Vitesse Energy Announces First Quarter 2025 Results and Revised 2025 Guidance
FIRST QUARTER 2025 HIGHLIGHTS
-
As previously announced, declared a quarterly cash dividend of
$0.56 25 - Closed previously announced accretive acquisition of Lucero Energy Corp. (“Lucero”) on March 7, 2025
-
Net income of
$2.7 million $8.0 million -
Adjusted EBITDA(1) of
$39.9 million -
Cash flow from operations of
$17.5 million $9.1 million -
Production of 14,971 barrels of oil equivalent (“Boe”) per day (
68% oil) -
Total cash development capital expenditures and acquisition costs of
$30.4 million -
Total debt of
$117.0 million
(1) Non-GAAP financial measure; see reconciliation schedules at the end of this release
MANAGEMENT COMMENTS
"In the first quarter, we delivered a
STOCKHOLDER RETURNS
In May 2025, Vitesse’s Board of Directors declared its second quarter cash dividend for Vitesse’s common stock of
On March 31, 2025, the Company paid its first quarter cash dividend of
During the first quarter, 345,255 shares of Vitesse’s common stock were retired after being exchanged for
FINANCIAL AND OPERATING RESULTS
First quarter net income was
Oil and natural gas production for the first quarter of 2025 averaged 14,971 Boe per day, an increase of
Vitesse’s average realized oil and natural gas prices before hedging were
Lease operating expenses in the first quarter of 2025 were
LIQUIDITY AND CAPITAL EXPENDITURES
As of March 31, 2025, Vitesse had
During the quarter, Vitesse invested
OPERATIONS UPDATE
As of March 31, 2025, the Company owned an interest in 290 gross (9.5 net) wells that were either drilling or in the completion phase, and another 412 gross (15.5 net) locations that had been permitted for development.
REVISED 2025 GUIDANCE
Vitesse has revised its 2025 annual guidance in response to recent commodity price volatility and market uncertainty to preserve returns and maintain financial flexibility.
The Company is implementing a
As part of this guidance update, Vitesse chose to defer the completion of two gross (1.9 net) operated drilled but uncompleted wells to preserve future well economics while reducing near-term cash outflows amid uncertain pricing dynamics. Additionally, the Company elected not to close approximately
Vitesse has also widened its guidance range in response to ongoing macro uncertainty related to commodity pricing, operational timing, and operator activity. The Company will remain adaptable in navigating volatile markets to protect long-term shareholder value.
|
Prior 2025 Guidance |
Revised 2025 Guidance |
Annual Production (Boe per day) |
17,000 - 18,000 |
15,000 - 17,000 |
Oil as a Percentage of Annual Production |
|
|
Total Capital Expenditures ($ in millions) |
|
|
FIRST QUARTER 2025 RESULTS
The following table sets forth selected financial and operating data for the periods indicated.
|
|
|
|
|
|
|
|
|||||||
|
QUARTER ENDED MARCH 31, |
|
INCREASE (DECREASE) |
|||||||||||
($ in thousands, except production and per unit data) |
2025 |
|
2024 |
|
AMOUNT |
|
PERCENT |
|||||||
Financial and Operating Results: |
|
|
|
|
|
|
|
|||||||
Revenue |
|
|
|
|
|
|
|
|||||||
Oil |
$ |
58,925 |
|
|
$ |
57,364 |
|
|
$ |
1,561 |
