Vital Energy, Inc. reported a net loss of $582.6 million, or $(15.43) per diluted share, for the second quarter of 2025 on August 6, 2025. This loss was primarily driven by a non-cash pre-tax impairment loss on oil and gas properties of $427.0 million and a valuation allowance against the federal net deferred tax asset of $237.9 million.
Despite the significant non-cash charges, Adjusted Net Income for the quarter was $76.1 million, or $2.02 per adjusted diluted share, and cash flows from operating activities were $252.3 million. The company's operational expenses showed improvement, with lease operating expenses (LOE) 6% lower than the midpoint of guidance.
Vital Energy reaffirmed its full-year 2025 outlook, expecting to generate approximately $305 million of Adjusted Free Cash Flow and reduce Net Debt by approximately $310 million. The company also highlighted ongoing cost optimization efforts, including a 10% reduction in employee and contractor headcount in June, expected to lower G&A expenses by approximately 12% in the latter half of 2025.
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