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Equity Incentive Plan
 9 Months Ended
Sep. 30, 2025
Equity [Abstract]  
Equity Incentive Plan Equity Incentive Plan
The Vital Energy, Inc. Omnibus Equity Incentive Plan (the "Equity Incentive Plan") provides for the granting of incentive awards in the form of restricted stock awards, stock option awards, performance share unit awards, restricted stock unit awards, stock appreciation rights, stock bonus awards and other awards. The Equity Incentive Plan allows for the issuance of up to 3,332,500 shares.
See Note 9 in the 2024 Annual Report for additional discussion of the Company's equity-based compensation awards.
The following table presents activity for equity-based compensation awards for the nine months ended September 30, 2025:
Equity AwardsLiability Awards
(in thousands)Restricted stock awards
Share-settled performance share unit awards(1)
Cash-settled performance share unit awards(2)
Outstanding as of December 31, 2024
665 48 215 
Granted692 — 192 
Forfeited(128)— (4)
Vested(345)(48)— 
Outstanding as of September 30, 2025
884 — 403 
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(1)The share-settled performance share unit awards granted on February 22, 2022 had a performance period of January 1, 2022 to December 31, 2024 and, as their market and performance criteria were satisfied, resulted in an 82% payout. As such, the granted awards vested and were converted into 39,691 shares of Common Stock during the first quarter of 2025 based on this 82% payout.
(2)On February 20, 2025, the Company granted cash-settled performance share unit awards with a performance period of January 1, 2025 through December 31, 2027. The market criteria consists of: (i) relative total shareholder return comparing the Company's shareholder return to the shareholder return of the exploration and production companies listed in the Russell 2000 Index and (ii) absolute shareholder return. The performance criteria consists of: (i) earnings before interest, taxes, depreciation, amortization and exploration expense and three-year total debt reduction and
(ii) an inventory quality component. Any units earned are expected to be paid in cash during the first quarter following the completion of the requisite service period, based on the achievement of market and performance criteria, and the payout can range from 0% to 225%.
As of September 30, 2025, total unrecognized cost related to equity-based compensation awards was $25.7 million, of which $3.5 million was attributable to liability awards which will be settled in cash rather than shares. Such cost will be recognized on a straight-line basis over an expected weighted-average period of 1.94 years.
Equity-based compensation
The following table reflects equity-based compensation expense for the periods presented:
Three months ended September 30,Nine months ended September 30,
(in thousands)2025202420252024
Equity awards:
Restricted stock awards$4,172 $4,421 $12,752 $12,615 
Share-settled performance share unit awards— 335 281 1,354 
Total share-settled equity-based compensation, gross4,172 4,756 13,033 13,969 
Less: amounts capitalized(1,012)(943)(3,036)(2,721)
Total share-settled equity-based compensation, net3,160 3,813 9,997 11,248 
Liability awards:
Cash-settled performance unit awards328 (411)(42)1,816 
Total cash-settled equity-based compensation, gross328 (411)(42)1,816 
Less: amounts capitalized — — (2)(14)
Total cash-settled equity-based compensation, net328 (411)(44)1,802 
Total equity-based compensation, net$3,488 $3,402 $9,953 $13,050