Vital Energy initiated with Buy on production step up at Truist

Truist initiated coverage of Vital Energy with a Buy rating and $70 price target. Vital is a pure Permian exploration and production company with 70% of operations in the Midland Basin with the remainder in the Delaware Basin, the anlayst tells investors in a research note. The firm says the company has seen a material step up in cumulative per well oil production with both its Midland and Delaware Basin totals materially higher than the legacy assets beginning early in the wells life and continuing through the first year. It forecasts the well improvements will likely continue through future enhanced development activity.