Vitesse Energy Announces Second Quarter 2025 Results

2025-08-04

NYSE - New York Stock Exchange · Oil · Natural Gas · United States

Vitesse Energy, Inc. (NYSE: VTS) (“we,” “our,” “Vitesse,” or the “Company”) today reported the Company’s second quarter 2025 financial and operating results.

SECOND QUARTER 2025 HIGHLIGHTS

As previously announced, declared a quarterly cash dividend of $0.5625 per common share to be paid on September 30, 2025 Net income of $24.7 million and Adjusted Net Income (1) of $18.4 million Adjusted EBITDA (1) of $61.1 million Cash flow from operations of $66.0 million and Free Cash Flow (1) of $21.9 million Production of 18,950 barrels of oil equivalent (“Boe”) per day (65% oil) Total cash development capital expenditures and acquisition costs of $35.7 million Total debt of $106.0 million and Net Debt to Adjusted EBITDA ratio (1) of 0.43 Resolution of legal dispute with key operator resulted in cash payment of $24 million and renegotiated arrangements for sale of gas production beginning July 1, 2025

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

MANAGEMENT COMMENTS

“In the second quarter, we fully integrated the Lucero assets, successfully settled a multi-year lawsuit, continued to invest capital selectively, and used our free cash flow to pay down debt,” said Bob Gerrity, Vitesse’s Chairman and Chief Executive Officer. “In addition, we capitalized on a period of increased oil prices resulting from the conflict in the Middle East by adding oil hedges in 2025 and 2026 at price levels that support our dividend. As a result, we believe we are well positioned to benefit from the transaction opportunity set, especially for non-operated assets.”

STOCKHOLDER RETURNS

In July 2025, Vitesse’s Board of Directors declared its third quarter cash dividend for Vitesse’s common stock of $0.5625 per share for stockholders of record as of September 15, 2025, which will be paid on September 30, 2025.

On June 30, 2025, the Company paid its second quarter cash dividend of $0.5625 per share to common stockholders of record as of June 16, 2025.

FINANCIAL AND OPERATING RESULTS

Effective May 28, 2025, Vitesse resolved pending litigation with one of its largest operators related to post-production revenue deductions. As a result, during the quarter, Vitesse received a one-time cash payment of $24 million. The Company recorded the payment as described below in its consolidated statements of operations.

In addition to the one-time cash payment, Vitesse has elected to take virtually all of its gas production in-kind from related wells. As such, the Company entered into long-term gas gathering, processing, and marketing agreements with the operator and its affiliates.

Second quarter net income was $24.7 million and Adjusted Net Income was $18.4 million. Adjusted EBITDA was $61.1 million. See “Non-GAAP Financial Measures” below.

Oil and natural gas production for the second quarter of 2025 averaged 18,950 Boe per day, a sequential increase of 27% from the first quarter of 2025, primarily attributable to closing the previously announced accretive acquisition of Lucero Energy Corp. (“Lucero”) on March 7, 2025. Oil represented 65% of production and 81% of total oil and natural gas revenue. Total revenue which includes $16.9 million related to the litigation settlement, plus the effects of our realized hedges, was $87.0 million.

Vitesse’s average realized oil and natural gas prices before hedging were $59.50 per Bbl and $4.17 per Mcf, respectively, during the second quarter of 2025. Excluding the effect of the litigation settlement, average realized oil and natural gas prices during the second quarter of 2025 were $56.58 per Bbl and $0.42 per Mcf, respectively. The Company had hedges covering 58% of oil production in the second quarter of 2025 and its realized oil price with hedging was $64.21 per Bbl, or $61.29 excluding the litigation settlement.

Lease operating expenses in the second quarter of 2025 were $19.6 million, or $11.38 per Boe. General and administrative expenses for the second quarter of 2025 totaled $0.3 million, or $0.18 per Boe, which included $0.3 million of costs related to the Lucero acquisition and the offset of approximately $7.1 million of litigation costs previously expensed. Excluding these items, G&A was $3.47 per Boe.

LIQUIDITY AND CAPITAL EXPENDITURES

As of June 30, 2025, Vitesse had $2.0 million in cash and $106.0 million of borrowings outstanding on its revolving credit facility. Vitesse had total liquidity of $146.0 million as of June 30, 2025, consisting of cash and $144.0 million of committed borrowing availability under its revolving credit facility.

