Vital Energy Acquires Additional Working Interests in Recent High-Value Acquisitions in the Permian Basin
21 Dezembro 2023 - 7:00PM
Vital Energy, Inc. (NYSE: VTLE) ("Vital Energy" or the "Company")
today announced the acquisition of additional working interests in
producing assets associated with the recent asset acquisition from
Henry Energy LP, Moriah Henry Partners LLC and Henry Resources LLC
(collectively "Henry") for total consideration of $55 million1.
The purchase will increase Vital Energy’s working
interest in 45 wells by an average of 24%, increasing the Company’s
estimated 2024 production by approximately 1,400 BOE/d (57% oil).
The transaction is expected to increase Vital Energy’s 2024 Free
Cash Flow2 by approximately $20 million3, furthering Vital Energy’s
deleveraging goals.
The transaction is associated with the exercise of
tag-along rights by owners of certain assets in the Henry
acquisition that enable Vital Energy to purchase and finance the
assets on the same terms as the Henry purchase and sale agreement,
in which the Company’s shares were issued at $54.96. Vital Energy
funded the transaction through the issuance of 627,000 shares of
its common stock and 595,000 shares of its 2.0% cumulative
mandatorily convertible preferred securities.
"This transaction further demonstrates the
opportunities provided by our increased scale in the Permian,"
stated Jason Pigott, President and Chief Executive Officer. "Our
larger operating footprint across the Midland and Delaware basins
continues to drive new efficiencies through bolt-on transactions
that increase working interest or optimize our development plans by
enabling longer laterals. As we successfully integrate these
high-value acquisitions we expect to see continued gains in capital
efficiency and stronger Free Cash Flow."
1Assumes VTLE December 21, 2023 closing price;
2Non-GAAP financial measure; please see supplemental discussion of
GAAP to non-GAAP financial measures at the end of this release;
3Assumes $72 WTI / $2.50 HH for FY-24
About Vital Energy
Vital Energy, Inc. is an independent energy
company with headquarters in Tulsa, Oklahoma. Vital Energy's
business strategy is focused on the acquisition, exploration and
development of oil and natural gas properties in the Permian Basin
of West Texas.
Additional information about Vital Energy may be
found on its website at www.vitalenergy.com.
Forward-Looking StatementsThis
press release and any oral statements made regarding the subject of
this release contain forward-looking statements as defined under
Section 27A of the Securities Act of 1933, as amended, and Section
21E of the Securities Exchange Act of 1934, as amended. All
statements, other than statements of historical facts, that address
activities that Vital Energy assumes, plans, expects, believes,
intends, projects, indicates, enables, transforms, estimates or
anticipates (and other similar expressions) will, should or may
occur in the future are forward-looking statements. The
forward-looking statements are based on management’s current
belief, based on currently available information, as to the outcome
and timing of future events. The forward-looking statements involve
risks and uncertainties.General risks relating to Vital Energy
include, but are not limited to, continuing and worsening
inflationary pressures and associated changes in monetary policy
that may cause costs to rise; changes in domestic and global
production, supply and demand for commodities, including as a
result of actions by the Organization of Petroleum Exporting
Countries and other producing countries and the Russian-Ukrainian
or Israeli-Hamas military conflicts, the decline in prices of oil,
natural gas liquids and natural gas and the related impact to
financial statements as a result of asset impairments and revisions
to reserve estimates, reduced demand due to shifting market
perception towards the oil and gas industry; competition in the oil
and gas industry; the ability of the Company to execute its
strategies, including its ability to successfully identify and
consummate strategic acquisitions at purchase prices that are
accretive to its financial results and to successfully integrate
acquired businesses, assets and properties, pipeline transportation
and storage constraints in the Permian Basin, the effects and
duration of the outbreak of disease, and any related government
policies and actions, long-term performance of wells, drilling and
operating risks, the possibility of production curtailment, the
impact of new laws and regulations, including those regarding the
use of hydraulic fracturing, including under the Inflation
Reduction Act (the "IRA"), including those related to climate
change, the impact of legislation or regulatory initiatives
intended to address induced seismicity on the Company’s ability to
conduct its operations; hedging activities, tariffs on steel, the
impacts of severe weather, including the freezing of wells and
pipelines in the Permian Basin due to cold weather, possible
impacts of litigation and regulations, the impact of the Company’s
transactions, if any, with its securities from time to time, the
impact of new environmental, health and safety requirements
applicable to the Company’s business activities, the possibility of
the elimination of federal income tax deductions for oil and gas
exploration and development and imposition of any additional taxes
under the IRA or otherwise, and other factors, including those and
other risks described in its Annual Report on Form 10-K for the
year ended December 31, 2022 and those set forth from time to time
in other filings with the Securities and Exchange Commission (the
"SEC"). These documents are available through Vital Energy’s
website at www.vitalenergy.com under the tab "Investor Relations"
or through the SEC’s Electronic Data Gathering and Analysis
Retrieval System at www.sec.gov. Any of these factors could cause
Vital Energy’s actual results and plans to differ materially from
those in the forward-looking statements. Therefore, Vital Energy
can give no assurance that its future results will be as estimated.
Any forward-looking statement speaks only as of the date on which
such statement is made. Vital Energy does not intend to, and
disclaims any obligation to, correct, update or revise any
forward-looking statement, whether as a result of new information,
future events or otherwise, except as required by applicable
law.
Free Cash FlowFree Cash Flow is a
non-GAAP financial measure that the Company defines as net cash
provided by operating activities (GAAP) before net changes in
operating assets and liabilities and non-budgeted acquisition
costs, less incurred capital expenditures, excluding non-budgeted
acquisition costs. Management believes Free Cash Flow is useful to
management and investors in evaluating operating trends in its
business that are affected by production, commodity prices,
operating costs and other related factors. There are significant
limitations to the use of Free Cash Flow as a measure of
performance, including the lack of comparability due to the
different methods of calculating Free Cash Flow reported by
different companies.
Investor ContactRon
Hagood918.858.5504ir@vitalenergy.com
Vital Energy (NYSE:VTLE)
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