
|
30,076 |
|
|
29,827 |
Average daily oil equivalent sales volumes (BOE/D)(2) |
|
77,947 |
|
|
|
85,240 |
|
|
|
82,400 |
|
|
81,717 |
Average daily oil sales volumes (Bbl/D)(2) |
|
35,887 |
|
|
|
41,080 |
|
|
|
37,912 |
|
|
31,833 |
Average
sales prices(2): |
|
|
|
|
|
|
|
Oil ($/Bbl)(3) |
$ |
85.31 |
|
|
$ |
76.92 |
|
|
$ |
97.65 |
|
$ |
69.32 |
NGL ($/Bbl)(3) |
$ |
19.77 |
|
|
$ |
29.58 |
|
|
$ |
29.22 |
|
$ |
22.08 |
Natural gas ($/Mcf)(3) |
$ |
2.50 |
|
|
$ |
4.15 |
|
|
$ |
4.23 |
|
$ |
2.63 |
Average sales price ($/BOE)(3) |
$ |
48.64 |
|
|
$ |
51.15 |
|
|
$ |
59.66 |
|
$ |
38.46 |
Oil, with commodity derivatives ($/Bbl)(4) |
$ |
68.03 |
|
|
$ |
57.83 |
|
|
$ |
70.32 |
|
$ |
52.09 |
NGL, with commodity derivatives ($/Bbl)(4) |
$ |
19.01 |
|
|
$ |
11.07 |
|
|
$ |
24.29 |
|
$ |
10.55 |
Natural gas, with commodity derivatives ($/Mcf)(4) |
$ |
2.14 |
|
|
$ |
1.69 |
|
|
$ |
2.83 |
|
$ |
1.56 |
Average sales price, with commodity derivatives ($/BOE)(4) |
$ |
39.88 |
|
|
$ |
33.36 |
|
|
$ |
43.48 |
|
$ |
26.36 |
Selected
average costs and expenses per BOE sold(2): |
|
|
|
|
|
|
|
Lease operating expenses |
$ |
6.53 |
|
|
$ |
4.27 |
|
|
$ |
5.78 |
|
$ |
3.42 |
Production and ad valorem taxes |
|
3.00 |
|
|
|
2.91 |
|
|
|
3.69 |
|
|
2.30 |
Transportation and marketing expenses |
|
2.05 |
|
|
|
1.71 |
|
|
|
1.79 |
|
|
1.61 |
General and administrative (excluding LTIP) |
|
2.20 |
|
|
|
1.58 |
|
|
|
1.91 |
|
|
1.54 |
Total selected operating expenses |
$ |
13.78 |
|
|
$ |
10.47 |
|
|
$ |
13.17 |
|
$ |
8.87 |
General and administrative (LTIP): |
|
|
|
|
|
|
|
LTIP cash |
$ |
(0.04 |
) |
|
$ |
(0.08 |
) |
|
$ |
0.11 |
|
$ |
0.35 |
LTIP non-cash |
$ |
0.25 |
|
|
$ |
0.23 |
|
|
$ |
0.24 |
|
$ |
0.22 |
Depletion, depreciation and amortization |
$ |
11.86 |
|
|
$ |
9.51 |
|
|
$ |
10.36 |
|
$ |
7.22 |
___________
(1) |
BOE is calculated using a conversion rate of six Mcf per one
Bbl. |
(2) |
The numbers presented are calculated based on actual amounts that
are not rounded. |
(3) |
Price reflects the average of actual sales prices received when
control passes to the purchaser/customer adjusted for quality,
certain transportation fees, geographical differentials, marketing
bonuses or deductions and other factors affecting the price
received at the delivery point. |
(4) |
Price reflects the after-effects of the Company's commodity
derivative transactions on its average sales prices. The Company's
calculation of such after-effects includes settlements of matured
commodity derivatives during the respective periods and an
adjustment to reflect premiums incurred previously or upon
settlement that are attributable to commodity derivatives that
settled during the respective periods. |
|
|
Vital Energy, Inc.
