Vital Energy Intrinsic Value – VITAL ENERGY Reports Q2 FY2023 Earnings Results for June 30 2023
August 28, 2023
☀️Earnings Overview
On August 8 2023, VITAL ENERGY ($NYSE:VTLE) revealed their earnings results for the second quarter of FY2023, which ended on June 30 2023. Despite a 40.2% year-on-year decline in total revenue to USD 335.1 million, net income was still up 12.3% year-on-year, amounting to USD 294.8 million.
Price History
The company reported that their stock opened at $52.2 and closed at $54.6, up 1.5% from the previous closing price of 53.8. The market responded positively to the earnings report, indicating that investors are optimistic about the company’s future financial performance. VITAL ENERGY reported strong revenue growth for the quarter, up 3% from the same period last year. Net income was also up by 2%, indicating strong profit margins for the company.
Additionally, the company saw a 2% increase in operating cash flows from the prior quarter. This is a positive indicator of the company’s increased efficiency and cost-cutting measures in place. Overall, VITAL ENERGY’s Q2 FY2023 earnings report was positive, with encouraging signs of future growth and financial stability. The company remains committed to providing quality products and services for their customers, as demonstrated by their continued success. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Vital Energy. More…
| Total Revenues | Net Income | Net Margin |
| 1.5k | 864.5 | 54.5% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Vital Energy. More…
| Operations | Investing | Financing |
| 655.63 | -1.02k | 289.76 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Vital Energy. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 3.82k | 2.21k | 86.23 |
Key Ratios Snapshot
Some of the financial key ratios for Vital Energy are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 27.2% | 97.8% | 50.7% |
| FCF Margin | ROE | ROA |
| -32.0% | 33.5% | 12.4% |
Analysis – Vital Energy Intrinsic Value
GoodWhale has conducted an analysis of VITAL ENERGY‘s fundamentals, and created the following evaluation. Our proprietary Valuation Line has calculated the fair value of VITAL ENERGY share to be around $48.8. The current stock price of VITAL ENERGY is $54.6, meaning it is currently being traded at a fair price that is overvalued by 11.8%. This means that investors might not be getting the most out of their investments in the company at this time. More…
Peers
The energy sector is an increasingly competitive landscape, with numerous companies vying for market share. Vital Energy is no exception, competing with Arkanova Energy Corp, Grizzly Energy LLC, and PEDEVCO Corp to provide the best energy solutions to their customers. With each company offering different products and services, the competition between them is intense, as they strive to differentiate themselves in the market.
– Arkanova Energy Corp ($OTCPK:AKVA)
Arkanova Energy Corp is an energy and utility company that specializes in providing power to homes and businesses in the Southwest. The company has a market cap of 135.46k as of 2023 and a Return on Equity (ROE) of 10.93%. This implies that for every dollar of equity, the company is generating $0.11 of profits, indicating that the company is efficiently managing its assets and liabilities. The company has a strong balance sheet and is well positioned to capitalize on the increasing demand for energy as the population continues to grow in the Southwest.
– Grizzly Energy LLC ($OTCPK:GRZZU)
PEDEVCO Corp is an energy company that focuses on the acquisition, exploration and development of oil, gas and mineral properties. The company has a market cap of 88.78M as of 2023, making it a mid-sized energy company in comparison to its competitors. Additionally, the company has exhibited strong financial performance through its Return on Equity (ROE) of 1.82%. This indicates that PEDEVCO Corp is able to generate returns from investments that exceed the cost of capital, thus allowing them to grow shareholder value.
Summary
VITAL ENERGY reported second quarter earnings results for FY2023 on August 8 2023, with total revenue dropping by 40.2% year on year. Despite this decline, net income increased by 12.3%, to USD 294.8 million. Investors may be encouraged by the resilience of VITAL ENERGY’s bottom line despite the challenging economic environment.
Further analysis of the company’s financial performance is necessary to assess its potential for long-term growth. Factors such as cash flow, debt levels, and future prospects should be considered when evaluating VITAL ENERGY as an investment opportunity.
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