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Vitesse Energy, Inc. (VTS)
NYSE:VTS
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Vitesse Energy, Inc.
(NYSE:VTS)
74Outperform
Vitesse Energy, Inc. (VTS) vs. S&P 500 (SPY)
Market Cap
$722.52M
Dividend Yield8.73%
Average Volume (3M)185.44K
Price to Earnings (P/E)17.1
Beta (1Y)0.99
Revenue Growth4.75%
EPS GrowthN/A
CountryUS
Employees36
SectorEnergy
Sector Strength73
IndustryFossil Fuels
Share Statistics
EPS (TTM)1.39
Shares Outstanding30,396,296
10 Day Avg. Volume241,368
30 Day Avg. Volume185,442
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)3.02
Price to Cash Flow (P/CF)3.80
P/FCF Ratio6.20
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$30.17Price Target Upside24.00% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering3
Vitesse Energy, Inc. Business Overview & Revenue Model
Company DescriptionVitesse Energy Inc is an independent energy company engaged in the acquisition, development, and production of non-operated oil and natural gas properties in the United States that are generally operated by leading oil companies and are primarily in the Bakken and Three Forks formations in the Williston Basin of North Dakota and Montana. The firm is focused on returning capital to shareholders through owning a financial interest as a non-operator in oil and gas wells drilled by US operators.
How the Company Makes MoneyVitesse Energy, Inc. generates revenue primarily through the production and sale of oil and natural gas. The company earns money by exploring and developing its oil and gas properties, which involves discovering new reserves and optimizing existing resources for extraction. By selling the extracted oil and gas on the commodities market, Vitesse Energy capitalizes on fluctuating market prices to maximize profits. Additionally, strategic partnerships with other energy firms and technological advancements in drilling and production techniques contribute to efficient operations and cost management, enhancing the company's earnings potential.
Vitesse Energy, Inc. Financial Statement Overview
Summary
Vitesse Energy exhibits solid financial health with strong profitability and a robust balance sheet. The company has demonstrated steady revenue growth and effective cash flow management, though there is room for improvement in profit margins and ROE.Income Statement
Vitesse Energy shows strong profitability with a TTM gross profit margin of 33.8% and net profit margin of 18.1%, indicating solid cost management and profitability. The revenue growth rate from the previous annual period to TTM is approximately 9.2%, demonstrating steady growth. However, the decrease in gross profit margin from 39% in 2022 indicates some pressure on cost control or pricing strategies.75
Positive
Balance Sheet
The company's balance sheet is relatively strong with a debt-to-equity ratio of 0.20, reflecting prudent leverage use. The equity ratio stands at 65.8%, indicating a robust equity base. ROE is moderate at 8.9%, pointing to efficient use of shareholder funds, though lower than previous periods due to increased equity and net income fluctuations.68
Positive
Cash Flow
Vitesse Energy's cash flow is healthy, with a strong operating cash flow to net income ratio of 3.3, suggesting robust cash generation relative to net income. The free cash flow growth rate is modest at 1.7%, but stable free cash flow to net income ratio indicates consistent cash conversion efficiency.80
Positive
| Breakdown | ||||
| TTM | Dec 2023 | Dec 2022 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 255.37M | 233.91M | 300.07M | 97.23M | 171.30M | Gross Profit |
| 86.42M | 91.02M | 162.93M | 46.33M | 112.85M | EBIT |
| 58.76M | 34.85M | 153.87M | -20.61M | 36.88M | EBITDA |
| 179.44M | 129.22M | 186.79M | 54.13M | 105.43M | Net Income Common Stockholders |
| 46.10M | -21.58M | 118.90M | -13.56M | 35.89M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 2.80M | 552.00K | 10.01M | 1.73M | 0.00 | Total Assets |
| 614.13M | 765.97M | 660.48M | 627.13M | 0.00 | Total Debt |
| 68.00M | 84.26M | 48.00M | 98.50M | 0.00 | Net Debt |
| 65.20M | 83.71M | 37.99M | 96.77M | 0.00 | Total Liabilities |
| 114.91M | 219.56M | 91.50M | 134.66M | 0.00 | Stockholders Equity |
| 499.22M | 546.41M | 568.98M | 492.47M | 0.00 |
| Cash Flow | Free Cash Flow | |||
| 21.64M | 21.28M | 62.46M | 5.48M | -3.23M | Operating Cash Flow |
| 151.95M | 141.94M | 147.04M | 76.31M | 101.19M | Investing Cash Flow |
| -130.31M | -120.67M | -84.58M | -70.81M | -104.37M | Financing Cash Flow |
| -20.96M | -30.73M | -57.81M | -5.53M | -41.00K |
Vitesse Energy, Inc. Technical Analysis
Negative
24.33
Price Trends
25.94
Negative
25.93
Negative
24.80
Negative
Market Momentum
-0.65
Positive
37.92
Neutral
18.43
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For VTS, the sentiment is Negative. The current price of 24.33 is below the 20-day moving average (MA) of 25.52, below the 50-day MA of 25.94, and below the 200-day MA of 24.80, indicating a bearish trend. The MACD of -0.65 indicates Positive momentum. The RSI at 37.92 is Neutral, neither overbought nor oversold. The STOCH value of 18.43 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for VTS.
