Vital Energy Inc. (VTLE)

Debt-to-capital ratio

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Long-term debt US$ in thousands 2,454,240 1,609,420 1,113,020 1,425,860 1,179,270
Total stockholders’ equity US$ in thousands 2,700,570 2,785,260 1,110,750 513,780 -21,443
Debt-to-capital ratio 0.48 0.37 0.50 0.74 1.02

December 31, 2024 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $2,454,240K ÷ ($2,454,240K + $2,700,570K)
= 0.48

The debt-to-capital ratio of Vital Energy Inc. has demonstrated a decreasing trend over the past five years, declining from 1.02 in December 31, 2020, to 0.48 in December 31, 2024. This indicates that the company has been gradually reducing its reliance on debt financing in relation to its overall capital structure. A lower debt-to-capital ratio is generally viewed positively by investors and creditors as it suggests a lower financial risk and greater stability. Vital Energy Inc.'s decreasing debt-to-capital ratio reflects a potential improvement in its financial health and stronger ability to meet its obligations without being overly leveraged.