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Vital Energy (VTLE)
NYSE:VTLE
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Vital Energy
(NYSE:VTLE)
62Neutral
Positive Factors
Financial Performance
VTLE delivered strong 1Q25 results with DCFPS, EBITDA and FCF exceeding expectations, mainly due to lower overall operating costs.
Hedging Strategy
The robust hedge book covers approximately 90% of expected oil production for the remainder of the year at an average price of $70.61/bbl, minimizing risk to the 2025 program.
Valuation
VTLE trades at lower EV/EBITDA multiples compared to its peers, indicating potential valuation upside.
Negative Factors
Debt Management
The company's 4Q24 outspend delays debt paydown, raising concerns about how quickly Vital Energy will reduce its debt.
Operational Challenges
Operational delays and underperformance in a 7-well delineation project have contributed to a lower volume trajectory, which is seen as a disappointment.
Production Guidance
2025 production impacted by operational issues and well performance.
Vital Energy (VTLE) vs. S&P 500 (SPY)
Market Cap
$600.13M
Dividend YieldN/A
Average Volume (3M)1.57M
Price to Earnings (P/E)2.0
Beta (1Y)1.35
Revenue Growth16.77%
EPS Growth-113.49%
CountryUS
Employees405
SectorEnergy
Sector Strength45
IndustryOil & Gas Exploration & Production
Share Statistics
EPS (TTM)2.37
Shares Outstanding38,768,085
10 Day Avg. Volume1,603,095
30 Day Avg. Volume1,574,840
Financial Highlights & Ratios
PEG Ratio0.03
Price to Book (P/B)0.22
Price to Sales (P/S)0.00
P/FCF Ratio1.72
Enterprise Value/Market Cap5.22
Enterprise Value/Revenue0.43
Enterprise Value/Gross Profit3.55
Enterprise Value/Ebitda0.73
Forecast
1Y Price Target
$22.00Price Target Upside42.12% Upside
Rating ConsensusHold
Number of Analyst Covering10
Vital Energy Business Overview & Revenue Model
Company DescriptionVital Energy (VTLE) is a company operating in the energy sector, primarily focusing on the exploration, development, and production of oil and natural gas resources. The company is involved in the upstream segment of the energy market, using advanced technologies to maximize the extraction and efficiency of its hydrocarbon assets. With a commitment to sustainable practices, Vital Energy aims to deliver reliable energy solutions while minimizing environmental impact.
How the Company Makes MoneyVital Energy generates revenue through the sale of crude oil, natural gas, and natural gas liquids (NGLs) that it extracts from its assets. The company explores and develops energy resources, aiming to increase its reserves and production capacity. Revenue is primarily driven by the volume of resources produced and the prevailing market prices for oil and gas. Additionally, Vital Energy may engage in strategic partnerships and joint ventures to optimize its operations and expand its market reach, which can contribute to its earnings. The company's financial performance is influenced by factors such as global energy demand, commodity price fluctuations, and operational efficiencies.