During the quarter, Vitesse invested $35.6 million in development capital expenditures and $0.1 million in acquisitions of oil and gas properties.

OPERATIONS UPDATE

As of June 30, 2025, the Company owned an interest in 282 gross (7.9 net) wells that were either drilling or in the completion phase, and another 418 gross (15.1 net) locations that had been permitted for development.

2025 ANNUAL GUIDANCE

Vitesse’s previously provided 2025 annual guidance is set forth below.

| | 2025 Guidance | | Annual Production (Boe per day) | 15,000 - 17,000 | | Oil as a Percentage of Annual Production | 64% - 68% | | Total Capital Expenditures ($ in millions) | $80 - $110 |

SECOND QUARTER 2025 RESULTS

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

( DECREASE) | | | | | | | | | | | | | ($ in thousands, except production and per unit data) | 2025 | | 2024 | | AMOUNT | | PERCENT | | | | | | | | | Financial and Operating Results: | | | | | | | | | | | | | | | | Revenue | | | | | | | | | | | | | | | | Oil | $ | 66,611 | | | $ | 64,127 | | | $ | 2,484 | | | 4 | % | | Natural gas | | 15,144 | | | | 2,471 | | | | 12,673 | | | 513 | % | | Total revenue | $ | 81,755 | | | $ | 66,598 | | | $ | 15,157 | | | 23 | % | | Operating Expenses | | | | | | | | | | | | | | | | Lease operating expense | $ | 19,629 | | | $ | 12,272 | | | $ | 7,357 | | | 60 | % | | Production taxes | | 6,180 | | | | 5,426 | | | | 754 | | | 14 | % | | General and administrative | | 311 | | | | 4,724 | | | | (4,413 | ) | | (93 | %) | | Depletion, depreciation, amortization, and accretion | | 34,576 | | | | 25,315 | | | | 9,261 | | | 37 | % | | Equity-based compensation | | 2,403 | | | | 2,047 | | | | 356 | | | 17 | % | | Interest Expense | $ | 2,539 | | | $ | 2,585 | | | $ | (46 | ) | | (2 | %) | | Commodity Derivative Gain, Net | $ | 18,451 | | | $ | 379 | | | $ | 18,072 | | | * | | | Income Tax (Benefit) Expense | $ | 9,871 | | | $ | 3,678 | | | $ | 6,193 | | | 168 | % | | Production Data: | | | | | | | | | | | | | | | | Oil (MBbls) | | 1,119 | | | | 859 | | | | 260 | | | 30 | % | | Natural gas (MMcf) | | 3,630 | | | | 2,217 | | | | 1,413 | | | 64 | % | | Combined volumes (MBoe) | | 1,724 | | | | 1,229 | | | | 495 | | | 40 | % | | Daily combined volumes (Boe/d) | | 18,950 | | | | 13,504 | | | | 5,446 | | | 40 | % | | Average Realized Prices before Hedging: | | | | | | | | | | | | | | | | Oil (per Bbl) | $ | 59.50 | | | $ | 74.63 | | | $ | (15.13 | ) | | (20 | %) | | Natural gas (per Mcf) | | 4.17 | | | | 1.11 | | | | 3.06 | | | 276 | % | | Combined (per Boe) | | 47.41 | | | | 54.20 | | | | (6.79 | ) | | (13 | %) | | Average Realized Prices with Hedging: | | | | | | | | | | | | | | | | Oil (per Bbl) | $ | 64.21 | | | $ | 73.42 | | | $ | (9.21 | ) | | (13 | %) | | Natural gas (per Mcf) | | 4.17 | | | | 1.11 | | | | 3.06 | | | 276 | % | | Combined (per Boe) | | 50.47 | | | | 53.36 | | | | (2.89 | ) | | (5 | %) | | Average Costs (per Boe): | | | | | | | | | | | | | | | | Lease operating | $ | 11.38 | | | $ | 9.99 | | | $ | 1.39 | | | 14 | % | | Production taxes | | 3.58 | | | | 4.42 | | | | (0.84 | ) | | (19 | %) | | General and administrative | | 0.18 | | | | 3.84 | | | | (3.66 | ) | | (95 | %) | | Depletion, depreciation, amortization, and accretion | | 20.05 | | | | 20.60 | | | | (0.55 | ) | | (3 | %) | | | | | | | | | | | | | | | | | | *Not meaningful | | | | | | | | | | | | | | |

COMMODITY HEDGING

Vitesse hedges a portion of its expected oil, natural gas, and natural gas liquids 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 2025 guidance, Vitesse has approximately 71% of its remaining 2025 oil production hedged at a weighted average price of $69.83 per barrel and 49% of its remaining 2025 natural gas production hedged at a weighted average floor of $3.73 per MMBtu.

