Vitesse Energy, Inc. Q2 FY2025 earnings call

• The second quarter demonstrated resilience of assets and discipline of the team, with full integration of Lucero assets showing accretive impact on financials and balance sheet, and better G&A synergies than underwrote.
• Successfully settled a multiyear lawsuit with a key operating partner, resulting in one-time cash payment and long-term gas agreements.
• Selectively invested capital while generating excess free cash flow to reduce debt, allocating capital based on returns-driven hierarchy.
• Added additional hedges in the quarter to take advantage of increased oil prices, and Board declared third quarter dividend at an annual rate of $2.25 per share.
• Q2 production was 18,950 Boe/d with a 65% oil cut; cash CapEx and acquisition costs in Q2 were $35.7 million, funded by operating cash flows with excess used to pay down debt.

In the second quarter of 2025, production averaged just under 19,000 barrels of oil equivalent per day (Boe/d), a 27% increase from the first quarter. Year-to-date production was just under 17,000 Boe/d. For the quarter, adjusted EBITDA was $61.1 million, adjusted net income was $18.4 million, and GAAP net income was $24.7 million. Cash CapEx and acquisition costs for the quarter were $35.7 million, almost entirely organic. Total debt was decreased to $106 million during the quarter, resulting in a net debt to adjusted annualized EBITDA of 0.4x. For the full year 2025, guidance remains unchanged with production anticipated in the range of 15,000 to 17,000 Boe/d and an oil cut of 64% to 68%. Cash CapEx for the year is anticipated to be $80 million to $110 million, weighted towards the first half.

• 2025 annual guidance remains unchanged: production expected 15,000-17,000 Boe/d, oil cut 64%-68%, cash CapEx $80M-$110M weighted towards first half.
• Q2 production was strong with some wells coming online sooner than expected, but full year guidance maintained with second half expected in line with earlier estimates.

• Forward-looking statements subject to risks and uncertainties beyond control that could cause actual results to differ materially from current expectations. Please review earnings release and risk factors in SEC filings for additional information.

Q: Jeff Grampp asked about production expectations for the remainder of the year and acquisition pipeline.

A: Brian Cree said second quarter numbers were strong with some wells coming online sooner, encouraged by AFE activity with oil prices in mid-$60s; Jimmy Henderson said on organic side saw robust activity but nothing met hurdle rates yet, continue to look at bigger deals with strenuous requirements.

Q: Poe Fratt asked about chances of hitting low end of guidance, cost structure.

A: Jimmy Henderson said low end of guidance has minimal chance, Brian Cree added need to see significant drop in oil price and operator production curtailment for low end; Brian Cree talked about LOE being up due to integrating Lucero operations, Jimmy Henderson said G&A run rate affected by legal costs and Lucero acquisition but expected to decline as scaled up.

Q: Noel Parks asked about Hess transaction impact on Bakken and Bakken inventory opportunities.

A: Bob Gerrity said don't know specific Chevron plans but encouraged by Chevron's performance with Noble, optimistic about Hess asset; Brian Cree talked about improving capital efficiency in Bakken with 3-mile laterals, 4-mile laterals, refracs, etc.