Vitesse (VTS) Q4 2024 earnings summary

Executive summary

• Achieved strong 2024 results with increased dividends, conservative balance sheet, and conversion of undeveloped assets to producing wells, while closing the accretive Lucero Energy Corp acquisition expected to enhance key financial metrics and scale.

• Board expanded to nine members with Lucero representatives, enhancing expertise.

• Focuses on non-operated oil and gas interests in the Bakken field, leveraging over 7,300 productive wells and a deep inventory of undeveloped locations.

• Emphasizes disciplined capital allocation: fixed dividends, organic capex, accretive acquisitions, share buybacks, and debt paydown.

• Proprietary data systems and process-driven asset management enable scalability without increasing G&A expenses.

Financial highlights

• Paid $4.07 per share in dividends since January 2023; current annualized dividend is $2.25 per share, up 7% sequentially.

• 2024 production averaged 13,003 BOE/day (69% oil cut); Q4 just under 13,000 BOE/day (68% oil cut).

• Adjusted EBITDA for 2024 was $156.8 million; adjusted net income was $35.7 million; GAAP net income was $21.1 million.

• Cash CapEx and acquisition costs totaled $115.2 million, funded by operating cash flow and credit facility draws.

• 1P PV-10 (non-GAAP) of $806 million and PDP PV-10 (non-GAAP) of $609 million as of December 31, 2024.

Outlook and guidance

• 2025 production guidance: 17,000–18,000 BOE/day (66–70% oil cut), a 35% increase at midpoint over 2024.

• Q1 2025 production expected at 14,000–15,000 BOE/day, with a significant increase in Q2 post-Lucero acquisition.

• 2025 cash CapEx guidance: $130–$150 million, front-loaded in the year, including $20 million for acquisitions.

• Over 200 net estimated remaining undeveloped locations, supporting ~25 years of drilling inventory.

• 53% of 2025 oil production hedged at $71.16/bbl; 15% of natural gas hedged at $3.73–$4.88/MMBtu.