From staff reports Despite a net loss of $66.1 million or $1.87 per diluted share, Tulsa’s Vital Energy had record oil production in the first quarter of 2024, thanks to a sizeable drilling effort in the Permian Basin.
Vital’s adjusted net income for the first quarter totaled $68.1 million or $1.84 per adjusted diluted share and Vital had cash flows from operating activities of $158.6 million. It generated earnings before interest, taxes, depreciation, and amortization of $301.3 million and adjusted free cash flow of $43.3 million.
The firm’s production exceeded expectations, with 124.7 thousand barrels of oil equivalent per day and 58.5 thousand barrels of oil per day. Glasscock and Upton counties saw exceptional performance, with one well believed to have set a depth record of 23.650 feet.
“Our focus on capital-efficient development is driving sustainable gains in well productivity and lowering capital costs,” stated Jason Pigott, president and CEO.
“Results in the Southern Delaware position we built last year are far exceeding industry results. Recent success drilling horseshoe wells in the Midland Basin is expected to significantly increase returns on a large portion of our inventory.”
Due to this, Vital leadership believes its 2024 total and oil production guidance will be near 121.5 MBOE/d and up to 59 MBO/d. It also believes around 60% of its wells will be turned to sales in the first half of 2024.
Annual capital investment guidance remains at $750 million to $850 million, with a projected moderation in activity for the back half of the year. In the second quarter, vital will operate four drilling rigs and two completion crews and turn in line 24 wells.