Vital Energy’s first-quarter 2025 financial and operating results included a surprise as its $2.37 earnings per share beat the $2.11 per share estimate given by analysts. It beat the $1.91 in earnings per share the Tulsa company had a year ago. As a result, Vital’s earnings were up 12.32%.
The firm reported a net loss of $18.8 million or 50 cents per share, adjusted net income of $89.5 million and cash flow of $351 million from operating activities. Vital also generated consolidated EBITDAX of $359.7 million and adjusted free cash flow of $64.5 million
During the quarter, Vital also reduced total debt by $145 million and Net Debt by $133.5 million. It reported lease operating expense of $103.5 million or $8.20 per BOE, beating guidance. Production ws 140.2 thousand barrels of oil equivalent per day and 64.9 thousand barrels of oil a day. Results were driven by accelerated TIL’s on wells drilled in the southern Delaware Basin.
“Our first quarter performance highlights the quality of our inventory and the ongoing success of our optimization efforts,” said Jason Pigott, President and Chief Executive Officer. “Our team is focused on generating sustainable efficiency gains and lower costs across our business and delivering on our targets for Adjusted Free Cash Flow and debt reduction.”
He went on to explain that Vital’s hedge positon reduced its near-term price risks and as of this week, the company had 90% of its expected oil productoin swapped at around $71 a barrel WTI.
Capital Investments. Total capital investments, excluding non-budgeted acquisitions and leasehold expenditures, were $253 million, within guidance, and include drilling efficiencies that pulled forward capital into the quarter.
Investments included $218 million in drilling and completions, $21 million in infrastructure investments, $8 million in other capitalized costs and $6 million in land, exploration and data-related costs.
Operating Expenses. LOE was 12% below guidance midpoint at $103.5 million, or $8.20 per BOE. The beat was related to actual expenses on the Point Energy assets being lower than initial estimates in both the fourth quarter of 2024 and first-quarter 2025 and lower workover activity in the period.
Liquidity. At March 31, 2025, the Company had $735 million outstanding on its $1.5 billion senior secured credit facility and cash and cash equivalents of $29 million.
Vital Energy remains committed to maximizing cash flow and reducing debt. Cash flows are supported by its significant hedge position, with ~90% of expected oil production for the remainder of the year swapped at an average WTI price of $70.61 per barrel.
While the Company today reiterated its full-year 2025 outlook, it is closely monitoring commodity prices and service costs and has significant flexibility to adjust its development plans, should market conditions warrant, with no rig or completions contracts extending beyond March 2026.
For full-year 2025, the Company expects to generate approximately $265 million of Adjusted Free Cash Flow at current oil prices of ~$59 per barrel WTI, inclusive of hedging proceeds, and to reduce Net Debt by approximately $300 million, inclusive of proceeds from the non-core asset sale in March.