Vital Energy Inc. (VTLE)

Debt-to-equity 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-equity ratio 0.91 0.58 1.00 2.78 —

December 31, 2024 calculation

Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $2,454,240K ÷ $2,700,570K
= 0.91

The debt-to-equity ratio of Vital Energy Inc. has shown a significant reduction over the past few years. As of December 31, 2020, the ratio was not available. However, by December 31, 2021, the ratio stood at 2.78, indicating a relatively high level of debt compared to equity. Subsequently, the company managed to decrease its reliance on debt as by December 31, 2022, the ratio decreased to 1.00, and further dropped to 0.58 by December 31, 2023. This decline is a positive sign as it suggests that the company is moving towards a more balanced capital structure. However, by December 31, 2024, the ratio slightly increased to 0.91, although it still remains lower than the previous years. Overall, the trend indicates that Vital Energy Inc. has been effectively managing its debt levels, which could lead to improved financial stability and lower financial risk in the future.