|
|
3 |
% |
Natural gas |
|
7,246 |
|
|
|
3,829 |
|
|
|
3,417 |
|
|
89 |
% |
Total revenue |
$ |
66,171 |
|
|
$ |
61,193 |
|
|
$ |
4,978 |
|
|
8 |
% |
Operating Expenses |
|
|
|
|
|
|
|
|||||||
Lease operating expense |
$ |
13,854 |
|
|
$ |
11,791 |
|
|
$ |
2,063 |
|
|
17 |
% |
Production taxes |
|
5,773 |
|
|
|
5,799 |
|
|
|
(26 |
) |
|
— |
% |
General and administrative |
|
12,132 |
|
|
|
5,374 |
|
|
|
6,758 |
|
|
126 |
% |
Depletion, depreciation, amortization, and accretion |
|
26,563 |
|
|
|
23,545 |
|
|
|
3,018 |
|
|
13 |
% |
Equity-based compensation |
|
2,469 |
|
|
|
1,605 |
|
|
|
864 |
|
|
54 |
% |
Interest Expense |
$ |
2,905 |
|
|
$ |
2,203 |
|
|
$ |
702 |
|
|
32 |
% |
Commodity Derivative (Loss), Net |
$ |
(172 |
) |
|
$ |
(13,824 |
) |
|
$ |
13,652 |
|
|
99 |
% |
Income Tax (Benefit) Expense |
$ |
(201 |
) |
|
$ |
(731 |
) |
|
$ |
530 |
|
|
73 |
% |
Production Data: |
|
|
|
|
|
|
|
|||||||
Oil (MBbls) |
|
918 |
|
|
|
812 |
|
|
|
106 |
|
|
13 |
% |
Natural gas (MMcf) |
|
2,575 |
|
|
|
1,982 |
|
|
|
593 |
|
|
30 |
% |
Combined volumes (MBoe) |
|
1,347 |
|
|
|
1,143 |
|
|
|
204 |
|
|
18 |
% |
Daily combined volumes (Boe/d) |
|
14,971 |
|
|
|
12,557 |
|
|
|
2,414 |
|
|
19 |
% |
Average Realized Prices before Hedging: |
|
|
|
|
|
|
|
|||||||
Oil (per Bbl) |
$ |
64.18 |
|
|
$ |
70.62 |
|
|
$ |
(6.44 |
) |
|
(9 |
%) |
Natural gas (per Mcf) |
|
2.81 |
|
|
|
1.93 |
|
|
|
0.88 |
|
|
46 |
% |
Combined (per Boe) |
|
49.11 |
|
|
|
53.55 |
|
|
|
(4.44 |
) |
|
(8 |
%) |
Average Realized Prices with Hedging: |
|
|
|
|
|
|
|
|||||||
Oil (per Bbl) |
$ |
64.93 |
|
|
$ |
71.65 |
|
|
$ |
(6.72 |
) |
|
(9 |
%) |
Natural gas (per Mcf) |
|
2.81 |
|
|
|
1.93 |
|
|
|
0.88 |
|
|
46 |
% |
Combined (per Boe) |
|
49.62 |
|
|
|
54.28 |
|
|
|
(4.66 |
) |
|
(9 |
%) |
Average Costs (per Boe): |
|
|
|
|
|
|
|
|||||||
Lease operating expense |
$ |
10.28 |
|
|
$ |
10.32 |
|
|
$ |
(0.04 |
) |
|
— |
% |
Production taxes |
|
4.28 |
|
|
|
5.08 |
|
|
|
(0.80 |
) |
|
(16 |
%) |
General and administrative |
|
9.00 |
|
|
|
4.70 |
|
|
|
4.30 |
|
|
91 |
% |
Depletion, depreciation, amortization, and accretion |
|
19.72 |
|
|
|
20.61 |
|
|
|
(0.89 |
) |
|
(4 |
%) |
|
|
|
|
|
|
|
|
|||||||
COMMODITY HEDGING
Vitesse hedges a portion of its expected oil and natural gas production volumes to increase the predictability and certainty of its cash flow and to help maintain a strong financial position to support its dividend. Based on the midpoint of its revised 2025 guidance, Vitesse has approximately
As of March 31, 2025, the Company had the following crude oil swaps:
|
|
|
|
|
|
|
INDEX |
|
SETTLEMENT PERIOD |
|
VOLUME HEDGED (Bbls) |
|
WEIGHTED AVERAGE FIXED PRICE |
WTI-NYMEX |
|
Q2 2025 |
|
649,503 |
|
|
WTI-NYMEX |
|
Q3 2025 |
|
586,503 |
|
|
WTI-NYMEX |
|
Q4 2025 |
|
541,497 |
|
|
WTI-NYMEX |
|
Q1 2026 |
|
353,997 |
|
|
WTI-NYMEX |
|
Q2 2026 |
|
329,997 |
|
|
WTI-NYMEX |
|
Q3 2026 |
|
119,997 |
|
|
WTI-NYMEX |
|
Q4 2026 |
|
114,003 |
|
|
|
|
|
|
|
|
|
As of March 31, 2025, the Company had the following natural gas collars:
|
|
|
|
|
|
|
INDEX |
|
SETTLEMENT PERIOD |
|
VOLUME HEDGED (MMbtu) |
|
WEIGHTED AVERAGE FLOOR/CEILING PRICE |
Henry Hub-NYMEX |
