Vitesse Energy, Inc. (VTS) | Investment Case

1. Company Snapshot

1.a. Company Description

Vitesse Energy, Inc.focuses on acquisition, ownership, exploration, development, management, production, exploitation, and dispose of oil and gas properties.The company acquires non-operated working interest and royalty interest ownership primarily in the core of the Bakken Field in North Dakota and Montana.

It also owns non-operated interests in oil and gas properties in Colorado and Wyoming.The company was incorporated in 2022 and is based in Centennial, Colorado.

Show Full description

1.b. Last Insights on VTS

Vitesse Energy's recent performance was negatively impacted by the decline in oil prices due to OPEC+ supply cut phaseouts and economic nationalism, particularly affecting China. The company's hedging strategy protects it for the medium term, but the current market conditions pose a risk to oil spot prices. Additionally, the acquisition of Lucero Energy Corp. has added operational control and reduced net debt, but the shareholder base is shared 20% with Lucero. The company's high dividend yield is attractive, but the risks associated with the current market conditions may offset this advantage.

1.c. Company Highlights

Last Price	21.53
Change Percentage	-0.92%
Open	21.7
Previous Close	21.73
Market Cap ( Millions)	833
Volume	291597
Year High	27.89
Year Low	18.9
M A 50	21.89
M A 200	23.09

FCF Yield	16.74%
Dividend Yield	10.28%
ROE	3.36%
Debt / Equity	17.53%
Net Debt / EBIDTA	69.69%
Price To Book	1.3
Price Earnings Ratio	40.33
Price To FCF	5.97
Price To sales	3.07
EV / EBITDA	6.05

2. Vitesse Energy's Q3 2025 Earnings: A Strong Operational Performance

Vitesse Energy reported a robust financial performance in Q3 2025, with adjusted EBITDA of $41.6 million and adjusted net income of $3.8 million. The company's earnings per share (EPS) came in at -$0.03, missing analyst estimates of $0.1. Revenue growth was driven by increased production, averaging 18,163 barrels of oil equivalent per day, with a 65% oil cut. The company's financial performance was supported by its disciplined hedging strategy, with approximately 60% of remaining 2025 oil production hedged at $70 per barrel.

Publication Date: Nov -26

                                    📋 Highlights
                                    Production and Oil Cut::
                                                Averaged 18,163 Boe/day with 65% oil cut in Q3 2025.
Adjusted Financials::
                                                Adjusted EBITDA reached $41.6M, adjusted net income $3.8M.
Updated Guidance::
                                                2025 production raised to 17,000-17,500 Boe/day; CAPEX guidance $110-125M.
Hedging Coverage::
                                                60% of remaining 2025 oil hedged at $70/bbl; 50% natural gas hedged with collars.
Development Pipeline::
                                                20.8 net wells in pipeline; 2M+ net lateral feet (200+ net 2-mile wells) remaining.

                                

Operational Highlights

The company's operational performance was strong, with participation in more 3- and 4-mile laterals drilled by operating partners, and the completion of two Vitesse-operated wells. The company also successfully completed two drilled but uncompleted wells acquired through the Lucero acquisition, exceeding initial oil and natural gas production expectations. As of September 30, 2025, Vitesse had 20.8 net wells in its development pipeline, providing a strong foundation for future growth.

Guidance and Outlook

Vitesse Energy increased its 2025 production guidance to 17,000-17,500 Boe per day and capital expenditure guidance to $110-125 million. The company's long-duration asset, low leverage, and disciplined hedging position it to withstand market disruptions. With over 2 million net lateral feet of development remaining, translating to over 200 net 2-mile equivalent wells, the company has a strong inventory of drilling opportunities.

Valuation and Dividend

The company's valuation metrics indicate a relatively attractive dividend yield of 10.61%, with a dividend payout supported by a strong free cash flow yield of 17.28%. The P/E Ratio of 39.06 and EV/EBITDA of 5.88 suggest that the company's valuation is sensitive to changes in earnings and cash flow generation. Analysts estimate next year's revenue growth at -4.1%, which may impact the company's valuation. The Board declared a fourth-quarter dividend at an annual rate of $2.25 per share, maintaining a commitment to returning capital to shareholders.

3. NewsRoom

American Century Companies Inc. Buys 140,768 Shares of Vitesse Energy, Inc. $VTS

Dec -03

Source: defenseworld.net

Vitesse Energy, Inc. (VTS) Q3 2025 Earnings Call Transcript

Nov -04

Source: seekingalpha.com

Vitesse Energy Announces Third Quarter 2025 Results and Increased 2025 Production and Capital Expenditures Guidance

Nov -03

Source: businesswire.com

Vitesse Energy Declares $0.5625 Quarterly Cash Dividend

Oct -28

Source: businesswire.com

Vitesse Energy: Dividend Cut Possible, But Undervalued Oil Assets With Potential To Ramp Up Growth

Oct -25

Source: seekingalpha.com

Vitesse Energy Announces Third Quarter 2025 Earnings Release Date and Conference Call

Oct -16

Source: businesswire.com

Vitesse Energy (VTS) Just Flashed Golden Cross Signal: Do You Buy?

