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Analogy 1:

An independent oil and gas producer focused on the Permian Basin, similar to a smaller Occidental Petroleum (OXY).

Analogy 2:

Like a pure-play oil and gas exploration and production company, akin to a regional ConocoPhillips (COP) for the Permian Basin.

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• Crude Oil: Extraction and sale of crude oil from their operated properties.
• Natural Gas: Production and sale of natural gas from their operated properties.
• Natural Gas Liquids (NGLs): Recovery and sale of liquid hydrocarbons separated from natural gas.

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Vital Energy (VTLE) operates as an independent oil and natural gas company primarily engaged in the exploration and production of crude oil and natural gas. As such, it sells its commodities primarily to other companies, rather than directly to individual consumers.

Based on their latest public filings (10-K), Vital Energy's major customers, which include commodity purchasers, marketers, and end-users, have historically included:

• BP Energy Company (a subsidiary of BP plc, NYSE: BP)
• Trafigura US LLC (a subsidiary of Trafigura Group Pte. Ltd., a private company)
• Vitol Inc. (a subsidiary of Vitol Group, a private company)

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Jason Pigott, President & Chief Executive Officer

Jason Pigott joined Vital Energy as President and a member of the Board of Directors in May 2019, and was appointed CEO in October 2019. He brings two decades of expertise in the exploration and production (E&P) industry. Prior to Vital Energy, he served as Executive Vice President of Operations and Technical Services for Chesapeake Energy, where he was responsible for drilling, completions, digital, supply chain, and land activities. Before his time at Chesapeake, Mr. Pigott held various positions at Anadarko Petroleum, primarily focusing on the development of unconventional assets in the Eagle Ford, Haynesville, and Delaware basins, as well as tight-sand plays in East Texas. He also began his career as a Production Engineer at Union Pacific Resources and an Engineer at Pennzoil Exploration and Production Company. He holds a Bachelor of Science in Petroleum Engineering from Texas A&M University and an MBA from the University of North Carolina, Kenan-Flagler School of Business.

Bryan Lemmerman, Executive Vice President & Chief Financial Officer

Bryan Lemmerman joined Vital Energy in 2020, bringing more than 15 years of E&P experience, with a focus on strategic planning and business development. Before joining Vital Energy, he held various roles at Chesapeake Energy, culminating in his position as Vice President of Business Development and Treasurer. Earlier in his career, Mr. Lemmerman worked as a portfolio manager at Highview Capital Management and Ritchie Capital Management, where he facilitated investments in public and private energy companies. He started his professional career as a tax consultant with Deloitte & Touche. Mr. Lemmerman earned a Bachelor of Business Administration in Accounting, a Master of Science in Accounting from Texas A&M University, and a Master of Business Administration from the University of Texas.

Katie Hill, Senior Vice President & Chief Operating Officer

Katie Hill joined Vital Energy in September 2022 as Vice President of Operations and was promoted to Chief Operating Officer in November 2023. She has over 15 years of operational experience within the energy exploration and production sector, including developing engineering and operational teams, integrating and optimizing acquired assets, and leading multi-basin development programs. Prior to Vital Energy, Ms. Hill served as Senior Vice President – Operations at Javelin Energy Partners, LLC for two years. She also spent eight years at Chesapeake Energy in various operations roles of increasing responsibility, including Production and Infrastructure Manager. Ms. Hill began her career as an engineer with BP in 2008. She holds both a Bachelor of Science and a Master of Science in Mechanical Engineering from the University of Michigan.

Mark David Denny, Executive Vice President, General Counsel & Secretary

Mark David Denny serves as the Executive Vice President, General Counsel, and Secretary for Vital Energy.

Stephen L. Faulkner Jr., Vice President & Chief Accounting Officer

Stephen L. Faulkner Jr. holds the position of Vice President and Chief Accounting Officer at Vital Energy.

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Key Risks to Vital Energy (VTLE)

1. Risks Associated with the Merger with Crescent Energy: Vital Energy's pending merger with Crescent Energy presents several significant risks. These include the challenges of successfully integrating the two businesses, the possibility of not achieving anticipated synergies, and the potential distraction for management from ongoing operations. Furthermore, the merger could adversely affect the ability to retain customers and key personnel, and maintain relationships with suppliers. The transaction is expected to close on December 15, 2025.
2. High Debt Burden: Vital Energy operates with a significant debt burden, which poses a key financial risk to the company. Its enterprise value is substantially influenced by its debt, and its liabilities have been noted to exceed its market capitalization. While the company is actively working to reduce its debt, this elevated financial leverage can make the company more vulnerable, especially in a volatile energy market.
3. Commodity Price Volatility: As an independent energy company, Vital Energy is highly exposed to the volatility of oil and natural gas prices. Although the company employs hedging strategies, a substantial and prolonged decline in WTI crude oil prices below hedged levels could negatively impact its cash flow and profitability. Conversely, if oil prices rise significantly above hedged levels, the company may not fully capture the upside. Sustained depressed oil prices could even pose a risk of bankruptcy.

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• Accelerated Energy Transition Leading to Structural Demand Decline: The rapid advancements and widespread deployment of renewable energy technologies (solar, wind), battery storage solutions, and electric vehicles are progressively reducing global demand for fossil fuels like crude oil and natural gas. This accelerating transition poses a clear emerging threat by diminishing the future market for Vital Energy's primary products, impacting long-term pricing and the economic viability of its reserves and production assets.
• Increasing Financial Market Scrutiny and Reduced Access to Capital Due to ESG Pressures: The growing focus of investors, banks, and other financial institutions on Environmental, Social, and Governance (ESG) factors is leading to a significant shift away from financing fossil fuel projects. This trend results in higher borrowing costs, limited access to capital for expansion and operations, and reduced investor interest for companies like Vital Energy, potentially hindering growth and increasing financial risk.

