Vitesse Energy(US:VTS)2025-11-03 21:23Financial Performance - The company reported total revenue of $67.4 million for the three months ended September 30, 2025, with a net loss of $1.3 million[129]. - Total revenue increased to $67.4 million for the three months ended September 30, 2025, up 16% from $58.3 million in the same period of 2024, driven by a 40% increase in production volumes[152]. - Total revenue increased to $215.4 million for the nine months ended September 30, 2025, up 16% from $186.1 million in the same period of 2024, driven by a 33% increase in production volumes[173]. - Oil revenue rose to $64.4 million, a 15% increase from $56.2 million, while natural gas revenue increased by 44% to $3.0 million[152]. - Oil revenue rose to $189.96 million, a 7% increase from $177.67 million, while natural gas revenue surged 203% to $25.41 million from $8.40 million[173]. Production and Operational Metrics - Average daily production was 18,163 BOE/day, with 65% of production coming from oil[129]. - The company had a working interest in 6,326 gross productive wells and 268 gross wells being drilled or completed as of September 30, 2025[125]. - The average NYMEX oil price for the third quarter of 2025 was $64.84 per barrel, which is 14% lower than the average price of $75.26 per barrel in the third quarter of 2024[144]. - The average NYMEX natural gas price for the third quarter of 2025 was $3.03 per MMBtu, representing a 44% increase from $2.11 per MMBtu in the same period of 2024[145]. Expenses and Costs - Lease operating expenses increased to $11.05 per Boe, up 14% from $9.71 per Boe, attributed to higher workover and transportation costs[156]. - Production taxes rose to $6.2 million, a 17% increase from $5.3 million, with production taxes as a percentage of oil and natural gas sales at 9.2%[157]. - General and administrative expenses increased to $5.7 million, while per Boe costs decreased to $3.44, reflecting economies of scale from a 40% production increase[158]. - Depletion, depreciation, and amortization (DD&A) expenses increased to $34.2 million, up from $24.9 million, due to higher production volumes[159]. - Interest expense decreased to $2.4 million, down 13% from $2.7 million, primarily due to lower interest rates[162]. Cash Flow and Liquidity - Cash flows from operations amounted to $49.4 million for the quarter[129]. - The company recorded an income tax benefit of $0.3 million for the three months ended September 30, 2025, compared to an expense of $6.2 million in the same period of 2024[169]. - At September 30, 2025, the company had $5.6 million in unrestricted cash and $136.0 million available under its Revolving Credit Facility, up from $3.0 million and $118.0 million, respectively, at December 31, 2024[192]. - The working capital deficit improved to $9.7 million at September 30, 2025, from a deficit of $49.4 million at December 31, 2024, due to increased current assets and decreased current liabilities[194]. - Net cash from operating activities for the nine months ended September 30, 2025, was $132.9 million, an increase of $12.6 million (10.5%) compared to $120.3 million in 2024[196]. Capital Expenditures and Investments - The company invested $31.8 million in capital development and acquisitions during the quarter[129]. - Total capital expenditures for the nine months ended September 30, 2025, were $97.9 million, with expectations to fund future expenditures through cash generated from operations and potential borrowings[206]. - Cash used in investing activities increased to $97.9 million in 2025 from $87.1 million in 2024, reflecting a $10.8 million (12.4%) rise primarily due to higher development activity[198]. Dividends and Shareholder Returns - The company paid a quarterly dividend of $0.5625 per share to common stockholders[129]. - The company paid cash dividends of $69.8 million during the nine months ended September 30, 2025, with future dividends subject to various factors including cash flow and contractual restrictions[205]. - Cash used in financing activities was $32.4 million in 2025, compared to $31.3 million in 2024, with $69.8 million in dividends paid in 2025[199]. Risk Management - Commodity price volatility is expected to continue impacting earnings and cash flows throughout 2025[127]. - The company employs a hedging program to mitigate risks associated with fluctuations in commodity prices, which can significantly impact operating results[216]. - Approximately 63% of oil volumes were covered by financial hedges, resulting in a realized gain on oil derivatives of $3.2 million for the three months ended September 30, 2025[167]. - Approximately 62% of oil volumes were subject to financial hedges, resulting in a realized gain on oil derivatives of $9.2 million for the nine months ended September 30, 2025[188].