Vitesse Energy Announces Third Quarter 2023 Results and Declares $0.50 Quarterly Cash Dividend

Vitesse Energy, Inc. (NYSE: VTS) (“we,” “our,” “Vitesse,” or the “Company”) today announced the Company’s third quarter 2023 financial and operating results and declared a quarterly cash dividend.


  • Declared a quarterly cash dividend of $0.50 per common share to be paid on December 29, 2023
  • As previously announced, acquired additional oil and gas interests that will result in approximately $50.0 million of acquisition and related development capital expenditures primarily before year-end 2023
  • Net loss of $1.5 million and Adjusted Net Income(1) of $11.1 million, with the difference primarily attributable to the non-cash unrealized mark-to-market loss from the Company’s hedging portfolio
  • Adjusted EBITDA(1) of $34.7 million
  • Cash flow from operations of $32.1 million and Free Cash Flow(1) of $17.2 million
  • Production of 11,009 barrels of oil equivalent (“Boe”) per day (67% oil)
  • Total cash development capital expenditures and acquisition costs of $34.1 million
  • Total debt of $56.0 million and Net Debt to Adjusted EBITDA ratio(1) of 0.39

(1)Non-GAAP financial measure; see reconciliation schedules at the end of this release


Bob Gerrity, Vitesse’s Chairman and Chief Executive Officer commented, “Vitesse continues to execute on our core business plan. We support our dividend and selectively grow production through the conversion of our undeveloped asset base and the acquisition of highly economic near-term development opportunities, while maintaining a conservative balance sheet. We continue to add hedges at prices deemed attractive to protect the dividend and enhance returns on our capital spending.”


Vitesse’s Board of Directors declared its fourth quarter cash dividend for Vitesse’s common stock of $0.50 per share for stockholders of record as of December 15, 2023, which will be paid on December 29, 2023.

On September 29, 2023, the Company paid its third quarter cash dividend of $0.50 per share to common stockholders of record as of September 15, 2023.


Third quarter net loss was $1.5 million and Adjusted Net Income was $11.1 million. Adjusted EBITDA was $34.7 million. See “Non-GAAP Financial Measures” below.

Oil and gas production for the third quarter of 2023 averaged 11,009 Boe per day. For the nine months ended September 30, 2023, oil and gas production averaged 11,295 Boe per day. Oil represented 67% of production and 97% of total revenue in the third quarter of 2023. Total revenue, including the effects of our realized hedges, for the third quarter of 2023 was $53.6 million.

Vitesse’s average realized oil and natural gas prices before hedging were $78.45 per Bbl and $0.88 per Mcf, respectively, during the third quarter of 2023. Vitesse hedges a portion of its oil production to reduce the impact of price volatility on its financial results, support its dividend, and increase returns on its capital spending. In the third quarter, the Company had hedges covering 52% of oil production and its realized oil price with hedging was $76.35 per Bbl.

Lease operating expenses in the third quarter of 2023 were $10.0 million, or $9.86 per Boe, an increase of 9% on a per unit basis compared to the second quarter of 2023. The higher lease operating expense is primarily related to increased workover operations.

General and administrative (“G&A”) expenses for the third quarter of 2023 totaled $3.8 million, or $3.77 per Boe, a decrease of 13% on a per unit basis compared to the second quarter of 2023. The decrease in G&A expense was primarily due to the absence this quarter of costs related to the spin-off from Jefferies Financial Group Inc. on January 13, 2023 (the “Spin-Off”).


As of September 30, 2023, Vitesse had $1.7 million in cash and $56.0 million of borrowings outstanding on its revolving credit facility. Vitesse had total liquidity of $115.7 million as of September 30, 2023, consisting of cash and $114.0 million of committed borrowing availability under its revolving credit facility.

In November 2023, the Company expects to complete its semi-annual redetermination of its revolving credit facility. The borrowing base is anticipated to remain at $245 million with the elected commitment increasing to $180 million from $170 million.

During the quarter, Vitesse spent $16.5 million on development capital expenditures and $17.6 million on acquisitions of oil and gas properties.


The Company owned a working interest in 263 gross (7.7 net) wells that were either drilling or in the completion phase, and another 389 gross (10.0 net) locations that had been permitted for development at the end of the quarter. In the third quarter, Vitesse agreed to participate in 119 gross (4.0 net) future wells through approved or acquired authorization for expenditures (“AFEs”).


Vitesse reaffirms its previously revised 2023 annual guidance and preliminary 2024 outlook, which are set forth below.

 Revised 2023 GuidancePreliminary 2024 Outlook
Annual Production (Boe per day)11,500 – 11,70012,500 – 13,500
Oil as a Percentage of Annual Production66% – 68%67% – 71%
Total Capital Expenditures ($ in millions)$110 – $130$90 – $110


Vitesse Energy, LLC is the “predecessor” of Vitesse for financial reporting purposes. As a result, unless otherwise indicated, the 2022 financial and operating data presented in this release are those of Vitesse Energy, LLC and do not include the financial and operating data of Vitesse Oil, LLC, which was acquired as part of the Spin-Off. The following table sets forth selected financial and operating data for the periods indicated.

