Latest news with #VitalEnergy
Yahoo
22-05-2025
- Business
- Yahoo
Vital Energy (VTLE) Stock Has Declined by Over 15% This Week. Here is Why.
The share price of Vital Energy, Inc. (NYSE:VTLE) fell by 15.41% between May 13 and May 20, 2025, putting it among the . Let's shed some light on the development. Aerial view of an oil well and the rig in the Permian Basin, West Texas. Vital Energy, Inc. (NYSE:VTLE) is an independent energy company that engages in the acquisition, exploration, and development of oil and natural gas properties in the Permian Basin of West Texas. The stock of Vital Energy, Inc. (NYSE:VTLE) surged earlier this month after the company posted the results for its Q1 2025, reporting an adjusted EPS of $2.37 against expectations of $2.12. However, the company's revenue of $512.18 million fell below estimates by $18.2 million. Moreover, Vital posted an overall net loss of $18.8 million during the quarter. Vital Energy, Inc. (NYSE:VTLE) also revealed that its hedge position for the remainder of FY 2025 has reduced its near-term price risks, with about 90% of its forecasted oil production swapped at around $71 per barrel WTI. This puts the energy company at a significant advantage during the current market volatility and plunging crude oil prices. So the recent downturn in share price could be a result of investors taking their profits, as well as the slight decline in crude oil price since last week. While we acknowledge the potential of VTLE to grow, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than VTLE but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock. READ NEXT: 10 Cheap Energy Stocks to Buy Now and 10 Most Undervalued Energy Stocks to Buy According to Hedge Funds Disclosure: None. Sign in to access your portfolio
Yahoo
21-05-2025
- Business
- Yahoo
Vital Energy (VTLE) Stock Has Declined by Over 15% This Week. Here is Why.
The share price of Vital Energy, Inc. (NYSE:VTLE) fell by 15.41% between May 13 and May 20, 2025, putting it among the . Let's shed some light on the development. Aerial view of an oil well and the rig in the Permian Basin, West Texas. Vital Energy, Inc. (NYSE:VTLE) is an independent energy company that engages in the acquisition, exploration, and development of oil and natural gas properties in the Permian Basin of West Texas. The stock of Vital Energy, Inc. (NYSE:VTLE) surged earlier this month after the company posted the results for its Q1 2025, reporting an adjusted EPS of $2.37 against expectations of $2.12. However, the company's revenue of $512.18 million fell below estimates by $18.2 million. Moreover, Vital posted an overall net loss of $18.8 million during the quarter. Vital Energy, Inc. (NYSE:VTLE) also revealed that its hedge position for the remainder of FY 2025 has reduced its near-term price risks, with about 90% of its forecasted oil production swapped at around $71 per barrel WTI. This puts the energy company at a significant advantage during the current market volatility and plunging crude oil prices. So the recent downturn in share price could be a result of investors taking their profits, as well as the slight decline in crude oil price since last week. While we acknowledge the potential of VTLE to grow, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than VTLE but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock. READ NEXT: 10 Cheap Energy Stocks to Buy Now and 10 Most Undervalued Energy Stocks to Buy According to Hedge Funds Disclosure: None.
Business Insider
17-05-2025
- Business
- Business Insider
J.P. Morgan Remains a Sell on Vital Energy (VTLE)
J.P. Morgan analyst Zach Parham maintained a Sell rating on Vital Energy (VTLE – Research Report) on May 14 and set a price target of $22.00. The company's shares closed yesterday at $16.41. Confident Investing Starts Here: Quickly and easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions Receive undervalued, market resilient stocks straight to you inbox with TipRanks' Smart Value Newsletter According to TipRanks, Parham is a 4-star analyst with an average return of 8.4% and a 63.06% success rate. Parham covers the Energy sector, focusing on stocks such as Matador Resources, Gulfport Energy, and Civitas Resources. Currently, the analyst consensus on Vital Energy is a Hold with an average price target of $22.10, implying a 34.67% upside from current levels. In a report released on April 29, Bank of America Securities also reiterated a Sell rating on the stock with a $9.00 price target. The company has a one-year high of $51.71 and a one-year low of $12.30. Currently, Vital Energy has an average volume of 1.49M. Based on the recent corporate insider activity of 41 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of VTLE in relation to earlier this year. Earlier this month, Jason Pigott, the President & CEO of VTLE bought 5,500.00 shares for a total of $99,495.00.
Yahoo
15-05-2025
- Business
- Yahoo
Why did Vital Energy, Inc. (VTLE) Gain So Much This Week?
