By Adam L. Cataldo
Vital Energy, a Tulsa-based company operating in the Permian Basin in West Texas, has once again increased its oil and total production guidance for 2023. This comes as the second upward revision in less than a month.
Oil Production Guidance
The company has raised its oil production guidance to a range of 41.9 to 43.4 thousand barrels of oil per day (MBO/d) for this year. This is an increase from the previous range of 40.0 to 43.0 MBO/d announced on July 11.
Total Production Guidance
Similarly, Vital Energy has increased its total production guidance to a range of 87.0 to 89.0 thousand barrels of oil equivalent per day (MBOE/d) for this year. This represents a jump from the previous range of 82.0 to 86.0 MBOE/d reported last month.
Third Quarter Production Forecast
In the third quarter, the company expects a total production of 94.0 to 98.0 MBOE/d, with oil production ranging from 45.5 to 48.5 MBO/d.
Fourth Quarter Production Forecast
For the fourth quarter, Vital Energy estimates a total production of 83.3 to 87.3 MBOE/d, with oil production ranging from 39.3 to 42.3 MBO/d.
Reasons for the Increased Forecast
This revision in forecast comes as a result of the company’s recent outperformance in the second quarter of 2023 and the production associated with the Forge acquisition. Vital Energy attributes the higher-than-expected volumes year-to-date to stronger base production, which exceeded both oil and total production expectations by approximately 10%.