Consolidated balance sheets
(in thousands, except share data) |
|
December 31, 2022 |
|
December 31, 2021 |
|
|
(unaudited) |
Assets |
|
|
|
|
Current
assets: |
|
|
|
|
Cash and cash equivalents |
|
$ |
44,435 |
|
|
$ |
56,798 |
|
Accounts receivable, net |
|
|
163,369 |
|
|
|
151,807 |
|
Derivatives |
|
|
24,670 |
|
|
|
4,346 |
|
Other current assets |
|
|
13,317 |
|
|
|
22,906 |
|
Total current assets |
|
|
245,791 |
|
|
|
235,857 |
|
Property and
equipment: |
|
|
|
|
Oil and natural gas properties, full cost method: |
|
|
|
|
Evaluated properties |
|
|
9,554,706 |
|
|
|
8,968,668 |
|
Unevaluated properties not being depleted |
|
|
46,430 |
|
|
|
170,033 |
|
Less: accumulated depletion and impairment |
|
|
(7,318,399 |
) |
|
|
(7,019,670 |
) |
Oil and natural gas properties, net |
|
|
2,282,737 |
|
|
|
2,119,031 |
|
Midstream service assets, net |
|
|
85,156 |
|
|
|
96,528 |
|
Other fixed assets, net |
|
|
42,647 |
|
|
|
34,590 |
|
Property and equipment, net |
|
|
2,410,540 |
|
|
|
2,250,149 |
|
Derivatives |
|
|
24,363 |
|
|
|
32,963 |
|
Operating
lease right-of-use assets |
|
|
23,047 |
|
|
|
11,514 |
|
Other
noncurrent assets, net |
|
|
22,373 |
|
|
|
21,341 |
|
Total assets |
|
$ |
2,726,114 |
|
|
$ |
2,551,824 |
|
Liabilities and stockholders' equity |
|
|
|
|
Current
liabilities: |
|
|
|
|
Accounts payable and accrued liabilities |
|
$ |
102,516 |
|
|
$ |
71,386 |
|
Accrued capital expenditures |
|
|
48,378 |
|
|
|
50,585 |
|
Undistributed revenue and royalties |
|
|
160,023 |
|
|
|
117,920 |
|
Derivatives |
|
|
5,960 |
|
|
|
179,809 |
|
Operating lease liabilities |
|
|
15,449 |
|
|
|
7,742 |
|
Other current liabilities |
|
|
82,950 |
|
|
|
99,471 |
|
Total current liabilities |
|
|
415,276 |
|
|
|
526,913 |
|
Long-term
debt, net |
|
|
1,113,023 |
|
|
|
1,425,858 |
|
Asset
retirement obligations |
|
|
70,366 |
|
|
|
69,057 |
|
Operating
lease liabilities |
|
|
9,435 |
|
|
|
5,726 |
|
Other
noncurrent liabilities |
|
|
7,268 |
|
|
|
10,490 |
|
Total liabilities |
|
|
1,615,368 |
|
|
|
2,038,044 |
|
Commitments
and contingencies |
|
|
|
|
Stockholders' equity: |
|
|
|
|
Preferred stock, $0.01 par value, 50,000,000 shares authorized and
zero issued as of December 31, 2022 and December 31, 2021 |
|
|
— |
|
|
|
— |
|
Common stock, $0.01 par value, 40,000,000 and 22,500,000 shares
authorized, and 16,762,127 and 17,074,516 issued and outstanding as
of December 31, 2022 and December 31, 2021, respectively |
|
|
168 |
|
|
|
171 |
|
Additional paid-in capital |
|
|
2,754,085 |
|
|
|
2,788,628 |
|
Accumulated deficit |
|
|
(1,643,507 |
) |
|
|
(2,275,019 |
) |
Total stockholders' equity |
|
|
1,110,746 |
|
|
|
513,780 |
|
Total liabilities and stockholders' equity |
|
$ |
2,726,114 |
|
|
$ |
2,551,824 |
|
|
|
|
|
|
|
|
|
|
Vital Energy, Inc.
