VTLE - Earnings call 4 2023 | Vital Energy, Inc.

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Operator

Good day, ladies and gentlemen, and welcome to Vital Energy, Inc.'s Fourth Quarter and Full Year 2023 Earnings Conference Call. My name is Desiree and I will be your operator for today.

[Operator Instructions] As a reminder, this conference is being recorded for replay purposes. It is now my pleasure to introduce Mr. Ron Hagood, Vice President, Investor Relations.

sir. proceed, may You

Ron Hagood

good and morning. you, Thank

and are Joining of Executive Katie our President as President Chief management team. Pigott, Bryan me Hill, as Lemmerman, members Vice Officer; today Officer; Financial Executive and Chief Officer; Jason Vice additional Operating Chief Senior well President,

Reform During today's safe to intended Litigation forward-looking Private be by the be will provisions statements. those of including Securities are statements, call, and of beliefs, our assumptions we harbor the describing goals, making XXXX. These Act expectations, forecasts covered

actual results from differ our which may a variety these for Our are forward-looking of control. of statements reasons, many beyond

addition, reference In to measures. making be non-GAAP we'll financial

on are the Chief presentation to yesterday. presentation Executive Jason Press over financial measures press accessed www.vitalenergy.com. the and to and we website now I'll included our Reconciliations call Pigott, at turn issued Officer. and release President release GAAP be in can

Mikell Pigott

oil we of flow equivalent a achieved record respectively, our versus barrels fronts. XXXX, at XXXX capital Thank for our generate Vital you, strengthen this per XXXX executed expand we build our us lower-than-anticipated Ron, strategy we an as cash of barrels costs. XX,XXX day XX% free morning. balance In production per portfolio, XX,XXX and XX%, and change joining on and sheet. to production you shareholder year great and day, the for year, drove of value, of on development was thank Energy oil increase full year Throughout multiple

increased XX oil XX%. our months, production approximately by we

Basin activity inventory year. oil-weighted acres current locations, which X increasing XX were adding an cash flows cash over activities announced compared net to of XX,XXX XXX income locations and $X.X gross $XXX.X the and increase adjusted and with beginning oil-weighted billion of XXXX the years acquisitions XX% $XXX accretive income development in to the at $XXX of net year million operating full than Permian of levels, the million. of Closed acquisitions, XXX of more were net of approximately stock, For from million,

net of prior We consolidated was with ratio to than the X% exited a EBITDAX year-end. XXXX which debt X.XXx, lower

X gas emissions intensity and of methane reduced year-end of emissions greenhouse intensity XXXX. we as respectively, Before Scope XX%, XX% and

the operations, were certification Vital the the top Energy Permian receive of third-party operators. we TrustWell operator for Additionally, to placing first quartile U.S. onshore responsible in

Basin Our to into the Delaware strategic paying entry Midland going and well. the Southern is Basin and shift into transition the on focus off process is extremely expand

wells are are and faster, are originally We costs anticipated. cheaper, well they drilling productive than more

up basins, operator transferring us and are making activity stronger we technology setting knowledge a record-breaking both in across Socially, us for XXXX. more

leverage. XXXX, a total Turning result position the maturities, our entering work the reduce to the RBL a our on and as year strength reduce to of extend in bond drawn our of we amount are

flow for recently adjusted of to of of to prices hedge more strong cash and oil free We barrels million are million, pleased $XXX production per $XXX book. production guidance prior our equivalent XX,XXX to day. at adjusted million and oil with supported total than projections to working by announced plan XXX,XXX confirm $XXX barrels and interest capital the flow guidance additions of our XXX,XXX XX,XXX and are generate a day between of cash per of oil current investment

an our free digital and I generating to to portfolio, in less focus and integrating X.Xx on than core on to Katie of principles cash XXXX, Focus flow, debt reducing call sustainability leverage, operational expanding our ratio maintained down the now advancing further turn the solutions. debt will we paying update. leverage our over provide Strategically, throughout and reducing development year.

Katie Hill

position acquisitions XXXX. production and capital investments in integrated delivered we operating an Basin. below successfully extremely the Operationally, expectations We throughout Delaware had asset successful core plan. year, consistently Jason. the X exceeded you, established a Thank

years. Our onboarding position over demonstrated in past assets team development our as few successfully optimizing and we the Howard County has extensive experience new plans,

we We this results development the gained process. County, asset, experience in the integration production and methods. design, of was of Bulk showcase refined with Howard and success spacing completion the and optimization our XXXX techniques

New wells a quarter, days in exceeded and set a X,XXX to a we day. feet in regularly record-setting in records company Howard In drive efficiencies. XX,XXX-foot the production lateral execution continue delivering fourth expectations in drill X.X we drilling, and

stages average out records Production processes and completions times set to recover pump during dewater on brackets. more optimize to better transition daily a earlier on per from for than and hours, fourth modeled brought high-value quickly and also the We we quarter as offset from sizes wells wells pumping pad. day drill production after

outperformance Our fourth barrels assets midpoint oil X% recently County Upton the County Howard guidance driven range in our in by integrated by X,XXX of per our production and quarter day. or exceeded

of expectations driven new X, beat of been It through of increased X/X prior was process optimization was Other has wells and run delivering our online production our by brought across times mechanical technologies. end wells Last and continued field. production. to the The optimization of response and base has been application the year, both times the the above XXXX by result results XX%. faster accomplished January exceeded improvements expectations. more driver targeted

integration XX% we the we Production acreage. of from by XXXX. acquisitions on scalable, Driftwood has XX% proved improving expectations wells and on is Driftwood closed results on Forge that assets to the legacy early in and and exceeding Forge This model legacy through new operating are be on

the the asset of operations base expectations X%. We optimizing are early the already Forge properties, are in on by on but production process legacy exceeding

the also redesign. close by time, optimization chain what versus the have supply at XX% Basin time reduced and through assumed was of We well cycle Delaware improved costs in well

and expected forward-looking delivering XXX wells We added the our to improvement. have asset assets, higher results into continued an quickly are and with are reflect and capital wells from included for originally year-over-year our acquisition We been more onboard XXX cost assumptions assumptions. offset these acquisition, Based we in built results organically our less work, data, from forecast this operators. evaluating high-return productivity another in teams geologic these than our on production have and

cost added geologic we Upton on in importantly, evaluation improved data. began In Basin, the added development wells in since vertical detailed XX the core we and that operating that acreage robust from the from on XXX results drilled Midland horizons the and incorporated well based Wolfcamp wells technical in reducing data Spraberry high-quality a locations recently County Delaware the a completed from set Basin, we offset position we our through and across well area. XX% operator economics our In results acquired collected

adding inventory through on work technical organically adjacent In bolt-on additional to acreage increased leasehold. opportunities and through XXXX, focused low-cost we to remain our

between efficient capitally optimizes Our plan activity development Midland Basin. Delaware and the

Delaware development a XX-well several from production package. support plan. packages our This quarter, are we to data Western recently turned in-line Fluid continues bringing our and Glasscock Delaware online wells

Western is On and and have gross is flowing drilling completion and producing already on barrels very the operations these wells Glasscock Basin, per X the wells currently are Midland gone package, day. promising, X,XXX package well, back. pressure

to of [ oil Cliene weeks be Bryan ], with will now next turn call financial over the to the remainder the for the I'll of the peak X second a for quarter. update. the middle over brought planned package X online

Bryan Lemmerman

Katie. you, Thank

portion quarter, Permian previously fourth increase of and to acquired closed additional properties. we an on announced the acquisitions working transaction X During a the interest

production bonds upgraded average have significantly flow have Moody's bond our by budget to growing these approach full strengthened versus were transactions is quarter XXXX Recently, financing basis capital while our thoughtful by structure. year around substantial and points. improved designed cash to Our XXX volumes. generate XXXX our yields free fourth

lower, first capital with more spend. flow activity first interest on the is working the higher by quarter the and highest resulting in cash capital lower interest moves Free capital expected is build being working year progression wells then down being year. driven coming average the throughout quarterly Delaware and to Basin, to The the as activity throughout quarter in will

focused on debt are utilize further year-end target our and plan achieve to balance We X.Xx. free our to absolute of XXXX sheet, ratio and flow we debt reduce cash strengthening

early X focused of balance flow lower be will reduce can substantial in reduction the our expect the benefits we We February, of our free quarter leverage, third additional shares NOL acquired including Due year. we will carryforwards the interest recently achieve Permian to be some transaction, XXX utilizing properties. acquire transaction future likely and cash Debt facility, to from believe to on a the credit In be to working subject to announced expense. interest limitations. second our issued we on in this

Jason estimate comments. cash will taxes back and and have now managing over for not pay years. our current pricing levels, for X turn next we federal at projected intangible utilization that credits least to of we the at I call closing Importantly, will drilling the been activity

Mikell Pigott

a is Energy a to I today close, that we ago. company Vital want than year were reiterate to different Bryan, much

I been this call and stronger, without now team have possible the us. have much talented are Operator, questions. turn we over will for We the not would behind

Operator

Instructions] comes the Truist first Dingmann, Securities. [Operator Neal Your line question of from

Neal Dingmann

of first both around Just and question, my them Slide are be X. maybe going maybe X to

how properties. now you where look maybe this sort you've I as the And wondering, on the has Katie the recently like I you Midland at know just assets the that of I well Slide Delaware talk of rig that these. some successful and of together? X start you attack all of now mixture about I'm the Could Basin. that said now you on of First, working done when plan year. maybe that you've you to both focus mean, that, integration you've Could maybe the changed? as added that about you the X, both show got got

Katie Hill

best of had this of X-rig Katie. we're a like to year, said, We throughout is our course, we're with this run, next. strategy, and drilling continuing our Neal, you planning -- the program, wells year,

think and allocation some more throughout there's the into good half, a we the bit heavily opportunity Delaware as in year, closed on the integrated we'll So shift them. little as the really we've assets second about the capital

we're to We've to in been and that excited some the optimize deployed this capital get year, area. able plan

still moving in As Midland. some the into investment there's think about we great opportunity really 'XX,

the years to throughout mix assets here. continue with couple we'll and optimize Delaware Basin X next So the of that of Midland try across

you production and in there's you we've built think additionally quite XXXX. can production the see we've X, base Forge into bit Slide that as Driftwood our around early Delaware from I work the in on on mentioned that opportunity early optimization assumptions assets outperformed plan a the of

And as the closed and base out projections deploying will that second the and that assets X think the support of there. to optimization year, we have continue half technology the work plan about across XXXX we we in that the

So us across of really lot basins. a I opportunity X the think good for

Neal Dingmann

when X then you you and optimal now I'm And zones all pad guess, of sort about mentioned just as actually follow-up, or you details. cost project something size? just additional looking or view the then I show at Great X, do reductions. tackle, Slide a you you the sort what talked wondering where had of optimal

and a for been smaller all It walk seems up like to able that some efficiencies. being capture you've even operator,

So guess think you how makes these most I'm again, I at are projects all. like X, just when and wondering you when big of for codevelop now optimal the sense you looking