Sep -02

Source: zacks.com

Why Vitesse (VTS) Might be Well Poised for a Surge

Aug -12

Source: zacks.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.82%)

6. Segments

Oil

Expected Growth: 4.83%

Vitesse Energy, Inc.'s 4.83% growth in oil production is driven by increased drilling activities in the Permian Basin, improved well completion techniques, and enhanced oil recovery methods. Additionally, the company's strategic acquisitions and divestitures have optimized its asset portfolio, leading to increased efficiency and higher production volumes.

Natural Gas

Expected Growth: 4.65%

Vitesse Energy, Inc.'s 4.65% growth in Natural Gas is driven by increasing demand from power generation and industrial sectors, coupled with rising LNG exports. Additionally, favorable weather patterns, infrastructure development, and strategic acquisitions have contributed to the growth. Furthermore, the company's focus on operational efficiency and cost reduction has enabled it to capitalize on the growing market.

7. Detailed Products

Energy Trading

Vitesse Energy, Inc. provides energy trading services, enabling clients to buy and sell energy commodities, such as crude oil, natural gas, and refined products.

Risk Management

The company offers risk management solutions to help clients mitigate market volatility and price risks associated with energy commodities.

Energy Logistics

Vitesse Energy, Inc. provides energy logistics services, including transportation, storage, and delivery of energy products.

Energy Consulting

The company offers energy consulting services, providing expert advice on energy market trends, pricing, and regulatory compliance.

Renewable Energy Solutions

Vitesse Energy, Inc. provides renewable energy solutions, including solar, wind, and biofuels, to help clients reduce their carbon footprint.

8. Vitesse Energy, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Vitesse Energy, Inc. is medium due to the availability of alternative energy sources such as solar and wind power.

Bargaining Power Of Customers

The bargaining power of customers for Vitesse Energy, Inc. is low due to the lack of negotiating power of individual customers.

Bargaining Power Of Suppliers

The bargaining power of suppliers for Vitesse Energy, Inc. is high due to the limited number of suppliers and the high demand for their products.

Threat Of New Entrants

The threat of new entrants for Vitesse Energy, Inc. is medium due to the high barriers to entry in the energy industry.

Intensity Of Rivalry

The intensity of rivalry for Vitesse Energy, Inc. is high due to the high competition in the energy industry.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	13.36%
Debt Cost	3.95%
Equity Weight	86.64%
Equity Cost	3.20%
WACC	3.30%
Leverage	15.42%

11. Quality Control: Vitesse Energy, Inc. passed 6 out of 9 key points

Strong Liquidity

Low Debt

Strong Interest Coverage

Healthy Cash Flow

Operating Inefficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Vitesse Energy

A-Score: 6.1/10

Value: 6.1

Growth: 7.1

Quality: 5.9

Yield: 10.0

Momentum: 3.5

Volatility: 4.0

1-Year Total Return ->

PHX Minerals

A-Score: 6.1/10

Value: 4.3

Growth: 2.0

Quality: 6.6

Yield: 7.0

Momentum: 9.0

Volatility: 7.7

1-Year Total Return ->

Evolution Petroleum

A-Score: 5.4/10

Value: 4.8

Growth: 4.8

Quality: 4.5

Yield: 10.0

Momentum: 2.5

Volatility: 6.0

1-Year Total Return ->

SilverBow Resources

A-Score: 4.9/10

Value: 8.8

Growth: 7.2

Quality: 6.5

Yield: 0.0

Momentum: 5.0

Volatility: 2.0

1-Year Total Return ->

HighPeak Energy

A-Score: 4.8/10

Value: 7.7

Growth: 9.4

Quality: 5.5

Yield: 3.0

Momentum: 0.0

Volatility: 3.0

1-Year Total Return ->

Epsilon Energy

A-Score: 4.7/10

Value: 5.7

Growth: 2.7

Quality: 6.4

Yield: 7.0

Momentum: 1.0

Volatility: 5.7

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

-8.01%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

3.30%

Vitesse Energy, Inc. - US92852X1037

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on VTS

1.c. Company Highlights

Higher Yield

Expensive

Lower Growth

Earnings Beats

Earnings Miss

Revenues Beats

Stable Momentum

Fairly Valued

Revenues Miss

Average Growth

Higher Growth

Average Quality

2. Vitesse Energy's Q3 2025 Earnings: A Strong Operational Performance

Operational Highlights

Guidance and Outlook

Valuation and Dividend

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.82%)

6. Segments

Oil

Expected Growth: 4.83%

Natural Gas

Expected Growth: 4.65%

7. Detailed Products

Energy Trading

Risk Management

Energy Logistics

Energy Consulting

Renewable Energy Solutions

8. Vitesse Energy, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: Vitesse Energy, Inc. passed 6 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

21.53$

Current Price

21.53$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA