Share Price: 0.40

Market Cap: 32 Mln

Shares Outstanding: 81 Mln

Shares Diluted: 82.2 Mln

Management Ownership: >50%

Q4 is for October-December 2021. WTI oil prices have gone up a lot since so Q1 January-March have WTI market prices of somewhere $90 and at the moment we are seeing +$100. Let’s remember that viewing the Q4 financials in the MD&A. Q1 Financials will be out in a month, end of May.

Vital Energy has been able to more than double its production due to 3 new wells as stated in the 5 October 2021 press release (enclosed down below). From 385 barrels in Q2 to 911 barrels daily in Q4. Furthermore, the company owns many more properties, as stated in the MD&A, and has more potential sites for new wells. 4 of the 8 properties are in production, meaning there isn’t a dependency on one location/property. The cost structure is easy as after the Operational Netbacks the company has only limited expenses. Cashflow in Q4 was used to pay back a loan, note 11, of a total 3.8 Mln and make the balance sheet even cleaner.

Considering the high cash flow due to low costs and high oil prices, together with >50% insider ownership, this is not a risk.

As can be seen below, the operational netback in Q4 was $70 dollars with a revenue of $84 per BOE. The average WTI was $77 in Q4. Let us remember that this is October – December and right now oil price is at $100 WTI.

 

Balance Sheet and Income Statement

Insider Ownership

Management owns >50% of the shares so the float is tightly hold

https://www.vitalenergyoil.com/investor/stockqoute.html

Oil Proved Reserves 31 December 2021 – they have more locations for drilling left