Vitesse Energy, Inc.

What they do

Vitesse acquires working and mineral interests in oil and natural gas properties, with its core focus in the Bakken and Three Forks formations of the Williston Basin in North Dakota and Montana, and additional interests in the Denver-Julesburg Basin in Colorado and Wyoming and the Powder River Basin in Wyoming. The company does not operate the wells; it participates in wells drilled by other operators. As of June 30, 2026, it held working interests in 6,579 gross (237.4 net) productive wells, 278 gross (6.4 net) wells being drilled or completed, and 320 gross (13.0 net) permitted locations, plus royalty-only interests in 1,289 gross (3.1 net) productive wells.

Revenue drivers

• Oil production — Oil is the dominant revenue source, representing 95% of total oil and natural gas revenue in Q2 2026 and 60% of production volumes; realized oil price before hedging was $91.98 per Bbl.
• Natural gas production — Natural gas made up the remaining 40% of Q2 2026 production but a small share of revenue; the realized gas price before hedging was $1.17 per Mcf.
• Commodity hedges — Hedges covered 84% of oil production in Q2 2026, and the realized oil price with hedging was $71.14 per Bbl versus $91.98 before hedging, reducing revenue when prices are high but protecting cash flow when prices fall.
• Acquisitions — The March 7, 2025 Lucero Acquisition added Bakken and Three Forks assets in an all-stock transaction, and an April 2026 Powder River Basin acquisition contributed to a 9% sequential production increase in Q2 2026.

Recent performance

Q2 2026 net income was $33.1 million, or Adjusted Net Income of $1.8 million, including a $40.2 million non-cash unrealized gain on commodity derivatives. Adjusted EBITDA was $40.2 million and cash flow from operations was $25.4 million. Production averaged 17,354 Boe per day, up 9% from Q1 2026, with oil at 60% of volumes; total revenue including realized hedges was $72.8 million. Lease operating expenses were $18.0 million, or $11.38 per Boe, and G&A was $6.2 million, or $3.89 per Boe. Total debt was $158.5 million at June 30, 2026, with total liquidity of $117.4 million and a Net Debt to Adjusted EBITDA ratio of 1.0.

Strategy

Vitesse states its strategy is to create long-term stockholder value through profitable acquisition, development and production of oil and gas assets, maintaining a strong balance sheet and paying a meaningful dividend. In Q2 2026 it paid $20.6 million in dividends and declared a third-quarter dividend of $0.4375 per share, its fifteenth consecutive quarter of returning capital since going public. The company invested $21.1 million in development capital and $0.7 million in property acquisitions in Q2 2026, net of a $1.1 million purchase price adjustment on the Powder River Basin acquisition. Management says it will prioritize a durable fixed dividend and allocate capital only where returns exceed hurdle rates.

Risks

• Oil and gas price volatility — Revenue depends on commodity prices, and management expects volatility to continue through 2026; realized oil prices fell from $91.98 to $71.14 per Bbl after hedging in Q2 2026.
• Non-operated control — Vitesse does not operate its wells, so drilling and completion timing and costs are controlled by other operators.
• Dividend sustainability — The company pays a fixed quarterly dividend of $0.4375 per share and acknowledges it cannot assure future dividends, with indebtedness potentially limiting payouts.
• Indebtedness — Total debt was $158.5 million at June 30, 2026, and the company relies on a revolving credit facility with $116.5 million of committed borrowing availability.

Outlook

Vitesse tightened 2026 annual production guidance to 16,300–17,200 Boe per day from a prior 16,000–17,500 Boe per day range, and raised total cash capital expenditure guidance to $65–$80 million from $50–$80 million. Oil as a percentage of annual production is now guided at 60%–62%, down from 60%–64%. Management attributes the revisions to second quarter results and recent market conditions, and expects commodity price volatility to continue through 2026.