Consolidated statements of operations
|
|
Three months ended December 31, |
|
Year ended December 31, |
(in thousands, except per share data) |
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
|
|
(unaudited) |
|
(unaudited) |
Revenues: |
|
|
|
|
|
|
|
|
Oil sales |
|
$ |
281,665 |
|
|
$ |
290,696 |
|
|
$ |
1,351,207 |
|
|
$ |
805,448 |
|
NGL sales |
|
|
37,576 |
|
|
|
58,470 |
|
|
|
234,613 |
|
|
|
191,591 |
|
Natural gas sales |
|
|
29,528 |
|
|
|
51,918 |
|
|
|
208,554 |
|
|
|
150,104 |
|
Sales of purchased oil |
|
|
13,378 |
|
|
|
66,803 |
|
|
|
119,408 |
|
|
|
240,303 |
|
Other operating revenues |
|
|
1,984 |
|
|
|
2,337 |
|
|
|
7,014 |
|
|
|
6,629 |
|
Total revenues |
|
|
364,131 |
|
|
|
470,224 |
|
|
|
1,920,796 |
|
|
|
1,394,075 |
|
Costs and
expenses: |
|
|
|
|
|
|
|
|
Lease operating expenses |
|
|
46,847 |
|
|
|
33,468 |
|
|
|
173,983 |
|
|
|
101,994 |
|
Production and ad valorem taxes |
|
|
21,485 |
|
|
|
22,785 |
|
|
|
110,997 |
|
|
|
68,742 |
|
Transportation and marketing expenses |
|
|
14,670 |
|
|
|
13,439 |
|
|
|
53,692 |
|
|
|
47,916 |
|
Costs of purchased oil |
|
|
13,602 |
|
|
|
67,603 |
|
|
|
122,118 |
|
|
|
251,061 |
|
General and administrative |
|
|
17,282 |
|
|
|
13,619 |
|
|
|
68,082 |
|
|
|
62,801 |
|
Organizational restructuring expenses |
|
|
— |
|
|
|
— |
|
|
|
10,420 |
|
|
|
9,800 |
|
Depletion, depreciation and amortization |
|
|
85,085 |
|
|
|
74,592 |
|
|
|
311,640 |
|
|
|
215,355 |
|
Impairment expense |
|
|
40 |
|
|
|
— |
|
|
|
40 |
|
|
|
1,613 |
|
Other operating expenses, net |
|
|
1,829 |
|
|
|
1,341 |
|
|
|
8,583 |
|
|
|
6,381 |
|
Total costs and expenses |
|
|
200,840 |
|
|
|
226,847 |
|
|
|
859,555 |
|
|
|
765,663 |
|
Gain (loss) on disposal of assets, net |
|
|
(6,031 |
) |
|
|
(8,903 |
) |
|
|
(1,079 |
) |
|
|
84,551 |
|
Operating
income |
|
|
157,260 |
|
|
|
234,474 |
|
|
|
1,060,162 |
|
|
|
712,963 |
|
Non-operating income (expense): |
|
|
|
|
|
|
|
|
Gain (loss) on derivatives, net |
|
|
(7,728 |
) |
|
|
15,372 |
|
|
|
(298,723 |
) |
|
|
(452,175 |
) |
Interest expense |
|
|
(28,870 |
) |
|
|
(31,163 |
) |
|
|
(125,121 |
) |
|
|
(113,385 |
) |
Loss extinguishment of debt, net |
|
|
(1,214 |
) |
|
|
— |
|
|
|
(1,459 |
) |
|
|
— |
|
Other income, net |
|
|
1,831 |
|
|
|
645 |
|
|
|
2,155 |
|
|
|
1,250 |
|
Total non-operating expense, net |
|
|
(35,981 |
) |
|
|
(15,146 |
) |
|
|
(423,148 |
) |
|
|
(564,310 |
) |
Income before income taxes |
|
|
121,279 |
|
|
|
219,328 |
|
|
|
637,014 |
|
|
|
148,653 |
|
Income tax
(expense) benefit: |
|
|
|
|
|
|
|
|
Current |
|
|
(1,350 |
) |
|
|
(24 |
) |
|
|
(6,121 |
) |
|
|
(1,324 |
) |
Deferred |
|
|
(1,705 |
) |
|
|
(3,028 |
) |
|
|
619 |
|
|
|
(2,321 |
) |
Total income tax expense |
|
|
(3,055 |
) |
|
|
(3,052 |
) |
|
|
(5,502 |
) |
|
|
(3,645 |
) |
Net
income |
|
$ |
118,224 |
|
|
$ |
216,276 |
|
|
$ |
631,512 |
|
|
$ |
145,008 |
|
Net income
per common share: |
|
|
|
|
|
|
|
|
Basic |
|
$ |
7.19 |
|
|
$ |
13.07 |
|
|
$ |
37.88 |
|
|
$ |
10.18 |
|
Diluted |
|
$ |
7.13 |
|
|
$ |
12.84 |
|
|
$ |
37.44 |
|
|
$ |
10.03 |
|
Weighted-average common shares outstanding: |
|
|
|
|
|
|
|
|
Basic |
|
|
16,441 |
|
|
|
16,545 |
|
|
|
16,672 |
|
|
|
14,240 |
|
Diluted |
|
|
16,585 |
|
|
|
16,846 |
|
|
|
16,867 |
|
|
|
14,464 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Vital Energy, Inc.
