Vitesse Energy Reports First Quarter 2025 Financial Results and Revises Full-Year Guidance
Vitesse Energy, Inc. (NYSE: VTS), a leading non-operating oil and gas company, has released its financial and operating results for the first quarter of 2025. The company also announced a revised outlook for the remainder of the year. These updates reflect both Vitesse’s solid operational performance and its response to continued commodity price volatility and macroeconomic uncertainty.
First Quarter 2025 Highlights
In the first three months of 2025, Vitesse Energy demonstrated strong operational execution and delivered solid financial outcomes. Among the key milestones, the company:
- Declared a quarterly cash dividend of $0.5625 per share on common stock, scheduled for payment on June 30, 2025.
- Completed the previously announced acquisition of Lucero Energy Corp. on March 7, 2025, a move that Vitesse believes will be accretive to earnings and cash flow.
- Reported net income of $2.7 million, and Adjusted Net Income of $8.0 million.
- Achieved Adjusted EBITDA of $39.9 million, showcasing robust cash generation despite a turbulent pricing environment.
- Generated cash flow from operations of $17.5 million, and Free Cash Flow of $9.1 million.
- Averaged production of 14,971 barrels of oil equivalent (Boe) per day, with 68% oil content—a 16% increase compared to the fourth quarter of 2024.
- Invested $30.4 million in capital development and acquisitions.
- Maintained low leverage with $117.0 million in total debt and a Net Debt to Adjusted EBITDA ratio of 0.71.
(All non-GAAP figures are reconciled in the financial schedules attached to the original press release.)
Leadership Commentary: Strategic Focus and Shareholder Confidence
Vitesse Energy’s Chairman and Chief Executive Officer, Bob Gerrity, offered insight into the company’s performance and outlook:
“In the first quarter, we delivered a 7% dividend increase and successfully closed the acquisition of Lucero,” said Gerrity. “Our low leverage, disciplined hedging strategy, and foundational asset base provide us the flexibility to navigate market volatility. We believe we are well-positioned to succeed in this environment, and as a testament to our durability, the Board of Directors has maintained our dividend at an annual rate of $2.25 per share.”
This confidence in the company’s resilience is rooted in its disciplined approach to capital allocation, hedging, and managing debt—all aimed at preserving shareholder value over the long term.
Commitment to Shareholder Returns
Continuing its strategy of returning capital to shareholders, Vitesse’s Board declared its second quarter 2025 dividend of $0.5625 per share. The dividend is payable June 30, 2025, to stockholders of record on June 16, 2025.
Additionally, the company paid its first quarter dividend on March 31, 2025, for shareholders of record as of March 21, 2025.
During the first quarter, Vitesse also retired 345,255 shares of common stock, valued at approximately $9.2 million, to cover tax withholding obligations related to the vesting of restricted stock units. This action underscores Vitesse’s ongoing commitment to returning value to shareholders while managing equity dilution.
Financial and Operational Performance
For the first quarter of 2025, Vitesse recorded a net income of $2.7 million and Adjusted Net Income of $8.0 million, with Adjusted EBITDA reaching $39.9 million.
Oil and gas production averaged 14,971 Boe/day, aligning with the upper end of guidance and representing a notable 16% increase over the previous quarter. Of this volume, 68% was oil, accounting for 89% of total oil and gas revenue. Total revenue, including the effect of hedging, reached $66.9 million.
Commodity pricing was as follows:
- Realized oil prices (before hedging): $64.18 per barrel
- Realized gas prices (before hedging): $2.81 per Mcf
- Hedging covered 65% of oil production, boosting the realized oil price to $64.93 per barrel.
Operating expenses included:
- Lease operating costs: $13.9 million, or $10.28 per Boe
- General & Administrative (G&A): $12.1 million, or $9.00 per Boe
G&A costs were elevated due to:
- $4.6 million in one-time Lucero acquisition costs
- $1.6 million in legal fees related to litigation where Vitesse is the plaintiff
Adjusted to remove these one-time impacts, G&A was $4.38 per Boe, reflecting disciplined overhead management.
Liquidity and Capital Allocation
As of March 31, 2025, Vitesse held $4.5 million in cash and had $117.0 million in outstanding borrowings under its revolving credit facility. With $133.0 million in borrowing availability, total liquidity stood at $137.5 million.
Capital spending during the quarter included:
- $28.9 million in development capital
- $1.5 million in oil and gas property acquisitions
This disciplined capital allocation approach underscores the company’s emphasis on cash flow optimization over production growth.
Operations Update: A Strong Position for Future Growth
By the end of Q1 2025, Vitesse owned interests in:
- 290 gross (9.5 net) wells either drilling or in the completion phase
- 412 gross (15.5 net) permitted locations for future development
This development inventory provides a substantial opportunity for sustained production and value creation in future periods, especially as market conditions stabilize.
Revised 2025 Guidance: Discipline in a Volatile Market
In response to current market uncertainty and commodity price volatility, Vitesse has adjusted its full-year 2025 guidance. The key revisions are aimed at maintaining capital efficiency, financial flexibility, and long-term value creation.
Major updates include:
- A 32% reduction in capital expenditures (based on midpoint) compared to prior guidance
- Only a 9% decrease in projected production, despite significantly lower spending
- A 23% increase in production over full-year 2024, even under the revised plan
Vitesse has chosen to defer the completion of two gross (1.9 net) drilled but uncompleted (DUC) wells to conserve capital in a weak pricing environment. These wells are expected to deliver stronger returns once commodity prices improve.
In another cost-saving measure, the company opted not to finalize roughly $20 million in planned acquisitions originally slated for early April 2025.
To account for external volatility, Vitesse also broadened its guidance range, reflecting:
- Pricing uncertainty
- Operator activity variations
- Timing-related variables across its asset base
The company emphasized that it remains committed to adapting to evolving market conditions, preserving shareholder value, and avoiding excessive financial risk.
Flexibility and Resilience at the Core
Vitesse Energy’s ability to generate meaningful free cash flow, maintain disciplined capital investment, and uphold a consistent dividend through market fluctuations illustrates its resilient business model. With a conservative balance sheet, stable asset base, and thoughtful capital allocation strategy, the company remains well-positioned to pursue long-term value for its shareholders.
As 2025 progresses, Vitesse plans to continue evaluating opportunities for high-return capital deployment, all while navigating the market with prudence and strategic foresight.
