10-Q - Vital Energy, Inc. (0001528129) (Filer)

Mon, May 12, 8:39 PM (42 days ago)

**Vital Energy, Inc. (VTLE) Q1 2025 Financial Summary** **Financial Health & Performance:** - **Revenue:** $512.2 million (up 6.2% YoY) - **Net Loss:** $18.8 million (improved from $66.1 million loss in Q1 2024) - **Operating Income:** $(14.0) million (down from $137.4 million in Q1 2024) - **Cash Flow from Operations:** $351.0 million (up 121% YoY) - **Capital Expenditures:** $252.7 million (up 18% YoY) **Profit Margins:** - **Operating Margin:** -2.7% (down from 28.5% in Q1 2024) - **Net Margin:** -3.7% (improved from -13.7% in Q1 2024) **Cash Flow:** - **Operating Cash Flow:** $351.0 million (up 121% YoY) - **Investing Cash Flow:** $(212.1) million (down 3% YoY) - **Financing Cash Flow:** $(150.4) million (down 133% YoY) **Earnings Changes:** - **EPS (Basic):** $(0.50) (improved from $(1.87) in Q1 2024) - **EPS (Diluted):** $(0.50) (improved from $(1.87) in Q1 2024) **Quarterly Performance Discussion:** - **Revenue Growth:** Driven by increased oil, NGL, and natural gas sales volumes. - **Impairment Charge:** $158.2 million full cost ceiling impairment due to lower commodity prices. - **Cash Flow:** Significant improvement in operating cash flow, driven by changes in operating assets and liabilities, and increased sales revenues. - **Capital Expenditures:** Increased drilling and completions activity, with a focus on high-return projects. **Trends & Uncertainties:** - **Commodity Prices:** Volatility in oil, NGL, and natural gas prices due to global supply and demand dynamics. - **Tariffs:** Potential impact of new or additional tariffs on raw materials and products. - **OPEC+ Production:** Increased production from OPEC+ countries may weigh on crude oil demand and prices. - **Full Cost Ceiling Test:** Potential for additional impairments if commodity prices remain low. **Future Operations Impact:** - **Capital Expenditures:** Expected to be in the range of $835.0 million to $915.0 million for full-year 2025. - **Liquidity:** $793.6 million in total liquidity as of Q1 2025, with available capacity under the Senior Secured Credit Facility. - **Hedging:** Active commodity derivatives program to mitigate price volatility and support cash flows.