Tulsa’s Vital Energy, Inc.more than doubled its first quarter net income in the second quarter with $294.8 million and $16.30 per diluted share.The first quarter net income was $113.9 million.
Vital’s second quarter adjusted net income was $78.6 million and $4.35 per adjusted diluted share, and cash flows from operating activities totaled $248.9 million. In the first quarter, Vital reported cash flows from operating activities of $116.1 million.
Its second quarter oil and total production exceeded the high-end of the firm’s guidance, producing 44.4 thousand barrels of oil a day, which was a company record. It’s production of barrels of oil equivalent a day was 90 thousand barrels.
Because of the improved production and strong quarterly financial results, the company increased its production guidance for the remainder of the year.
Higher than expected volumes year-to-date were primarily related to stronger base production, which exceeded expectations for both oil and total production by approximately 10%. As a result, full-year 2023 oil production guidance is further increased to 41.9 – 43.4 MBO/d (previously 40.0 – 43.0 MBO/d) and total production guidance to 87.0 – 89.0 MBOE/d (previously 82.0 – 86.0 MBOE/d).
“Vital Energy continued to deliver exceptional results in the second quarter, exceeding production expectations while controlling capital investments and operational expenses and delivering more than $60 million of Free Cash Flow,” stated Jason Pigott, President and Chief Executive Officer.
“We are highly confident in our ability to execute on our 2023 plan as we further drive down costs, enhance base production and efficiently develop our high-margin inventory to maximize Free Cash Flow generation and reduce debt.”
Vital reported it had $149 million in capital expenditures, lower than expected. During the quarter, the firm completed 16 wells and turned-in-line 23 others.
At June 30, 2023, the Company had $575 million drawn on its $1.0 billion senior secured credit facility and cash and cash equivalents of $72 million.
At August 4, 2023, the Company had $595 million drawn on its senior secured credit facility and cash and cash equivalents of $73 million.
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