Vital Energy Inc. (VTLE)

Operating profit margin

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Operating income	US$ in thousands	-22,552	559,621	1,060,160	712,963	-861,970
Revenue	US$ in thousands	1,753,840	1,491,170	1,495,400	820,641	661,355
Operating profit margin		-1.29%	37.53%	70.89%	86.88%	-130.33%

December 31, 2024 calculation

Operating profit margin = Operating income ÷ Revenue
= $-22,552K ÷ $1,753,840K
= -1.29%

Vital Energy Inc.'s operating profit margin has exhibited significant fluctuations over the years based on the provided data.

- As of December 31, 2020, the operating profit margin was notably negative at -130.33%, indicating that the company's operating expenses exceeded its revenue significantly, leading to a loss from its core operations.
- By December 31, 2021, there was a substantial turnaround, with the operating profit margin surging to 86.88%. This substantial improvement suggests that the company managed to enhance operational efficiency and generate a higher profit relative to its revenue.
- The operating profit margin remained relatively strong at 70.89% as of December 31, 2022, signaling continued profitability and effective cost management by Vital Energy Inc.
- However, there was a decline in the operating profit margin to 37.53% by December 31, 2023. This decrease may indicate a reduction in operational profitability, potentially due to increased expenses or a slowdown in revenue growth.
- Lastly, as of December 31, 2024, the operating profit margin turned negative again at -1.29%, suggesting that Vital Energy Inc. faced challenges generating profits from its core operations, possibly due to higher expenses or a decrease in revenue.

In conclusion, while Vital Energy Inc. has demonstrated both significant improvements and setbacks in its operating profit margin over the years, it is essential for the company to maintain focus on efficient cost management and revenue generation to sustain profitability in the future.