Vital Energy increases full year production guidance

Vital Energy Inc., Tulsa, Okla., has increased its 2023 full year production guidance because of strong performance in first-quarter 2023 and the Apr. 3 closing of its acquisition of Driftwood Energy Operation LLC (OGJ Online, Feb. 14, 2023).

The company now expects full year production of 76,000-80,000 boe/d, up from previous guidance of 72,000-76,000 boe/d. Oil production of 36,300-39,300 b/d is expected for the year, up from previous guidance of 34,000-37,000 b/d.

The Permian basin-focused company’s first-quarter 2023 total production averaged 80,200 boe/d, above guidance of 72,500-76,500 boe/d, the company said in a release Apr. 10. Oil production for the quarter averaged 38,300 b/d, above guidance of 33,000-36,000 b/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 infrastructure from field-level process improvements, the company said.

Total incurred capital expenditures for the quarter were about $200 million, excluding non-budgeted acquisitions and leasehold expenditures, below company guidance of $210-230 million. Lower than expected investment levels were related to moderating inflationary pressures and a 1-week deferral of completions in February related to severe weather, the company said.

Vital Energy plans to report complete first-quarter 2023 financial and operating results after market close on May 9.