Vine Energy Inc (VEI) WACC Analysis

As of May 23, 2025, Vine Energy Inc (VEI) carries a Weighted Average Cost of Capital (WACC) of 10.3%. WACC reflects the blended rate Vine Energy Inc must pay to both equity and debt holders.

Within that, the cost of equity is 11.3%, the cost of debt is 7.0%, and the effective tax rate is 0.7%.

Breakdown of WACC Components

• Long-term bond rate: 3.2% – 3.7%
• Equity market risk premium: 4.2% – 5.2%
• Adjusted beta: 1.92 – 2.07
• Additional risk adjustment: 0.0% – 0.5%
• Debt-to-equity ratio: 0.97

What It Means for Investors

With a selected WACC of 10.3%, Vine Energy Inc must ensure any new investment returns exceed this threshold to generate shareholder value. This level reflects a relatively high financing requirement.