Vital Energy Financial Statement Overview
Summary
Vital Energy exhibits significant revenue growth and improved cash flow in the TTM period, reflecting strong operational performance. However, profitability challenges are evident, with negative net income and EBIT. The balance sheet shows improved debt management, though profitability remains a concern. Overall, the company is on a positive trajectory with potential risks related to sustained profitability.Income Statement
The income statement reveals mixed performance. Revenue in TTM (Trailing-Twelve-Months) increased by 26.2% from the previous year, showing strong growth. However, the company posted a net loss in TTM, with a negative EBIT margin. This indicates operational challenges and profitability concerns despite growing revenues.65
Positive
Balance Sheet
The balance sheet shows significant improvement. The debt-to-equity ratio decreased, indicating better leverage management, and the equity ratio is strong at 45.9%, showcasing a solid equity base. However, the ROE is negative due to the net loss in TTM, highlighting profitability issues.72
Positive
Cash Flow
Cash flow is robust with a substantial increase in operating cash flow in TTM, which is 29% higher than the previous year. The free cash flow turned positive in TTM, indicating effective cash management. Operating cash flow to net income ratio is favorable, demonstrating strong cash generation capabilities despite net losses.80
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 1.95B | 1.55B | 1.92B | 1.39B | 677.19M | Gross Profit |
| 613.25M | 1.13B | 1.20B | 753.22M | 146.40M | EBIT |
| -22.55M | 559.62M | 1.06B | 720.34M | 41.03M | EBITDA |
| 702.71M | 1.13B | 1.10B | 401.95M | -538.51M | Net Income Common Stockholders |
| -173.52M | 695.08M | 631.51M | 145.01M | -874.17M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 40.18M | 14.06M | 44.44M | 56.80M | 48.76M | Total Assets |
| 5.88B | 5.15B | 2.73B | 2.55B | 1.44B | Total Debt |
| 2.55B | 1.75B | 1.14B | 1.44B | 1.20B | Net Debt |
| 2.51B | 1.74B | 1.09B | 1.38B | 1.15B | Total Liabilities |
| 3.18B | 2.36B | 1.62B | 2.04B | 1.46B | Stockholders Equity |
| 2.70B | 2.79B | 1.11B | 513.78M | -21.44M |
| Cash Flow | Free Cash Flow | |||
| -738.36M | -667.97M | 242.90M | -693.88M | -7.18M | Operating Cash Flow |
| 1.00B | 812.96M | 829.62M | 496.67M | 383.39M | Investing Cash Flow |
| -1.74B | -1.48B | -475.95M | -796.81M | -389.24M | Financing Cash Flow |
| 763.38M | 632.80M | -366.03M | 308.18M | 13.75M |
Vital Energy Technical Analysis
Negative
15.48
Price Trends
17.45
Negative
24.41
Negative
27.75
Negative
Market Momentum
-0.18
Negative
45.73
Neutral
53.78
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For VTLE, the sentiment is Negative. The current price of 15.48 is below the 20-day moving average (MA) of 15.61, below the 50-day MA of 17.45, and below the 200-day MA of 27.75, indicating a bearish trend. The MACD of -0.18 indicates Negative momentum. The RSI at 45.73 is Neutral, neither overbought nor oversold. The STOCH value of 53.78 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for VTLE.
Vital Energy Peers Comparison
Overall Rating
UnderperformOutperform
Sector (57)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
67 Neutral | $730.30M | 60.56 | 1.86% | 7.79% | 5.67% | -79.53% | |
63 Neutral | $1.06B | 3.02 | -4.95% | ― | -9.25% | -113.66% | |
62 Neutral | $600.13M | 2.02 | -4.61% | ― | 16.77% | -113.49% | |
61 Neutral | $544.31M | 19.83 | 11.54% | 0.34% | 1.32% | -33.17% | |
57 Neutral | $7.13B | 3.45 | -3.67% | 5.68% | 0.46% | -50.35% | |
53 Neutral | $590.21M | ― | -16.24% | ― | -13.32% | -309.35% |
* Energy Sector Average
Performance Comparison
VTLE
Vital Energy
15.43
-35.15
-69.49%
CLB
Core Laboratories
11.61
-7.17
-38.18%
PARR
Par Pacific Holdings
20.32
-7.87
-27.92%
PUMP
Propetro Holding
5.68
-4.22
-42.63%
GRNT
Granite Ridge Resources
5.57
-0.57
-9.28%
Vital Energy Earnings Call Summary
Earnings Call Date:May 12, 2025
(Q1-2025)
| % Change Since: -8.78%|
Next Earnings Date:Aug 06, 2025
Earnings Call Sentiment Positive
Vital Energy demonstrated strong financial management with significant debt reduction and free cash flow generation. Operational efficiencies and cost reductions provide a positive outlook, though market challenges and anticipated non-cash write-downs pose risks. The company's strategic hedging and asset sales further bolster a resilient position.Q1-2025 Updates
Positive Updates
Debt Reduction and Free Cash Flow
Vital Energy reduced net debt by $135 million, supported by higher-than-expected adjusted free cash flow, which beat street consensus. The company anticipates reducing net debt by $300 million by year-end 2025.
