Vital Energy Ramps Up Output with Lean Frac Strategy

Operational Activity – FY 2025

Rig and Frac Crew Deployment

Vital Energy is running:

• 5.2 rigs total:

  • 3.4 rigs in the Delaware Basin

  • 1.8 rigs in the Midland Basin

• 1.3 frac crews:

  • 0.9 in the Delaware Basin

  • 0.4 in the Midland Basin

This highlights a capital-efficient deployment, particularly in the Delaware Basin, where the company is using ~1 frac crew per 3.7 rigs—a ratio that indicates optimization and potential reliance on simul-frac or zipper-frac operations.

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Well Results and Development Program

Gross Well Activity for FY 2025

• Spuds: 82 gross (65.8 net)

• Completions: 79 gross (61.8 net)

• Turn-in-Lines (TILs): 79 gross (61.5 net)

Notable well pads and projects:

• Delaware Basin: Mosaic State (6 wells), Duiker Lynx (6 wells), Navy South (8 wells), Army South (6 wells)

• Midland Basin: 8 Mile (12 wells), Cox (8 wells), Getlo and Lil EL (2 each)

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Production Forecasts – FY 2025

Total Production

• FY 2025 Total Production: 135.3 – 139.8 MBOE/d

• Crude Oil Production: 63.0 – 66.0 MBO/d

• Production Mix:

  • 47% oil

  • Balance: NGL and natural gas

This is supported by a sequential ramp-up throughout the year, from ~133–139 MBOE/d in 2Q25 to 140–146 MBOE/d by 4Q25.

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Lateral Lengths and Well Productivity

Midland Basin

• Lateral length: ~13,400 ft

• Average breakeven: ~$52 WTI

• FY-25 efficiency gains:

  • Capital efficiency improved from $820 to $715 per 1-yr BOE

  • DC&E capital cost reduced from $63 to $53 per ft

Delaware Basin

• Lateral length: ~11,600 ft

• Average breakeven: ~$55 WTI

• FY-25 improvements:

  • Capital efficiency improved from $67 to $47 per 1-yr BOE

  • DC&E cost decreased from $1,000 to $890 per ft

  • Volume per well increased ~48% YoY

Vital recently began developing J-Hook and Horseshoe wells, enabling longer laterals and reducing breakeven by ~$5/bbl. Horseshoe designs now account for 14% of inventory.

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Inventory and Capital Outlook

• Total Net Acres: ~273,000 (Permian)

• Total Inventory Locations: ~925 (excludes upside)

• 11+ years of high-quality inventory at current pace

• FY-25 Capital Program: $835M–$915M

• WTI Breakeven: ~$50/bbl (down from $57/bbl in 1H25 to $46/bbl in 2H25)

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Cash Flow, Hedging & Balance Sheet Strategy

• Adjusted FCF expected: ~$265M

• ~90% of 2H25 oil production hedged at ~$71/bbl

• Targeted debt reduction: ~$300M in FY25

• Net Debt as of 1Q25: ~$2.3B

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Summary Takeaways

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