Vital Energy, Inc.VTLE
NYSE • Energy
$17.92
P/E
—
PEG
—
FCF Yield
—
Rev Growth YoY
-8.4% YoY
Gross Margin
95.1%
Health Score
3/10
D/E Ratio
0.95
Confidence
LOW
Business Snapshot
Vital Energy is an independent oil and gas exploration and production company focused on developing assets in the Permian Basin. The company generates revenue primarily from the sale of crude oil, natural gas, and natural gas liquids. It operates in the highly competitive Energy sector, specifically within Oil & Gas E&P, where it competes with larger diversified majors and other independents. With TTM revenue of $1.90 billion and a market cap not disclosed, the company is likely a small‑cap player. A defining characteristic is its extremely high gross margin of 95.1%, yet it remains deeply unprofitable at the net level, and it burns significant cash, highlighting the capital‑intensive nature of the business.
Financial Health
Gross margin surged to 95.1% from 24.1% a year ago, an extraordinary improvement that warrants scrutiny, while net margin stands at a deeply negative -69.3%. The balance sheet is stretched: debt/equity of 0.95x is manageable but combined with a current ratio of 0.78x signals liquidity pressure...
Risk Assessment
- REVENUE DECELERATION — Revenue declined 8.4% year‑over‑year and 2.0% quarter‑over‑quarter, showing a continuing downtrend in the core top line.
- LIQUIDITY — A current ratio of 0.78x is below the 1.0x threshold, indicating potential near‑term liquidity constraints.
- EARNINGS QUALITY — Net income was negative $1.31 billion over the trailing twelve months, with a net margin of -69.3%; all four recent quarters reported losses.
- FCF / CASH BURN — Free cash flow was negative $738.36 million, representing a substantial cash burn that may require debt or equity funding.
- 52‑WEEK POSITION — At $17.92, the stock is trading well below the midpoint of its 52‑week range ($24.51) and 51% below the 52‑week high of $36.72.
- TECHNICALS — RSI, MACD, and moving average data unavailable for this period; momentum cannot be independently confirmed.
- DEBT — Debt/equity of 0.95x, while not excessive, combined with negative equity returns, adds risk if earnings do not recover....