Latest news with #VitesseEnergy
Globe and Mail
05-08-2025
- Business
- Globe and Mail
Vitesse (VTS) Q2 Revenue Jumps 23%
Key Points - Earnings per share (non-GAAP) and revenue (GAAP) both beat analyst estimates, with revenue boosted by a major one-time litigation settlement. - Production volume saw a significant lift from the Lucero acquisition, driving overall output up 40% compared to Q2 2024. - The dividend remains unchanged at $0.5625 per share, with balance sheet strength supporting ongoing shareholder returns. These 10 stocks could mint the next wave of millionaires › Vitesse Energy (NYSE:VTS), a company specializing in non-operated oil and gas investments, posted its second quarter earnings results on August 4, 2025. The headline news was a substantial revenue (GAAP) and earnings (non-GAAP) beat, with actual results boosted by a large, non-recurring litigation settlement. Management noted that, while underlying operations were strong, top-line growth was notably aided by a $24 million litigation settlement, with $16.9 million of that recognized as revenue. Overall, Vitesse delivered operational improvements in line with its stated strategy, but the one-off gain skews the degree of progress shown in the headline metrics. Metric Q2 2025 Q2 2025 Estimate Q2 2024 Y/Y Change EPS (Non-GAAP, Diluted) $0.18 $0.15 N/A EPS (GAAP, Diluted) $0.60 $0.33 81.8 % Revenue (GAAP) $81.8 million $71.5 million $66.6 million 23.0 % Source: Analyst estimates provided by FactSet. Management expectations based on management's guidance, as provided in Q1 2025 earnings report. Understanding Vitesse Energy's Core Business and Strategy Vitesse Energy operates as a non-operated investor in oil and natural gas wells. This means it primarily holds interests as a non-operator in wells managed by other companies. This model is central to its business, enabling Vitesse to spread risk, reduce direct operating costs, and maintain flexibility in how it allocates capital. Recent focus areas for Vitesse include acquiring additional non-operated interests in key shale plays, managing commodity price risk through hedging, and carefully controlling costs. Strategic acquisitions, such as the Lucero Energy deal completed on March 7, 2025, have been pivotal in boosting output and expanding the company's footprint. Key success factors for Vitesse are disciplined capital allocation, strong relationships with well operators, an active hedging program, and a firm commitment to shareholder returns—primarily through steady dividends. Quarterly Highlights: Growth, One-Time Gains, and Financial Discipline The quarter saw Vitesse complete the integration of the Lucero Energy assets, which directly contributed to marked operational growth. Production averaged 18,950 barrels of oil equivalent per day, a 40% increase from Q2 2024 and a 27% jump over the previous quarter (Q2 2025 vs Q1 2025). This rise was mainly driven by the Lucero acquisition, completed in March 2025, and reflects Vitesse's focus on buying producing assets rather than starting new operations itself. Revenue (GAAP) was sharply higher than both last year and analyst projections, but it is crucial to note that $16.9 million of revenue came from a one-time litigation settlement. Adjusted net income, which strips out the impact of non-cash and non-recurring items, was $18.4 million (non-GAAP), compared to $24.7 million in GAAP net income, highlighting the size of the one-off benefit. Vitesse's risk management stood out, with the company expanding its hedging program amid volatile oil prices. About 71% of 2025 oil production and nearly half (49%) of natural gas output for the remainder of the year were hedged at favorable rates, reducing exposure to price swings. As a result, the realized price for hedged oil was $64.21 per barrel, better than the $59.50 per barrel received for unhedged volumes. Gains on commodity derivatives further added $5.3 million to results, while the company also reported an unrealized derivative gain of $13.2 million. Cost management remains a focus, though some expenses did rise due to higher output and acquisition integration. Lease operating expense—a measure of the direct costs of running wells—rose 60% year over year to $19.6 million. General and administrative costs fell significantly after accounting for litigation reimbursements, but underlying core G&A spending is running at about $3.50 per barrel of oil equivalent. Despite rising costs, net debt dropped to $104 million and the net debt to adjusted EBITDA ratio (non-GAAP) improved to 0.43x, well below its target of 1.0x for Net Debt to Adjusted EBITDA ratio (non-GAAP). Liquidity was $146.0 million, providing flexibility for future acquisitions or capital returns. An important feature in the company's strategy is its dividend. Management declared a quarterly payout of $0.5625 per share, unchanged from previous quarters. This maintains an annualized dividend rate of $2.25 per share. The steady dividend is a visible sign of the