The following is a summary of the Vitesse Energy, Inc. (VTS) Q4 2023 Earnings Call Transcript:
Financial Performance:
Vitesse Energy reported an annual production of 11,889 BOE per day in 2023, with Q4 production reaching 13,652 BOE per day, exceeding their forecast.
Adjusted EBITDA for the year stood at $157 million and adjusted net income was $53.6 million, with a GAAP net income reporting a loss of $19.7 million.
Cash CapEx and acquisition costs were at $120.5 million, financed through operating cash flows and credit facility withdrawals.
Year-end debt amounted to $81 million resulting in an overall leverage ratio of 0.5x.
The company paid a $2 per share fixed dividend in 2023 and declared a 2024 first quarter cash dividend of $0.50 per share.
Total proved reserves at year-end 2023 stood at 40.6 million BOE, with the PV-10 value of total proved reserves being $682 million.
The company has 42% of its full year 2024 oil production hedged at approximately $79 per barrel.
Business Progress:
Vitesse Energy focuses on allocating capital to high return projects, and maintaining a conservative balance sheet through strategic acquisitions.
The company has successfully managed to maintain a substantial 9% yield on dividends calculated weekly.
Despite a severe weather event, the company maintained its 2024 production and CapEx guidance.
The company is investing in three-mile lateral wells and anticipates an industry shift towards this technique.
Vitesse Energy has 6.7 net wells either drilling or in the completing phase, another 9.9 net wells have been approved for development.
The company is exploring M&A opportunities and actively seeking to acquire non-operational assets.
They are on schedule to start operations of the Trans Mountain pipeline in Q2 2024.
For 2024, Vitesse maintains its guidance focusing on a strong pipeline of potential transactions and production projected to range from 12,500 to 13,500 BOE per day. The company intends to maintain this growth through minimal leverage and maintaining a simple capital structure.
More details: Vitesse Energy IR
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