Vitesse Energy Q2 Earnings Call Highlights

Second-quarter production rose 9% sequentially to 17,354 BOE per day , helped by the Powder River Basin acquisition.

Adjusted EBITDA was $40.2 million and free cash flow totaled $16.3 million after development spending.

Vitesse maintained its strategy of funding a durable dividend with free cash flow and declared a third-quarter dividend at an annualized $1.75 per share .

The company also kept leverage conservative, with net debt below one times adjusted EBITDA.

The company narrowed its 2026 production guidance to 16,300–17,200 BOE per day and raised the low end of its full-year capital spending range to $65 million.

Management remains selective on acquisitions while emphasizing longer laterals, which it says reduce costs and support future cash flow.

Vitesse Energy NYSE: VTS said its second-quarter results reflected higher production following its early-April Powder River Basin acquisition, while management reiterated that its strategy remains centered on a free-cash-flow-funded dividend, return-focused investments and conservative leverage.

Chief Executive Officer and President Jamie Benard addressed investor questions surrounding the company’s dividend resizing and leadership transition earlier this year, saying the company’s underlying strategy has not changed.

“Our priorities are what they’ve always been, pay a durable dividend funded by free cash flow, allocate capital only where returns exceed our hurdle rates, and maintain a strong conservative balance sheet,” Benard said.

Vitesse’s board last week declared a third-quarter cash dividend at an annualized rate of $1.75 per share.

Benard said the declaration marked the company’s 15th consecutive quarterly dividend since its January 2023 spin-off.

Cumulative dividends declared have totaled $7.6375 per share, he said.

Second-Quarter Production and Financial Results Chief Financial Officer Jimmy Henderson said second-quarter production averaged 17,354 barrels of oil equivalent per day, up 9% sequentially from the first quarter.

Oil represented 60% of production and contributed 95% of total revenue during the quarter.

The results included contributions from the Powder River Basin acquisition completed in early April, Henderson said.

Adjusted EBITDA totaled $40.2 million.

Adjusted net income was $1.8 million.

GAAP net income was $33.1 million, including $40.2 million in unrealized hedging gains.

Free cash flow was $16.3 million after $21.1 million of development capital expenditures.

Henderson said the unrealized hedging gain was a non-cash item tied to forward oil prices as of June 30.

He added that Vitesse’s cumulative realized hedge loss since its spin-off has been less than 1% of revenue over that period.

Management described hedging as a means of protecting the company’s cash flows and dividend through commodity-price downturns.

The company’s hedge book now extends into 2029.

Guidance Narrowed and Capital Spending Range Updated Vitesse narrowed its 2026 production outlook to a range of 16,300 to 17,200 BOE per day.

The company also tightened its oil mix outlook to 60% to 62% of production.

The company raised the bottom end of its total cash capital expenditure guidance, which now calls for $65 million to $80 million in spending for the full year.

For the remainder of 2026, Vitesse has approximately 70% of anticipated oil production hedged through swaps and collars, with a weighted average floor price of $63.57 per barrel and a ceiling of $66.53 per barrel.

About half of expected natural gas output is hedged through collars with a weighted average floor of $3.73 per MMBtu and a ceiling of $4.90 per MMBtu, according to Henderson.

The company ended the quarter with $158.5 million o...