|
Q3 2025 |
|
1,465,100 |
|
|
Henry Hub-NYMEX |
|
Q4 2025 |
|
1,357,000 |
|
|
Henry Hub-NYMEX |
|
Q1 2026 |
|
1,266,700 |
|
|
Henry Hub-NYMEX |
|
Q2 2026 |
|
1,188,700 |
|
|
Henry Hub-NYMEX |
|
Q3 2026 |
|
1,120,800 |
|
|
Henry Hub-NYMEX |
|
Q4 2026 |
|
1,062,700 |
|
|
|
|
|
|
|
|
|
As of March 31, 2025, the Company had the following natural gas basis swaps:
|
|
|
|
|
|
|
INDEX |
|
SETTLEMENT PERIOD |
|
VOLUME HEDGED (MMbtu) |
|
WEIGHTED AVERAGE FIXED PRICE |
|
|
Q3 2025 |
|
1,465,100 |
|
|
|
|
Q4 2025 |
|
1,357,000 |
|
|
|
|
Q1 2026 |
|
1,266,700 |
|
|
|
|
Q2 2026 |
|
1,188,700 |
|
|
|
|
Q3 2026 |
|
1,120,800 |
|
|
|
|
Q4 2026 |
|
1,062,700 |
|
|
|
|
|
|
|
|
|
The following table presents Vitesse’s settlements on commodity derivative instruments and unsettled gains and losses on open commodity derivative instruments for the periods presented:
|
|
|
|
||||
|
QUARTER ENDED MARCH 31, |
||||||
(in thousands) |
2025 |
|
2024 |
||||
Realized gain on commodity derivatives (1) |
$ |
683 |
|
|
$ |
832 |
|
Unrealized (loss) on commodity derivatives (1) |
|
(855 |
) |
|
|
(14,656 |
) |
Total commodity derivative (loss), net |
$ |
(172 |
) |
|
$ |
(13,824 |
) |
|
|
|
|
||||
(1) |
Realized and unrealized gains and losses on commodity derivatives are presented herein as separate line items but are combined for a total commodity derivative gain (loss) in the statements of operations included below. Management believes the separate presentation of the realized and unrealized commodity derivative gains and losses is useful, providing a better understanding of our hedge position. |
Q1 2025 EARNINGS CONFERENCE CALL
In conjunction with Vitesse’s release of its financial and operating results, investors, analysts and other interested parties are invited to listen to a conference call with management on Tuesday, May 6, 2025 at 11:00 a.m. Eastern Time.
An updated corporate slide presentation that may be referenced on the conference call will be posted prior to the conference call on Vitesse’s website, www.vitesse-vts.com, in the “Investor Relations” section of the site, under “News & Events,” sub-tab “Presentations.”
Those wishing to listen to the conference call may do so via the Company’s website or by phone as follows:
Website: https://event.choruscall.com/mediaframe/webcast.html?webcastid=jWr66OCz
Dial-In Number: 877-407-0778 (US/
Conference ID: 13753522 - Vitesse Energy First Quarter 2025 Earnings Call
Replay Dial-In Number: 877-660-6853 (US/
Replay Access Code: 13753522 - Replay will be available through May 13, 2025
UPCOMING INVESTOR EVENT
Vitesse management will be participating in the Jefferies Energy Conference in
Any investor presentations to be used for this event will be posted prior to the event on Vitesse’s website, www.vitesse-vts.com, in the “Investor Relations” section of the site, under “News & Events,” sub-tab “Presentations.”
ABOUT VITESSE ENERGY, INC.
Vitesse Energy, Inc. is focused on returning capital to stockholders through owning financial interests predominantly as a non-operator in oil and gas wells drilled by leading US operators.
More information about Vitesse can be found at www.vitesse-vts.com.
