Vital Energy Inc., Tulsa, Okla., expects to operate four drilling rigs, run two completions crews, and turn in-line 24 wells in the Permian basin in second-quarter 2024 on a path to produce an estimated 122,000-126,000 boe/d with a capital investment budget of $225-250 million, before slowing operations in the year’s second half.
The production estimate is in line with record first-quarter 2024 total and oil production of 124,700 boe/d, and 58,500 b/d, respectively, attributed to accelerated timing and production outperformance from a 20-well package in Western Glasscock County and outperformance from a three-well package in Reeves County, the company said in a release May 8. The company drilled three horseshoe wells in Upton County, one with a total measured depth of 23,650 ft.
Development activity is expected to moderate in second-half 2024 with reiterated full-year 2024 total and oil production guidance of 116,500-121,500 boe/d and 55,000-59,000 b/d, respectively, and about 60% of expected turn-in-lines scheduled for this year’s first half. Full year capital guidance remains unchanged at $750-850 million.
The company has integrated recent acquisitions, said Jason Pigott, president and chief executive officer. “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,” he said.
Late last year, Vital Energy agreed to three deals with private companies worth about $1.1653 billion to scale up its Permian basin portfolio (OGJ Online, Oct. 2, 2023).
The operator reported a first-quarter 2024 net loss of $66.1 million, down from fourth-quarter 2023 net income of $281 million. Adjusted net income was $68.1 million, down from $76.1 million in fourth-quarter 2023. Cash flow from operating activities was $158.6 million, down from $233.7 million in the prior quarter.