Consolidated statements of cash flows
|
|
Three months ended December 31, |
|
Year ended December 31, |
(in thousands) |
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
|
|
(unaudited) |
|
(unaudited) |
Cash flows
from operating activities: |
|
|
|
|
|
|
|
|
Net income |
|
$ |
118,224 |
|
|
$ |
216,276 |
|
|
$ |
631,512 |
|
|
$ |
145,008 |
|
Adjustments to reconcile net income to net cash provided by
operating activities: |
|
|
|
|
|
|
|
|
Share-settled equity-based compensation, net |
|
|
2,108 |
|
|
|
2,066 |
|
|
|
8,403 |
|
|
|
7,675 |
|
Depletion, depreciation and amortization |
|
|
85,085 |
|
|
|
74,592 |
|
|
|
311,640 |
|
|
|
215,355 |
|
Impairment expense |
|
|
40 |
|
|
|
— |
|
|
|
40 |
|
|
|
1,613 |
|
(Gain) loss on disposal of assets, net |
|
|
6,031 |
|
|
|
8,903 |
|
|
|
1,079 |
|
|
|
(84,551 |
) |
Mark-to-market on derivatives: |
|
|
|
|
|
|
|
|
(Gain) loss on derivatives, net |
|
|
7,728 |
|
|
|
(15,372 |
) |
|
|
298,723 |
|
|
|
452,175 |
|
Settlements paid for matured derivatives, net |
|
|
(62,505 |
) |
|
|
(129,361 |
) |
|
|
(486,173 |
) |
|
|
(320,868 |
) |
Premiums received for commodity derivatives |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
9,041 |
|
Amortization of debt issuance costs |
|
|
1,529 |
|
|
|
1,538 |
|
|
|
6,338 |
|
|
|
5,146 |
|
Amortization of operating lease right-of-use assets |
|
|
6,098 |
|
|
|
3,702 |
|
|
|
22,621 |
|
|
|
13,609 |
|
Loss on extinguishment of debt, net |
|
|
1,214 |
|
|
|
— |
|
|
|
1,459 |
|
|
|
— |
|
Deferred income tax expense (benefit) |
|
|
1,705 |
|
|
|
3,028 |
|
|
|
(619 |
) |
|
|
2,321 |
|
Other, net |
|
|
894 |
|
|
|
1,274 |
|
|
|
5,494 |
|
|
|
4,633 |
|
Changes in operating assets and liabilities: |
|
|
|
|
|
|
|
|
Accounts receivable, net |
|
|
1,843 |
|
|
|
(29,150 |
) |
|
|
(9,226 |
) |
|
|
(87,831 |
) |
Other current assets |
|
|
796 |
|
|
|
(5,741 |
) |
|
|
8,370 |
|
|
|
(8,767 |
) |
Other noncurrent assets, net |
|
|
387 |
|
|
|
21,503 |
|
|
|
1,837 |
|
|
|
(8,782 |
) |
Accounts payable and accrued liabilities |
|
|
16,450 |
|
|
|
10,045 |
|
|
|
31,534 |
|
|
|
31,387 |
|
Undistributed revenue and royalties |
|
|
(89,271 |
) |
|
|
24,933 |
|
|
|
42,085 |
|
|
|
81,201 |
|
Other current liabilities |
|
|
22,859 |
|
|
|
22,128 |
|
|
|
(18,503 |
) |
|
|
33,331 |
|
Other noncurrent liabilities |
|
|
(12,297 |
) |
|
|
(805 |
) |
|
|
(26,994 |
) |
|
|
4,975 |
|
Net cash provided by operating activities |
|
|
108,918 |
|
|
|
209,559 |
|
|
|
829,620 |
|
|
|
496,671 |
|
Cash flows
from investing activities: |
|
|
|
|
|
|
|
|
Acquisitions of oil and natural gas properties, net |
|
|
— |
|
|
|
(136,367 |
) |
|
|
(5,581 |
) |
|
|
(763,411 |
) |
Capital expenditures: |
|
|
|
|
|
|
|
|
Oil and natural gas properties |
|
|
(134,865 |
) |
|
|
(139,515 |
) |
|
|
(566,989 |
) |
|
|
(418,362 |
) |
Midstream service assets |
|
|
(273 |
) |
|
|
(474 |
) |
|
|
(1,436 |
) |
|
|
(2,849 |
) |
Other fixed assets |
|
|
(3,610 |
) |
|
|
(2,705 |
) |
|
|
(12,711 |
) |
|
|
(5,931 |
) |
Proceeds from dispositions of capital assets, net of selling
costs |
|
|
105,949 |
|
|
|
— |
|
|
