Vital Energy Inc. (VTLE)

Debt-to-equity 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-equity ratio 0.91 0.80 0.59 0.75 0.58 1.09 1.01 0.95 1.00 1.18 1.90 3.36 2.78 6.02 — — — 8.61 3.35 1.37

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 fluctuations over the past few years. As of December 31, 2020, and for the subsequent two quarters, the data is missing (indicated as "—"). From March 31, 2021, to June 30, 2022, the ratio ranged from 1.90 to 3.36, indicating a significant level of debt relative to equity.

However, there has been a decreasing trend in the debt-to-equity ratio from September 30, 2022, to December 31, 2024, with the ratio dropping to 0.91 by the end of 2024. This signifies a reduction in the company's reliance on debt financing compared to equity.

The lower debt-to-equity ratio suggests a healthier financial position, as the company is financing a smaller portion of its operations with debt and has a stronger equity base. It implies decreased financial risk and potentially greater stability for Vital Energy Inc. It would be essential to monitor the trend in the ratio over time to assess the company's financial health and its ability to meet its financial obligations effectively.