company's commitment to returning capital to shareholders, supported by free cash flow (non-GAAP) of $21.9 million. Management continues to emphasize that 'our product is our dividend,' underlining both policy and marketing as a core part of the business model. Looking Ahead: Guidance and Key Watchpoints Management reaffirmed full-year guidance provided last quarter. Expected average daily production is forecast at 15,000 to 17,000 barrels of oil equivalent per day, with oil making up 64–68% of output. Capital expenditures are projected between $80 million and $110 million, a range that builds in flexibility for opportunistic acquisitions if favorable deals arise. Management did not adjust production or spending guidance after the strong quarter, preferring a cautious approach amid continued commodity price volatility and recent cost pressures. No material constraints were reported on the company's ability to maintain either its capital expenditure or dividend levels, with balance sheet strength and available liquidity providing significant headroom. Investors in Vitesse will likely monitor two areas in coming quarters: underlying operational trends, once one-time gains roll off; and how normalized costs evolve as the acquisition is further integrated. The $24 million litigation settlement received is not expected to recur, so ongoing trends in free cash flow and earnings will be of particular interest in the remainder of the year. The quarterly dividend was confirmed at $0.5625 per share. Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted. Where to invest $1,000 right now When our analyst team has a stock tip, it can pay to listen. After all, Stock Advisor's total average return is 1,019%* — a market-crushing outperformance compared to 178% for the S&P 500. They just revealed what they believe are the 10 best stocks for investors to buy right now, available when you join Stock Advisor. See the stocks » *Stock Advisor returns as of August 4, 2025 JesterAI is a Foolish AI, based on a variety of Large Language Models (LLMs) and proprietary Motley Fool systems. All articles published by JesterAI are reviewed by our editorial team, and The Motley Fool takes ultimate responsibility for the content of this article. JesterAI cannot own stocks and so it has no positions in any stocks mentioned. The Motley Fool has positions in and recommends Vitesse Energy. The Motley Fool has a disclosure policy.
Globe and Mail
30-07-2025
- Business
- Globe and Mail
Vitesse Energy Declares $0.5625 Quarterly Cash Dividend
Vitesse Energy, Inc. (NYSE: VTS) ('Vitesse') today announced that its 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. 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
Yahoo
17-07-2025
- Business
- Yahoo
Vitesse Energy Announces Second Quarter 2025 Earnings Release Date and Conference Call
GREENWOOD VILLAGE, Colo., July 17, 2025--(BUSINESS WIRE)--Vitesse Energy, Inc. (NYSE: VTS) ("Vitesse" or the "Company") today announced that it plans to issue its second quarter 2025 financial and operating results on Monday, August 4, 2025, after market close. Additionally, the Company will host a conference call on Tuesday, August 5, 2025, at 11:00 a.m. Eastern Time. Those wishing to listen to the conference call may do so via phone or the Company's webcast. Conference Call and Webcast Details: Date: August 5, 2025 Time: 11:00 a.m. Eastern Time Dial-In: 877-407-0778 International Dial-In: +1 201-689-8565 Conference ID: 13755059 Webcast: Replay Information: A replay of the conference call will be available through August 12, 2025, by dialing: Dial-In: 877-660-6853 International Dial-In: +1 201-612-7415 Conference ID: 13755059 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 View source version on Contacts INVESTOR AND MEDIA CONTACT Ben Messier, CFADirector – Investor Relations and Business Development(720) 532-8232benmessier@ Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Globe and Mail
29-06-2025
- Business
- Globe and Mail
Prediction: These 3 High-Yield Oil Companies Just Secretly Moved to Secure Their Dividends
It's no secret that the market has lost interest in oil stocks over the past year. Indeed, all three stocks covered here -- namely, Devon Energy (NYSE: DVN), Diamondback Energy (NASDAQ: FANG), and Vitesse Energy (NYSE: VTS) -- have declined over the last year. As such, they now trade with excellent dividend yields or attractive price-to-free cash flow (FCF) multiples. Moreover, I think there's a strong possibility that all three companies have recently moved to reduce risk and secure their dividends. Here's why. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More » The oil price environment in the first half Israel's attack on Iran sent the price of oil spiking higher, as investors priced in the risk of ongoing instability in a critically crucial oil-producing region. However, before going into how oil companies responded to this, it's worth putting the move into context. The spike occurred after a few months of oil trading in the low-to-mid-$60 per-barrel range. In addition, sentiment toward oil turned negative following a slower economic growth outlook (due to tariff escalations and ongoing geopolitical tensions) and OPEC's decision to increase production. WTI Crude Oil Spot Price data by YCharts There's little doubt that sentiment turned negative after events in the spring. For example, Vitesse implemented a 32% cut in its planned capital expenditures and deferred completion of a couple of wells "in response to current commodity price volatility to preserve returns and maintain financial flexibility." Diamondback cut its planned 2025 capital expenditures to $3.4 billion to $3.8 billion from a previous range of $3.8 billion to $4.2 billion. While Devon didn't make any adjustments in connection with the commodity price environment, management noted, "With the ongoing market and price volatility, Devon will continue to monitor the macro environment and has significant flexibility to adjust its activity and capital programs" on its earnings release in early May. What happened after the recent oil price spike According to numerous reports, the attack on Iran on June 13 triggered a record amount of hedging volumes through Aegis Hedging Solutions. This company assists commodity companies with their hedging strategies. While some of it was possibly oil companies looking to get exposure to potentially higher prices, the likelihood is that it was independent oil companies taking advantage of the spike to hedge their near-term production. As we've already seen, all three companies have either cut their capital spending plans or are monitoring events with the option to do so. In addition, they all utilize hedging as an integral part of their capital allocation strategy, ensuring returns to investors through dividends and share buybacks. Hedging strategies and dividends While we won't know for sure until they release their second-quarter earnings, all three are strong candidates to have taken part in the rush to hedge their oil production. Hedging is an integral part of Vitesse's strategy, which enables it to maintain its $2.25-per-share dividend (current yield: 10%). As of the end of March, Vitesse had 61% of its remaining oil production hedged at an average price of $70.75 per barrel. Look for that figure to increase, or at least an increase in 2026 production volumes hedged. Diamondback is a conservatively run oil company that uses hedging to ensure its base dividend of $4 per share (currently equivalent to a yield of 2.9%). As of May, it had downside protection in place to $55 a barrel. In other words, at any price of oil above $55, Diamondback has upside exposure to the price of oil. The strategy is to enable cash flow to return to investors through a variable dividend or share buybacks, in addition to the base dividend. Again, look for Diamondback to have increased hedging activity in the quarter. As of the first quarter, Devon Energy had more than 25% of its expected 2025 oil production hedged. With that hedging in place, management estimates it will generate $1.9 billion in FCF at a price of oil of $50 per barrel, $2.6 billion at $60 per barrel, and $3.3 billion at $70 per barrel. These figures easily cover its fixed dividend of $0.96 per share (about $650 million in cash). With increased hedging in place, the fixed dividend (currently yielding almost 3%) will be even more secure. Stocks to buy for investors looking for passive income In particular, Diamondback's and Devon's dividends look very secure, and both have the potential to increase their discretionary dividends, make more share buybacks, or pay down debt. If I'm right, and they, and Vitesse, took advantage of the oil price spike, then passive income investors can sleep even sounder in the knowledge that their dividend income is safe. Should you invest $1,000 in Devon Energy right now? Before you buy stock in Devon Energy, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Devon Energy wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $713,547!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $966,931!* Now, it's worth noting Stock Advisor 's total average return is1,062% — a market-crushing outperformance compared to177%for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of June 23, 2025
Yahoo
29-06-2025
- Business
- Yahoo
Prediction: These 3 High-Yield Oil Companies Just Secretly Moved to Secure Their Dividends