|
108,888 |
|
|
|
393,742 |
|
Settlements received for contingent consideration |
|
|
322 |
|
|
|
— |
|
|
|
1,877 |
|
|
|
— |
|
Net cash used in investing activities |
|
|
(32,477 |
) |
|
|
(279,061 |
) |
|
|
(475,952 |
) |
|
|
(796,811 |
) |
Cash flows
from financing activities: |
|
|
|
|
|
|
|
|
Borrowings on Senior Secured Credit Facility |
|
|
120,000 |
|
|
|
145,000 |
|
|
|
455,000 |
|
|
|
570,000 |
|
Payments on Senior Secured Credit Facility |
|
|
(90,000 |
) |
|
|
(70,000 |
) |
|
|
(490,000 |
) |
|
|
(720,000 |
) |
Issuance of July 2029 Notes |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
400,000 |
|
Extinguishment of debt |
|
|
(100,583 |
) |
|
|
— |
|
|
|
(282,902 |
) |
|
|
— |
|
Proceeds from issuance of common stock, net of offering costs |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
72,492 |
|
Share repurchases |
|
|
(10,704 |
) |
|
|
— |
|
|
|
(37,290 |
) |
|
|
— |
|
Stock exchanged for tax withholding |
|
|
— |
|
|
|
(7 |
) |
|
|
(7,442 |
) |
|
|
(2,596 |
) |
Payments for debt issuance costs |
|
|
(213 |
) |
|
|
(89 |
) |
|
|
(1,938 |
) |
|
|
(14,686 |
) |
Other, net |
|
|
(447 |
) |
|
|
— |
|
|
|
(1,459 |
) |
|
|
2,971 |
|
Net cash (used in) provided by financing activities |
|
|
(81,947 |
) |
|
|
74,904 |
|
|
|
(366,031 |
) |
|
|
308,181 |
|
Net
(decrease) increase in cash and cash equivalents |
|
|
(5,506 |
) |
|
|
5,402 |
|
|
|
(12,363 |
) |
|
|
8,041 |
|
Cash and
cash equivalents, beginning of period |
|
|
49,941 |
|
|
|
51,396 |
|
|
|
56,798 |
|
|
|
48,757 |
|
Cash and
cash equivalents, end of period |
|
$ |
44,435 |
|
|
$ |
56,798 |
|
|
$ |
44,435 |
|
|
$ |
56,798 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Vital Energy, Inc.
Supplemental reconciliations of GAAP to
non-GAAP financial measures
Non-GAAP financial measures
The non-GAAP financial measures of Free Cash Flow,
Adjusted Net Income, Consolidated EBITDAX, PV-10, Net Debt and Net
Debt to Consolidated EBITDAX, as defined by the Company, may not be
comparable to similarly titled measures used by other companies.
Furthermore, these non-GAAP financial measures should not be
considered in isolation or as a substitute for GAAP measures of
liquidity or financial performance, but rather should be considered
in conjunction with GAAP measures, such as net income or loss,
operating income or loss or cash flows from operating
activities.
Free Cash Flow (Unaudited)
Free Cash Flow is a non-GAAP financial measure
that the Company defines as net cash provided by operating
activities (GAAP) before changes in operating assets and
liabilities, net, less incurred capital expenditures, excluding
non-budgeted acquisition costs. Management believes Free Cash Flow
is useful to management and investors in evaluating operating
trends in its business that are affected by production, commodity
prices, operating costs and other related factors. There are
significant limitations to the use of Free Cash Flow as a measure
of performance, including the lack of comparability due to the
different methods of calculating Free Cash Flow reported by
different companies.