As of June 30, 2025, the Company had the following crude oil swaps:

(Bbls) | | WEIGHTED AVERAGE

FIXED PRICE | | WTI-NYMEX | | Q3 2025 | | 683,204 | | $69.69 | | WTI-NYMEX | | Q4 2025 | | 609,166 | | $69.99 | | WTI-NYMEX | | Q1 2026 | | 406,791 | | $66.94 | | WTI-NYMEX | | Q2 2026 | | 377,509 | | $66.94 | | WTI-NYMEX | | Q3 2026 | | 226,679 | | $65.50 | | WTI-NYMEX | | Q4 2026 | | 213,155 | | $65.52 | | | | | | | | |

As of June 30, 2025, the Company had the following natural gas collars:

(MMbtu) | | WEIGHTED AVERAGE

FLOOR/CEILING PRICE | | Henry Hub-NYMEX | | Q3 2025 | | 1,465,100 | | $3.74 / $5.86 | | Henry Hub-NYMEX | | Q4 2025 | | 1,357,000 | | $3.73 / $5.85 | | Henry Hub-NYMEX | | Q1 2026 | | 1,266,700 | | $3.73 / $5.00 | | Henry Hub-NYMEX | | Q2 2026 | | 1,188,700 | | $3.73 / $5.00 | | Henry Hub-NYMEX | | Q3 2026 | | 1,120,800 | | $3.72 / $4.99 | | Henry Hub-NYMEX | | Q4 2026 | | 1,062,700 | | $3.72 / $4.99 | | Henry Hub-NYMEX | | Q1 2027 | | 795,000 | | $4.00 / $5.68 | | | | | | | | |

As of June 30, 2025, the Company had the following natural gas basis swaps:

(MMbtu) | | WEIGHTED AVERAGE

FIXED PRICE | | Chicago City Gate to Henry Hub | | Q3 2025 | | 1,465,100 | | $(0.350) | | Chicago City Gate to Henry Hub | | Q4 2025 | | 1,357,000 | | $(0.350) | | Chicago City Gate to Henry Hub | | Q1 2026 | | 1,266,700 | | $(0.121) | | Chicago City Gate to Henry Hub | | Q2 2026 | | 1,188,700 | | $(0.121) | | Chicago City Gate to Henry Hub | | Q3 2026 | | 1,120,800 | | $(0.121) | | Chicago City Gate to Henry Hub | | Q4 2026 | | 1,062,700 | | $(0.121) | | Chicago City Gate to Henry Hub | | Q1 2027 | | 795,000 | | $0.300 | | | | | | | | |

As of June 30, 2025, the Company had the following natural gas liquids swaps:

(Gallons) | | WEIGHTED AVERAGE

FIXED PRICE | | Mont Belvieu Ethane | | 2025 | | 1,323,000 | | $0.26 | | Conway Propane | | 2025 | | 1,311,000 | | $0.71 | | Mont Belvieu Iso-Butane | | 2025 | | 171,000 | | $0.90 | | Mont Belvieu Normal Butane | | 2025 | | 486,000 | | $0.86 | | Mont Belvieu Ethane | | 2026 | | 2,176,000 | | $0.26 | | Conway Propane | | 2026 | | 2,153,000 | | $0.71 | | Mont Belvieu Iso-Butane | | 2026 | | 282,000 | | $0.90 | | Mont Belvieu Normal Butane | | 2026 | | 798,000 | | $0.86 | | | | | | | | |

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 JUNE 30, | | | | | | | | (in thousands) | 2025 | | 2024 | | | | | | Realized gain (loss) on commodity derivatives (1) | $ | 5,271 | | | $ | (1,033 | ) | | Unrealized gain on commodity derivatives (1) | | 13,180 | | | | 1,412 | | | Total commodity derivative gain | $ | 18,451 | | | $ | 379 | | | | | | | | | | |

| (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 consolidated 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. |

Q2 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, August 5, 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=zSuC2lWE

Dial-In Number: 877-407-0778 (US/Canada) and 201-689-8565 (International)

Conference ID: 13755059 - Vitesse Energy Second Quarter 2025 Earnings Call

Replay Dial-In Number: 877-660-6853 (US/Canada) and 201-612-7415 (International)

Replay Access Code: 13755059 - Replay will be available through August 12, 2025

UPCOMING INVESTOR EVENTS

Vitesse management will be participating in the upcoming investor events:

EnerCom Denver Energy Conference - Denver - August 18-19, 2025. Midwest IDEAS Conference - Chicago - August 27, 2025.