Vitesse Energy, Inc. Peers Comparison
Overall Rating
UnderperformOutperform
Sector (57)
Financial Indicators
Performance Comparison
VTS
Vitesse Energy, Inc.
24.33
2.52
11.55%
MTDR
Matador Resources
47.00
-16.83
-26.37%
SM
SM Energy
29.07
-15.88
-35.33%
Vitesse Energy, Inc. Earnings Call Summary
Earnings Call Date: Mar 11, 2025 | % Change Since: 0.00% | Next Earnings Date: May 12, 2025
Earnings Call Sentiment Positive
The earnings call highlighted strong financial management, dividend stability, and robust production and development plans, despite production being at the lower end of guidance and the impact of lower oil prices on acquisitions.Highlights
Dividend Stability and Capital Efficiency
Vitesse paid a $0.525 per share dividend in September and declared another for December. The company reduced CapEx by 18% while maintaining production guidance, highlighting their capital efficiency and return strategy.
Production and Development Pipeline
Third-quarter production averaged 13,009 BOE per day. The development pipeline is at a record high with 20.2 net wells, indicating robust future production growth.
Financial Performance and Guidance
Adjusted EBITDA for the quarter was $37.6 million, with GAAP net income at $17.4 million. The company reduced its CapEx guidance for the year from $130-150 million to $110-120 million. Debt was reduced by $10 million during the quarter.
Hedging Strategy
Vitesse has 54% of its remaining 2024 oil production hedged above $78 per barrel and 43% of 2025 production hedged above $73 per barrel.
Lowlights
Production at Low End of Guidance
Production for the third quarter was at the low end of prior guidance, attributed to timing of wells being brought online.
Impact of Lower Oil Prices
Lower oil prices affect deal flow, although it opens opportunities for acquisitions. The company is cautious, balancing acquisitions with high returns from organic growth.
Company Guidance
During the Vitesse Energy Q3 2024 earnings call, the company provided updated guidance reflecting improved capital efficiency and production growth. Vitesse announced a reduction in its 2024 capital expenditure (CapEx) by 18% while maintaining production within prior guidance, showcasing a focus on capital allocation efficiency. For 2025, Vitesse anticipates a 7% production increase with a 2% reduction in CapEx at the midpoint, projecting annual production between 13,750 to 14,500 barrels of oil equivalent per day. The company also highlighted its robust hedging strategy, securing 54% of the remaining 2024 oil production at over $78 per barrel and 43% of 2025 production at over $73 per barrel. Financial highlights included a Q3 adjusted EBITDA of $37.6 million, adjusted net income of $7.6 million, and a reduction in debt by $10 million, resulting in a leverage ratio of 0.68x. Additionally, Vitesse's dividend remained steady with a $0.525 per share payout, emphasizing its commitment to returning capital to shareholders.Vitesse Energy, Inc. Corporate Events
Private Placements and FinancingM&A TransactionsDividendsBusiness Operations and Strategy
Vitesse Energy Expands with Lucero Acquisition and Credit Update
Positive
Dec 16, 2024
Vitesse Energy, Inc. announced an amendment to its Credit Agreement, extending the maturity date and reaffirming its borrowing base at $245 million, while adjusting its commitment amount and reducing rates for loans. Additionally, Vitesse entered into an all-stock acquisition agreement to acquire Lucero Energy Corp., valued at US$222 million, to expand its asset base and operational scale in the Bakken region. This transaction is expected to be immediately accretive to Vitesse’s financial metrics and support an increase in its annual dividend. The acquisition will also enhance Vitesse’s operational flexibility and financial position, with Lucero’s cash reserves aiding in debt reduction. Shareholder approval and regulatory clearances are pending, with the transaction anticipated to close by the second quarter of 2025.
DividendsBusiness Operations and StrategyFinancial Disclosures
Vitesse Energy Reports Strong Q3 2024 Financial Results
Positive
Nov 4, 2024
Vitesse Energy has reported its Q3 2024 financial results with a net income of $17.4 million and an adjusted EBITDA of $37.6 million. The company also declared a quarterly cash dividend and revised its 2024 guidance, anticipating increased production and cash flow. Vitesse’s strategic focus includes significant production of oil and a decrease in capital expenditures, providing a promising outlook for investors interested in sustainable growth and financial stability.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.