Vitesse Energy Announces First Quarter 2025 Results and Revised 2025 Guidance

GREENWOOD VILLAGE, Colo.--(BUSINESS WIRE)--May 05, 2025-- 

Vitesse Energy, Inc. (NYSE: VTS) ("we," "our," "Vitesse," or the "Company") today reported the Company's first quarter 2025 financial and operating results and revised 2025 guidance.

FIRST QUARTER 2025 HIGHLIGHTS

   -- As previously announced, declared a quarterly cash dividend of $0.5625 
      per common share to be paid on June 30, 2025 
 
   -- Closed previously announced accretive acquisition of Lucero Energy Corp. 
      ("Lucero") on March 7, 2025 
 
   -- Net income of $2.7 million and Adjusted Net Income(1) of $8.0 million 
 
   -- Adjusted EBITDA(1) of $39.9 million 
 
   -- Cash flow from operations of $17.5 million and Free Cash Flow(1) of $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 and Net Debt to Adjusted EBITDA ratio(1) of 
      0.71 

(1) Non-GAAP financial measure; see reconciliation schedules at the end of this release

MANAGEMENT COMMENTS

"In the first quarter, we delivered a 7% dividend increase and successfully closed the acquisition of Lucero," said Bob Gerrity, Vitesse's Chairman and Chief Executive Officer. "Our low leverage, disciplined hedging strategy, and foundational asset base provide us the flexibility to navigate market volatility. We believe we are well-positioned to succeed in this environment, and as a testament to our durability, the Board of Directors has maintained our dividend at an annual rate of $2.25 per share."

STOCKHOLDER RETURNS

In May 2025, Vitesse's Board of Directors declared its second quarter cash dividend for Vitesse's common stock of $0.5625 per share for stockholders of record as of June 16, 2025, which will be paid on June 30, 2025.

On March 31, 2025, the Company paid its first quarter cash dividend of $0.5625 per share to common stockholders of record as of March 21, 2025.

During the first quarter, 345,255 shares of Vitesse's common stock were retired after being exchanged for $9.2 million of tax withholding related to vesting of restricted stock units.

FINANCIAL AND OPERATING RESULTS

First quarter net income was $2.7 million and Adjusted Net Income was $8.0 million. Adjusted EBITDA was $39.9 million. See "Non-GAAP Financial Measures" below.

Oil and natural gas production for the first quarter of 2025 averaged 14,971 Boe per day, an increase of 16% from the fourth quarter of 2024. Production was at the top end of our first quarter expectations of 14,000 - 15,000 Boe per day. Oil represented 68% of production and 89% of total oil and natural gas revenue. Total revenue, including the effects of our realized hedges, was $66.9 million.

Vitesse's average realized oil and natural gas prices before hedging were $64.18 per Bbl and $2.81 per Mcf, respectively, during the first quarter of 2025. The Company had hedges covering 65% of oil production in the first quarter of 2025 and its realized oil price with hedging was $64.93 per Bbl.

Lease operating expenses in the first quarter of 2025 were $13.9 million, or $10.28 per Boe. General and administrative expenses for the first quarter of 2025 totaled $12.1 million, or $9.00 per Boe, which included $4.6 million of one-time costs related to the Lucero acquisition and approximately $1.6 million of litigation-based legal costs in which we are the plaintiff. Excluding these costs, G&A was $4.38 per Boe.

LIQUIDITY AND CAPITAL EXPENDITURES

As of March 31, 2025, Vitesse had $4.5 million in cash and $117.0 million of borrowings outstanding on its revolving credit facility. Vitesse had total liquidity of $137.5 million as of March 31, 2025, consisting of cash and $133.0 million of committed borrowing availability under its revolving credit facility.

During the quarter, Vitesse invested $28.9 million in development capital expenditures and $1.5 million in acquisitions of oil and gas properties.

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 32% reduction in planned capital expenditures based on the midpoints compared to prior guidance, as it prioritizes capital discipline over production growth. Despite this considerable decrease in capital expenditures, revised 2025 production is projected to decline only 9% from prior guidance but is still a 23% increase over 2024 production.

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 $20 million in incremental acquisitions originally planned for early April.

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                              66% - 70%             64% - 68% 
Total Capital Expenditures ($ in 
 millions)                              $130 - $150           $80 - $110 
 

FIRST QUARTER 2025 RESULTS

The following table sets forth selected financial and operating data for the periods indicated.

 
 
                      QUARTER ENDED MARCH         INCREASE 
                              31,                 (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 61% of its remaining 2025 oil production hedged at a weighted average price of $70.75 per barrel and 30% of its remaining 2025 natural gas production hedged at a weighted average floor of $3.73 per MMBtu.

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