($ in thousands, except production and per unit data) 2023   2022  AMOUNT PERCENT
Financial and Operating Results:       
Oil$53,293  $62,387  $(9,094) (15%)
Natural gas 1,761   14,711   (12,950) (88%)
Total revenue$55,054  $77,098  $(22,044) (29%)
Operating Expenses       
Lease operating expense$9,985  $8,323  $1,662  20%
Production taxes 5,152   6,636   (1,484) (22%)
General and administrative 3,820   5,745   (1,925) (34%)
Depletion, depreciation, amortization, and accretion 19,013   17,777   1,236  7%
Equity-based compensation 1,146   (17,329)  18,475  107%
Interest Expense$1,166  $1,250  $(84) (7%)
Commodity Derivative Gain (Loss), Net$(17,083) $31,037  $(48,120) (155%)
Income Tax Benefit$(796) $  $(796) 100%
Production Data:       
Oil (MBbls) 679   697   (18) (3%)
Natural gas (MMcf) 2,001   1,981   20  1%
Combined volumes (MBoe) 1,013   1,027   (14) (1%)
Daily combined volumes (Boe/d) 11,009   11,166   (157) (1%)
Average Realized Prices before Hedging:       
Oil (per Bbl)$78.45  $89.51  $(11.06) (12%)
Natural gas (per Mcf) 0.88   7.42   (6.54) (88%)
Combined (per Boe) 54.36   75.05   (20.69) (28%)
Average Realized Prices with Hedging:       
Oil (per Bbl)$76.35  $73.54  $2.81  4%
Natural gas (per Mcf) 0.88   7.42   (6.54) (88%)
Combined (per Boe) 52.95   64.22   (11.27) (18%)
Average Costs (per Boe):       
Lease operating$9.86  $8.10  $1.76  22%
Production taxes 5.09   6.46   (1.37) (21%)
General and administrative 3.77   5.59   (1.82) (33%)
Depletion, depreciation, amortization, and accretion 18.77   17.31   1.46  8%


Vitesse hedges a portion of its expected annual oil production volumes to increase the predictability and certainty of its cash flow and to help maintain a strong financial position. Vitesse does not currently have hedges in place on its expected natural gas production volumes. The following table summarizes Vitesse’s open oil commodity derivative swap contracts scheduled to settle after September 30, 2023, including those entered into in October 2023.

Swaps-Crude Oil   
Q4399,998 $79.11
Q1402,498 $79.03
Q2382,500 $79.13
Q3327,500 $78.50
Q4262,500 $79.12
Q190,000 $75.30
Q290,000 $75.30

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:

(in thousands) 2023   2022 
Realized (loss) on commodity derivatives$(1,424) $(11,128)
Unrealized (loss) gain on commodity derivatives (15,659)  42,165 
Total commodity derivative gain (loss)$(17,083) $31,037 


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 Thursday, November 2, 2023 at 9:00 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,, 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:


Dial-In Number: 877-407-0778 (US/Canada) and 201-689-8565 (International)

Conference ID: 13742191 – Vitesse Energy Third Quarter 2023 Earnings Call

Replay Dial-In Number: 877-660-6853 (US/Canada) 201-612-7415 (International)

Replay Access Code: 13742191 – Replay will be available through November 9, 2023


Vitesse management will be participating in the following upcoming investor events:

  • Stephens Investment Conference – Nashville – November 14, 2023.
  • Southwest IDEAS Conference – Dallas – November 16, 2023.
  • Capital One Securities Energy Conference – Houston – December 4-5, 2023.

Any investor presentations to be used for such events will be posted prior to the events on Vitesse’s website,, in the “Investor Relations” section of the site, under “News & Events,” sub-tab “Presentations.”


Vitesse Energy, Inc. is focused on returning capital to stockholders through owning financial interests as a non-operator in oil and gas wells drilled by leading US operators.

More information about Vitesse can be found at


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 property acquisitions, 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 and potential shutdown of the Dakota Access Pipeline; the COVID-19 pandemic and its related economic repercussions and effect on the oil and natural gas industry; the impact of general economic or industry conditions, nationally and/or in the communities in which Vitesse conducts business, including central bank policy actions, bank failures and associated liquidity risks; changes in the interest rate environment, legislation or regulatory requirements; 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 the armed conflict in Israel and Ukraine) 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.