FORWARD-LOOKING STATEMENTS
This press release contains forward-looking statements regarding future events and future results that are subject to the safe harbors created under the Securities Act of 1933 and the Securities Exchange Act of 1934. All statements other than statements of historical facts included in this release regarding Vitesse’s financial position, operating and financial performance, business strategy, dividend plans and practices, guidance, plans and objectives of management for future operations, and industry conditions are forward-looking statements. When used in this release, forward-looking statements are generally accompanied by terms or phrases such as “estimate,” “project,” “predict,” “believe,” “expect,” “continue,” “anticipate,” “target,” “could,” “plan,” “intend,” “seek,” “goal,” “will,” “should,” “may” or other words and similar expressions that convey the uncertainty of future events or outcomes. Items contemplating or making assumptions about actual or potential future production and sales, market size, collaborations, and trends or operating results also constitute such forward-looking statements.
Forward-looking statements involve inherent risks and uncertainties, and important factors (many of which are beyond Vitesse’s control) that could cause actual results to differ materially from those set forth in the forward-looking statements, including the following: changes in oil and natural gas prices; the pace of drilling and completions activity on Vitesse’s properties; Vitesse’s ability to acquire additional development opportunities; potential acquisition transactions; integration and benefits of acquisitions, including the Lucero acquisition, or the effects of such acquisitions on Vitesse’s cash position and levels of indebtedness; changes in Vitesse’s reserves estimates or the value thereof; disruptions to Vitesse’s business due to acquisitions and other significant transactions; the ultimate timing, outcome, and results of integrating and executing on Lucero’s operations; infrastructure constraints and related factors affecting Vitesse’s properties; cost inflation or supply chain disruption; ongoing legal disputes over and potential shutdown of the Dakota Access Pipeline; the impact of general economic or industry conditions, nationally and/or in the communities in which Vitesse conducts business, including central bank policy actions, bank failures and associated liquidity risks; changes in the interest rate environment, legislation or regulatory requirements; changes in US trade policy, including the imposition of tariffs and resulting consequences; conditions of the securities markets; Vitesse’s ability to raise or access capital; cyber-related risks; changes in accounting principles, policies or guidelines; and financial or political instability, health-related epidemics, acts of war (including conflicts in the
Vitesse has based these forward-looking statements on its current expectations and assumptions about future events. While management considers these expectations and assumptions to be reasonable, they are inherently subject to significant business, economic, competitive, regulatory and other risks, contingencies and uncertainties, most of which are difficult to predict and many of which are beyond Vitesse’s control. Vitesse does not undertake any duty to update or revise any forward-looking statements, except as may be required by the federal securities laws.
FINANCIAL INFORMATION
VITESSE ENERGY, INC. Condensed Consolidated Statements of Operations (Unaudited) |
|||||||
|
|
|
|
||||
|
FOR THE THREE MONTHS ENDED MARCH 31, |
||||||
(In thousands, except share data) |
2025 |
|
2024 |
||||
Revenue |
|
|
|
||||
Oil |
$ |
58,925 |
|
|
$ |
57,364 |
|
Natural gas |
|
7,246 |
|
|
|
3,829 |
|
