Vitesse Energy (VTS) Announces Several Acquisitions; Updates Guidance

Vitesse Energy, Inc. (NYSE: VTS) (“Vitesse” or the “Company”) today announced several impactful acquisitions, revised 2023 guidance and a preliminary outlook on 2024, and additional hedging.

ACQUISITIONS

Vitesse has acquired additional oil and gas interests in the Williston Basin of North Dakota that will result in approximately $50 million of acquisition and related development capital expenditures, primarily in the third and fourth quarters of 2023. These acquisitions increase the Company’s 2023 capital expenditures guidance range and are expected to provide material increases to production and cash flows in the fourth quarter of 2023 and, more significantly, for the full year of 2024.

These interests were acquired through Vitesse’s Near-Term Development (“NTD”) acquisition program and were underwritten above the Company’s internal rate of return hurdle using a discount to current NYMEX strip prices. The Company subsequently capitalized on higher oil prices and hedged fourth quarter 2023 and 2024 oil production associated with these acquisitions, which enhanced the expected rates of return.

MANAGEMENT COMMENTS

“As a return of capital company, these opportunistic acquisitions combined with our hedging activity are expected to be accretive to our free cash flow, which is supportive of our dividend,” commented Bob Gerrity, Vitesse’s Chairman and Chief Executive Officer.

REVISED 2023 GUIDANCE AND PRELIMINARY 2024 OUTLOOK

With these additional investments and updated timing of well connects, the Company has revised its 2023 guidance and is providing a preliminary outlook for 2024.

Vitesse now expects oil and gas production in the fourth quarter of 2023 to average 12,300 to 13,000 Boe per day, up from approximately 11,000 Boe per day in the third quarter of 2023. This results in full year 2023 production ranging from 11,500 to 11,700 Boe per day. Total 2023 capital expenditures are now expected to be $110 to $130 million.

The Company’s early estimates for 2024 indicate a production range of 12,500 to 13,500 Boe per day and total capital spending, including NTD acquisitions, of $90 to $110 million.

HEDGING UPDATE

During the third quarter, Vitesse added to its oil hedges for both 2023 and 2024. For the fourth quarter of 2023, the Company added an additional 75,000 barrels of oil swaps at a weighted average price of $85.54 per barrel, increasing the weighted average price to $79.11 per barrel. For 2024, Vitesse added 695,000 barrels of oil swaps at a weighted average price of $81.83 per barrel, increasing the weighted average price to $78.95 per barrel.

Based on the midpoint of its revised 2023 oil guidance and preliminary 2024 outlook, Vitesse has 51% of its estimated fourth quarter 2023 oil production hedged and 41% of its preliminary 2024 oil production hedged.

The following table summarizes Vitesse’s open oil commodity derivative swap contracts scheduled to settle after September 30, 2023:

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