Vital Energy Inc (VTLE)

[littlejohn]

LPI debt, would another say 2.70 of EPS

help the company?...

example on $578 million debt

of Senior notes at 9.5% rate...

borrow it at 1.5% with credit

revolver if allowed...

saves 9.5 - 1.5 = 8% interest cost

$578 million x 8% = $46 million interest

Expense annually...

46 million / 17 million shares

equals about $2.70 EPS increase

by saving on interest expense...


next...pay off $361 million debt...

$361 million senior notes at 10.125%

interest cost = $36 million interest cost...

$36 million / 17 million shares

equals about $2.10 of EPS increase

by saving on interest expense...

$2.70 + $2.10 = $4.80

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

LPI needs a Green Team on ESG

for reducing interest expense as

much as reducing gas flaring...


So we watch...LJ