2024-01-23 17:27:46 ET
Summary
- The latest acquisitions have done unexpectedly well. Some have closed faster than expected as well.
- The debt ratio has now declined far faster in the last fiscal year than originally expected. That should lead to a better stock market valuation of the company.
- Continuing technology advances should continue to improve performance for the foreseeable future.
- The important oil production was roughly 2K BOD above fourth quarter guidance.
- The technology improvements should allow margin improvement and lower breakeven points for years to come.
Vital Energy ( VTLE ) investors can probably expect more guidance increases down the road. In the latest quarter, production exceeded guidance despite all the acquisitions made in such a short period of time. Normally, after acquisitions are made there is a period of assimilation and optimization. Evidently, management was conservative enough to make that period look like things are going unusually well. This bodes very well for company profitability in the current fiscal year....
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Vital Energy Blows Past Guidance