Kyle Coldiron

Neal, this Coldiron. Kyle is

answer pay I of depends area stack on kind have. the that So think really the you the and

benefits they Glasscock to of we So those XX of fleet. basically coming there. having ever And that that great if complete package wells that without where pads able our we XX that's one drilled move you Halliburton of and -- kind essentially, right very look to online X of were now, that the the at fracture was our park large Western those wells. have

efficiency those pads. big just So really from skyrockets the

a we to the that X the drill of spacing has to tend to our over and to there lot X with pads type bit a we're As we of kind hitting. over just of side, smaller what Ultimately, targets Delaware range. in well assumptions move do little

but So basins. it drive able are improvement down drilling across operations the on your to culture question, across our on board, we I team, depends and a and both continuous both -- think area been to we've costs the completion

that you shared we in materials as think can the today. I see

Neal Dingmann

Great Makes for the Thanks guys. detail. sense. job,

Operator

JPMorgan. with from Our line Parham comes next of question the Zach

Zachary Parham

can bit it pretty Midland, about In additions Delaware? guess, I a little the in the you the talk first, inventory clear. seems

You in added that around X industry activity But zones program of Delaware can some how added going you. and into you additional kind the detail what fits you based the forward? on exactly

Mikell Pigott

acquisitions. then the it after we've a of one take add stab, over completed Kyle. I'll I'll and I done to hand is mean things repeatedly inventory that Jason. we've It's

out Western it a we the saw there. You we added in got B, in County when those on large and Glasscock, added zone Spraberry being Howard the we've completed Wolfcamp that's today pads that's Middle

those Wolfcamp offsets good, would and bit on we We offset lined what of A some added as little had So Howard again, Lower brought that and indicated be than mentioned, the were them. us them geology. online -- saw core zones Midland. differently operators to would and we wells then they we've Southern where each that took these a you other We confirmed we and Spraberry sorry, develop in top would of the stagger data

So that could upside you we see there. to think some those there's results even out

costs. performance to you well out there. is that driven go by $XX.X field. of of And improves well million, economics from $XX Delaware, that's when that when We costs million in every improves reduce higher, XX% economics production your well to every the

be going thing, returns across is, again, the it's, areas. we've this other year. I that to got we're think other I total too, mean, those So improving all testing And zones

which today that C, be That's zone for totally inventory future add Glasscock. could we're to calls. a Western earnings the Wolfcamp coming We've in going -- us future or online is new got

on he you putting can full Midland give what Delaware both I'll court doing more So on the little operational turn it to, increase to these a create time. continue multiple And and front Kyle we're they're and the a efficiencies across on details now outperformance. press zones over inventory to to over again, testing

Kyle Coldiron

Yes.

that Delaware the your to specifically, our intervals development inventory are was Zach Bone, horizons. on which our Wolfcamp Wolfcamp we B, core Xrd side A or So Bone, and the question added across Xnd the

see the haven't of economics said million just we $X.X the or the provides you anything of fantastic. packages line, the curve the been So well cost ultimately, Jason of cume performance off has from well, can we it the your previously well more these inventory as aren't as improved new in that IPs all develop. Also, here recent well our that to improves highlighted time lot outstanding from but has and that far been so disclosed, horizons ultimately that we've turned both productivity opportunity a and

there And just and so of confidence benches we go the side. develop gives Delaware on a us can lot it those that across

Zachary Parham

does at I set your you've a of my that's organic I mean just mind these M&A mean talking on additions, appreciate this XXXX, How do number of inventory. guess deals forward? kind Where conditions M&A about but the years color I X-plus point? done just in you follow-up think M&A organic about specifically. there. inventory of in I versus going

Kyle Coldiron

another Yes, great question.

over our smaller we year again, weren't which that Again, competitive amazing transformation this in work successful series billion was We wildly us. billion performing for peers larger talked think lot did to a again, as in we things. continue almost as were I a completed, 'XX transactions. bidding on was company. when of as $X.X in about $X.X it last transactions the smallball, transition to a And

about In which you and think little new spin 'XX, moneyball, as the divide but XXX again, adding rate of by a we're almost more XXX XX you wells zones we for to that less testing switching we bit brought get the not for with alone. free, is year wells free X year added let's last last per a wells. years And total on if inventory year, in of acquisitions, wells

