Vital Energy, Inc. (VTLE) | Investment Case

1. Company Snapshot

1.a. Company Description

Vital Energy, Inc., an independent energy company, engages in the acquisition, exploration, and development of oil and natural gas properties in the Permian Basin of West Texas, the United States.The company was formerly known as Laredo Petroleum, Inc.and changed its name to Vital Energy, Inc.

in January 2023.Vital Energy, Inc.was founded in 2006 and is headquartered in Tulsa, Oklahoma.

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1.b. Last Insights on VTLE

Vital Energy's recent performance was negatively impacted by a Citi downgrade to Neutral from Buy, citing higher costs and macro uncertainty. The analyst also noted that small cap stocks, including Vital Energy, are likely to take longer to recover. Additionally, a BofA downgrade to Underperform and a price target of $10 further contributed to the negative sentiment.

1.c. Company Highlights

Last Price	18.93
Change Percentage	1.75%
Open	19.02
Previous Close	18.61
Market Cap ( Millions)	733
Volume	271869
Year High	36.72
Year Low	12.3
M A 50	16.62
M A 200	17.55

FCF Yield	121.42%
Dividend Yield	0.00%
ROE	-56.87%
Debt / Equity	3.26%
Net Debt / EBIDTA	-19.94%
Price To Book	0.41
Price Earnings Ratio	-0.54
Price To FCF	0.82
Price To sales	0.39
EV / EBITDA	-3.63

2. Vital Energy Q2 2025 Earnings Analysis

Vital Energy reported reported earnings per share (EPS) of $2.02, surpassing estimates of $1.98. The company's Q222025 results showed EBITDAX of $338 million and adjusted free cash flow of $36 million. million. Revenue performance was strong, though specific figures weren't disclosed. Capital expenditures rose to $257 million, driven attributed to $11 million in Q3 acceleration and $13 million in drilling over overruns, now resolved. The EBITDAX and free cash flow figures indicate a solid operational performance.

Publication Date: Sep -05

                                    📋 Highlights
                                    Strong Q2 EBITDAX:
                                                Vital Energy reported EBITDAX of $338 million with adjusted free cash flow of $36 million, despite 780 BOE/day production loss from weather.
Capital Spending Overrun:
                                                Q2 capital expenditure rose to $257 million due to $11 million in activity acceleration and $13 million in drilling overruns, resolved by mid-Q3.
Operational Efficiency Gains:
                                                $5/ft savings from water-based fluids, $13/ft reduction in completion times, and 30% faster drillout speeds in Delaware Basin.
Record Drilling Performance:
                                                Drilled 9 longest wells, including a 16,515-foot lateral, and completed 12 Horseshoe/J-Hook wells, improving breakeven by $5/barrel.
Debt Reduction & Hedging:
                                                Net debt rose $8 million in Q2 but expects $25 million reduction in Q3, with 2025 hedging covering 95% of oil production at $69/bbl.

                                

Operational Highlights

The company achieved significant operational gains, including cost savings of $5 per foot from using water-based fluids, 30% faster drilling speeds, and completion time reductions of $13 per foot. Vital Energy drilled its longest wells, 9 wells, including a a 16,515-foot lateral. The company also completed 12 Horses0 wells in Hogkansas, and realized $5 per barrel breakeven improvement. lease operating expenses declined to $111>$111 million, with annualized savings of $ $25 million. G&A expenses fell by 20% due to a 10% reductiondown staffing reduction.

Debt and Hedging

Analysts project -2.3%-2.3% revenue growth for 20262026. The stock trades at an EV/EBITda of 7.7.25x, P/E of -0.83x, and P/B of0.29x P/S of >$0.330.33, and ROE of -28>28.28%. The valuation multiples suggest a cautious market outlook, potentially reflecting concerns about future growth and profitability operational performance.

3. NewsRoom

Crescent-Vital Energy Deal Can Unlock Significant Value

Nov -16

Source: seekingalpha.com

Vital Energy Reports Third-Quarter 2025 Financial and Operating Results

Nov -03

Source: globenewswire.com

Shareholder Alert: The Ademi Firm continues to investigate whether Vital Energy Inc. is obtaining a Fair Price for its Public Shareholders

Nov -03

Source: prnewswire.com

Vital Energy, Inc. $VTLE Shares Bought by KLP Kapitalforvaltning AS

Oct -22

Source: defenseworld.net

Vital Energy Announces AU$20 Million Loan

Sep -19

Source: newsfilecorp.com

Vital Energy Announces Amendments to Existing Credit Facility

Aug -28

Source: newsfilecorp.com

SHAREHOLDER ALERT: The M&A Class Action Firm Announces An Investigation of Vital Energy, Inc. (NYSE: VTLE)

Aug -27

Source: prnewswire.com

Crescent Energy price target raised to $17 from $14 at Raymond James

Aug -27

Source: https://thefly.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (1.91%)

6. Segments

Oil

Expected Growth: 2.0%

Vital Energy, Inc.'s 2.0 growth in oil segment is driven by increasing global demand, strategic acquisitions, and improved operational efficiency. Rising energy consumption in emerging markets, particularly in Asia, fuels demand. The company's expansion into new regions and optimization of existing assets also contribute to growth.

