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Jun 30, 2025
Vitesse Energy Q2 2025 Earnings Report
Vitesse Energy's financial and operating results for the second quarter of 2025 were reported, highlighting increased production, strong cash flow, and strategic debt reduction.
Key Takeaways
Vitesse Energy reported a strong second quarter in 2025, with net income of $24.7 million and Adjusted EBITDA of $61.1 million. The company saw a significant increase in production to 18,950 Boe per day, primarily due to the integration of Lucero assets. Strategic financial moves included settling a multi-year lawsuit for $24 million and using free cash flow to reduce total debt to $106.0 million, resulting in a Net Debt to Adjusted EBITDA ratio of 0.43.
Net income reached $24.7 million, with Adjusted Net Income at $18.4 million.
Production volume increased by 27% sequentially to 18,950 Boe per day, with oil comprising 65% of total production.
Adjusted EBITDA stood at $61.1 million, and cash flow from operations was $66.0 million, leading to $21.9 million in Free Cash Flow.
Total debt was reduced to $106.0 million, achieving a Net Debt to Adjusted EBITDA ratio of 0.43.
Revenue by Segment
Forward Guidance
Vitesse Energy's 2025 annual guidance projects daily production between 15,000 and 17,000 Boe, with oil comprising 64% to 68% of total production. Total capital expenditures are expected to range from $80 million to $110 million. The company has hedged a significant portion of its remaining 2025 oil and natural gas production to ensure cash flow predictability and support its dividend.
Positive Outlook
- Strong hedging strategy with 71% of remaining 2025 oil production hedged at a weighted average price of $69.83 per barrel.
- 49% of remaining 2025 natural gas production hedged at a weighted average floor of $3.73 per MMBtu.
- Guidance for annual production of 15,000 - 17,000 Boe per day indicates continued operational scale.
- Oil as a percentage of annual production is expected to remain high (64% - 68%), supporting revenue stability.
- Management believes the company is well-positioned to benefit from transaction opportunities, especially for non-operated assets.
Challenges Ahead
- The guidance for total capital expenditures ($80M - $110M) represents a significant investment.
- Reliance on commodity hedging indicates exposure to price volatility if unhedged.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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