Vitesse Energy, Inc. Q3 FY2025 earnings call

• Disciplined capital allocation: Participated in 3- and 4-mile laterals drilled by operating partners and successfully completed 2 Vitesse operated wells.
• Production: Q3 average production was 18,163 Boe per day; year-to-date was 17,373 Boe per day. Over 2 million net lateral feet of development remaining, equivalent to over 200 net 2-mile equivalent wells.
• Hedging: 60% of 2025 oil production hedged at nearly $70 per barrel; just under half of 2025 natural gas production hedged with collars, and 2026 production also hedged.
• Dividend: Board declared fourth quarter dividend at an annual rate of $2.25 per share.
• Drilling/completion: Wells from Lucero acquisition exceeded production expectations and were completed ~$2 million or 15% under budget.

In the third quarter, production averaged 18,163 barrels of oil equivalent per day (Boe per day). Year-to-date production was 17,373 Boe per day. Adjusted EBITDA for the quarter was $41.6 million, adjusted net income was $3.8 million, while GAAP net income was a loss of $1.3 million. Cash CapEx including acquisition costs for the quarter was $31.8 million. For 2025, production is estimated to be in the range of 17,000 to 17,500 Boe per day with an oil cut of 65% to 67%, and cash CapEx is anticipated to be between $110 million and $125 million. Revenue contribution details weren't explicitly broken down by product segment in a way that could be simply stated here, but key financials around production, earnings, and CapEx are as outlined.

• Increased 2025 production guidance to 17,000-17,500 Boe per day with a 65%-67% oil cut.
• Revised cash CapEx guidance to $110 million to $125 million for 2025.
• Continues to focus on disciplined capital allocation and being opportunistic during market disruptions based on available opportunities.

• Oil industry cyclicality: Can cause actual results to differ materially from expectations.
• Market uncertainties: Including credit environment dynamics and M&A market freneticism which can impact acquisition and operational plans.

Q: Curious about the proportion of 3- and 4-mile laterals in the program.

A: Ben Messier said approximately over the course of the year, about half of AFEs received have been extended laterals, with no 1-mile laterals seen this year.

Q: On acquisition side, activity and outlook.

A: Brian Cree said they're always looking at near-term development opportunities, been competitive, continued disciplined rate of return approach, closed a couple deals in Q3, and will continue looking at deals but remain disciplined.

Q: Follow-up on CapEx and acquisitions in Q4.

A: Ben Messier said they budget conservatively for acquisitions, have a few hundred grand budgeted for Q4 with wiggle room for attractive acquisitions.

Q: On operated inventory and 2026 line of sight.

A: Brian Cree said they have ~15 net undeveloped locations from Lucero acquisition, continue to evaluate, and it depends on oil prices and partners' CapEx.

Q: On Q3 cost structure run rate.

A: Jimmy Henderson said Q3 is a better indicator of run rate, LOE slightly higher but workovers ending, and Brian Cree added on gas prices expecting improvement in winter months.

Q: On credit environment and 2026 budgets.

A: Jimmy Henderson said oil prices and consolidation are more impactful than credit environment on operators' 2026 budgets.

Q: On gas opportunities.

A: Bob Gerrity said they're looking a lot at gas assets, ~1/3 of $1 billion of deals in deal shop are gas-oriented, but M&A market is frenetic and can't handicap next deal.