VTS

The end of an earnings season can be a great time to discover new stocks and assess how companies are handling the current business environment. Let’s take a look at how Vitesse Energy (NYSE:VTS) and the rest of the mixed or offshore upstream E&P stocks fared in Q2. This category includes smaller or niche E&P companies operating in specialized basins, geographies, or resource types outside major classifications. These firms may target unconventional resources, frontier regions, or specific commodity niches. Tailwinds include potential for outsized returns from successful exploration, acquisition opportunities during industry downturns, and specialized expertise commanding premium valuations. Headwinds include higher operational and geological risks, limited scale reducing negotiating power and cost efficiencies, and constrained capital market access during challenging commodity environments. Regulatory risks and ESG concerns may disproportionately affect smaller operators with fewer resources for compliance. The 21 mixed or offshore upstream E&P stocks we track reported a very strong Q2. As a group, revenues beat analysts’ consensus estimates by 9.1%. Luckily, mixed or offshore upstream E&P stocks have performed well with share prices up 10.1% on average since the latest earnings results. Taking a hands-off approach to energy production, Vitesse Energy (NYSE:VTS) owns non-operated stakes in oil and natural gas wells primarily in North Dakota and Montana's Williston Basin. Vitesse Energy reported revenues of $91 million, up 11.3% year on year. This print exceeded analysts’ expectations by 8.2%. Overall, it was an incredible quarter for the company with a beat of analysts’ EPS and EBITDA estimates. Interestingly, the stock is up 10.5% since reporting and currently trades at $17.15. We think Vitesse Energy is a good business, but is it a buy today? Read our full report here, it’s free. Operating in some of the world's deepest waters with projects located up to 120 kilometers offshore, Kosmos Energy (NYSE:KOS) explores for, develops, and produces oil and natural gas from deepwater offshore fields. Kosmos Energy reported revenues of $607.6 million, up 54.6% year on year, outperforming analysts’ expectations by 28.4%. The business had an incredible quarter with a beat of analysts’ EPS estimates and a solid beat of analysts’ EBITDA estimates. The market seems happy with the results as the stock is up 11.3% since reporting. It currently trades at $3.00. Is now the time to buy Kosmos Energy? Access our full analysis of the earnings results here, it’s free. Beginning with a single wagon hauling coal in Illinois back when Grover Cleveland was president, Peabody Energy (NYSE:BTU) mines coal used by electricity generators and steel manufacturers. Peabody Energy reported revenues of $1.00 billion, up 12.7% year on year, in line with analysts’ expectations. It was a softer quarter as it posted a significant miss of analysts’ EPS estimates. Interestingly, the stock is up 15.4% since the results and currently trades at $26.82. Read our full analysis of Peabody Energy’s results here. Operating in three continents with a history stretching back to 1954, APA Corporation (NASDAQ:APA) explores for, develops, and produces crude oil, natural gas, and natural gas liquids in the U.S., Egypt, and the U.K. North Sea. APA Corporation reported revenues of $2.52 billion, up 9.2% year on year. This number surpassed analysts’ expectations by 3.3%. Overall, it was a strong quarter as it also recorded a narrow beat of analysts’ EPS estimates. The stock is up 28.3% since reporting and currently trades at $44.47. Read our full, actionable report on APA Corporation here, it’s free. Operating the only active U.S. facility licensed to produce high-assay low-enriched uranium (HALEU) for next-generation reactors, Centrus Energy (NYSE:LEU) supplies enriched uranium, the fissile component needed to produce fuel for nuclear power reactors. Centrus Energy reported revenues of $176.1 million, up 14% year on year. This print beat analysts’ expectations by 16.4%. Overall, it was a strong quarter for the company. The stock is down 6.1% since reporting and currently trades at $176.22. Read our full, actionable report on Centrus Energy here, it’s free. Over the past year, investors have been forced to repeatedly answer the same question: what is the market’s biggest risk? The answer has changed several times, and each shift has reshaped market leadership. Late in 2025 and early 2026, artificial intelligence became the market’s primary uncertainty. Investors questioned whether AI would erode software pricing power and weaken competitive moats as AI made it easier to replicate once-differentiated products. By the spring, technology took a back seat to geopolitics. The U.S. conflict with Iran briefly became the market’s dominant narrative, raising concerns about oil prices, inflation, and global growth. But as energy markets remained orderly and fears of a prolonged supply disruption faded, investors quickly turned their focus back to fundamentals. Want to invest in winners with rock-solid fundamentals? Check out our Strong Momentum Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

This article first appeared on GuruFocus. Francis Chou (Trades, Portfolio), the renowned value investor and founder of Chou America Mutual Funds, recently filed his 13F report for the second quarter of 2026, revealing a strategic adjustment to his portfolio. Chou's journey from a telephone repairman with $200 to a respected fund manager is a testament to his disciplined approach. Since 1986, he has managed the Chou Funds in Canada, applying principles from Benjamin Graham's teachings. His philosophy"Buy bargains. Get the returns slowly. Think independently. Don't be afraid of what other people are saying"guides his decisions. Chou emphasizes detailed analysis of company fundamentals over short-term market fluctuations, focusing on balance sheets, cash flow, and management quality. Warning! GuruFocus has detected 5 Warning Sign with SNOW. Is BRK.A fairly valued? Test your thesis with our free DCF calculator. During the second quarter, Francis Chou (Trades, Portfolio) added one new stock to his