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06/28/25 5:02 PM

#16509 RE: littlejohn #16478

lj: VTLE
With over 2B in debt, can Vital even survive?
Their breakeven point is about $56 a barrel, I believe.
So, could oil drop below $56 for a prolonged period, say a year?
If it did, Vital is toast. And with tariffs about to hit the economy, a reduction in oil consumption due to a recession is a real possibility.
Further, there won't be further significant paydown of debt until Q1, approximately $100M.
That is about 5 percent of total debt.
Their last acquisition ruined them.
Of course, I'm just saying something we have known for quite a while.