Vital Energy swings to Q3 net loss hurt by impairment loss

Overview

• Vital Energy reports Q3 net loss of $353.5 mln due to $420 mln impairment loss

• Adjusted net income for Q3 beats analyst expectations

• Company reduces net debt by $24.5 mln, maintains strong cash flow

Outlook

• Vital Energy will not provide guidance due to pending merger with Crescent Energy

• Company's prior guidance should not be relied upon due to merger

Result Drivers

• OPERATIONAL EXECUTION - Co exceeded production guidance and turned in-line 26 wells, including a 12-well package, per CEO Jason Pigott

• COST DISCIPLINE - Co focused on cost discipline, contributing to strong cash flow and debt reduction

• IMPAIRMENT LOSS- Results were impacted by a non-cash pre-tax impairment loss on oil and gas properties of $420.0 million.

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 9 "hold" and 1 "sell" or "strong sell"

• The average consensus recommendation for the oil & gas exploration and production peer group is "buy."

• Wall Street's median 12-month price target for Vital Energy Inc is $18.00, about 12.7% above its October 31 closing price of $15.71

• The stock recently traded at 3 times the next 12-month earnings vs. a P/E of 3 three months ago

Press Release:

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