Vitesse Energy's Q1 2025: Unpacking Contradictions in Acquisitions, Dividends, and Operational Costs

Acquisitions and Dividend Strategy, Dividend and Capital Allocation, Acquisition Strategy, Operator Behavior and AFE Costs are the key contradictions discussed in Vitesse Energy's latest 2025Q1 earnings call.



Production and Growth:
- Vitesse Energy reported oil production hedged at a weighted average of $70.75 per barrel for the remainder of 2025, with 30% of natural gas production hedged at a weighted average of $3.73 per MMBtu.
- The company proactively deferred completion of 1.9 net wells due to recent commodity price volatility and reconsidered $20 million in acquisitions, all primarily driven by fluctuating market conditions and a need for capital discipline.

Financial Performance and Guidance:
- Vitesse Energy's adjusted EBITDA for the first quarter was $39.9 million, with adjusted net income of $8 million.
- The company revised its 2025 guidance, anticipating production in the range of 15,000 to 17,000 BOE per day, reflecting a 32% reduction in CapEx with only a 9% decline in production amid ongoing commodity price volatility.

Capital Expenditure and Strategic Acquisitions:
- The company's anticipated cash CapEx for 2025 is $80 million to $110 million, weighted towards the first half of the year.
- Vitesse remains open to acquisitions, with plans to invest in attractive opportunities that meet their return hurdles, as evidenced by the acquisition of Lucero, despite a temporary reduction in production and CapEx guidance.

Dividend and Capital Allocation:
- Vitesse Energy's Board reaffirmed its dividend at an annual rate of $2.25 per share, demonstrating confidence in the company's financial stability.
- The company is evaluating whether buybacks make sense given lower operating cash flow but maintains flexibility and investor focus, considering capital allocation options that maximize shareholder returns.