Independent oil companies rushed to increase hedges during the recent oil price spike. These three companies are strong candidates to have done so, based on their existing hedging strategies. Increased hedging, at the right price, will reduce downside exposure to the price of oil and help secure dividends. 10 stocks we like better than Devon Energy › It's no secret that the market has lost interest in oil stocks over the past year. Indeed, all three stocks covered here -- namely, Devon Energy (NYSE: DVN), Diamondback Energy (NASDAQ: FANG), and Vitesse Energy (NYSE: VTS) -- have declined over the last year. As such, they now trade with excellent dividend yields or attractive price-to-free cash flow (FCF) multiples. Moreover, I think there's a strong possibility that all three companies have recently moved to reduce risk and secure their dividends. Here's why. Israel's attack on Iran sent the price of oil spiking higher, as investors priced in the risk of ongoing instability in a critically crucial oil-producing region. However, before going into how oil companies responded to this, it's worth putting the move into context. The spike occurred after a few months of oil trading in the low-to-mid-$60 per-barrel range. In addition, sentiment toward oil turned negative following a slower economic growth outlook (due to tariff escalations and ongoing geopolitical tensions) and OPEC's decision to increase production. There's little doubt that sentiment turned negative after events in the spring. For example, Vitesse implemented a 32% cut in its planned capital expenditures and deferred completion of a couple of wells "in response to current commodity price volatility to preserve returns and maintain financial flexibility." Diamondback cut its planned 2025 capital expenditures to $3.4 billion to $3.8 billion from a previous range of $3.8 billion to $4.2 billion. While Devon didn't make any adjustments in connection with the commodity price environment, management noted, "With the ongoing market and price volatility, Devon will continue to monitor the macro environment and has significant flexibility to adjust its activity and capital programs" on its earnings release in early May. According to numerous reports, the attack on Iran on June 13 triggered a record amount of hedging volumes through Aegis Hedging Solutions. This company assists commodity companies with their hedging strategies. While some of it was possibly oil companies looking to get exposure to potentially higher prices, the likelihood is that it was independent oil companies taking advantage of the spike to hedge their near-term production. As we've already seen, all three companies have either cut their capital spending plans or are monitoring events with the option to do so. In addition, they all utilize hedging as an integral part of their capital allocation strategy, ensuring returns to investors through dividends and share buybacks. While we won't know for sure until they release their second-quarter earnings, all three are strong candidates to have taken part in the rush to hedge their oil production. Hedging is an integral part of Vitesse's strategy, which enables it to maintain its $2.25-per-share dividend (current yield: 10%). As of the end of March, Vitesse had 61% of its remaining oil production hedged at an average price of $70.75 per barrel. Look for that figure to increase, or at least an increase in 2026 production volumes hedged. Diamondback is a conservatively run oil company that uses hedging to ensure its base dividend of $4 per share (currently equivalent to a yield of 2.9%). As of May, it had downside protection in place to $55 a barrel. In other words, at any price of oil above $55, Diamondback has upside exposure to the price of oil. The strategy is to enable cash flow to return to investors through a variable dividend or share buybacks, in addition to the base dividend. Again, look for Diamondback to have increased hedging activity in the quarter. As of the first quarter, Devon Energy had more than 25% of its expected 2025 oil production hedged. With that hedging in place, management estimates it will generate $1.9 billion in FCF at a price of oil of $50 per barrel, $2.6 billion at $60 per barrel, and $3.3 billion at $70 per barrel. These figures easily cover its fixed dividend of $0.96 per share (about $650 million in cash). With increased hedging in place, the fixed dividend (currently yielding almost 3%) will be even more secure. In particular, Diamondback's and Devon's dividends look very secure, and both have the potential to increase their discretionary dividends, make more share buybacks, or pay down debt. If I'm right, and they, and Vitesse, took advantage of the oil price spike, then passive income investors can sleep even sounder in the knowledge that their dividend income is safe. Before you buy stock in Devon Energy, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Devon Energy wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $713,547!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $966,931!* Now, it's worth noting Stock Advisor's total average return is 1,062% — a market-crushing outperformance compared to 177% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 23, 2025 Lee Samaha has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Vitesse Energy. The Motley Fool has a disclosure policy. Prediction: These 3 High-Yield Oil Companies Just Secretly Moved to Secure Their Dividends was originally published by The Motley Fool Sign in to access your portfolio
