GREENWOOD VILLAGE, Colo.--(BUSINESS WIRE)--August 03, 2026--
Vitesse Energy, Inc. (NYSE: VTS) ("we," "our," "Vitesse," or the "Company") today reported the Company's second quarter 2026 financial and operating results.
SECOND QUARTER 2026 HIGHLIGHTS
-- As previously announced, declared a quarterly cash dividend of $0.4375
per common share to be paid on September 30, 2026
-- Net income of $33.1 million and Adjusted Net Income(1) of $1.8 million,
including a non-cash unrealized gain on commodity derivatives of $40.2
million
-- Adjusted EBITDA(1) of $40.2 million
-- Cash flow from operations of $25.4 million and Free Cash Flow(1) of
$16.3 million
-- Production of 17,354 barrels of oil equivalent ("Boe") per day (60%
oil)
-- Total cash capital expenditures of $20.7 million
-- Total debt of $158.5 million and Net Debt to Adjusted EBITDA ratio(1)
of 1.0
(1) Non-GAAP financial measure; see reconciliation schedules at the end of this release
MANAGEMENT COMMENTS
"In the second quarter, Vitesse's capital allocation strategy continued to deliver results, with production increasing 9% from the previous quarter following the successful integration of the Powder River Basin assets acquired in April," stated Jamie Benard, Vitesse's Chief Executive Officer and President. "While we've received a number of questions about whether Vitesse's strategy has changed, the answer is simple: it has not. We will continue to prioritize a durable fixed dividend, allocate capital only where returns exceed our hurdle rates and maintain a strong balance sheet. With our third quarter dividend now declared, Vitesse has returned capital to stockholders for fifteen consecutive quarters since becoming a public company."
STOCKHOLDER RETURNS
On July 29, 2026, Vitesse declared its third quarter cash dividend of $0.4375 per share for stockholders of record as of September 15, 2026, which will be paid on September 30, 2026.
On June 30, 2026, the Company paid its second quarter cash dividend of $0.4375 per share to common stockholders of record as of June 15, 2026.
FINANCIAL AND OPERATING RESULTS
Second quarter net income was $33.1 million and Adjusted Net Income was $1.8 million. Adjusted EBITDA was $40.2 million. See "Non-GAAP Financial Measures" below.
Oil and natural gas production for the second quarter of 2026 averaged 17,354 Boe per day, a sequential increase of 9% from the first quarter of 2026. Oil represented 60% of production and 95% of total oil and natural gas revenue. Total revenue, including the effects of our realized hedges, was $72.8 million.
Vitesse's average realized oil and natural gas prices before hedging were $91.98 per Bbl and $1.17 per Mcf, respectively, during the second quarter of 2026. The Company had hedges covering 84% of oil production and its realized oil price with hedging was $71.14 per Bbl. Its realized natural gas price with hedging was $1.55 per Mcf.
Lease operating expenses in the second quarter of 2026 were $18.0 million, or $11.38 per Boe. General and administrative expenses totaled $6.2 million, or $3.89 per Boe.
LIQUIDITY AND CAPITAL EXPENDITURES
As of June 30, 2026, Vitesse had $0.9 million in cash and $158.5 million of borrowings outstanding on its revolving credit facility. Vitesse had total liquidity of $117.4 million as of June 30, 2026, consisting of cash and $116.5 million of committed borrowing availability under its revolving credit facility.
During the second quarter of 2026, Vitesse invested $21.1 million in development capital expenditures and acquired $0.7 million of oil and gas properties. Vitesse also recorded a $1.1 million purchase price adjustment received on the Powder River Basin Acquisition in the second quarter of 2026.
OPERATIONS UPDATE
As of June 30, 2026, the Company owned an interest in 305 gross (6.4 net) wells that were either drilling or in the completion phase, and another 363 gross (13.0 net) locations that had been permitted for development.
REVISED 2026 ANNUAL GUIDANCE
Vitesse tightened its 2026 annual guidance in response to second quarter results and recent market conditions as set forth below:
Prior 2026 Guidance Revised 2026 Guidance
------------------- ---------------------
Annual Production (Boe per day) 16,000 - 17,500 16,300 - 17,200
Oil as a Percentage of Annual
Production 60% - 64% 60% - 62%
Total Cash Capital Expenditures
($ in millions) $50 - $80 $65 - $80
SECOND QUARTER 2026 RESULTS
The following table sets forth selected financial and operating data for the periods indicated.
