Vital Energy Inc. (VTLE)

Pretax margin

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020
Earnings before tax but after interest (EBT) (ttm)	US$ in thousands	-221,261	556,803	288,445	314,314	511,741	317,072	643,561	840,219	637,014	735,063	540,817	137,196	148,653	-233,399	-612,738	-1,031,383	-878,119	-958,892	-986,158	-258,397
Revenue (ttm)	US$ in thousands	1,710,423	2,010,826	1,585,927	1,427,688	1,491,174	1,197,050	1,470,610	1,645,783	1,495,182	1,639,176	1,357,310	948,273	844,278	562,119	410,399	469,362	863,451	893,508	1,069,249	1,247,510
Pretax margin		-12.94%	27.69%	18.19%	22.02%	34.32%	26.49%	43.76%	51.05%	42.60%	44.84%	39.84%	14.47%	17.61%	-41.52%	-149.30%	-219.74%	-101.70%	-107.32%	-92.23%	-20.71%

December 31, 2024 calculation

Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $-221,261K ÷ $1,710,423K
= -12.94%

The pretax margin of Vital Energy Inc. has shown significant fluctuations over the past several quarters. Starting from negative values in early 2020, with margins as low as -219.74% in March 2021, the company gradually improved its performance, achieving positive pretax margins by December 2021.

Subsequently, the trend continued positively through the following quarters of 2022 and early 2023, reaching a peak pretax margin of 51.05% in March 2023. However, there was a slight decrease in the pretax margin in the following quarters, with figures ranging from 18.19% to 34.32% until the end of 2024.

This suggests that Vital Energy Inc. has successfully turned around its financial performance, managing to generate profits from its operations and enhance its efficiency. The company's ability to sustain positive pretax margins demonstrates improved profitability and operational effectiveness, indicating a positive outlook for its financial health.