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Vital Energy Inc. (VUX.V)

TSXV - TSXV Real Time Price. Currency in CAD
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  • R
    Rod
    Vital Energy Inc. Q1 2022 Results. Ending March 31, 2022 (All Information Available On Sedar)
    Ticker Symbol: VUX
    Price: $0.435
    Common Shares: 82,249,971
    Warrants: Nil
    Options: 1,250,000 @ $0.25
    Market Cap: $34.5 million
    Insider Holdings: 55,311,353 or 67.3% of the float
    Tax Pools: $51 million (Less Q1 2022 earnings. Available in 2021 audited results)
    Financials (Ending March 31, 2022)

    ASSETS
    Cash: $2,487,862
    Short Term Investments: $2,705,022
    Trade & Receivables: $2,499,958
    Prepaid Expenses: $68,321
    Deposits: $564,797
    Exploration & Evaluation Assets: $80,013
    Right Of Use Assets: $177,419
    Property & Equipment: $11,029,479
    Total Assets: $19,612,871

    LIABILITIES
    Accounts Payable: $1,068,494
    Contract Liabilities: $848,300
    Current Lease Liability: $50,523
    Current Decommissioning Liability: $258,574
    Bank Loan: $60,000
    Lease Liability: $130,339
    Decommissioning Liability: $1,538,934
    Total Liabilities: $3,955,164

    Asset/Debt Ratio – 4.96:1
    Q1 2022 Performance
    Revenue: $5,854,810
    Net Income: $3,521,015
    Earnings per share: $0.043
    2021 Performance
    Revenue: $15,066,687
    Net Income: $8,945,770
    Earnings per share: $0.11
    2021 Reserves (51-101) Available On Sedar – Oil Pricing under $70 & Gas Under $4
    Light Oil – 537,400 Barrels NET
    Heavy Oil – 306,900 Barrels NET
    Natural Gas – 493,700 Barrels NET
    Natural Gas Liquids – 2,100 Barrels NET
    Total Net Barrels: 1,340,100 (Less Q1 2022 sales)

    Q1 2022 Management Discussion Highlights (Available on Sedar)
    Overall Performance Highlights
    • The Company reported net income of $3,521,015 in Q1 2022 as compared to net income of $136,839 in Q1 2021.
    • Revenue was $5,854,810 in Q1 2022 as compared to Q1 2021 revenue of $1,655,257, an increase of $4,199,553.
    • The Q1 2022 realized oil price was $97.73 as compared to $54.59 in Q1 2021.
    • Production increased to 666 boe/d in Q1 2022 from 337 boe/d in Q1 2021 with the increase being mainly attributable to improvements in operations at Sullivan Lake and the production of three horizontal wells at Lampman
    Outlook
    The Company plans to continue to acquire crown lands from upcoming crown land sales. The Company will continue to optimize production from the existing properties and plans to drill seven (7) horizontal wells in SE Saskatchewan that are expected to increase production by approximately 500 bbl/d in 2022.
    Core Properties
    Lampman
    The Company purchased a quarter section of crown land in Saskatchewan in Q3 2020. In order to confirm the Frobisher reservoir quality and the potential in the deeper Winnipegosis zone, a vertical pilot hole 1-4- 6-5-W2 was designed and drilled. The results indicated the Frobisher reservoir was promising and the Winnipegosis zone was uneconomic. The pilot hole was abandoned in the deeper section and was plugged back. This existing vertical well bore was utilized to drill Hz C7-4-6-5W2 in the Frobisher zone from 1-4 to 7-4 (second event for the pilot well 1-4). The other two Frobisher horizontal wells were drilled in July 2021 from the same surface pad as the pilot hole and were completed in August 2021. The Company produced 318 bbls/d of sweet light oil (API ranging from 32.5 -36.0) from these multiple well projects in Q1 2022.
    Sullivan Lake
    The successful appraisal development well, 10-1, was drilled in the Banff limestone reservoir in December 2019 and two additional horizontal wells were drilled in 2020 and all are on production. As the Sullivan Lake desulfurization tower was replaced with a larger desulfurization tower in 2021 with more capacity, the Company believes it has resolved the long-standing production and operating issues. This area produced 102 boe/d in Q1 2022 compared to 99 boe/d in Q4 2021. The Company has built production facilities at Sullivan Lake with a capacity of 300 boe/d
    Gull Lake
    In one of the Company’s core areas of operations, Gull Lake, Saskatchewan, Vital is the designated operator and maintains a 50% working interest. The property is covered with 3D seismic data and has 9 wells producing, or capable of producing, crude oil from the Roseray , Cantuar and Upper Shaunavon formations. This project has a salt-water disposal facility and a gas collection pipeline system. In the Company’s opinion, future drilling opportunities remain on these lands. At Gull Lake, Vital’s net daily oil and natural gas production in Q1 2022 was 192 boe/d (Q1 2021 – 240 boe/d). The decrease in production was attributable to natural declines in the property. In order to better evaluate the oil development potential, the Company has utilized the 3D seismic survey which covers all of its Gull Lake lands. As of December 31, 2021, the reserves evaluator, Trimble Engineering, assigned 160,400 boe of proven oil and natural gas reserves net to the Company and 79,400 boe of probable oil reserves net to the Company.
    Pennant
    Vital is the Operator and maintains a 100% working interest in 12 contiguous sections of land. To date one (1) vertical well and six (6) horizontal wells have been drilled. Four of the hor
  • R
    Rod
    New video on Vital Energy Inc. with a summary on Q1 2022 results:

    https://www.youtube.com/watch?v=5s5WBTwW6U0
    Canadian Energy Penny Stock Exceeds Expectations - Q12022 Update on Vital Energy
    www.youtube.com
  • R
    Rod
    Average monthly prices for WTI in Apil and May were $101.78 and $109.55 ( https://www.eia.gov/dnav/pet/hist/LeafHandler.ashx?n=PET&s=RWTC&f=M ). As per VUX's last presentation from May, average production was around 650 barrels per day. Let's do a rough calculation to what they've should of earned over the last 60 days, assuming no additional costs from drilling, land acquisitions, workovers, etc. Rounding WTI price to $100, dropping production to 600bopd average for 60 days, using similar cost metrics from Q1, which was $13 all in ($100-$13=$87 net) $87 WTI X 60 Days X 600 bpd = $3,132,000 profit (round down to $3 million). I always like to go worse case on pricing, production and profit.
  • a
    asyed30
    VUX has the highest rating 94 out of 100 by Market grader Investorline BMO.
  • R
    Rod
    For those that follow technical charts, here's the most recent technicals on Vital Energy - https://www.barchart.com/stocks/quotes/VUX.VN/opinion
  • G
    Gary
    Pretty hard to go when there is no updates. Their website says in like 2012 new presentation coming but nothing. Can’t find any information on them. I put them on my watchlist when they drilled 3 SE Sk wells which are good and could have made 300% but hard to invest when they can’t be bothered to update???
  • J
    Jeremiah
    Let’s gooo