Condensed Consolidated Statements of Operations (Unaudited)
(In thousands, except share and unit data) 2023   2022   2023   2022 
Oil$53,293  $62,387  $152,512  $179,508 
Natural gas 1,761   14,711   12,090   41,366 
Total revenue 55,054   77,098   164,602   220,874 
Operating Expenses       
Lease operating expense 9,985   8,323   28,384   22,483 
Production taxes 5,152   6,636   15,325   18,612 
General and administrative 3,820   5,745   19,143   12,252 
Depletion, depreciation, amortization, and accretion 19,013   17,777   56,233   46,953 
Equity-based compensation 1,146   (17,329)  30,545   4,911 
Total operating expenses 39,116   21,152   149,630   105,211 
Operating Income 15,938   55,946   14,972   115,663 
Other (Expense) Income       
Commodity derivative gain (loss), net (17,083)  31,037   (4,885)  (17,338)
Interest expense (1,166)  (1,250)  (3,461)  (3,003)
Other income 49   6   99   12 
Total other (expense) income (18,200)  29,793   (8,247)  (20,329)
Income (Loss) Before Income Taxes$(2,262) $85,739  $6,725  $95,334 
(Provision for) Benefit from Income Taxes 796      (46,386)   
Net Income (Loss)$(1,466) $85,739  $(39,661) $95,334 
Net income attributable to Predecessor common unit holders    85,739   1,832   95,334 
Net Income (Loss) Attributable to Vitesse Energy, Inc.$(1,466) $  $(41,493) $ 
Weighted average common shares / Predecessor common unit outstanding – basic 29,659,763   438,625,000   29,660,924   438,625,000 
Weighted average common shares / Predecessor common unit outstanding – diluted 29,659,763   438,625,000   29,660,924   438,625,000 
Net income (loss) per common share / Predecessor common unit – basic$(0.05) $0.19  $(1.40) $0.21 
Net income (loss) per common share / Predecessor common unit – diluted$(0.05) $0.19  $(1.40) $0.21 
Net loss per Predecessor non-founder MIUs classified as temporary equity–basic and diluted  $    $ 
Condensed Consolidated Balance Sheets (Unaudited)
(in thousands, except shares and units) 2023   2022 
Current Assets   
Cash$1,747  $10,007 
Revenue receivable 38,198   41,393 
Commodity derivatives    2,112 
Prepaid expenses and other current assets 1,550   841 
Total current assets 41,495   54,353 
Oil and Gas Properties-Using the successful efforts method of accounting   
Proved oil and gas properties 1,135,849   985,751 
Less accumulated DD&A and impairment (438,714)  (382,974)
Total oil and gas properties 697,135   602,777 
Other Property and Equipment—Net 166   114 
Other Assets   
Commodity derivatives 325   1,155 
Other noncurrent assets 1,845   2,085 
Total other assets 2,170   3,240 
Total assets$740,966  $660,484 
Liabilities, Redeemable Units and Equity   
Current Liabilities   
Accounts payable$24,466  $7,207 
Accrued liabilities 52,656   25,849 
Commodity derivatives 6,296   3,439 
Other current liabilities    184 
Total current liabilities 83,418   36,679 
Long-term Liabilities   
Revolving credit facility 56,000   48,000 
Deferred tax liability 48,456    
Asset retirement obligations 7,633   6,823 
Other noncurrent liabilities 4,252    
Total liabilities$199,759  $91,502 
Commitments and Contingencies   
Predecessor Redeemable Management Incentive Units    4,559 
Preferred stock, $0.01 par value, 5,000,000 shares authorized; 0 shares issued at September 30, 2023     
Common stock, $0.01 par value, 95,000,000 shares authorized; 32,812,025 shares issued at September 30, 2023 328    
Additional paid-in capital 582,372    
Accumulated deficit (41,493)   
Predecessor members’ equity-common units-450,000,000 units outstanding    564,423 
Total equity 541,207   564,423 
Total liabilities, redeemable units and equity$740,966  $660,484 


Vitesse defines Adjusted Net Income as net income before (i) non-cash gains and losses on unsettled derivative instruments, and (ii) non-cash unit-based compensation; 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 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.

Net Debt to Adjusted EBITDA ratio is defined as Net Debt divided by annualized third quarter 2023 EBITDA.

Vitesse defines Free Cash Flow as cash flow from operations, adding back changes in operating assets and liabilities, 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.

(in thousands) 2023 
Income (Loss) Before Income Taxes$(2,262)
Unrealized loss (gain) on derivative instruments 15,659 
Equity-based compensation 1,146 
Adjusted Income Before Adjusted Income Tax Expense 14,543 
Adjusted Income Tax Expense(1) (3,403)
Adjusted Net Income (non-GAAP)$11,140 
(1)The Company determined the income tax impact on the “Adjusted Income Before Adjusted Income Tax Expense” using the relevant statutory tax rate of 23.4%.
(in thousands except for ratio) 2023 
Revolving credit facility$56,000 
Cash 1,747 
Net Debt$54,253 
Net Income (Loss)$(1,466)
Interest expense 1,166 
Benefit from income taxes (796)
Depletion, depreciation, amortization, and accretion 19,013 
Equity-based compensation 1,146 
Unrealized loss (gain) on commodity derivatives 15,659 
Adjusted EBITDA$34,722 
Annualized Adjusted EBITDA 138,888 
Net Debt to Adjusted EBITDA ratio 0.39 
(in thousands) 2023 
Net cash provided by operating activities$32,060 
Add back: changes in operating assets and liabilities 1,658 
Cash flow from operations before changes in operating assets and liabilities 33,718 
Less: development of oil and gas properties (16,477)
Free Cash Flow$17,241 

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