Vitesse (VTS) Q4 2025 earnings summary

Executive summary

• Returned $2.25 per share to shareholders in 2025, totaling $6.325 per share since 2023 spin-off.

• Closed and integrated the Lucero acquisition, contributing to a 19% increase in proved reserves year-over-year.

• Signed a definitive agreement for an all-stock acquisition of non-operated Powder River Basin assets for $35 million, effective January 1, 2026, adding 6,205 net acres and 29 net undeveloped locations.

• Over 80% of assets are undeveloped resources, providing long-duration value and capital efficiency over time.

• Asset base is predominantly non-operated interests in the Bakken oil field, diversified across 30+ operators and 7,800+ producing wells.

Financial highlights

• 2025 production averaged 17,444 BOE/day, up 34% year-over-year, with a 65% oil cut.

• Adjusted EBITDA for 2025 was $179.3 million; adjusted net income $30.4 million; GAAP net income $25.3 million.

• Free cash flow was $48.9 million after $121 million in development CapEx.

• Year-end total debt was $124.5 million; net debt to Adjusted EBITDA was 0.69x.

• PV-10 value of proved reserves at year-end 2025 was $472.7 million (88% proved developed).

Outlook and guidance

• 2026 production guidance: 16,000–17,500 BOE/day, oil cut 60%–64%.

• 2026 cash CapEx expected at $50–$80 million, down from 2025 due to lower operator activity and accelerated 2025 payments.

• Majority of 2026 oil production hedged at prices supporting dividend; 64% of oil hedged at $64.95/bbl swaps and $58.64–$67.50/bbl collars.

• Over 200 net estimated two-mile-equivalent undeveloped locations, supporting ~25 years of drilling inventory.

• Board declared a Q1 2026 dividend at an annual rate of $1.75 per share, with a quarterly dividend of $0.4375 per share, equating to a 9% fixed dividend yield based on recent share price.