Vitesse (VTS) Q2 2024 earnings summary

Executive summary

• Q2 2024 net income was $10.9 million, with Adjusted Net Income of $11.7 million and Adjusted EBITDA of $43.1 million; production averaged 13,504 BOE/day, 70% oil, up 8% sequentially.

• Quarterly dividend increased by 5% to $0.525 per share, with another declared for Q3 2024, reflecting a continued focus on capital returns.

• Closed near-term development acquisitions in the Williston Basin/North Dakota, expected to drive significant production and cash flow increases in late 2024 and into 2025.

• Maintained a strong balance sheet with $115 million in total debt and $130 million available under the credit facility at quarter-end.

• Strategy emphasizes disciplined acquisitions, hedging, and capital efficiency, with a diversified operator base and over 7,000 productive wells.

Financial highlights

• Q2 2024 production averaged 13,504 BOE/day, up 8% sequentially and 19% year-over-year; YTD average at 13,030 BOE/day.

• Total revenue for Q2 2024 was $66.6 million, up 29% year-over-year; oil revenue rose 32% while natural gas revenue fell 13%.

• Adjusted EBITDA was $43.1 million; Adjusted Net Income was $11.7 million; Adjusted EPS was $0.39, up from $0.34 last quarter.

• Lease operating expense was $12.3 million ($9.99/BOE), slightly down per unit from Q1 but up year-over-year.

• Operating cash flow (net of working capital) was $40.4 million, covering dividend and maintenance CapEx.

Outlook and guidance

• 2024 annual production guidance reaffirmed at 13,000–14,000 BOE/day, with oil comprising 67–71% of output.

• Expect significant production and cash flow increases in late Q4 2024 and into 2025 from recent acquisitions.

• Production expected to be variable depending on well timing.

• Total 2024 capital expenditures expected between $130–$150 million.

• Management expects cash flow from operations and credit facility availability to meet liquidity needs for the next twelve months.