Vitesse Energy, Inc. Q4 FY2025 earnings call

• 2025: Continued to return capital to shareholders, distributing $2.25 per share during the year and having paid $6.325 per share since spinoff in Jan 23. Converted undeveloped asset base to producing wells, closed and integrated Lucero acquisition which is performing as expected, settled a multi - year lawsuit, and maintained a conservative balance sheet. - 2026: Signed definitive agreement to acquire non - operated assets in Powder River Basin of Wyoming for $35 million of test shares effective Jan 1, 2026. Board declared first quarter dividend at an annual rate of $1.75 per share. Production for 2025: Averaged 17,653 BOE per day quarterly, annual production 17,444 BOE per day. As of Dec 31, 2025, had 22 net wells in development pipeline. Total approved reserves were 47.8 million barrels of oil equivalent, up 19% from 2024, PV10 was 472.7 million, with 88% approved developed. Hedging: Approximately 64% of 2026 oil production hedged through swaps and collars, and just under half of 2026 natural gas production hedged with collars.

In 2025, production averaged 17,653 barrels of oil equivalent per day for the quarter, bringing annual production to 17,444 barrels of oil equivalent per day. Adjusted EBITDA was $179.3 million and adjusted net income was $30.4 million, while GAAP net income was $25.3 million. Free cash flow for the year was $48.9 million after development capital expenditures of $121 million. For 2026, on a two - stream basis, production is anticipated in the range of 16,000 to 17,500 DOE per day with an anticipated oil cut of 60% to 64%, and cash capex for the year is anticipated to be 50 to 80 million. The company signed a definitive agreement to acquire non - operated assets in the Powder River Basin of Wyoming for $35 million of test shares, effective January 1, 2026. These assets consist of over 6,000 net acres and 29 net undeveloped locations, producing an anticipated average of 1,400 net BOE per day in 2026.

• 2026 production anticipated in range of 16,000 - 17,500 DOE per day with oil cut of 60% - 64%. - Cash capex for 2026 anticipated to be 50 - 80 million. - Signed agreement to acquire non - operated assets in Powder River Basin of Wyoming for $35 million of test shares, effective Jan 1, 2026, with assets producing avg 1,400 net BOE per day in 2026. - Board declared first quarter dividend at annual rate of $1.75 per share, with majority of 2026 oil production hedged.

Forward - looking statements are subject to several risks and uncertainties, many of which are beyond control and can cause actual results to differ materially from current expectations. Please review earnings release and risk factors discussed in filings with the SEC.

Q: Chris Baker with Evercore asked about the updated decision tree, dividend reset, and M&A.

A: Bob Garrity and Brian Cree responded on balance sheet conservatism, dividend drop to preserve balance sheet, capital spend, and M&A discipline.

Q: Lloyd Byrne with Jefferies Group asked about Powder River Basin asset activity and hedge book.

A: Ben and Bob spoke about expected flat production for the asset with $4 - 6 million CapEx per year, and hedging goals and updates.

Q: Jeff Gramps with New Orleans Capital Markets asked about four - mile laterals' economics.

A: Bob and Brian discussed the improved economics of three and four - mile laterals in terms of IRR and ROI.

Q: Noel Parks with Tuohy Brothers asked about Powder River Basin transaction.

A: Brian and Jimmy talked about the state of play in Powder River Basin, the transaction being all - stock, and different seller motivations for transactions.