Vitesse Energy (NYSE:VTS) executives highlighted shareholder returns, updated hedging activity, and a new non-operated acquisition as they reviewed fourth-quarter and full-year 2025 results and outlined expectations for 2026.
2025 results and shareholder returns
Chairman and CEO Bob Gerrity said the company continued returning capital to shareholders in 2025, distributing $2.25 per share during the year. Since the company’s spin-off in January 2023, Vitesse has paid $6.325 per share, and Gerrity said management remains committed to returning capital “across commodity cycles.”
The company’s board declared a first-quarter dividend at an annual rate of $1.75 per share. Management said the dividend level was supported by hedges and a “capital efficient drilling program,” enabling the company to pursue high-return investments while keeping leverage conservative. Gerrity later said the board chose to reduce the dividend primarily to preserve the balance sheet, calling it a priority for the company.
Management also noted that, for the first time, 2025 dividends were classified as return of capital for tax purposes, and the company expects the majority of 2026 dividends to be treated similarly.
Operational update: production, reserves, and drilling inventory
President Brian Cree said fourth-quarter production averaged 17,653 barrels of oil equivalent per day (BOE/d), bringing full-year 2025 production to 17,444 BOE/d. CFO Jimmy Henderson added that full-year production was near the top end of guidance and carried a 65% oil cut.
As of Dec. 31, 2025, Vitesse had 22 net wells in its development pipeline, including 6.1 net wells being drilled or completed and 15.9 net locations permitted for development. Cree said more than half of AFEs received since the start of 2025 were 3-mile or 4-mile laterals, which helped support the company’s 2026 outlook for lower capital spending.
Vitesse ended 2025 with 47.8 million BOE of proved reserves, up 19% from 2024, driven primarily by the Lucero acquisition. PV-10 was $472.7 million, with 88% classified as proved developed. Cree said the year-over-year reserve value was affected by a nearly $10 per barrel decline in SEC pricing for oil, while also noting the company believes its acreage contains additional locations not currently classified as proved under SEC rules.
Financial performance and balance sheet
Henderson reported Adjusted EBITDA of $179.3 million for 2025, with adjusted net income of $30.4 million and GAAP net income of $25.3 million.
Free cash flow for the year totaled $48.9 million after $121 million of development capital expenditures, according to the company’s reconciliation in its earnings materials. Cash capital expenditures and acquisition costs were $29.8 million in the fourth quarter and $127.7 million for the full year, slightly above guidance due mainly to the timing of capital expenditure payments. Henderson said those costs were funded within operating cash flows.
At year-end, total debt was $124.5 million, resulting in net debt to Adjusted EBITDA of 0.69x, which management pointed to as consistent with its conservative balance sheet approach.
2026 guidance and key variables
For 2026, the company guided to full-year production of 16,000 to 17,500 BOE/d on a two-stream basis, with an expected 60% to 64% oil cut. Cash capital expenditures are expected to be $50 million to $80 million, a decrease from 2025 that management attributed to reduced operator activity tied to commodity prices, a focus on the most economic drilling inventory, and the timing of capital payments after accelerating some payments into 2025.
Henderson said the guidance includes the Powder River Basin acquisition (discussed below) but excludes the impact of any additional near-term development acquisitions, which the company said it continues to evaluate. Executives said a recent uptick in oil prices could lead to more operator development activity on Vitesse’s assets, which would drive capital spending higher.
In the Q&A, Cree said the guidance range largely reflects uncertainty around operator plans, including rig activity levels and the potential pace of additional near-term development acquisitions. Management emphasized that the company does not have strong visibility into what operators will spend in 2026, and that its approach to 2026 planning is conservative.
Powder River Basin acquisition and hedging update
Gerrity said Vitesse signed a definitive agreement to acquire non-operated assets in the Powder River Basin of Wyoming for $35 million of Vitesse shares, effective Jan. 1, 2026. The assets include over 6,000 net acres and 29 net undeveloped locations and are expected to average 1,400 net BOE/d in 2026, with EOG and Continental as the primary operators. Vitesse expects to close the acquisition at the beginning of the second quarter, and Gerrity described the transaction as accretive.
During Q&A, investor relations director Ben Messier said the acquired asset is expected to have “fairly flat” production for the next few years, with $4 million to $6 million of capital expenditures per year. He said Vitesse sees upside potential if stacked-pay zones in the basin—such as the Shannon and Sussex—develop further. Management also said it valued the acquisition based solely on proved developed producing (PDP) value and assigned no value to the undeveloped inventory due to the basin’s variability.
On hedging, Cree said the company “opportunistically” added hedges after weekend hostilities in the Middle East. For 2026, Vitesse has approximately 64% of oil production hedged through swaps and collars, based on the midpoint of guidance:
- Swaps: weighted average fixed price of $64.95 per barrel
- Collars: weighted average floor of $58.64 and ceiling of $67.50 per barrel
For natural gas, Cree said the company has hedged just under half of 2026 production with collars at a weighted average floor of $3.73 and a ceiling of $4.91 per MMBtu.
Messier said the goal of the hedging program is to protect the dividend and reduce volatility in the company’s share price. He also said Vitesse can hedge up to 85% of its PDP at any given time and is being patient with remaining 2026 capacity, while noting the company added hedges on Sunday extending “through the end of 2027” at what he described as good prices.
About Vitesse Energy (NYSE:VTS)
Vitesse Energy (NYSE: VTS) is an independent exploration and production company primarily focused on onshore oil and gas assets in the United States. Headquartered in Calgary, Alberta, the company identifies, acquires and develops low-decline, shallow to intermediate depth vertical wells, targeting predictable production profiles and stable cash flows. Vitesse leverages a lean operational model to optimize well performance and reduce unit operating costs across its asset base.
The company’s core operations are concentrated in the Arkoma Basin of eastern Oklahoma and the Ark-La-Tex region, where it holds acreage positions in multiple formations.
