Q3 look into the MDA, Production & Financials -> ImprovementVital Energy Inc (VUX / SNYXF) (CAD / USD)
Shares outstanding: 82 Mln
Share price: $0,32 (CAD)
Cash and cash equivalents: $0,08 per share
Last 3 quarter earnings: $0,08 per share (2021: $0,03 per share)
Quarter 3 2022 lower net income than in 2021
MDA Quarter 3, page 9: “Net income in for Q3 2022 was $410,580 as compared $1,875,233 in Q3 2021. As previously mentioned, the Q3 income was negatively impacted by the recording of a late supplier’s invoice and a resource surcharge of $757,643.”
Consistent low production expenses
MDA Quarter 3, page 9: “Production operating costs of approximately $16 per boe remained consistent when comparing the nine months ended September 30, 2022 to the same period in 2021.”
8 cents cash per share
Cash and cash equivalents are $6.7 Mln (CAD) with the majority being short-term investments, almost double from 31 December 2021.
Note 5: Short-term investments consist of one-year cashable guaranteed investment certificates issued by the Company’s bank. The certificates mature primarily in May 2023 and earn interest at 1.65% per annum.
Shares outstanding 82 mln is 8 cents cash and cash equivalents per share.
Besides payables and decommissioning liabilities there is no debt on the balance sheet.
Production volume is more accurate at 660 bbls/d (ending Q3) instead of 495 bbls/d (average Q3)
Lampman
MDA Quote: “For the nine months ended September 30,2022, the average production was 278 bbls/d, (sweet light oil, API ranging from 32.5 -36.0)
In Q3 of 2022, the Company drilled one additional Hz well in the southern part of the Lampman property in order to produce the remaining Frobisher reserves. The well was put on production in August 2022”
Sullivan Lake
MDA Quote: “This area produced 87 boe/d for the nine months ended September 30, 2022 compared to 104 boe/d for the same period in 2021.”
Gull Lake
MDA Quote: “At Gull Lake, Vital’s net daily oil and natural gas production for the nine months ended September 30, 2022 was 189 boe/d (2021 – 197 boe/d).” (This is after taking into account the 50% ownership).
Pennant
MDA Quote: “The company’s crude oil production was 26 bbls/d for the nine months ended September 30, 2022 as compared to 33 bbls/d in the comparable period in 2021...”
Steelman
MDA Quote: “The average initial production from the three (3) wells is 80 bbl/d which is meeting the Company’s economic expectation and production targets.”
Ante Creek
MDA Quote: “The Company purchased 2.5 sections of crown land in Alberta in Q1 2021. As part of the Company’s 2023 strategic plan, the Montney play in Ante Creek will be the Company’s main focus. Currently, the Company has been working on a detailed geological study and finalizing development plan. The preliminary development plan indicates there are up to 25 development wells.”
Total bbls/d
278+87+189+26+80 = 660 bbls/d
Average bbls/d on page 6 for Quarter 3 = 495 bbls/d
The difference is Gull Lake which notes the production rate at “ended September 30, 2022”
Additionally, a new well in Lampman went into production in August 2022, giving the company more information on the oil reserves and geologically oil location
THE MOST IMPORTANT THING IS "NEWS ON THE WIRE" TO REACH NEW INVESTORS, WHILE MANAGEMENT FOCUS ON OPERATIONS