Cost Reductions
Lease operating expenses and general and administrative expenses have been successfully reduced by approximately 5%. LOE is anticipated to be around $115 million per quarter, down from $121 million. G&A expenses are projected to be below $22 million per quarter.
Hedge Portfolio and Production Strategy
90% of oil is hedged at $70.61 per barrel WTI, providing confidence in cash flow and debt reduction targets. The company expects to generate about $265 million in adjusted free cash flow.
Operational Efficiencies
Drilling and completions teams set cycle time records, improving Delaware Basin year-over-year capital efficiency by 30%. More than 50% of completions in 2025 will be simul-frac.
Successful Asset Sale
A non-core asset sale generated $20.5 million, with no significant impact on production.
Negative Updates
Market Challenges
The company acknowledges macroeconomic challenges and anticipates potential pricing weaknesses in the oil market.
Non-Cash Impairments
Vital Energy anticipates non-cash write-downs in the next quarter if oil prices remain low, with expected write-downs in the tune of a couple of hundred million dollars.
WAHA Realizations
WAHA realizations came in nearly 40% of Henry Hub, despite being the strongest in the past few quarters, indicating continued challenges in the basin.
Company Guidance
During the first quarter of 2025, Vital Energy Inc. exceeded street expectations by reducing net debt by $135 million, primarily supported by higher-than-expected adjusted free cash flow and a hedge position that added more than $20 million to revenues. The company also completed a non-core asset sale generating an incremental $20.5 million. They maintained capital investments and production in line with their projections while reducing lease operating expenses (LOE) by approximately 5%, from $121 million in Q4 2024 to an anticipated $115 million per quarter for the remainder of 2025. General and administrative (G&A) expenses, excluding long-term incentive plans, were projected to be below $22 million per quarter for the year. The company reiterated the midpoints of their full-year capital and production guidance, with a focus on maximizing cash flow and debt repayment. They anticipate generating about $265 million in adjusted free cash flow and reducing net debt by $300 million, including non-core assets sold to date. Vital Energy's hedges cover 90% of their oil at $70.61 per barrel WTI for the remainder of the year, ensuring returns and reducing risk.Vital Energy Corporate Events
Business Operations and StrategyFinancial Disclosures
Vital Energy Reports Q1 2025 Financial Results
Neutral
May 12, 2025
On May 12, 2025, Vital Energy reported its first-quarter 2025 financial and operating results, highlighting a reduction in total and net debt by $145 million and $133.5 million, respectively, through free cash flow and asset sales. Despite a net loss of $18.8 million due to a non-cash pre-tax impairment loss, the company achieved an adjusted net income of $89.5 million and cash flow from operating activities of $351 million. The company reaffirmed its full-year capital investment and production outlook, emphasizing its focus on generating sustainable efficiency gains and debt reduction. Vital Energy’s hedge position has reduced near-term price risks, and the company remains flexible in adjusting its development plans based on market conditions.
The most recent analyst rating on (VTLE) stock is a Hold with a $29.00 price target. To see the full list of analyst forecasts on Vital Energy stock, see the VTLE Stock Forecast page.
Spark’s Take on VTLE Stock
According to Spark, TipRanks’ AI Analyst, VTLE is a Neutral.
Vital Energy’s stock score is influenced by its strong financial performance in terms of revenue growth and cash flow. However, the company faces profitability challenges, impacting its valuation. Technical indicators show a bearish trend, which could be a concern for investors. Positive guidance and strategic improvements discussed in the earnings call provide some optimism, but the overall market sentiment remains cautious.
To see Spark’s full report on VTLE stock, click here.
Financial Disclosures
Vital Energy to Release Q1 2025 Financial Results
Neutral
Apr 2, 2025
Vital Energy, Inc. announced plans to release its first-quarter 2025 financial and operating results on May 12, 2025, followed by a conference call on May 13, 2025, to discuss these results. This announcement may impact stakeholders by providing insights into the company’s financial health and operational performance, potentially influencing its market positioning in the energy sector.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.