And And in these some to as we're mentioned, really so we're shape. zones. be good new testing I going of

outsized So cost. I with think can less well get additions we

going say need inventory and added been There's that the in at, to However, jump, today. the accretive year. to that in we'll I to there Any out need raised this look market. we for deals still we will inventory active to the There's be future. be the will us. But would has us we've deals be deals bar

could endeavor or still that lot market. to opportunities Oxy that can be an say us to great and come I'd to adjacent it. I looking those former we're are look -- as a at the mean Diamondback -- with endeavor or going sense of there to So are make properties

bar say So us, XXXX. for active at and that we're but look I'd in is look the continue to we'll on going to type raised of scale, the at creating things be

Operator

from line Next of KeyBanc Rezvan with the Markets. question Tim comes Capital

Timothy Rezvan

vocal you're best you on Katie. that the and happening stand be? side an how on I and of kind could get give all acquired you fully what you to Driftwood production. what gave things implemented maybe I that with update your the the maybe assets sort for And what's an time line on would of recently doing update pretty Forge for base when into optimize would cloud are was if wondering you about know This technology at system,

Katie Hill

Sure Tim.

I consider think phases. technology in we would implementation to the come typically

acquisitions. progress 'XX stage. the I We're early about excited our this think made at on we've really

are operating half like at assets year, really in successful first steps our operating So you think strong asset Driftwood, on taken of the assets in deploying We've Southern second platform Delaware Midland X were from people Basin the think the that some fully we've into we When mentioned. effectively the about standpoint. integrated platform. a that our Forge, I been

we've So applying from the see which wells, lift on and the some technical of artificial Midland then new and learnings on that year. will the What for and structure and from really seen deployment of results ESP the that the in focus is on learning years. team uptime hardware focused on to work on on of flowback that of for compression our specialized optimization allow you couple great with last been we're that the really AI either in good support us today for the we've and working then half apply the machine second the work

do we assume because I to a stood of piece and XXXX work this such the the late think that seen AI that's up Midland actually across great continued in get deploy to variety that's wells. the start year. we've system full a effort year really in success

different different really Delaware types, gas lift assume from lifted wells as in we've that to the So are of AI, GORs, lift from and we artificial successful implementation ESC, both success seen well.

forward-looking it's moves take to we into plan, to it XXXX expect So to our but built there. get

Timothy Rezvan

looking understand XX Okay. activity. just trying Delaware year. activity, And kind of down follow-up, of just a your looking the of then a over XX years. this of with to Obviously, my is at to understand year? X Delaware, deck about DUCs I'm I'm XX pad you're think of to spuds, and for and trying on calendar that pace Glasscock as the next activity working DUCs Are some this Slide more sort of how timing bit a just issue you understand pace -- of of of with backlog should turn-in-lines we little operations, to steady-state kind trying couple the the the build there

Kyle Coldiron

This again. is Kyle

just So the I rigs. It's lag ultimately, completion drilling the think you're crews right.

And so ultimately, you back you'll bringing when see you there Delaware our half to the 'XX, have wells in of you activity as heavy of completions XXX% and But allocation look Basin. side. is 'XX at the activity a almost the then you'll move Delaware allocated of be into online, those drilling

on So the and of I lines think lag those completion crews you ultimately a it's hit turn rates. the head the that just drilling following in it

Operator

Citi. line with from Paul Next the comes of question Diamond

Paul Diamond

Just question your on a quick hedging structure.

level? As you you frame? anticipate targets time? that how towards Are time guys do of your over high expect down guys trail scale, what kind increasing of you a progress kind you and holding to something at that more is debt currently your Or evolving and