THREE MONTHS ENDED INCREASE
JUNE 30, (DECREASE)
------------------- --------------------
($ in thousands,
except production
and per unit data) 2026 2025 AMOUNT PERCENT
---------- ------- --------- ---------
Financial and
Operating Results:
Revenue
Oil $ 86,507 $66,611 $ 19,896 30%
Natural gas 4,497 15,144 (10,647) (70%)
------ ------ ------- -----
Total
revenue $ 91,004 $81,755 $ 9,249 11%
------ ------ ------- -----
Operating Expenses
Lease operating
expense $ 17,975 $19,629 $ (1,654) (8%)
Production
taxes 8,459 6,180 2,279 37%
General and
administrative 6,150 311 5,839 *
Depletion,
depreciation,
amortization,
and accretion 34,809 34,576 233 1%
Equity-based
compensation 2,735 2,403 332 14%
Interest Expense $ 3,022 $ 2,539 $ 483 19%
Commodity
Derivative Gain,
Net $ 22,043 $18,451 $ 3,592 19%
Income Tax
(Benefit) Expense $ 6,776 $ 9,871 $ (3,095) (31%)
Production Data:
Oil (MBbls) 940 1,119 (179) (16%)
Natural gas
(MMcf) 3,832 3,630 202 6%
Combined
volumes
(MBoe) 1,579 1,724 (145) (8%)
Daily combined
volumes
(Boe/d) 17,354 18,950 (1,596) (8%)
Average Realized
Prices before
Hedging:
Oil (per Bbl) $ 91.98 $ 59.50 $ 32.48 55%
Natural gas
(per Mcf) 1.17 4.17 (3.00) (72%)
Combined (per
Boe) 57.63 47.41 10.22 22%
Average Realized
Prices with
Hedging:
Oil (per Bbl) $ 71.14 $ 64.21 $ 6.93 11%
Natural gas
(per Mcf) 1.55 4.17 (2.62) (63%)
Combined (per
Boe) 46.12 50.47 (4.35) (9%)
Average Costs (per
Boe):
Lease operating $ 11.38 $ 11.38 $ -- --%
Production
taxes 5.36 3.58 1.78 50%
General and
administrative 3.89 0.18 3.71 *
Depletion,
depreciation,
amortization,
and accretion 22.04 20.05 1.99 10%
*Not meaningful.
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 2026 guidance, Vitesse has approximately 70% of its remaining 2026 oil production hedged and approximately 48% of its remaining 2026 two-stream natural gas production hedged through its natural gas and natural gas liquids hedges. The following tables summarize Vitesse's open commodity derivative contracts scheduled to settle after June 30, 2026.
Crude oil swaps:
SETTLEMENT WEIGHTED AVERAGE FIXED
INDEX PERIOD VOLUME HEDGED (Bbls) PRICE
---------- ----------- -------------------- ----------------------
WTI-NYMEX Q3 2026 490,679 $65.01
WTI-NYMEX Q4 2026 457,155 $64.97
WTI-NYMEX Q1 2027 270,000 $69.25
WTI-NYMEX Q2 2027 480,000 $68.05
WTI-NYMEX Q3 2027 495,000 $68.38
WTI-NYMEX Q4 2027 465,000 $67.88
WTI-NYMEX Q1 2028 360,000 $70.60
WTI-NYMEX Q2 2028 360,000 $70.60
WTI-NYMEX Q3 2028 360,000 $70.60
WTI-NYMEX Q4 2028 270,000 $70.80
WTI-NYMEX Q1 2029 180,000 $66.50
WTI-NYMEX Q2 2029 180,000 $66.50
WTI-NYMEX Q3 2029 180,000 $66.50
WTI-NYMEX Q4 2029 180,000 $66.50
Crude oil collars:
INDEX SETTLEMENT VOLUME HEDGED (Bbls) WEIGHTED AVERAGE
PERIOD FLOOR/CEILING PRICE
--------- ---------- -------------------- --------------------
WTI-NYMEX Q3 2026 213,000 $61.62 / $72.58
WTI-NYMEX Q4 2026 168,000 $58.04 / $67.51
WTI-NYMEX Q1 2027 300,000 $55.75 / $66.44
WTI-NYMEX Q2 2027 45,000 $60.00 / $64.25
Natural gas collars:
INDEX SETTLEMENT VOLUME HEDGED (MMBtu) WEIGHTED AVERAGE
PERIOD FLOOR/CEILING PRICE
--------------- ---------- --------------------- --------------------
Henry Hub-NYMEX Q3 2026 1,510,800 $3.73 / $4.90
Henry Hub-NYMEX Q4 2026 1,452,700 $3.73 / $4.90
Henry Hub-NYMEX Q1 2027 795,000 $4.00 / $5.68
Natural gas basis swaps:
SETTLEMENT VOLUME HEDGED WEIGHTED AVERAGE
INDEX PERIOD (MMBtu) FIXED PRICE
------------------ ----------- ------------------ -----------------
Chicago City Gate
to Henry Hub Q3 2026 1,510,800 $(0.100)
Chicago City Gate
to Henry Hub Q4 2026 1,452,700 $(0.100)
Chicago City Gate
to Henry Hub Q1 2027 795,000 $0.300
Natural gas liquids swaps:
SETTLEMENT PERIOD VOLUME HEDGED (Bbls) WEIGHTED AVERAGE FIXED PRICE
------------------ -------------------- ----------------------------
2H 2026 129,738 $31.77
2027 115,714 $32.92
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:
THREE MONTHS ENDED JUNE 30,
-----------------------------------
(in thousands) 2026 2025
-------------------- -------------
Realized (loss) gain on commodity
derivatives (1) $ (18,170) $ 5,271
Unrealized gain on commodity
derivatives (1) 40,213 13,180
------------ ----------
Total commodity derivative gain $ 22,043 $ 18,451
(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 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.
