Vitesse Energy, Inc. Q1 FY2026 earnings call

Jamie Bernard began tenure as CEO and President. Vitesse's primary objective of returning capital to stockholders remains, with board declaring second quarter cash dividend at annualized rate of $1.75 per share. Fundamental strategy is disciplined capital allocation towards high rate of return opportunities, including organic development, purchases of near-term development opportunities, and accretive acquisitions. Brian Cree provided details on production, development pipeline, rig activity, and hedging. Jimmy Henderson highlighted financial results, balance sheet, and that previously issued guidance remains unchanged.

Production for the first quarter averaged 15,962 barrels of oil equivalent per day, up 7% year-over-year. Oil production contributed 89% of total oil and natural gas revenue in the quarter. Adjusted EBITDA was $33.4 million, adjusted net loss was $300,000, gap net loss was $42.3 million driven by a $48.2 million unrealized hedge loss. Free cash flow for the quarter was $12 million after $18.7 million of development capital expenditures net of divestitures. The Powder River Basin acquisition closed in early April is anticipated to add an average of 1,400 net barrels of oil equivalent per day over the remainder of 2026. As of March 31st, 2026, had 19.9 net wells in development pipeline, including 6.2 net wells drilling or completing and 13.7 net locations permitted. 72% of year-to-date AFEs were for three- and four-mile development, and 67% of 28 rigs drilling in the Williston were on Vitesse acreage. For remainder of 2026, approximately 73% of oil production hedged with weighted average floor of $64.68 and ceiling of $67.20 per barrel, and approximately 50% of natural gas production hedged with weighted average floor of $3.73 and ceiling of $4.91 per MMBTU.

Previously issued guidance incorporates the Powder River Basin acquisition. Management is optimistic that development pace could increase in current environment, but operators remain diligent. Dividend is set at $1.75 annualized rate, and strategy of disciplined capital allocation towards high rate of return opportunities continues, including considering acquisition opportunities and development of acreage.

Forward-looking statements are subject to several risks and uncertainties beyond control, which can cause actual results to differ materially from current expectations. Risks and uncertainties are detailed in earnings release and filings with the SEC.

Question from Jeff Cramp: Asked about Jamie's vision for Vitesse and market share/rigs in Bakken. Answer from Brian: Development in Willow Center focusing on three- and four-mile areas where Vitesse has larger acreage. Question from Chris Baker: Asked about AFEs, service costs, and hedge program. Answer from Brian: Development activity focused on extended laterals, drilling costs declining, operators disciplined on rig count; Answer from Jimmy: Dividend set at comfortable level, will evaluate hedging and capital allocation. Question from Paul Fratt: Asked about Jamie's M&A experience and near-term impact. Answer from Jamie: M&A experience in various basins, will continue to look at opportunities fitting strategy. Question from Noel Parks: Asked about work over rigs, refracts, and types of sellers. Answer from Ben: 80% of transactions from PE-backed portfolio companies, evaluating all types. Question from Jeff Grant: Asked about pricing dynamics and realizations. Answer from Jimmy: Seeing better cash prices, positive differentials expected in near term