Mikell Pigott

than much hedging question. be the think different I $XX that too see up We good moving strategy our that don't range. into Paul, 'XX past. will

some layer hedges to there. additional continue on would we think I

improve down quickly. If to we capital economics the investments. versus are pay different. flat outcomes $XX, At our those the model were at our very We company strip, more debt of you $XX

starting as 'XX, put to on the percent in would I year So to hedged you tend a think hedges. us out be creeps future. XX-ish some into see We $XX

today, we shape we're start So right would can watch think kind is different on. and for good we of and higher. those But to of prices. are in This us, very put $XX we company we now, some for of than

already. in ' XQ that for we've 'XX first some got already place half see of XX You --

economics good a return and program that's of wells. accelerates us shareholder our So for improves again the of that to our number cash

Paul Diamond

really in a of that you through trying year, that crews just on they guidance, Understood. as of decision? -- see And do a the well just QX. be seems about guys really guess on talked I how it -- purely that on think driving you quick cadence? could just kind in you held optionality drive guys follow-up cadence? do back. to guys a about timing to What ultimate could so that dig lot -- that X.X little into outperformance Is the to bit. just And that and of on Or turn decision

Mikell Pigott

we down is a activity for is free we've use level to also in but of the prefer I the Yes. would to of a put year. it that lot while. say on February, we A capital is time This flow bans the pay cash is desire by to steady, got place in and range. one reasons We it's of operations had What the a driven lot left debt.

second year, But year program. outperformance of of it's capital progresses. for into you the maybe we're give we -- prices in and final as kind quarter the fund crew of updates on kind play to the factors are we'll to going Those just the -- early or year. if So that continue keeping that us, would see production that higher or all reduce

Operator

comes Bank America. of question the line Brody next Our from with Gregg of

Gregg Brody

Just for X questions you.

a Should stay one, in any as up operating about could around you talk expect for costs that trending should quarterly that bit to there? to sort we LOE you been of change expect The gave have XQ. we Or first little direction? guidance

Katie Hill

Katie. is this Gregg,

new as Overall, We now exited half bring then water to roughly productivity in in and the QX to see think on, in us. is LOE we I with and where of year. of year the that's fair of a expect first volumes we these coming on representation stay volume and the a that tie costs QX, we water high bringing of lot outperformance QX right disposal wells some the flat

through the with beginning year flat operating we cost our expect are So where of be here to the today. fairly that

Gregg Brody

so will implies second -- water the that little a the it additional implies then be half, higher? in And

Katie Hill

are QX, QX. flat I think we'll through we be where fairly to today

Gregg Brody

we that, And -- is think after it that? should about then potentially how trending Or down?

Katie Hill

Sure.

So we opportunity to and optimize as we're think assets. I onboard have continuing these

we think were on from really already the Delaware found closed in where cost savings I mid-XXXX some we newly good assets.

to 'XX full fully I are relatively average continuing costs flat we year stay those the and get for to to think expect onboarded. would try as work we assets down

Gregg Brody

And curious, is you And comments know some Great. the asking debt, how about still now. about returning M&A year? equation. you made Like cash down think do debt of that's terms right fit obviously, dividends paying to buybacks? of you're into in the about part things that shareholders this. and I I'm focus the I'm When guy when or does and this how -- does thinking

Bryan Lemmerman

this Yes, is Bryan.

forward-looking towards how we're consistent policy, and end good debt really sight a year would get here. a not dividend rolling the like We we've have we the going a serious we've a think pretty of And would of I messaged think been later that we'll the year. in look discussion line on about at below what net don't EBITDA, have Xx. that I point. I to to of happening think change to see that this And past, in like our

very we looking to can important that want commodity see It putting price be what to place will is about forward. in a policy be be environment sustained through careful cycles. the

we below that's we'll to successes of leverage, point out. thought so not maybe the doing. some well and very that Xx when what something the the And put So in we're others get place watching successes. are

Gregg Brody

just about what then And share buyback program utilizing? the

Bryan Lemmerman

obviously, The than is dividend flexible more share policy. buyback program, the

So free look when would generation, the we we definitely cash that's get something below at. Xx flow with

Operator

line our with Stifel. of have from do Whitfield last we question, the And comes Derrick

