Vital Energy Inc (VTLE)

[littlejohn]

LPI $78, did LPI recently renew loan

borrowing base at a rate of

Fed Funds rate plus 1/2%?...

Did I read that correctly when

that filing came out?...

here is fed funds rate link...

https://www.bankrate.com/rates/interest-rates/federal-funds-rate/

Could LPI use their credit revolver

to pay off the higher interest $578

million Senior Notes due in 2025...

Interest rate shows 9.25% on those...

http://www.laredopetro.com/media/385945/first-quarter-2022-earnings-presentation.pdf

If they could, then that interest

savings would have a better return

for shareholders than selling low

hedge priced oil...

It would leave the free cash flow

projected to come in during

2022 to pay off the $361 million

Senior Notes due in 2028...

Interest rate shows 10.125% on

those notes...


LPI can't beat inflation costs but

they can amend banking focus

to save on interest cost to help

higher costs of drlling activities...

Only a thesis, but it would increase

bottom line for shareholders if it

could possibly be done...

What good is a low interest cost

credit revolver with a low rate

cost with a billion of liquidity

if it isn't used to make money?...

LPI has some extra oil production

projected for 3rd quarter above

hedges that could be hedged at

current high prices for 3rd quarter

to help swing the deal to banker...

Yep, the banker needs convincing...


So we watch...LJ