Vital Energy (VTLE) Stock Has Declined by Over 15% This Week. Here is Why.

The share price of Vital Energy, Inc. (NYSE:VTLE) fell by 15.41% between May 13 and May 20, 2025, putting it among the Energy Stocks that Lost the Most This Week. Let’s shed some light on the development.

Vital Energy, Inc. (NYSE:VTLE) is an independent energy company that engages in the acquisition, exploration, and development of oil and natural gas properties in the Permian Basin of West Texas.

The stock of Vital Energy, Inc. (NYSE:VTLE) surged earlier this month after the company posted the results for its Q1 2025, reporting an adjusted EPS of $2.37 against expectations of $2.12. However, the company’s revenue of $512.18 million fell below estimates by $18.2 million. Moreover, Vital posted an overall net loss of $18.8 million during the quarter.

Vital Energy, Inc. (NYSE:VTLE) also revealed that its hedge position for the remainder of FY 2025 has reduced its near-term price risks, with about 90% of its forecasted oil production swapped at around $71 per barrel WTI. This puts the energy company at a significant advantage during the current market volatility and plunging crude oil prices. So the recent downturn in share price could be a result of investors taking their profits, as well as the slight decline in crude oil price since last week.

While we acknowledge the potential of VTLE to grow, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than VTLE but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.

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Disclosure: None.