Derrick Whitfield

update. year-end solid a on Congrats

For assume question, locations in the subsurface safe inventory inventory depletion additions first developed competitive it to with concerns? I be material wanted could Basin. work, are underwritten lean be these would without Based in and on the to on my your Midland

Kyle Coldiron

Derrick, this is Yes, Kyle.

you've inventory in think that Spraberry, Wolfcamp $X between the got breakeven Upper the the our the about at A and is When Lower A B, A feet underwritten the there you core So target and right XXX Lower another vertical and competitive yes, developed. B I range. it the and separation of the Wolfcamp look we feet Spraberry with kind that across XXX between Wolfcamp you're

other The thing always that, that go of development. ultimately, in vertical we interference and helps that is can we seen prevent kind occur. that that And what rack do is wine we've

And part the as well. coming then we're with locations so today, to that Spraberry year, our we've are there. and to strategy that's a of our development do and area we and B a in of this And co-development these out going dollars we're -- that work underwritten putting Lower A the

Derrick Whitfield

by performance to recent Terrific. online you in it's mean Katie, the strong just the clear comparison. I'm versus in of speaking interval? of a I well coming you have are we or And either out for more really of And speak Delaware. units driving in the Could guys the gate bringing really baseline the you turn historical composition to and you're what, your is lines results view, good

Kyle Coldiron

Yes.

and well completion think by there's we've think completed, these performance also completed frac taken certainly design a were kind that we've operators these ultimately, drilled we've So we're -- we've things X that previous stellar that and think of are drilled well I Others, assets, and as the them. completed over some contributing they put we've that of wells, with One we high-proppant to loading spacing paired design, on spacing that contributes. the optimal type a for that, design high-intensity cluster these design. our is But we and wells, area. a is spacing, We seen. so we

moving a over they're Fortunately, is seen being operators seeing spaced a spacing solution solution time we're can path. that see of seen lot wells, and have you've as that X from think drilled kind a we've What to over wider the of we tightly supportive X-well results the beginning. I underwrote right you And section that are that very the well per of operators

Derrick Whitfield

of last, at the ahead could, we opportunities signing bills, you the inventory. and recent to at environment to could if of value for if you? guys our speak I are wanted how flurry to Jason. ask that One Permian present. of A&D I increasing Terrific. But seeing do an and maybe market are look the amount you The the

Mikell Pigott

mentioned you've that continuing coming. we're There's divestitures. are do we to things potentially There will on Yes. I market the and have announced they got Diamondback -- would NOx today. are evaluate Again, it. that your things

like we're some the well. to of those So -- watching as come market to come those for waiting

need of would today jump ahead I to year. like going just that the added And to expect continue inventory we're we'll we've selective. very to later the think add and things be inventory to an to going part be in again, the we these, of

So going you Again, we're getting again, that's selective. smit-caps trying ] to aggregate out assets. to these the much seeing be, are buy X together large we're remaining few companies there and more of [ and just

in So us some these there's of less competition for areas.

I So when think level. because is you just get higher high, exciting a the it us for that's competition to up also

if the possible wells because I in very can technical again, this work XXXX. wells low environment happening done that's XXX of add, Energy. been think we did for these a But we So everything again, we is -- actually our Vital in cost at And add again wouldn't to the have just good is today we hadn't macro work.

done again, but it's position we coming if in something, anything -- having So great want Bryan, on do in got sheet don't to just job we we're because I again, XXXX to have our ahead and -- team of that not balance in can us. stuff we we've, shape, a of good think do have new a his a

So we're where about we sit excited today.

Operator

Hagood, over further you. I the questions at back no are There turn call Mr. time. to this

Ron Hagood

This call. Have great Vital your you for Energy. today's morning. interest Thank concludes in a

Operator

This concludes call. conference today's

disconnect. You may now

Vital Energy (VTLE) 22 Feb 242023 Q4 Earnings call transcript