Vital Energy Inc. (VTLE)

Debt-to-capital ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Long-term debt	US$ in thousands	1,609,420	1,113,020	1,425,860	1,179,270	1,170,420
Total stockholders’ equity	US$ in thousands	2,785,260	1,110,750	513,780	-21,443	841,874
Debt-to-capital ratio		0.37	0.50	0.74	1.02	0.58

December 31, 2023 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $1,609,420K ÷ ($1,609,420K + $2,785,260K)
= 0.37

The debt-to-capital ratio of Vital Energy Inc. has fluctuated over the past five years.

In 2019, the ratio stood at 0.58, indicating that the company had a moderate level of debt relative to its total capital.

By 2020, the ratio increased to 1.02, suggesting a significant rise in the proportion of debt in the capital structure of the company. This could signal increased financial leverage and potential risks associated with higher debt levels.

In 2021, the ratio decreased to 0.74, but still remained relatively high compared to previous years. This reduction may indicate efforts by the company to manage its debt levels or potentially raise additional capital through equity financing.

In 2022, there was a further decline in the ratio to 0.50, signifying a lower reliance on debt as a source of capital. This could be a positive trend, indicating improved financial health and a stronger balance sheet structure.

Finally, in 2023, the debt-to-capital ratio decreased to 0.37, reaching its lowest point in the past five years. This suggests that the company has managed to significantly reduce its debt levels relative to its total capital, which may enhance its financial stability and flexibility.

Overall, the trend in Vital Energy Inc.'s debt-to-capital ratio indicates a shift towards a more conservative capital structure over the years, potentially reducing financial risks associated with high debt levels.