Vital Energy Inc. (VTLE)

Debt-to-assets ratio

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Long-term debt	US$ in thousands	1,609,420	1,926,970	1,619,600	1,163,810	1,113,020	1,181,580	1,291,240	1,421,820	1,425,860	1,349,900	1,306,110	1,145,370	1,179,270	1,218,950	1,258,160	1,257,380	1,170,420	979,972	1,029,530	1,064,080
Total assets	US$ in thousands	5,149,580	4,426,250	3,815,430	2,943,240	2,726,110	2,805,920	2,873,010	2,726,330	2,551,820	2,258,970	1,786,810	1,474,900	1,442,610	1,581,320	1,870,590	531,190	2,264,440	2,277,650	2,619,920	2,514,790
Debt-to-assets ratio		0.31	0.44	0.42	0.40	0.41	0.42	0.45	0.52	0.56	0.60	0.73	0.78	0.82	0.77	0.67	2.37	0.52	0.43	0.39	0.42

December 31, 2023 calculation

Debt-to-assets ratio = Long-term debt ÷ Total assets
= $1,609,420K ÷ $5,149,580K
= 0.31

The debt-to-assets ratio of Vital Energy Inc. has exhibited fluctuations over the past several quarters, indicating varying levels of leverage and financial risk.

The ratio decreased steadily from 0.42 in March 2019 to 0.31 in December 2023, suggesting a reduction in the company's debt relative to its total assets. However, there was a significant spike to 2.37 in March 2020, which may have raised concerns about the company's ability to meet its debt obligations with its available assets.

Subsequently, there was a downward trend in the ratio until June 2021, indicating improvements in the company's debt management. However, the ratio increased sharply from 0.60 in June 2021 to 0.82 in December 2021, which could be a signal of increased debt or reduced asset base during that period.

From December 2021 onwards, the ratio fluctuated between 0.31 and 0.44, showing some volatility in the company's debt structure. It is essential for stakeholders to monitor these fluctuations closely to assess the company's financial health and its ability to handle debt obligations.