The following table presents a reconciliation of
net cash provided by operating activities (GAAP) to Free Cash Flow
(non-GAAP) for the periods presented:
|
|
Three months ended December 31, |
|
Year ended December 31, |
(in thousands) |
|
|
2022 |
|
|
|
2021 |
|
|
2022 |
|
|
|
2021 |
|
|
|
(unaudited) |
|
(unaudited) |
Net cash
provided by operating activities |
|
$ |
108,918 |
|
|
$ |
209,559 |
|
$ |
829,620 |
|
|
$ |
496,671 |
|
Less: |
|
|
|
|
|
|
|
|
Change in current assets and liabilities, net |
|
|
(47,323 |
) |
|
|
22,215 |
|
|
54,260 |
|
|
|
49,321 |
|
Change in noncurrent assets and liabilities, net |
|
|
(11,910 |
) |
|
|
20,698 |
|
|
(25,157 |
) |
|
|
(3,807 |
) |
Cash flows
from operating activities before changes in operating assets and
liabilities, net |
|
|
168,151 |
|
|
|
166,646 |
|
|
800,517 |
|
|
|
451,157 |
|
Less incurred capital expenditures, excluding non-budgeted
acquisition costs: |
|
|
|
|
|
|
|
|
Oil and natural gas properties(1) |
|
|
127,663 |
|
|
|
137,892 |
|
|
566,831 |
|
|
|
444,337 |
|
Midstream service assets(1) |
|
|
363 |
|
|
|
420 |
|
|
1,595 |
|
|
|
2,842 |
|
Other fixed assets |
|
|
3,588 |
|
|
|
3,578 |
|
|
12,150 |
|
|
|
6,807 |
|
Total incurred capital expenditures, excluding non-budgeted
acquisition costs |
|
|
131,614 |
|
|
|
141,890 |
|
|
580,576 |
|
|
|
453,986 |
|
Free Cash
Flow (non-GAAP) |
|
$ |
36,537 |
|
|
$ |
24,756 |
|
$ |
219,941 |
|
|
$ |
(2,829 |
) |
___________
(1) |
Includes capitalized share-settled equity-based compensation and
asset retirement costs. |
|
|
Adjusted Net Income
(Unaudited)
Adjusted Net Income is a non-GAAP financial
measure that the Company defines as net income or loss (GAAP) plus
adjustments for mark-to-market on derivatives, premiums paid or
received for commodity derivatives that matured during the period,
impairment expense, gains or losses on disposal of assets, income
taxes, other non-recurring income and expenses and adjusted income
tax expense. Management believes Adjusted Net Income helps
investors in the oil and natural gas industry to measure and
compare the Company's performance to other oil and natural gas
companies by excluding from the calculation items that can vary
significantly from company to company depending upon accounting
methods, the book value of assets and other non-operational
factors.
The following table presents a reconciliation of
net income (GAAP) to Adjusted Net Income (non-GAAP) for the periods
presented:
|
|
Three months ended December 31, |
|
Year ended December 31, |
(in thousands, except per share data) |
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
|
|
(unaudited) |
|
(unaudited) |
Net
income |
|
$ |
118,224 |
|
|
$ |
216,276 |
|
|
$ |
631,512 |
|
|
$ |
145,008 |
|
Plus: |
|
|
|
|
|
|
|
|
Mark-to-market on derivatives: |
|
|
|
|
|
|
|
|
(Gain) loss on derivatives, net |
|
|
7,728 |
|
|
|
(15,372 |
) |
|
|
298,723 |
|
|
|
452,175 |
|
Settlements paid for matured derivatives, net |
