Strong Financial Performance
Vital Energy reported consolidated EBITDAX of $338 million and adjusted free cash flow of $36 million for the second quarter of 2025.
Operational Achievements in Drilling
The company drilled the nine longest wells in its history, including a record lateral length of 16,515 feet, and set new company records for feet drilled in a day and completed in a week.
Successful Cost Reduction and Optimization
Through various strategies, including renegotiation of service contracts, Vital Energy reduced their lease operating expenses to less than $111 million per quarter and achieved a 20% reduction in total G&A expenses.
Innovative J-Hook Well Design
The company successfully completed its first two J-Hook wells, optimizing resources and reducing drilling capital by converting 130 locations into 90 J-Hook locations.
Debt Reduction and Strong Hedge Position
Vital Energy expects to reduce net debt by $25 million in Q3 and around $185 million by the end of 2025, supported by a solid hedge position covering 95% of expected oil production.