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 and change in 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 Middle East and Ukraine) or terrorism, and other economic, competitive, governmental, regulatory and technical factors affecting Vitesse’s operations, products and prices. Additional information concerning potential factors that could affect future results is included in the section entitled “Item 1A. Risk Factors” and other sections of Vitesse’s Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Q, as updated from time to time in amendments and subsequent reports filed with the SEC, which describe factors that could cause Vitesse’s actual results to differ from those set forth in the forward-looking statements.

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 | | FOR THE SIX MONTHS ENDED | | | | | | | | | | | | | | | JUNE 30, | | JUNE 30, | | | | | | | | | | | | | | (In thousands, except share data) | 2025 | | 2024 | | 2025 | | 2024 | | | | | | | | | | Revenue | | | | | | | | | | | | | | | | | Oil | $ | 66,611 | | | $ | 64,127 | | | $ | 125,535 | | | $ | 121,491 | | | Natural gas | | 15,144 | | | | 2,471 | | | | 22,390 | | | | 6,301 | | | Total revenue | | 81,755 | | | | 66,598 | | | | 147,925 | | | | 127,792 | | | Operating Expenses | | | | | | | | | | | | | | | | | Lease operating expense | | 19,629 | | | | 12,272 | | | | 33,484 | | | | 24,063 | | | Production taxes | | 6,180 | | | | 5,426 | | | | 11,953 | | | | 11,226 | | | General and administrative | | 311 | | | | 4,724 | | | | 12,442 | | | | 10,098 | | | Depletion, depreciation, amortization, and accretion | | 34,576 | | | | 25,315 | | | | 61,139 | | | | 48,860 | | | Equity-based compensation | | 2,403 | | | | 2,047 | | | | 4,873 | | | | 3,652 | | | Total operating expenses | | 63,099 | | | | 49,784 | | | | 123,891 | | | | 97,899 | | | Operating Income | | 18,656 | | | | 16,814 | | | | 24,034 | | | | 29,893 | | | Other Income (Expense) | | | | | | | | | | | | | | | | | Commodity derivative gain (loss), net | | 18,451 | | | | 379 | | | | 18,279 | | | | (13,445 | ) | | Interest expense | | (2,539 | ) | | | (2,585 | ) | | | (5,443 | ) | | | (4,788 | ) | | Other (expense) income | | (38 | ) | | | (2 | ) | | | 126 | | | | 28 | | | Total other income (expense) | | 15,874 | | | | (2,208 | ) | | | 12,962 | | | | (18,205 | ) | | | | | | | | | | | | | | | | | | | Income Before Income Taxes | $ | 34,530 | | | $ | 14,606 | | | $ | 36,996 | | | $ | 11,688 | | | | | | | | | | | | | | | | | | | | (Provision for) Benefit from Income Taxes | | (9,871 | ) | | | (3,678 | ) | | | (9,669 | ) | | | (2,946 | ) | | | | | | | | | | | | | | | | | | | Net Income | $ | 24,659 | | | $ | 10,928 | | | $ | 27,327 | | | $ | 8,742 | | | | | | | | | | | | | | | | | | | | Weighted average common shares – basic | | 39,104,962 | | | | 30,046,190 | | | | 36,106,598 | | | | 29,990,077 | | | Weighted average common shares – diluted | | 40,967,995 | | | | 33,026,818 | | | | 38,043,765 | | | | 32,984,826 | | | Net income per common share – basic | $ | 0.62 | | | $ | 0.36 | | | $ | 0.76 | | | $ | 0.29 | | | Net income per common share – diluted | $ | 0.60 | | | $ | 0.33 | | | $ | 0.72 | | | $ | 0.27 | | | | | | | | | | | | | | | | | | |