Vitesse Energy Announces Several Impactful Acquisitions, Revised 2023 Guidance and Preliminary 2024 Outlook, and Additional Hedging
- Vitesse Energy has made several acquisitions in the Williston Basin, resulting in $50 million of capital expenditures. These acquisitions are expected to increase production and cash flows in Q4 2023 and throughout 2024. The company has also hedged its oil production for Q4 2023 and 2024, enhancing expected rates of return.
- None.
ACQUISITIONS
Vitesse has acquired additional oil and gas interests in the
These interests were acquired through Vitesse’s Near-Term Development (“NTD”) acquisition program and were underwritten above the Company’s internal rate of return hurdle using a discount to current NYMEX strip prices. The Company subsequently capitalized on higher oil prices and hedged fourth quarter 2023 and 2024 oil production associated with these acquisitions, which enhanced the expected rates of return.
MANAGEMENT COMMENTS
“As a return of capital company, these opportunistic acquisitions combined with our hedging activity are expected to be accretive to our free cash flow, which is supportive of our dividend,” commented Bob Gerrity, Vitesse’s Chairman and Chief Executive Officer.
REVISED 2023 GUIDANCE AND PRELIMINARY 2024 OUTLOOK
With these additional investments and updated timing of well connects, the Company has revised its 2023 guidance and is providing a preliminary outlook for 2024.
Vitesse now expects oil and gas production in the fourth quarter of 2023 to average 12,300 to 13,000 Boe per day, up from approximately 11,000 Boe per day in the third quarter of 2023. This results in full year 2023 production ranging from 11,500 to 11,700 Boe per day. Total 2023 capital expenditures are now expected to be
The Company’s early estimates for 2024 indicate a production range of 12,500 to 13,500 Boe per day and total capital spending, including NTD acquisitions, of
| Revised 2023 Guidance | Preliminary 2024 Outlook | |
| Annual Production (Boe per day) | 11,500 - 11,700 | 12,500 - 13,500 |
| Oil as a Percentage of Annual Production | ||
| Total Capital Expenditures ($ in millions) |
HEDGING UPDATE
During the third quarter, Vitesse added to its oil hedges for both 2023 and 2024. For the fourth quarter of 2023, the Company added an additional 75,000 barrels of oil swaps at a weighted average price of
Based on the midpoint of its revised 2023 oil guidance and preliminary 2024 outlook, Vitesse has
The following table summarizes Vitesse’s open oil commodity derivative swap contracts scheduled to settle after September 30, 2023:
| WTI-NYMEX Swaps | ||||||
2023 |
2024 |
|||||
| 4Q | 1Q | 2Q | 3Q | 4Q | ||
| Volume Hedged (Bbls) | 399,998 |
|
402,498 |
382,500 |
327,500 |
262,500 |
| Weighted Average Price |
|
|
|
|
|
|
ABOUT VITESSE ENERGY, INC.
Vitesse Energy, Inc. is focused on returning capital to stockholders through owning financial interests as a non-operator in oil and gas wells drilled by leading US operators.
More information about Vitesse can be found at www.vitesse-vts.com.
FORWARD-LOOKING STATEMENTS
This press release contains forward-looking statements regarding future events and future results that are subject to the safe harbors created under the Securities Act of 1933, as amended and the Securities Exchange Act of 1934, as amended. All statements other than statements of historical facts included in this release regarding Vitesse’s financial position, operating and financial performance, dividend plans and practices and guidance, are forward-looking statements. When used in this release, forward-looking statements are generally accompanied by terms or phrases such as “expect,” “estimate,” “project,” “predict,” “believe,” “continue,” “anticipate,” “target,” “could,” “plan,” “intend,” “seek,” “goal,” “will,” “should,” “may” or other words and similar expressions that convey the uncertainty of future events or outcomes. Items contemplating or making assumptions about actual or potential future production or operating results also constitute such forward-looking statements.
Forward-looking statements involve inherent risks and uncertainties, and important factors (many of which are beyond Vitesse’s control) that could cause actual results to differ materially from those set forth in the forward-looking statements, including the following: changes in oil and natural gas prices; the pace of drilling and completions activity on Vitesse’s properties; Vitesse’s ability to acquire additional development opportunities; potential acquisition transactions; integration and benefits of property acquisitions, or the effects of such acquisitions on Vitesse’s cash position and levels of indebtedness; changes in Vitesse’s reserves estimates or the value thereof; disruptions to Vitesse’s business due to acquisitions and other significant transactions; infrastructure constraints and related factors affecting Vitesse’s properties; cost inflation or supply chain disruption; ongoing legal disputes over and potential shutdown of the Dakota Access Pipeline; the COVID-19 pandemic and its related economic repercussions and effect on the oil and natural gas industry; the impact of general economic or industry conditions, nationally and/or in the communities in which Vitesse conducts business, including central bank policy actions, bank failures and associated liquidity risks; changes in the interest rate environment, legislation or regulatory requirements; conditions of the securities markets; Vitesse’s ability to raise or access capital; cyber-related risks; changes in accounting principles, policies or guidelines; and financial or political instability, health-related epidemics, acts of war (including the armed conflict in
Vitesse has based these forward-looking statements on its current expectations and assumptions about future events. While management considers these expectations and assumptions to be reasonable, they are inherently subject to significant business, economic, competitive, regulatory and other risks, contingencies and uncertainties, most of which are difficult to predict and many of which are beyond Vitesse’s control. Vitesse does not undertake any duty to update or revise any forward-looking statements, except as may be required by the federal securities laws.
View source version on businesswire.com: https://www.businesswire.com/news/home/20231009658103/en/
INVESTOR AND MEDIA CONTACT
Ben Messier, CFA
Director – Investor Relations and Business Development
(720) 532-8232
benmessier@vitesse-vts.com
Source: Vitesse Energy, Inc.
FAQ
What acquisitions has Vitesse Energy made?
How much capital expenditures are expected from the acquisitions?
What is the impact of the acquisitions on production and cash flows?
Has Vitesse Energy hedged its oil production?