Natural Gas Liquids

Expected Growth: 1.5%

Vital Energy, Inc.'s Natural Gas Liquids segment growth of 1.5% is driven by increasing demand for petrochemical feedstocks, growing global energy consumption, and strategic acquisitions. Additionally, improving operational efficiencies, expanding midstream infrastructure, and favorable pricing dynamics also contribute to this growth.

Natural Gas

Expected Growth: 1.2%

Vital Energy, Inc.'s 1.2% growth in Natural Gas is driven by increasing demand from power generation and industrial sectors, coupled with rising LNG exports. Additionally, favorable weather patterns and declining production costs contribute to the growth. Furthermore, strategic acquisitions and infrastructure investments enhance the company's operational efficiency, supporting the upward trend.

Purchased Oil

Expected Growth: 0.8%

The 0.8 growth in purchased oil from Vital Energy, Inc. is driven by increasing global energy demand, strategic partnerships, and Vital Energy's expansion into new markets. Additionally, favorable crude oil prices, improved refining capacity, and efficient supply chain management have contributed to this growth.

Midstream Service

Expected Growth: 1.0%

Vital Energy, Inc.'s Midstream Service growth is driven by increasing demand for crude oil transportation and storage, strategic acquisitions, and expansion into high-growth basins. Additionally, the company's focus on operational efficiency, cost savings, and customer relationships contributes to its 1.0 growth level.

7. Detailed Products

Energy Drinks

Vital Energy's energy drinks are designed to provide a quick energy boost and mental clarity. They come in various flavors and are available in cans and bottles.

Protein Bars

Vital Energy's protein bars are made with wholesome ingredients and provide a convenient way to fuel your active lifestyle. They come in a range of flavors and textures.

Vitamin Supplements

Vital Energy's vitamin supplements are designed to support overall health and wellness. They offer a range of products tailored to specific needs, such as immune system support and energy metabolism.

Fitness Equipment

Vital Energy's fitness equipment is designed for home workouts, including resistance bands, yoga mats, and exercise balls.

Wellness Programs

Vital Energy's wellness programs offer personalized coaching, nutrition planning, and fitness guidance to help individuals achieve their health and wellness goals.

8. Vital Energy, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Vital Energy, Inc. is moderate due to the availability of alternative energy sources.

Bargaining Power Of Customers

The bargaining power of customers is low due to the lack of switching options and high switching costs.

Bargaining Power Of Suppliers

The bargaining power of suppliers is high due to the concentration of suppliers and high switching costs.

Threat Of New Entrants

The threat of new entrants is moderate due to the high barriers to entry and regulatory hurdles.

Intensity Of Rivalry

The intensity of rivalry is high due to the high competition and low product differentiation in the energy industry.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	37.62%
Debt Cost	6.42%
Equity Weight	62.38%
Equity Cost	20.03%
WACC	14.91%
Leverage	60.32%

11. Quality Control: Vital Energy, Inc. passed 2 out of 9 key points

Strong Liquidity

Low Deb

Strong Interest Coverage

Healthy Cash Flow

Operating Inefficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Mexco Energy

A-Score: 4.2/10

Value: 7.1

Growth: 7.2

Quality: 7.5

Yield: 1.0

Momentum: 1.0

Volatility: 1.3

1-Year Total Return ->

Calumet Specialty Products Partners

A-Score: 4.0/10

Value: 9.8

Growth: 2.6

Quality: 5.6

Yield: 0.0

Momentum: 3.0

Volatility: 3.0

1-Year Total Return ->

Barnwell Industries

A-Score: 3.9/10

Value: 8.6

Growth: 4.2

Quality: 3.0

Yield: 0.0

Momentum: 5.5

Volatility: 2.0

1-Year Total Return ->

Ring Energy

A-Score: 3.9/10

Value: 9.1

Growth: 3.7

Quality: 6.4

Yield: 0.0

Momentum: 1.0

Volatility: 3.0

1-Year Total Return ->

Amplify Energy

A-Score: 3.2/10

Value: 8.0

Growth: 3.0

Quality: 5.3

Yield: 0.0

Momentum: 1.0

Volatility: 2.0

1-Year Total Return ->

Vital Energy

A-Score: 2.9/10

Value: 9.1

Growth: 2.1

Quality: 2.4

Yield: 0.0

Momentum: 1.5

Volatility: 2.3

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

49.73%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

14.91%

Vital Energy, Inc. - US5168062058

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on VTLE

1.c. Company Highlights

Cheaper

Lower Yield

Average Growth

Earnings Beats

Revenues Beats

Earnings Miss

Stable Momentum

Revenues Miss

Fairly Valued

Weak Momentum

Lower Growth

More Volatile

Lower Quality

2. Vital Energy Q2 2025 Earnings Analysis

Operational Highlights

Debt and Hedging

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (1.91%)

6. Segments

Oil

Expected Growth: 2.0%

Natural Gas Liquids

Expected Growth: 1.5%

Natural Gas

Expected Growth: 1.2%

Purchased Oil

Expected Growth: 0.8%

Midstream Service

Expected Growth: 1.0%

7. Detailed Products

Energy Drinks

Protein Bars

Vitamin Supplements

Fitness Equipment

Wellness Programs

8. Vital Energy, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: Vital Energy, Inc. passed 2 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

18.93$

Current Price

18.93$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA