Vitesse Energy(US:VTS)2024-08-05 20:21Financial Performance - Total revenue for the three months ended June 30, 2024, was $66.6 million, with a net income of $10.9 million[82]. - Total revenue increased to $66.6 million for the three months ended June 30, 2024, up from $51.6 million for the same period in 2023, representing a 29% increase[94]. - Total revenue for the six months ended June 30, 2024, was $127.8 million, a 17% increase from $109.5 million for the same period in 2023[101]. - Oil revenue rose to $121.5 million for the six months ended June 30, 2024, up 22% from $99.2 million in the prior year, while natural gas revenue decreased by 39% to $6.3 million[101]. Production and Operations - Production averaged 13,504 BOE/day, with 70% of production coming from oil[82]. - Production volumes increased by 19%, with oil production at 859 MBbls and natural gas production at 2,217 MMcf, compared to 697 MBbls and 2,018 MMcf, respectively, in the previous year[94]. - Production volumes increased by 14% to 2,371 MBoe, with oil production rising by 20% to 1,672 MBbls[101]. Commodity Prices - The average oil price for the second quarter of 2024 was $80.55 per barrel, a 9% increase compared to the same period in 2023[90]. - The average realized oil price per barrel after reflecting settled derivatives was $73.42 for Q2 2024, compared to $72.18 in Q2 2023[90]. - The average year-to-date 2024 oil price was $78.72 per barrel, a 5% increase from the 2023 average[90]. - The average NYMEX natural gas price for Q2 2024 was $2.07 per MMBtu, a 4% decrease from Q2 2023[90]. Expenses - Lease operating expenses rose to $9.99 per Boe, up from $9.01 per Boe, driven by a higher percentage of production from older wells[96]. - Interest expense surged to $2.6 million, a 132% increase from $1.1 million, due to an increase in debt from $41.0 million to $115.0 million[96]. - Depletion, depreciation, and amortization (DD&A) expenses increased to $25.3 million, up from $18.7 million, attributed to a 19% rise in production and a higher DD&A rate[96]. - General and administrative expenses decreased to $10.1 million, down 34% from $15.3 million, primarily due to costs related to a Spin-Off in 2023[103]. Cash Flow and Capital Expenditures - Cash flows from operations amounted to $35.2 million, while the company invested $37.6 million in capital development and acquisitions[82]. - Cash flows from operating activities for the six months ended June 30, 2024, were $74.6 million, a decrease of $3.7 million compared to the same period in 2023[108]. - Cash used in investing activities rose to $69.9 million in the first half of 2024, up from $43.3 million in the same period in 2023, reflecting increased development activity[108]. - Total capital expenditures for the six months ended June 30, 2024, were $69.8 million, with expectations to fund future expenditures through operational cash flow and potential borrowings[110]. Debt and Liquidity - As of June 30, 2024, total debt stood at $115.0 million[82]. - The company had net borrowings of $34.0 million under its Revolving Credit Facility during the first half of 2024, compared to net repayments of $12.0 million in the same period of 2023[108]. - The company anticipates that liquidity will be sufficient to meet material cash requirements for the next twelve months, including capital expenditures and dividends[107]. Derivative Instruments - The company recorded a commodity derivative gain of $0.4 million, a significant decrease from a gain of $4.8 million in the prior year[97]. - The company recorded a commodity derivative loss of $13.4 million for the six months ended June 30, 2024, compared to a gain of $12.2 million in the prior year[106]. - The company has no natural gas derivative contracts as of June 30, 2024, and uses commodity derivatives to mitigate price volatility[108]. Taxation - The income tax expense for the quarter was $3.7 million, down from $6.8 million in the same quarter of 2023[98]. - Income tax expense for the six months ended June 30, 2024, was $2.9 million, significantly lower than the $47.2 million recorded in the same period of 2023[106]. Shareholder Returns - The company paid a quarterly dividend of $0.525 per share to common stockholders[82]. - The company paid $31.9 million in dividends during the six months ended June 30, 2024, with future dividends subject to various factors including cash flow and contractual restrictions[110]. Legal and Compliance - The company is subject to various legal proceedings, but believes that potential losses will not materially adversely affect its financial condition[122]. - Management concluded that the disclosure controls and procedures were effective as of June 30, 2024, providing reasonable assurance regarding the accuracy of financial reporting[119]. - There were no changes in internal control over financial reporting during the second quarter of 2024 that materially affected the company's financial reporting[120].