Vital Energy, Inc. (NYSE:VTLE) was among the energy stocks that gained the most this week. In this article, we are going to discuss why the stock surged 21.9% between May 7th and May 14th. Aerial view of an oil well and the rig in the Permian Basin, West Texas. Vital Energy, Inc. (NYSE:VTLE) is an independent energy company that engages in the acquisition, exploration, and development of oil and natural gas properties in the Permian Basin of West Texas. Investors reacted positively after Vital Energy, Inc. (NYSE:VTLE) posted its Q1 2025 results this week, despite the company reporting an overall net loss of $18.8 million. That said, VTLE's adjusted EPS came in at $2.37 and managed to beat expectations by $0.25. The company's production remained within guidance, and it also managed to reduce its total and net debt by $145 million and $133.5 million, respectively. More importantly, VTLE revealed that its hedge position for the remainder of the year has reduced its near-term price risks, with about 90% of its expected oil production swapped at around $71 per barrel WTI. This puts the company at a significant advantage during the current market volatility and plunging crude oil prices. While we acknowledge the potential of VTLE to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than VTLE and that has 100x upside potential, check out our report about this cheapest AI stock. READ NEXT: 10 Cheap Energy Stocks to Buy Now and 10 Most Undervalued Energy Stocks According to Hedge Funds. Disclosure: None.
Yahoo
14-05-2025
- Business
- Yahoo
Vital Energy (VTLE) Q1 2025 Earnings Call Highlights: Strong Debt Reduction and Cash Flow ...
Net Debt Reduction: Reduced by $135 million. Adjusted Free Cash Flow: Exceeded Street consensus, contributing to debt reduction. Revenue from Hedge Position: Added more than $20 million. Non-Core Asset Sale: Generated $20.5 million. Lease Operating Expense (LOE): Reduced from $121 million in Q4 2024 to an anticipated $115 million per quarter for 2025. General and Administrative Expenses (G&A): Projected to be below $22 million per quarter for 2025, down from slightly over $23 million in Q4 2024. Adjusted Free Cash Flow Projection for 2025: Approximately $265 million. Net Debt Reduction Target for 2025: $300 million, including non-core asset sales. Oil Hedging: 90% hedged at $70.61 per barrel WTI for the remainder of the year. Capital Efficiency Improvement: 30% year-over-year improvement in the Delaware Basin. Warning! GuruFocus has detected 4 Warning Signs with VTLE. Release Date: May 13, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Vital Energy (NYSE:VTLE) exceeded Street expectations with key financial results in the first quarter. The company reduced net debt by $135 million, supported by higher-than-expected adjusted free cash flow. Vital Energy's hedge position added more than $20 million to revenues, providing financial stability. The company successfully reduced lease operating expenses and general and administrative expenses by approximately 5%. Vital Energy's operations team improved Delaware Basin capital efficiency by 30% year-over-year. Vital Energy faces potential non-cash impairments if oil prices remain low, with a possible impact of a couple of hundred million dollars next quarter. The company anticipates increased water volumes, which could drive lease operating expenses higher in the remainder of the year. Vital Energy's hedging strategy for 2026 remains uncertain, with no hedges currently in place for that year. The company may face challenges in maintaining production levels into 2026 due to a drop in capital expenditure later this year. Vital Energy is not immune to market challenges and may need to adjust activities if conditions worsen. Q: With the benefit of your latest drilling and completion efficiencies, where would your maintenance capital be once some of your higher-priced service contracts roll off? A: Our plan is to maintain flat production year over year and remain cash flow positive. All major service contracts expire in March 2026, providing flexibility. Service costs could decrease by 10% in a sustained $60 environment, potentially saving $90 million and reducing our breakeven from $57 to $53 per barrel. Continued reductions in lease operating expenses (LOE) and general and administrative (G&A) expenses could push it closer to $50 per barrel. - Mikell Jason Pigott, CEO Q: Could you speak to some of the LOE self-help initiatives you've accomplished and comment on areas where you see further opportunity? A: We've reduced our operating costs significantly, with a Q1 run rate of $103 million, driven by reduced failure rates for artificial lift systems and lower workover costs. We expect to maintain this performance throughout 2025. Increased water volumes will slightly raise costs, but fixed costs and workover performance should remain stable. - Kathryn Hill, COO Q: How are you thinking about building out the hedge book for next year and future years? A: We increased hedges for the rest of this year due to higher production volumes expected in Q4. Typically, we hedge 75% a year in advance, but we are currently at 90% for Q1. We will continue to monitor the environment and add hedges to secure free cash flow and meet debt reduction goals. - Mikell Jason Pigott, CEO Q: Can you discuss the trajectory of production going into 2026, given the drop in spending later this year? A: We estimate a flat year-over-year program for both volume and capital in 2026. Most contracts roll off by Q1 2026, allowing us to capture market savings. Full-year volumes are expected to be flat compared to 2025. - Kathryn Hill, COO Q: What is the opportunity for additional asset sales this year? A: We continuously review our portfolio. Recent sales involved assets with no inventory, allowing us to bring in cash and accelerate debt reduction without impacting full-year projections. We remain open to similar opportunities. - Mikell Jason Pigott, CEO For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus.