SECOND QUARTER 2026 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 4, 2026 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=GpKD5XwJ
Dial-In Number: 877-407-0778 (US/Canada) and +1 201-689-8565 (International)
Conference ID: 13761677 - Vitesse Energy Second Quarter 2026 Earnings Call
Replay Dial-In Number: 877-660-6853 (US/Canada) and +1 201-612-7415 (International)
Replay Access Code: 13761677 - Replay will be available through August 11, 2026
UPCOMING INVESTOR EVENTS
Vitesse management will participate in the following upcoming investor events:
-- EnerCom Denver Energy Conference - Denver - August 18-19, 2026 -- Midwest IDEAS Conference - Chicago - August 27, 2026
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 U.S. 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 Powder River Basin 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; infrastructure constraints and related factors affecting Vitesse's properties; cost inflation or supply chain disruption; ongoing legal disputes over the Dakota Access Pipeline; the impact of general economic or industry conditions, nationally and/or in the communities in which Vitesse conducts business; changes in the interest rate environment, legislation or regulatory requirements; changes in U.S. trade policy, including the imposition of and changes 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 continued hostilities in the Middle East, including conflict with Iran and disruption to key maritime shipping routes in the region, the conflict in Ukraine and developments in Venezuela) 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.
Consolidated Statements of Operations
FOR THE THREE MONTHS ENDED FOR THE SIX MONTHS ENDED
JUNE 30, JUNE 30,
-------------------------- ----------------------------
(In thousands,
except share data) 2026 2025 2026 2025
------------ ------------ ------------ --------------
Revenue
Oil $ 86,507 $ 66,611 $ 146,524 $ 125,535
Natural gas 4,497 15,144 11,891 22,390
---------- ---------- ---------- ----------
Total
revenue 91,004 81,755 158,415 147,925
Operating Expenses
Lease operating
expense 17,975 19,629 33,310 33,484
Production
taxes 8,459 6,180 14,124 11,953
General and
administrative 6,150 311 14,736 12,442
Depletion,
depreciation,
amortization,
and accretion 34,809 34,576 65,996 61,139
Equity-based
compensation 2,735 2,403 3,460 4,873
---------- ---------- ---------- ----------
Total
operating
expenses 70,128 63,099 131,626 123,891
Operating Income 20,876 18,656 26,789 24,034
Other (Expense)
Income
Commodity
derivative
gain (loss),
net 22,043 18,451 (32,963) 18,279
Interest
expense (3,022) (2,539) (5,637) (5,443)
Other (expense)
income, net (40) (38) (77) 126
---------- ---------- ---------- ----------
Total other
income
(expense) 18,981 15,874 (38,677) 12,962
---------- ---------- ---------- ----------
Income (Loss)
Before Income
Taxes $ 39,857 $ 34,530 $ (11,888) $ 36,996
(Provision for)
Benefit from
Income Taxes (6,776) (9,871) 2,689 (9,669)
Net Income (Loss) $ 33,081 $ 24,659 $ (9,199) $ 27,327
========== ========== ========== ==========
Weighted average
common shares --
basic 42,041,479 39,104,962 41,064,396 36,106,598
========== ========== ========== ==========
Weighted average
common shares --
diluted 42,852,652 40,967,995 41,064,396 38,043,765
========== ========== ========== ==========
Net income (loss)
per common share
-- basic $ 0.79 $ 0.62 $ (0.22) $ 0.76
========== ========== ========== ==========
Net income (loss)
per common share
-- diluted $ 0.77 $ 0.60 $ (0.22) $ 0.72
VITESSE ENERGY, INC.
