Vitesse (VTS) Q1 2025 Earnings Call May 06, 2025 11:00 AM ET Speaker0 Greetings, and welcome to the VITAS Energy's First Quarter twenty twenty five Earnings Call. At this time, all participants are in a listen only mode. A question and answer session will follow the formal presentation. Please note this conference is being recorded. I would now like to turn the conference over to the Director, Investor Relations and Business Development at VITAS, Ben Messier. Thank you. You may begin. Speaker1 Good morning ...

Vitesse is the French word for velocity. VTS represents the velocity of capital compounding. Investor Presentation May 2025 Forward Looking Statements This presentation 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 presentation regarding Vitesse Energy, Inc.'s ("Vitesse") financial pos ...

For the quarter ended March 2025, Vitesse Energy (VTS) reported revenue of $66.17 million, up 8.1% over the same period last year. EPS came in at $0.23, compared to $0.34 in the year-ago quarter.The reported revenue compares to the Zacks Consensus Estimate of $65.06 million, representing a surprise of +1.71%. The company delivered an EPS surprise of +155.56%, with the consensus EPS estimate being $0.09.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and ho ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 (State or other jurisdiction of incorporation or organization) 5619 DTC Parkway, Suite 700 Greenwood Village, Colorado 80111 For the quarterly period ended March 31, 2025 OR o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ______ to ______ Commissio ...

VITESSE ENERGY ANNOUNCES FIRST QUARTER 2025 RESULTS AND REVISED 2025 GUIDANCE GREENWOOD VILLAGE, Colo. – May 5, 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 Non-GAAP financial measure; see reconciliation schedules at the end of this release (1) MANAGEMENT COMMENTS "In the first quarter, we delivered a 7% dividend increase and successfu ...

Vitesse Energy (VTS) shares soared 7.1% in the last trading session to close at $24.51. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 13% loss over the past four weeks.VTS's recent share jump can be attributed to oil market stability despite geopolitical tensions. While President Trump’s new tariffs on Venezuelan oil buyers create uncertainty, the potential for tighter supply from U.S. sanctions on Venezuela and Iran supports b ...

Vitesse Energy (NYSE: VTS ) recently announced the acquisition of Lucero Energy which is adding an operating component to its strategy, doing so in an all stock transaction that settles down leverage but also allows for a reasonableThey lead the investing group The Value Lab where they offer members a portfolio with real time updates, chat to answer questions 24/7, regular global market news reports, feedback on member stock ideas, new trades monthly, quarterly earnings write-ups, and daily macro opinions.T ...

Production and Reserves - As of December 31, 2024, the company had an average daily production of 13,003 Boe, with proved reserves of 40,283 MBoe, of which 68% is oil[36]. - Estimated proved reserves in the Williston Basin were 38,469 MBoe, contributing to an average production of 12,341 Boe per day for the year ended December 31, 2024[43]. - As of December 31, 2024, estimated total proved reserves amounted to 40,283 MBoe, a slight decrease from 40,595 MBoe in 2023[48]. - The percentage of proved developed reserves decreased to 67.6% in 2024 from 70.1% in 2023[48]. - Estimated net proved undeveloped reserves increased to 13,038 MBoe in 2024, up from 12,121 MBoe in 2023, primarily due to extensions and discoveries adding 5,543 MBoe[51]. - The PV-10 value of total proved reserves was approximately $586,590,000, with 66% of this value supported by producing wells[50]. - Acquisitions in 2024 added 809 MBoe of proved undeveloped reserves in the Williston Basin and Central Rockies[55]. - Development costs of approximately $63 million were incurred for the conversion of 3,409 MBoe of proved undeveloped reserves to proved developed reserves[55]. - Revisions in 2024 resulted in a net decrease of 2,026 MBoe in proved undeveloped reserves, primarily due to reclassification based on updated drilling plans[55]. - The company expects to convert remaining proved undeveloped reserves to proved developed producing reserves within five years[52]. - Approximately 32% of the estimated net proved reserves volumes were classified as proved undeveloped as of December 31, 2024[165]. Financial Performance and Dividends - The company distributed cash to stockholders totaling $63.6 million, $58.0 million, and $36.0 million for the years ended December 31, 2024, 2023, and 2022, respectively[38]. - The company’s ability to pay dividends may be limited by its indebtedness and requirements under its Revolving Credit Facility[121]. - The company’s ability to pay dividends is restricted by requirements under its Revolving Credit Facility, which may limit future distributions[205]. - The company may face challenges in paying dividends due to its indebtedness and the discretion of its Board of Directors[128]. - The company may not generate enough cash flow to meet its debt obligations or pay dividends due to the cyclical nature of its industry[202]. Acquisitions and Strategy - The company has closed approximately 170 discrete acquisitions totaling over $570 million since its inception in 2014, focusing on smaller non-operated lease and wellbore positions[40]. - The company’s business strategy includes a focus on long-term stockholder value through the acquisition, development, and production of oil and natural gas assets[38]. - The company’s management team has established a systematic approach to evaluating acquisition and development opportunities, enhancing its competitive strengths[40]. - The company’s acquisition strategy involves risks associated with evaluating properties with limited information, which could impact financial results[116]. - The company’s acquisition strategy includes risks associated with evaluating properties with limited information, such as the Lucero Acquisition[166]. Production Costs and Pricing - Average sales price for oil decreased to $69.94 per Bbl in 2024, down 5.4% from $73.59 per Bbl in 2023[63]. - Average sales price for natural gas fell to $1.34 per Mcf in 2024, a decline of 28.7% from $1.88 per Mcf in 2023[63]. - Lease operating expense per Boe increased to $10.00 in 2024, up 9.8% from $9.11 in 2023[63]. - The company hedged approximately 2.3 million barrels of oil in 2025 at an average price of $71.16 per Bbl and 0.9 million barrels in 2026 at an average price of $66.95 per Bbl[40]. Regulatory and Environmental Risks - The company is subject to extensive and changing federal, state, and local laws and regulations related to environmental protection, which may increase operating costs and impact financial condition[92]. - The recent final rules under the Clean Air Act (CAA) impose stricter methane emission controls, requiring a reduction of emissions by 95% through capture and control systems[95]. - The company is in substantial compliance with current environmental laws and regulations, with no known material commitments for capital expenditures to comply with existing requirements[92]. - The company may face increased costs and operational impacts due to potential changes in the definition of Waters of the United States (WOTUS) under the Clean Water Act (CWA)[97]. - The company must develop and maintain facility response plans for oil spills, which imposes certain duties and liabilities under the Oil Pollution Act (OPA)[98]. - The company’s hydraulic fracturing operations may face increased regulatory scrutiny and potential costs if federal permitting is required in the future[100]. - Environmental regulations and compliance requirements could increase operational costs and impact the company's ability to conduct business effectively[144]. - Increased regulatory scrutiny on emissions has led to heightened litigation risks for fossil fuel companies, which could affect the company's financial condition[235]. Operational Challenges - The company acknowledges the cyclical nature of the oil and natural gas industry, which affects capital expenditures and production levels[71]. - The company faces risks related to volatile oil and natural gas prices, which have historically affected its financial position and results of operations[116]. - The company’s operations are concentrated in the Williston Basin, making it vulnerable to regional events affecting oil and natural gas prices[175]. - The company’s drilling activities are subject to high risks, including the potential for uneconomical operations and external geopolitical factors[141]. - The company may face challenges in acquiring or developing additional reserves, which are crucial for future production and success[152]. - Seasonal weather conditions can limit drilling and completion activities, particularly in the Williston Basin during winter months[157]. - The ongoing litigation regarding the Dakota Access Pipeline (DAPL) poses a risk to its continued operation, which could adversely affect the company's business[156]. Human Resources and Corporate Structure - The company had 33 full-time employees as of December 31, 2024, with plans to hire additional personnel as needed[109]. - The company is focused on attracting and retaining top talent, providing a welcoming and inclusive environment, and offering excellent training and career development opportunities[109]. - The company’s principal executive offices are located in Greenwood Village, CO, occupying approximately 22,000 square feet of leased space, which is deemed sufficient for current and future growth[111]. Financial Risks and Debt - The company is exposed to interest rate risk due to variable rate indebtedness, which could significantly increase debt service obligations[121]. - The company’s Revolving Credit Facility is collateralized by perfected liens and security interests on substantially all of its assets, exposing it to foreclosure risks in case of default[201]. - A significant reduction in the borrowing base under the Revolving Credit Facility could negatively impact liquidity and financial results[198]. - The Revolving Credit Facility contains restrictive covenants that may limit the company's business and financing activities[199]. - The company’s future cash flows may be insufficient to meet debt obligations due to various economic and competitive factors beyond its control[202]. Market and Competitive Environment - The company faces intense competition in acquiring assets and accessing capital, which could adversely affect its operations[179]. - The company anticipates fluctuations in its business and financial condition due to competition in the oil and natural gas industry and the success or failure of its business strategies[125]. - Geopolitical tensions, including conflicts in Ukraine and the Middle East, have led to significant volatility in oil and natural gas prices[182]. - Negative investor sentiment towards the oil and natural gas industry may lead to reduced capital funding for development projects[191]. Miscellaneous - The company is classified as an "emerging growth company" and may take advantage of certain exemptions from reporting requirements, which could lead to a less active trading market for its common stock[124]. - The company has experienced net losses in the past due to fluctuations in oil and gas prices, which may recur in the future[147]. - The present value of future net cash flows from proved reserves is not necessarily the same as the current market value, influenced by various factors including pricing and operating costs[154]. - The company relies on third-party transportation and processing facilities, and any lack of capacity could lead to increased costs and production delays[155]. - The integration of acquired assets may not yield anticipated benefits, and the company may face unknown liabilities from such acquisitions[172].

Financial Performance - Vitesse reported a full year 2024 net income of $21.1 million and adjusted net income of $35.7 million, with adjusted EBITDA of $156.8 million[4]. - Total revenue for 2024 was $241.998 million, a 3% increase from 2023, driven by a 5% increase in oil revenue[21]. - Operating income for 2024 was $40.971 million, compared to $34.854 million in 2023[33]. - Net income for 2024 was $21.060 million, a recovery from a net loss of $19.744 million in 2023[33]. - Adjusted Net Income for the year ended December 31, 2024, was $35,653,000, while for the three months ended December 31, 2024, it was $6,115,000[45]. - Adjusted EBITDA for the year ended December 31, 2024, was $156,772,000, and for the three months ended December 31, 2024, it was $36,975,000[47]. - Free Cash Flow for the year ended December 31, 2024, was $51,239,000, after accounting for $94,116,000 in development of oil and gas properties[49]. Production and Reserves - Full year 2024 production averaged 13,003 barrels of oil equivalent (Boe) per day, with oil comprising 69% of total production[4][7]. - Vitesse's total proved reserves as of December 31, 2024, were 40.3 million Boe, with a Standardized Measure of $506.3 million and PV-10 value of $586.6 million[11][12]. - The company expects 2025 production to range between 17,000 - 18,000 Boe per day, a 35% increase at the midpoint from 2024 levels[18][19]. - Approximately 53% of Vitesse's 2025 oil production is hedged at a weighted average price of $71.16 per barrel, enhancing cash flow predictability[22]. Revenue Breakdown - Oil revenue increased to $230.164 million in 2024 from $218.396 million in 2023, while natural gas revenue decreased to $11.834 million from $15.509 million[33]. - Total revenue for 2024 was $241.998 million, a slight increase from $233.905 million in 2023[33]. Dividends and Shareholder Returns - The company declared a quarterly cash dividend of $0.5625 per share, representing a 7% increase from the prior quarter, and an annualized dividend rate of $2.25 per share[4][5]. Acquisition and Strategic Moves - Vitesse closed the acquisition of Lucero Energy Corp. on March 7, 2025, which is expected to be accretive to key financial metrics[4][16]. - General and administrative costs related to the Lucero acquisition amounted to $2,229,000 for both the three months and the year ended December 31, 2024[45]. Financial Position - The company had total liquidity of $121 million as of December 31, 2024, consisting of cash and available borrowing under its revolving credit facility[14]. - Net Debt as of December 31, 2024, was $114,033,000, with a Net Debt to Adjusted EBITDA ratio of 0.73[47]. - Total assets increased to $810.893 million in 2024 from $765.970 million in 2023[37]. - Current liabilities rose to $100.329 million in 2024 from $60.403 million in 2023[37]. Market Engagement - The company plans to participate in the Roth Conference in March 2025, indicating ongoing engagement with investors[27]. Derivative Instruments - Realized gain on commodity derivatives for 2024 was $5.065 million, up from $1.166 million in 2023, while unrealized loss was $7.413 million compared to a gain of $11.318 million in 2023[24]. - The company incurred $10,106,000 in unrealized losses on derivative instruments for the three months ended December 31, 2024[45]. - The average price for crude oil swaps in Q1 2025 is projected at $72.55 per barrel, with a total of 526,500 barrels[23]. Taxation - The company adjusted its income tax expense using a statutory tax rate of 23.3% for the calculation of Adjusted Net Income[45].

Vitesse Energy, Inc. (VTS) has successfully completed its $222 million all-stock acquisition of Lucero Energy, marking a significant expansion in the Bakken shale region. With this acquisition, Lucero becomes a wholly owned subsidiary of Vitesse, strengthening its position as an oil-weighted company with both operated and non-operated assets.The deal was approved by the shareholders of Vitesse Energy and Lucero Energy as well as the Court of King’s Bench of Alberta in March 2025.With the completion of the a ...