Replies to post #107349 on Savvy Trades and Investments

[littlejohn]

Everything seems higher than giraffe booty

in the market now...

VTLE didn't have a 10% up day

earlier in week when oil price

started the hyper week move up...

That was a sign to watch for,,,

so it didn't get too excess afore

the latest announcements...

Some other small oil company prices

haven't risen either like they believe

in the oil price sticking a high landing...

So we watch...LJ

[researcher59]

VTLE prices 2.7M share offering at $54, led by BofA and Wells Fargo ..... so institutional investors consider the stock a "buy" at $54.

I think your critique of this latest acquisition is too harsh. While it increases oil production in 2024 by just 30%, it increases free cash flow by 90% according to their investor presentation. More importantly it increases their oil and gas reserves by 65%.

https://investor.vitalenergy.com/static-files/6e62615e-89d7-4432-8fa8-a7d7d2d15656

Including the acquisitions of earlier this year they have increased reserves by 109% YTD while roughly doubling the share count including the convertibles. Weak reserves have been a reason for the stock's low valuation, so these acquisitions have certainly helped in that regard.

I'm not enthusiastic about the latest acquisition, but also see some positives in it. We'll see how the stock does going forward and whether analysts reduce their ratings and or price targets. The average price target right now is $79.