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Vital Energy (VTLE) primarily focuses on the acquisition, exploration, and development of oil and natural gas properties in the Permian Basin of West Texas, United States. Therefore, the addressable market for their main products and services is the U.S. oil and natural gas exploration and production market, with a specific focus on the Permian Basin.

Addressable Market Sizes:

• U.S. Oil and Gas Upstream Market: The upstream sector, which includes exploration, development, and production of oil and natural gas, dominated the U.S. oil and gas market, holding a 58.5% share in 2024. The overall U.S. oil and gas market was valued at approximately USD 474.5 billion in 2025 and is projected to reach USD 665.5 billion by 2033, growing at a Compound Annual Growth Rate (CAGR) of 4.7%. The oil drilling and gas extraction industry in the United States had a revenue of $484.6 billion in 2025.
• Permian Basin Oil Production: Crude oil production in the Permian Basin is forecasted to increase to 6.6 million barrels per day (b/d) in 2025. The Permian Basin is projected to contribute 50% of U.S. oil production by 2030.
• Permian Basin Natural Gas Production: Marketed natural gas production in the Permian Basin is expected to reach 25.8 billion cubic feet per day (Bcf/d) in 2025.
• Permian Basin Oil and Gas Shale Market Value: The United States Permian Basin oil and gas shale market value is projected to grow at a CAGR of 5.10% between 2025 and 2034. The Permian Basin is projected to produce around $350 billion in gross product by 2050.

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Expected Drivers of Future Revenue Growth for Vital Energy (VTLE)

Over the next 2-3 years, Vital Energy (VTLE) is expected to drive revenue growth through a combination of enhanced production, operational efficiencies, strategic portfolio management, and a disciplined hedging strategy. These drivers are supported by the company's forward guidance and recent operational focus.

1. Enhanced Production and Well Optimization: Vital Energy consistently aims to increase production volumes through improved well productivity and accelerated drilling schedules. The company has reported exceeding production expectations and bringing new wells online ahead of schedule, particularly in high-return areas like the Delaware Basin. Initiatives such as the successful drilling of J-Hook wells also demonstrate efforts to lower breakeven costs and enhance efficiency.

2. Sustainable Cost Reductions and Operational Efficiencies: The company is actively implementing measures to reduce its cost structure. Vital Energy has made significant progress in lowering lease operating expenses (LOE) and general and administrative (G&A) expenses, with anticipated reductions expected to be sustainable. These efficiencies are designed to improve the company's financial resilience and contribute to free cash flow generation.

3. Strategic Portfolio Management and Potential Merger with Crescent Energy: Vital Energy's strategy includes optimizing its asset base and focusing development on high-quality, high-return inventory, predominantly within the Permian Basin of West Texas. Additionally, the announced all-stock acquisition by Crescent Energy, expected to close in late Q4 2025, is a significant future driver. This merger is anticipated to strengthen Vital Energy's position as a leading mid-cap operator and deliver enhanced value and synergies, thereby contributing to future revenue potential.

4. Commodity Price Hedging Strategy: Vital Energy employs a proactive hedging strategy to mitigate the impact of commodity price volatility and ensure predictable cash flows. By hedging a substantial portion of its expected oil and natural gas production, the company aims to secure returns and reduce financial risk, which provides stability for revenue generation and supports debt reduction targets. For instance, a significant portion of its 2025 oil production is hedged at favorable prices.

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Share Repurchases

• Vital Energy initiated a $200 million share repurchase program in 2022, which was set to expire in May 2024.
• A new share buyback program was implemented on March 4, 2024, with a $150 million authorization, of which approximately $86 million remained as of August 2025.
• Quarterly share repurchases included $3.92 million in March 2025 and $32,910 in June 2025.

Share Issuance

• In November 2023, Vital Energy issued 9.57 million shares of common stock and 4.98 million shares of perpetual mandatorily convertible preferred securities to help fund acquisitions totaling approximately $1.165 billion.
• In September 2023, the company completed an upsized underwritten public offering of 2.75 million shares of common stock, generating gross proceeds of approximately $148.5 million.
• In 2024, common equity issuance was reported as $754 million, and in 2023, it was $276 million.

Outbound Investments

• On November 6, 2023, Vital Energy acquired assets from Henry Energy LP and Henry Resources LLC, Tall City Property Holdings III LLC, and Maple Energy Holdings, LLC for a total consideration of approximately $1.165 billion.
• In September 2024, Vital Energy made an all-cash acquisition for an 80% interest in Point Energy Partners for about $815 million.
• Vital Energy expanded its Permian Basin holdings by purchasing additional working interests for approximately $55 million, funded by common stock and convertible preferred securities.

Capital Expenditures

• Vital Energy's planned capital investments for full-year 2025 are projected to be between $825 million and $925 million, with a focus on maximizing cash flow for debt repayment and maintaining oil production levels. This forecast was later narrowed to $850-$900 million.
• In 2024, capital expenditures were $1,345 million, and in 2023, they were $568 million.
• For Q1 2025, capital investments were $253 million, primarily directed towards drilling and completions ($218 million), infrastructure ($21 million), and land/exploration ($6 million).