|
|
(62,763 |
) |
|
|
(129,361 |
) |
|
|
(486,753 |
) |
|
|
(320,868 |
) |
Settlements received for contingent consideration |
|
|
580 |
|
|
|
— |
|
|
|
2,457 |
|
|
|
— |
|
Net premiums paid for commodity derivatives that matured during the
period(1) |
|
|
— |
|
|
|
(10,183 |
) |
|
|
— |
|
|
|
(41,553 |
) |
Organizational restructuring expenses |
|
|
— |
|
|
|
— |
|
|
|
10,420 |
|
|
|
9,800 |
|
Impairment expense |
|
|
40 |
|
|
|
— |
|
|
|
40 |
|
|
|
1,613 |
|
(Gain) loss on disposal of assets, net |
|
|
6,031 |
|
|
|
8,903 |
|
|
|
1,079 |
|
|
|
(84,551 |
) |
Loss on extinguishment of debt, net |
|
|
1,214 |
|
|
|
— |
|
|
|
1,459 |
|
|
|
— |
|
Income tax expense |
|
|
3,055 |
|
|
|
3,052 |
|
|
|
5,502 |
|
|
|
3,645 |
|
Adjusted income before adjusted income tax expense |
|
|
74,109 |
|
|
|
73,315 |
|
|
|
464,439 |
|
|
|
165,269 |
|
Adjusted income tax expense(2) |
|
|
(16,304 |
) |
|
|
(16,129 |
) |
|
|
(102,177 |
) |
|
|
(36,359 |
) |
Adjusted Net Income (non-GAAP) |
|
$ |
57,805 |
|
|
$ |
57,186 |
|
|
$ |
362,262 |
|
|
$ |
128,910 |
|
Net income
per common share: |
|
|
|
|
|
|
|
|
Basic |
|
$ |
7.19 |
|
|
$ |
13.07 |
|
|
$ |
37.88 |
|
|
$ |
10.18 |
|
Diluted |
|
$ |
7.13 |
|
|
$ |
12.84 |
|
|
$ |
37.44 |
|
|
$ |
10.03 |
|
Adjusted Net
Income per common share: |
|
|
|
|
|
|
|
|
Basic |
|
$ |
3.52 |
|
|
$ |
3.46 |
|
|
$ |
21.73 |
|
|
$ |
9.05 |
|
Diluted |
|
$ |
3.49 |
|
|
$ |
3.39 |
|
|
$ |
21.48 |
|
|
$ |
8.91 |
|
Adjusted diluted |
|
$ |
3.49 |
|
|
$ |
3.39 |
|
|
$ |
21.48 |
|
|
$ |
8.91 |
|
Weighted-average common shares outstanding: |
|
|
|
|
|
|
|
|
Basic |
|
|
16,441 |
|
|
|
16,545 |
|
|
|
16,672 |
|
|
|
14,240 |
|
Diluted |
|
|
16,585 |
|
|
|
16,846 |
|
|
|
16,867 |
|
|
|
14,464 |
|
Adjusted diluted |
|
|
16,585 |
|
|
|
16,846 |
|
|
|
16,867 |
|
|
|
14,464 |
|
___________
(1) |
Reflects net premiums paid previously or upon settlement that are
attributable to derivatives settled in the respective periods
presented. |
(2) |
Adjusted income tax expense is calculated by applying a statutory
tax rate of 22% for each of the periods ended December 31,
2022 and 2021. |
|
|
Consolidated EBITDAX
(Unaudited)
Consolidated EBITDAX is a non-GAAP financial
measure defined in the Company's Senior Secured Credit Facility as
net income or loss (GAAP) plus adjustments for share-settled
equity-based compensation, depletion, depreciation and
amortization, impairment expense, gains or losses on disposal of
assets, mark-to-market on derivatives, accretion expense, interest
expense, income taxes and other non-recurring income and expenses.
Consolidated EBITDAX is used by the Company’s management for
various purposes, including as a measure of operating performance
and compliance under the Company's Senior Secured Credit Facility.
Additional information on the calculation of Consolidated EBITDAX
can be found in the Company's Tenth Amendment to the Senior Secured
Credit Facility as filed with the SEC on November 3, 2022.