portfolio: Vitesse Energy Inc (NYSE:VTS): Chou acquired 1,293 shares, representing 0.01% of the portfolio with a total value of $20,390. This modest addition reflects his cautious approach to new positions, focusing on energy sector opportunities. Chou reduced his stake in one major holding this quarter: Apple Inc (NASDAQ:AAPL): He sold 4,000 shares, resulting in a -9.09% decrease in his position and a -0.49% impact on the overall portfolio. The stock traded at an average price of $285.52 during the quarter. Despite the reduction, Apple has returned 2.29% over the past three months and 11.12% year-to-date, indicating Chou's strategic profit-taking rather than a bearish outlook. As of the second quarter of 2026, Francis Chou (Trades, Portfolio)'s portfolio comprised 31 stocks, with top holdings including: Berkshire Hathaway Inc (NYSE:BRK.A) at 29.73% Alphabet Inc (NASDAQ:GOOG) at 11.81% Synchrony Financial (NYSE:SYF) at 7.84% Occidental Petroleum Corp (NYSE:OXY) at 7.02% Sirius XM Holdings Inc (NASDAQ:SIRI) at 5.59% The portfolio is diversified across eight of the eleven industries, with significant concentrations in Financial Services, Communication Services, Consumer Cyclical, Energy, Technology, Industrials, Consumer Defensive, and Basic Materials. This allocation reflects Chou's value-oriented strategy, prioritizing sectors with strong fundamentals and long-term growth potential. Chou's decision to trim Apple while maintaining a substantial position in Berkshire Hathaway aligns with his value investing principles. Apple's strong performance year-to-date may have prompted him to lock in gains, while his continued confidence in Berkshire reflects his preference for companies with robust balance sheets and proven management. The addition of Vitesse Energy, albeit small, signals interest in the energy sector, which has shown resilience amid market volatility. Chou's portfolio remains concentrated, with top holdings representing a significant portion of assets, underscoring his conviction in these investments. For value investors, Chou's moves offer insights into disciplined portfolio managementbalancing profit-taking with strategic new entries. His approach, rooted in Graham's teachings, continues to emphasize long-term value over short-term market noise, a philosophy that has served him well since 1986.

Vitesse Energy’s second quarter results outperformed Wall Street’s expectations, driven by effective capital allocation and the integration of recent acquisitions, despite a year-on-year decline in oil production. Management emphasized the resilience of its dividend strategy, supported by disciplined reinvestment and hedging programs. CEO Jamie Benard highlighted that the company’s approach to dividend sustainability remains unchanged, stating, “Our priorities are what they've always been, pay a durable dividend funded by free cash flow, allocate capital only where returns exceed our hurdle rates, and maintain a strong, conservative balance sheet.” Is now the time to buy VTS? Find out in our full research report (it’s free). Revenue: $91 million vs analyst estimates of $84.12 million (11.3% year-on-year growth, 8.2% beat) EPS (GAAP): $0.77 vs analyst estimates of $0.06 (significant beat) Adjusted EBITDA: $55.69 million vs analyst estimates of $40.03 million (61.2% margin, 39.1% beat) Operating Margin: 22.9%, in line with the same quarter last year Oil production: down -16% year on year Market Capitalization: $665.2 million While we enjoy listening to the management’s commentary, our favorite part of earnings calls is the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. Jeffrey Grampp (Northland Capital Markets) asked about updates on operated activity and whether this influenced the narrowing of capital expenditure guidance. CEO Jamie Benard responded that Vitesse is actively evaluating operated acreage and potential partnerships for extended laterals, with more details forthcoming. Jeffrey Grampp (Northland Capital Markets) requested details on near-term development and producing property acquisitions given volatile commodity markets. Director Ben Messier explained that near-term development acquisitions have become more competitive, but Vitesse maintains strict return hurdles and leverages its data advantage for larger producing property purchases. Noel Parks (Tuohy Brothers) inquired about the integration and future plans for the Powder River Basin acquisition. CEO Jamie Benard and CFO James Henderson emphasized ongoing evaluation of the asset’s potential and early positive performance, particularly due to alignment with major operators EOG and Continental. Noel Parks (Tuohy Brothers) asked for the operator profile of the Powder River Basin assets. CFO James Henderson confirmed that the package is primarily operated by larger companies, which Vitesse views as an advantage for stability and execution. No further analyst questions on the call. In the coming quarters, our analyst team will be watching (1) the pace at which Vitesse deploys capital into high-return drilling opportunities, especially in newly acquired basins; (2) the realized benefits from extended lateral drilling and integration of the Powder River Basin assets; and (3) ongoing effectiveness of the company’s hedging program in stabilizing cash flows. Successful execution on acquisitions and disciplined capital allocation will also be key signposts. Vitesse Energy currently trades at $15.87, up from $15.52 just before the earnings. Is there an opportunity in the stock? The answer lies in our full research report (it’s free for active Edge members). ALSO WORTH WATCHING: Top 5 Momentum Stocks. The best time to own a great stock is when the market is finally noticing it. These aren’t just high-quality businesses. Something is happening with them right now. Elite fundamentals meet near-term momentum — both boxes checked at the same time. Find out which stocks our AI platform is flagging this week. See this week’s Strong Momentum stocks — FREE. Get Our Strong Momentum Stocks for Free HERE. Stocks that have made our list include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+271% between June 2020 and June 2025). Find your next big winner with StockStory today.

