Vital Energy Inc (VTLE)

[littlejohn]

LPI CFO adressed paying down higher

interest debt in CC...

Besides increasing our borrowing
base to $1.25 billion and our elected
commitment to $1 billion, they built in
additional flexibility for us to determine
how we pay down debt. Through the
end of this year, as long as our net
debt-to-EBITDAX ratio is below 2.5
times, we have the flexibility to utilize
$250 million of our elected commitment
to purchase our call term debt.


CC transcript link...

https://www.fool.com/earnings/call-transcripts/2022/05/05/laredo-petroleum-lpi-q1-2022-earnings-call-transcr/?source=eptyholnk0000202&utm_source=yahoo-host&utm_medium=feed&utm_campaign=article

And I did read the 10Q filing

this evening very closely...

https://www.otcmarkets.com/filing/html?id=15791953&guid=KtqwkpqXejruQOh

75,000 LPI shares were stated to

have been bot by LPI in 1st quarter

2022 on about page 40...

Oddly no real accounting elsewhere

pops out about it...They didn't say

they sold them in the same text...

No Treasury shares are on Balance

Sheet in the filing...

Is there a fund somewhere with

a lot more shares bot?...

Only a question, not an alarm...

https://www.otcmarkets.com/filing/html?id=15791953&guid=KtqwkpqXejruQOh

Over $6 million of higher interest

cost in 1st, quarter, 2022 versus

1st quarter, 2021...

Since company is on debt reduction

plans for 2022...

What did that ~ 6.5 million paid of

extra interest per quarter get?...

Oil Production up about 10,000

barrels per day is main answer...

+ 1,000,000 per day of revenue

at $100/bbl. oil price...

$30,000,000 per month...

$90,000,000 per quarter...

Almost a 14 fold increase of

revenue by using leverage...

On the increased and unhedged

oil production...

That is a good use of borrowing

that justifies the interest cost...


See, I'm not all Debbie Downer...


So we watch...LJ