The following table presents a reconciliation of
net income (loss) (GAAP) to Consolidated EBITDAX (non-GAAP) for the
periods presented:
|
|
Three months
ended |
|
Year ended |
(in thousands) |
|
December 31, 2022 |
|
September 30, 2022 |
|
June 30, 2022 |
|
March 31, 2022 |
|
December 31, 2022 |
|
|
(unaudited) |
Net income (loss) |
|
$ |
118,224 |
|
|
$ |
337,523 |
|
|
$ |
262,546 |
|
|
$ |
(86,781 |
) |
|
$ |
631,512 |
|
Plus: |
|
|
|
|
|
|
|
|
|
|
Share-settled equity-based compensation, net |
|
|
2,108 |
|
|
|
1,638 |
|
|
|
2,604 |
|
|
|
2,053 |
|
|
|
8,403 |
|
Depletion, depreciation and amortization |
|
|
85,085 |
|
|
|
74,928 |
|
|
|
78,135 |
|
|
|
73,492 |
|
|
|
311,640 |
|
Impairment expense |
|
|
40 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
40 |
|
Organizational restructuring expenses |
|
|
— |
|
|
|
10,420 |
|
|
|
— |
|
|
|
— |
|
|
|
10,420 |
|
(Gain) loss on disposal of assets, net |
|
|
6,031 |
|
|
|
(4,282 |
) |
|
|
(930 |
) |
|
|
260 |
|
|
|
1,079 |
|
Mark-to-market on derivatives: |
|
|
|
|
|
|
|
|
|
|
(Gain) loss on derivatives, net |
|
|
7,728 |
|
|
|
(100,748 |
) |
|
|
65,927 |
|
|
|
325,816 |
|
|
|
298,723 |
|
Settlements paid for matured derivatives, net |
|
|
(62,763 |
) |
|
|
(124,611 |
) |
|
|
(174,009 |
) |
|
|
(125,370 |
) |
|
|
(486,753 |
) |
Settlements received for contingent consideration |
|
|
580 |
|
|
|
322 |
|
|
|
1,555 |
|
|
|
— |
|
|
|
2,457 |
|
Accretion expense |
|
|
933 |
|
|
|
954 |
|
|
|
973 |
|
|
|
1,019 |
|
|
|
3,879 |
|
Interest expense |
|
|
28,870 |
|
|
|
30,967 |
|
|
|
32,807 |
|
|
|
32,477 |
|
|
|
125,121 |
|
(Gain) loss extinguishment of debt, net |
|
|
1,214 |
|
|
|
(553 |
) |
|
|
798 |
|
|
|
— |
|
|
|
1,459 |
|
Income tax expense (benefit) |
|
|
3,055 |
|
|
|
(3,768 |
) |
|
|
7,092 |
|
|
|
(877 |
) |
|
|
5,502 |
|
Consolidated EBITDAX (non-GAAP) |
|
$ |
191,105 |
|
|
$ |
222,790 |
|
|
$ |
277,498 |
|
|
$ |
222,089 |
|
|
$ |
913,482 |
|
PV-10 (Unaudited)
PV-10 is a non-GAAP financial measure that is
derived from the standardized measure of discounted future net cash
flows, which is the most directly comparable GAAP financial
measure. PV-10 is a computation of the standardized measure of
discounted future net cash flows on a pre-tax basis. PV-10 is equal
to the standardized measure of discounted future net cash flows at
the applicable date, before deducting future income taxes,
discounted at 10 percent. Management believes that the presentation
of PV-10 is relevant and useful to investors because it presents
the discounted future net cash flows attributable to the Company's
estimated proved reserves prior to taking into account future
corporate income taxes, and it is a useful measure for evaluating
the relative monetary significance of the Company's proved oil, NGL
and natural gas assets. Further, investors may utilize the measure
as a basis for comparison of the relative size and value of proved
reserves to other companies. The Company uses this measure when
assessing the potential return on investment related to proved oil,
NGL and natural gas assets. However, PV-10 is not a substitute for
the standardized measure of discounted future net cash flows. The
PV-10 measure and the standardized measure of discounted future net
cash flows do not purport to present the fair value of the
Company's oil, NGL and natural gas reserves of the property.
(in millions) |
|
December 31, 2022 |
Standardized measure of discounted future net cash flows |
|
$ |
4,755 |
|
Less present
value of future income taxes discounted at 10% |
|
|
(709 |
) |
PV-10
(non-GAAP) |
|
$ |
5,464 |
|
Net Debt
(Unaudited)
Net Debt, a non-GAAP financial measure, is
calculated as the face value of long-term debt plus any outstanding
letters of credit, less cash and cash equivalents. Management
believes Net Debt is useful to management and investors in
determining the Company's leverage position since the Company has
the ability, and may decide, to use a portion of its cash and cash
equivalents to reduce debt. Net Debt as of December 31, 2022
was $1.08 billion.
Net Debt to Consolidated EBITDAX
(Unaudited)
Net Debt to Consolidated EBITDAX, a non-GAAP
financial measure, is calculated as Net Debt divided by
Consolidated EBITDAX, for the previous four quarters, as defined in
the Company's Senior Secured Credit Facility. Net Debt to
Consolidated EBITDAX is used by the Company’s management for
various purposes, including as a measure of operating performance,
in presentations to its board of directors and as a basis for
strategic planning and forecasting.
Investor Contact: Ron Hagood
918.858.5504 ron.hagood@vitalenergy.com
Vital Energy (NYSE:VTLE)
Historical Stock Chart
From Mar 2024 to Apr 2024
Vital Energy (NYSE:VTLE)
Historical Stock Chart
From Apr 2023 to Apr 2024