Vitesse Energy Reports Fourth Quarter and Full Year 2024 Results, Announces Dividend Increase and 2025 Guidance
Vitesse Energy, Inc.has announced its financial and operational results for the fourth quarter and full year 2024. The company has also declared an increase in its quarterly cash dividend and provided production and capital expenditures guidance for 2025. These results reflect Vitesse’s strategic focus on maximizing shareholder value, optimizing operational efficiency, and expanding its asset base through disciplined capital allocation and acquisitions.
Key Highlights:
- Dividend Increase: Declared a quarterly cash dividend of $0.5625 per common share, a 7% increase from the previous quarter, to be paid on March 31, 2025.
- Strategic Acquisition: Successfully closed the acquisition of Lucero Energy Corp. (“Lucero”) on March 7, 2025, further strengthening its position in the energy sector.
- Strong Financial Performance: Reported full-year 2024 net income of $21.1 million and Adjusted Net Income of $35.7 million.
- Robust Cash Flow: Achieved Adjusted EBITDA of $156.8 million for 2024, with total cash flow from operations reaching $155.0 million and Free Cash Flow totaling $51.2 million.
- Steady Production Levels: Full-year production averaged 13,003 barrels of oil equivalent (Boe) per day, with 69% oil content.
- Disciplined Capital Spending: Invested $115.2 million in cash development capital expenditures and acquisitions throughout 2024.
- Strong Balance Sheet: Maintained a total debt of $117.0 million with a Net Debt to Adjusted EBITDA ratio of 0.73, ensuring financial stability and flexibility.
Management Comments:
Bob Gerrity, Vitesse’s Chairman and CEO, stated, “Our assets continued to deliver solid performance throughout 2024, allowing us to return $2.075 per share in dividends to shareholders. The accretive Lucero acquisition is expected to generate significant financial benefits, reinforcing our commitment to long-term growth and shareholder value. Additionally, our proprietary data analytics platform, Luminis, continues to enhance our acquisition evaluation process, positioning us for further strategic expansion in 2025.”
Stockholder Returns and Dividend Policy:
- Increased Dividend: Vitesse’s Board of Directors declared a first-quarter 2025 dividend of $0.5625 per share, payable on March 31, 2025, to stockholders of record as of March 21, 2025.
- Fourth-Quarter 2024 Dividend: A dividend of $0.525 per share was paid on December 31, 2024, to shareholders of record as of December 16, 2024.
- Annualized Dividend Growth: With the increase in the quarterly dividend, the annualized dividend rate now stands at $2.25 per share, reflecting the company’s commitment to shareholder value.
Financial and Operating Results:
Full-Year 2024 Financial Performance:
- Revenue Growth: Total revenue, including hedge effects, reached $247.1 million.
- Profitable Operations: Reported net income of $21.1 million and Adjusted Net Income of $35.7 million.
- Adjusted EBITDA: Achieved $156.8 million in Adjusted EBITDA, underscoring strong cash generation capabilities.
- Production Metrics: Averaged 13,003 Boe per day, with oil comprising 69% of total production and 95% of total revenue.
- Pricing & Costs:
- Realized oil price before hedging: $69.94 per barrel (Bbl).
- Realized natural gas price: $1.34 per thousand cubic feet (Mcf).
- Lease operating expenses: $47.6 million, or $10.00 per Boe.
- General and administrative (G&A) expenses: $23.5 million, or $4.94 per Boe (excluding Lucero acquisition-related costs).
Fourth Quarter 2024 Performance:
- Quarterly Net Results: Reported a net loss of $5.1 million; however, Adjusted Net Income was $6.1 million.
- Steady Production: Averaged 12,945 Boe per day, with 68% oil content.
- Quarterly Adjusted EBITDA: Totaled $37.0 million.
- Pricing & Costs:
- Realized oil price before hedging: $64.78 per Bbl.
- Realized natural gas price: $1.50 per Mcf.
- Lease operating expenses: $11.9 million, or $10.00 per Boe.
- G&A expenses: $8.2 million, or $6.87 per Boe, including $2.2 million in Lucero acquisition costs.
Reserves and Asset Base:
- Total Proved Reserves: 40.3 million Boe as of December 31, 2024, with 68% proved developed.
- Breakdown of Reserves:
- Proved developed reserves: 27.2 million Boe (4% decrease year-over-year).
- Proved undeveloped reserves: 13.0 million Boe (8% increase year-over-year).
- Valuation:
- Standardized Measure of reserves: $506.3 million.
- PV-10 valuation: $586.6 million.
- Decline in Standardized Measure and PV-10 attributed to lower realized oil and gas prices per SEC reporting guidelines.
Liquidity and Capital Expenditures:
- Strong Financial Position: As of December 31, 2024, Vitesse had $3.0 million in cash and $117.0 million in outstanding borrowings.
- Total Liquidity: $121.0 million, including $118.0 million in available credit under its revolving facility.
- Expanded Borrowing Base: Following the Lucero acquisition, Vitesse increased its borrowing base to $315.0 million, with commitments raised to $250.0 million.
- Capital Investments:
- 2024 Development Expenditures: $94.1 million.
- Acquisitions: $21.1 million.
- Fourth Quarter Development Expenditures: $27.8 million.
- Fourth Quarter Acquisitions: $0.4 million.
Operational Update and 2025 Outlook:
- Active Development: As of December 31, 2024, Vitesse had interests in 298 gross (9.7 net) wells in drilling or completion phases and 405 gross (8.0 net) permitted locations.
- Lucero Acquisition Impact: The acquisition added 2 gross (1.9 net) wells in drilling or completion and 6 gross (5.3 net) permitted locations.
- 2025 Growth Strategy: Vitesse aims to optimize production, invest in high-return development opportunities, and expand through strategic acquisitions.
- Financial Discipline: The company remains focused on maintaining a strong balance sheet, enhancing cash flow generation, and increasing shareholder returns.
