Vitesse (VTS) Q4 2025 earnings summary

Executive summary

• Returned $2.25 per share to shareholders in 2025, totaling $6.325 per share since 2023 spin-off, and declared quarterly dividends including $0.4375 per share for Q1 2026.

• Closed and integrated the Lucero acquisition, settled a multi-year lawsuit, and maintained a conservative balance sheet amid oil market volatility.

• Signed a $35 million all-stock deal to acquire non-operated Powder River Basin assets, effective January 1, 2026, expected to close early Q2 2026.

• Over 80% of assets are undeveloped resources, providing long-duration value and capital efficiency over time.

• Asset base is predominantly non-operated interests in the Bakken oil field, diversified across 30+ operators and 7,800+ producing wells.

Financial highlights

• 2025 production averaged 17,444 BOE/day, up 34% year-over-year, near the top end of guidance, with a 65% oil cut.

• Adjusted EBITDA for 2025 was $179.3 million; adjusted net income $30.4 million; GAAP net income $25.3 million.

• Free cash flow was $48.9 million after $121 million in development CapEx; cash flow from operations was $170.3 million.

• Year-end total proved reserves were 47.8 million BOE, up 19% year-over-year, with PV-10 of $472.7 million (88% proved developed).

• Full-year cash CapEx and acquisition costs totaled $127.7 million, funded entirely from operating cash flows.

Outlook and guidance

• 2026 production guidance: 16,000–17,500 BOE/day, oil cut 60%–64%, with Powder River Basin acquisition included from Q2 2026.

• 2026 cash CapEx expected at $50–$80 million, down from 2025 due to lower operator activity and accelerated 2025 payments.

• Majority of 2026 oil production hedged at prices supporting dividend; 64% of oil and nearly half of gas hedged for 2026.

• Board declared a Q1 2026 dividend at an annual rate of $1.75 per share; most 2026 dividends expected to be return of capital for tax purposes.

• Over 200 net estimated two-mile-equivalent undeveloped locations, supporting ~25 years of drilling inventory.