Consolidated Balance Sheets
JUNE 30, DECEMBER 31,
----------- ----------------
(in thousands, except shares) 2026 2025
----------- ----------------
Assets
Current Assets
Cash $ 884 $ 1,328
Accrued revenue 52,429 30,620
Commodity derivatives 1,768 14,252
Prepaid expenses and other current
assets 3,274 5,967
--------- ---------
Total current assets 58,355 52,167
Oil and Gas Properties-Using the
successful efforts method of accounting
Proved oil and gas properties 1,607,002 1,525,890
Less accumulated DD&A and impairment (757,363) (691,963)
--------- ---------
Total oil and gas properties, net 849,639 833,927
Other Property and Equipment--Net 99 123
Commodity derivatives 8,950 184
Other noncurrent assets 6,604 6,949
--------- ---------
Total assets $ 923,647 $ 893,350
--------- ---------
Liabilities and Equity
Current Liabilities
Accounts payable $ 11,832 $ 11,803
Accrued liabilities 38,764 39,141
Commodity derivatives 4,293 --
Other current liabilities 327 307
--------- ---------
Total current liabilities 55,216 51,251
Revolving credit facility 158,500 124,500
Deferred tax liability 64,804 67,493
Asset retirement obligations 15,612 14,022
Commodity derivatives -- 46
Other noncurrent liabilities 5,592 6,721
--------- ---------
Total liabilities $ 299,724 $ 264,033
Commitments and Contingencies
Equity
Preferred stock, $0.01 par value,
5,000,000 shares authorized; 0 shares
issued at June 30, 2026 and December
31, 2025, respectively $ -- $ --
Common stock, $0.01 par value,
95,000,000 shares authorized;
42,802,648 and 40,615,302 shares
issued at June 30, 2026 and December
31, 2025, respectively 428 406
Additional paid-in capital 634,744 630,961
Accumulated deficit (11,249) (2,050)
--------- ---------
Total equity 623,923 629,317
--------- ---------
Total liabilities and equity $ 923,647 $ 893,350
--------- ---------
NON-GAAP FINANCIAL MEASURES
Vitesse defines Adjusted Net Income (Loss) as net income (loss) before (i) non-cash gains and losses on unsettled derivative instruments, (ii) non-cash equity-based compensation, (iii) provision for (Benefit from) income taxes, and (iv) certain other items such as material general and administrative costs, reduced by the estimated impact of income tax expense.
Net Debt is calculated by deducting cash on hand from the amount outstanding on our revolving credit facility as of the balance sheet or measurement date.
Adjusted EBITDA is defined as net income (loss) before expenses for interest, income taxes, depletion, depreciation, amortization and accretion, and excludes non-cash equity-based compensation and non-cash gains and losses on unsettled derivative instruments in addition to certain other items such as material transaction and general and administrative costs.
Vitesse defines Free Cash Flow as cash flow from operations, adjusting for changes in operating assets and liabilities in addition to certain other items such as material general and administrative costs, less development of oil and gas properties.
Management believes the use of these non-GAAP financial measures provides useful information to investors to gain an overall understanding of financial performance. Specifically, management believes the non-GAAP financial measures included herein provide useful information to both management and investors by excluding certain items that management believes are not indicative of Vitesse's core operating results. In addition, these non-GAAP financial measures are used by management for budgeting and forecasting as well as subsequently measuring Vitesse's performance, and management believes it is providing investors with financial measures that most closely align to its internal measurement processes. A reconciliation of each of the non-GAAP financial measures to the most directly comparable GAAP measure is included below.
RECONCILIATION OF ADJUSTED NET INCOME
------------------------------------------------------------------------------
FOR THE THREE MONTHS ENDED
(in thousands) JUNE 30, 2026
------------------------------
Net Income $ 33,081
Add:
Unrealized gain on derivative instruments (40,213)
Equity-based compensation 2,735
Provision for income taxes 6,776
--- ---------------------
Adjusted Income Before Adjusted Income Tax
Expense 2,379
Adjusted Income Tax Expense(1) (554)
Adjusted Net Income (non-GAAP) $ 1,825
=== =====================
(1) The Company determined the income tax impact on the "Adjusted Income
Before Adjusted Income Tax Expense" using the relevant statutory tax
rate of 23.3%.
RECONCILIATION OF NET DEBT AND ADJUSTED EBITDA
------------------------------------------------------------
(in thousands, except for ratio) AT JUNE 30, 2026
--------------------
Revolving Credit Facility $ 158,500
Less: Cash 884
--------------
Net Debt $ 157,616
==============
FOR THE TRAILING
FOR THE THREE TWELVE MONTHS
MONTHS ENDED ENDED
(in thousands, except for ratio) JUNE 30, 2026 JUNE 30, 2026
---------------- --------------------
Net Income (Loss) $ 33,081 $ (11,249)
Add:
Interest expense $ 3,022 $ 10,399
Provision for (Benefit from)
income taxes 6,776 (2,561)
Depletion, depreciation,
amortization, and accretion 34,809 134,269
Equity-based compensation 2,735 8,833
Unrealized (gain) loss on
derivative instruments (40,213) 9,474
Comments