Vital Energy Inc. (VTLE)

Debt-to-capital ratio

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
Long-term debt US$ in thousands 2,454,240 2,433,270 1,662,260 2,097,040 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
Total stockholders’ equity US$ in thousands 2,700,570 3,055,840 2,835,900 2,798,800 2,785,260 1,773,060 1,603,570 1,225,370 1,110,750 1,000,670 679,456 423,788 513,780 224,062 -154,282 -68,568 -21,443 141,512 376,020 919,221
Debt-to-capital ratio 0.48 0.44 0.37 0.43 0.37 0.52 0.50 0.49 0.50 0.54 0.66 0.77 0.74 0.86 1.13 1.06 1.02 0.90 0.77 0.58

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 fluctuated over the past few years, indicating changes in the company's capital structure and financial leverage. The ratio increased steadily from 0.58 as of March 31, 2020, reaching a peak of 1.13 as of June 30, 2021. This suggests that the company's reliance on debt financing relative to its total capital increased significantly during this period.

Subsequently, there was a downward trend in the debt-to-capital ratio, with the ratio declining to 0.37 as of June 30, 2024. This decrease could indicate a shift towards reducing debt levels or increasing equity in the company's capital structure. The ratio then slightly increased to 0.48 as of December 31, 2024, but remained lower than the previous peaks.

Overall, the fluctuations in Vital Energy Inc.'s debt-to-capital ratio reflect changes in the company's strategy regarding capital financing and debt management. Investors and stakeholders may monitor this ratio to assess the company's financial health, risk exposure, and capital structure decisions.