Vital Energy reports Q1 production averaging 80.2K MBOE/d

Vital Energy provided an update on first-quarter 2023 expected average production and incurred capital investments. As a result of strong performance in the first quarter and closing of the Driftwood Energy Operation acquisition, Vital Energy updated its expectations for full-year 2023 production. Production. The Company’s first-quarter 2023 total production averaged ~80.2 thousand barrels of oil equivalent per day, above guidance of 72.5 – 76.5 MBOE/d. Oil production for the quarter averaged ~38.3 thousand barrels of oil per day, above guidance of 33.0 – 36.0 MBO/d. Production outperformance was primarily related to earlier than expected production from new completions, less than expected production downtime related to offset completions activity and improved uptime of wells and production facilities from field-level process improvements. Capital Investments. Total incurred capital expenditures during the first quarter were ~$200 million, excluding non-budgeted acquisitions and leasehold expenditures, below guidance of $210 – $230 million. Lower than expected investment levels were related to moderating inflationary pressures and a one-week deferral of completions in February related to severe weather. On April 3, 2023, Vital Energy closed its previously announced transaction to acquire the assets of Driftwood for aggregate consideration, after closing price adjustments, of $120.4 million in cash and 1,578,948 shares of Vital Energy common stock.