Total revenue |
|
66,171 |
|
|
|
61,193 |
|
Operating Expenses |
|
|
|
||||
Lease operating expense |
|
13,854 |
|
|
|
11,791 |
|
Production taxes |
|
5,773 |
|
|
|
5,799 |
|
General and administrative |
|
12,132 |
|
|
|
5,374 |
|
Depletion, depreciation, amortization, and accretion |
|
26,563 |
|
|
|
23,545 |
|
Equity-based compensation |
|
2,469 |
|
|
|
1,605 |
|
Total operating expenses |
|
60,791 |
|
|
|
48,114 |
|
Operating Income |
|
5,380 |
|
|
|
13,079 |
|
Other (Expense) Income |
|
|
|
||||
Commodity derivative (loss), net |
|
(172 |
) |
|
|
(13,824 |
) |
Interest expense |
|
(2,905 |
) |
|
|
(2,203 |
) |
Other income |
|
164 |
|
|
|
31 |
|
Total other (expense) income |
|
(2,913 |
) |
|
|
(15,996 |
) |
|
|
|
|
||||
Income (Loss) Before Income Taxes |
$ |
2,467 |
|
|
$ |
(2,917 |
) |
|
|
|
|
||||
Benefit from (Provision for) Income Taxes |
|
201 |
|
|
|
731 |
|
|
|
|
|
||||
Net Income (Loss) |
$ |
2,668 |
|
|
$ |
(2,186 |
) |
|
|
|
|
||||
Weighted average common shares – basic |
|
33,074,904 |
|
|
|
29,933,962 |
|
Weighted average common shares – diluted |
|
35,086,990 |
|
|
|
29,933,962 |
|
Net income (loss) per common share – basic |
$ |
0.08 |
|
|
$ |
(0.07 |
) |
Net income (loss) per common share – diluted |
$ |
0.08 |
|
|
$ |
(0.07 |
) |
|
|
|
|
||||
VITESSE ENERGY, INC. Condensed Consolidated Balance Sheets (Unaudited) |
|||||||
|
|
|
|
||||
|
MARCH 31, |
|
DECEMBER 31, |
||||
(in thousands, except shares) |
2025 |
|
2024 |
||||
Assets |
|
|
|
||||
Current Assets |
|
|
|
||||
Cash and cash equivalents |
$ |
4,495 |
|
|
$ |
2,967 |
|
Revenue receivable |
|
56,632 |
|
|
|
39,788 |
|
Commodity derivatives |
|
2,861 |
|
|
|
3,842 |
|
Prepaid expenses and other current assets |
|
6,460 |
|
|
|
4,314 |
|
Total current assets |
|
70,448 |
|
|
|
50,911 |
|
Oil and Gas Properties-Using the successful efforts method of accounting |
|
|
|
||||
Proved oil and gas properties |
|
1,485,193 |
|
|
|
1,315,566 |
|
Less accumulated DD&A and impairment |
|
(589,949 |
) |
|
|
(563,590 |
) |
Total oil and gas properties |
|
895,244 |
|
|
|
751,976 |
|
Other Property and Equipment—Net |
|
167 |
|
|
|
182 |
|
Other Assets |
|
|
|
||||
Commodity derivatives |
|
1,721 |
|
|
|
284 |
|
Other noncurrent assets |
|
7,656 |
|
|
|
7,540 |
|
Total other assets |
|
9,377 |
|
|
|
7,824 |
|
Total assets |
$ |
975,236 |
|
|
$ |
810,893 |
|
Liabilities and Equity |
|
|
|
||||
Current Liabilities |
|
|
|
||||
Accounts payable |
$ |
35,265 |
|
|
$ |
34,316 |
|
Accrued liabilities |
|
59,654 |
|
|
|
65,714 |
|
Commodity derivatives |
|
1,607 |
|
|
|
299 |
|
Other current liabilities |
|
89 |
|
|
|
— |
|
Total current liabilities |
|
96,615 |
|
|
|
100,329 |
|
Long-term Liabilities |
|
|
|
||||
Revolving credit facility |
|
117,000 |
|
|
|
117,000 |
|
Deferred tax liability |
|
72,540 |
|
|
|
72,001 |
|
Asset retirement obligations |
|
12,915 |
|
|
|
9,652 |
|
Commodity derivatives |
|
254 |
|
|
|
94 |
|
Other noncurrent liabilities |
|
8,222 |
|
|
|
11,483 |
|
Total liabilities |
$ |
307,546 |
|
|
$ |
310,559 |
|
Commitments and Contingencies |
|
|
|
||||
Equity |
|
|
|
||||
Preferred stock, |
|
— |
|
|
|
— |
|
Common stock, |
|
406 |
|
|
|
326 |
|
Additional paid-in capital |
|
669,741 |
|
|
|
505,133 |
|
Accumulated deficit |
|
(2,457 |
) |
|
|
(5,125 |
) |
Total equity |
|
667,690 |
|
|
|
500,334 |
|
Total liabilities and equity |
$ |
975,236 |
|
|
$ |
810,893 |
|
|
|
|
|
||||
NON-GAAP FINANCIAL MEASURES
Vitesse defines Adjusted Net Income as net income before (i) non-cash gains and losses on unsettled derivative instruments, (ii) non-cash equity-based compensation, (iii) benefit from income taxes, and (iv) certain other items such as material general and administrative costs related to the Lucero acquisition; reduced by the estimated impact of income tax expense.
