Vital Energy, Inc. (NYSE: VTLE) has announced that it will be converting all outstanding shares of its 2.0% cumulative mandatorily convertible Series A preferred stock into shares of the company’s common stock on June 4, 2024. As of May 28, 2024, the company had 1,575,376 shares of Series A preferred stock outstanding. Upon conversion, each outstanding share of Series A preferred stock will automatically convert into one share of common stock.
The conversion will result in the Series A preferred stock no longer being outstanding, and all rights with respect to the Series A preferred stock will cease and terminate following the receipt of the number of shares of common stock issuable upon conversion of the Series A preferred stock.
Vital Energy, Inc. is an independent energy company headquartered in Tulsa, Oklahoma, with a business strategy focused on the acquisition, exploration, and development of oil and natural gas properties in the Permian Basin of West Texas.
This announcement signifies a significant change in the company's capital structure, as the conversion of the preferred stock into common stock will directly impact the ownership and voting rights within the company. It will be important to monitor the impact of this conversion on the company's financial position and metrics in the upcoming period. Today the company's shares have moved 0.8% to a price of $48.27. For the full picture, make sure to review Vital Energy's 8-K report.