Net Debt is calculated by deducting cash on hand from the amount outstanding on our revolving credit facility as of the balance sheet or measurement date.
Adjusted EBITDA is defined as net income before expenses for interest, income taxes, depletion, depreciation, amortization and accretion, and excludes non-cash equity-based compensation and non-cash gains and losses on unsettled derivative instruments in addition to certain other items such as material general and administrative costs related to the Lucero acquisition.
Vitesse defines Free Cash Flow as cash flow from operations, adjusting for changes in operating assets and liabilities in addition to certain other items such as material general and administrative costs related to the Lucero acquisition, less development of oil and gas properties.
Management believes the use of these non-GAAP financial measures provides useful information to investors to gain an overall understanding of financial performance. Specifically, management believes the non-GAAP financial measures included herein provide useful information to both management and investors by excluding certain items that management believes are not indicative of Vitesse’s core operating results. In addition, these non-GAAP financial measures are used by management for budgeting and forecasting as well as subsequently measuring Vitesse’s performance, and management believes it is providing investors with financial measures that most closely align to its internal measurement processes. A reconciliation of each of the non-GAAP financial measures to the most directly comparable GAAP measure is included below.
RECONCILIATION OF ADJUSTED NET INCOME |
|||
|
|
||
(in thousands) |
FOR THE THREE MONTHS ENDED MARCH 31, 2025 |
||
Net Income |
$ |
2,668 |
|
Add: |
|
||
Unrealized loss (gain) on derivative instruments |
|
855 |
|
Equity-based compensation |
|
2,469 |
|
G&A costs related to Lucero acquisition |
|
4,624 |
|
Benefit from income taxes |
|
(201 |
) |
Adjusted Income Before Adjusted Income Tax Expense |
$ |
10,415 |
|
|
|
||
Adjusted Income Tax Expense(1) |
|
(2,427 |
) |
|
|
||
Adjusted Net Income (non-GAAP) |
$ |
7,988 |
|
|
|
||
(1) |
The Company determined the income tax impact on the “Adjusted Income Before Adjusted Income Tax Expense” using the relevant statutory tax rate of |
RECONCILIATION OF NET DEBT AND ADJUSTED EBITDA |
|||
|
|
||
(in thousands except for ratio) |
AT MARCH 31, 2025 |
||
Revolving credit facility |
$ |
117,000 |
|
Less: Cash |
|
4,495 |
|
Net Debt |
$ |
112,505 |
|
|
|
||
|
|
||
|
FOR THE THREE MONTHS ENDED MARCH 31, 2025 |
||
Net Income |
$ |
2,668 |
|
Add: |
|
||
Interest expense |
|
2,905 |
|
Benefit from income taxes |
|
(201 |
) |
Depletion, depreciation, amortization, and accretion |
|
26,563 |
|
Equity-based compensation |
|
2,469 |
|
Unrealized loss (gain) on derivative instruments |
|
855 |
|
G&A costs related to Lucero acquisition |
|
4,624 |
|
Adjusted EBITDA |
$ |
39,883 |
|
|
|
||
Annualized Adjusted EBITDA |
$ |
159,532 |
|
Net Debt to Adjusted EBITDA ratio |
|
0.71 |
|
|
|
||
RECONCILIATION OF FREE CASH FLOW |
|||
|
|
||
(in thousands) |
FOR THE THREE MONTHS ENDED MARCH 31, 2025 |
||
Net cash provided by operating activities |
$ |
17,489 |
|
Add: |
|
||
Changes in operating assets and liabilities |
|
15,811 |
|
G&A costs related to Lucero acquisition |
|
4,624 |
|
Cash flow from operations before changes in operating assets and liabilities |
|
37,924 |
|
Less: development of oil and gas properties |
|
(28,849 |
) |
Free Cash Flow |
$ |
9,075 |
|
|
|
||
View source version on businesswire.com: https://www.businesswire.com/news/home/20250505316856/en/
INVESTOR AND MEDIA CONTACT
Ben Messier, CFA
Director – Investor Relations and Business Development
(720) 532-8232
benmessier@vitesse-vts.com
Source: Vitesse Energy, Inc.