Image source: The Motley Fool. Monday, Aug. 3, 2026 at 11:00 a.m. ET Director, Investor Relations and Business Development - Ben Messier Chief Executive Officer and President - Jamie Benard Chief Financial Officer - James Henderson Need a quote from a Motley Fool analyst? Email [email protected] Operator: Greetings. Welcome to the Vitesse Energy Second Quarter 2026 Earnings Call. [Operator Instructions] Please note this conference is being recorded. I will now turn the conference over to the Director, Investor Relations and Business Development at Vitesse, Ben Messier. You may begin. Ben Messier: Good morning, everyone, and thanks for joining. Today we will be discussing our second quarter 2026 results. Our 10-Q and earnings release were released yesterday after market close, and a newly redesigned investor presentation can be found on the Vitesse website. We encourage everyone to spend time with the new presentation. It lays out Vitesse's business model, capital allocation framework, and dividend philosophy in greater detail, and we will touch on many of these themes this morning. I'm joined this morning by our CEO and President, Jamie Benard, and our CFO, James Henderson. Before we begin, please be reminded that this call may contain estimates, projections, and other forward-looking statements within the meaning of the Federal Securities Laws. Forward-looking statements are subject to several risks and uncertainties, many of which are beyond our control. These risks and uncertainties can cause actual results to differ materially from our current expectations. Please review our earnings release and risk factors discussed in our filings with the SEC for additional information. In addition, today's discussion may reference non-GAAP financial measures. For reconciliation of historical non-GAAP financial measures to the most directly comparable GAAP measure, please reference our 10-Q and earnings release. Now, I will turn the call over to Vitesse's CEO and President, Jamie Benard. Jamie Benard: Thanks, Ben. Good morning, everyone, and thank you for joining today's call. I want to start this morning by addressing something directly. Over the past several months, following this year's resizing of our dividend and leadership transition, we've received a number of questions about whether Vitesse's strategy has changed. The answer is simple. It has not. Our priorities are what they've always been, pay a durable dividend funded by free cash flow, allocate capital only where returns exceed our hurdle rates, and maintain a strong, conservative balance sheet. I'd like to spend a few minutes this morning on why we have such conviction in this strategy. The commitment starts with the dividend, which is our primary use of cash. Last week, our Board declared a third-quarter cash dividend at an annualized rate of $1.75 per share. This marks the 15th consecutive quarter, every quarter since our January 2023 Spin-off, without interruption that we've declared a dividend, bringing the total cumulative dividends declared to $7.6375 per share. That's half our current share price returned to shareholders in under 4 years. I also want to be clear about how we think about the dividend, because it's the primary output of our entire business model, not a residual. We size the dividend at a level that Free Cash Flow can cover and allow for economic reinvestment. The current dividend was set with exactly that durability in mind, and every dollar of reinvestment we make is screened to support it. We then hedge to protect cash flows. After the dividend, we allocate capital strictly by rate of return. Priorities are organic CapEx on our existing acreage, then near-term drilling opportunities, then producing-property acquisitions. Throughout this process, we maintain a conservative balance sheet targeting a net debt-to-adjusted EBITDA ratio of less than 1x. Our organic acreage conversion continues to drive results and is our highest-return opportunity. As of June 30, 2026, we had 19.4 net wells in our development pipeline, including 6.4 net wells that were either drilling or completing, and another 13 net locations that had been permitted for development. Every well proposal is a stand-alone election underwritten at Strip Prices through Luminis, our proprietary data platform. And since 2023, 93% of the wells proposed on our acreage have cleared our return hurdles. We also consistently evaluate and underwrite opportunities for acquiring larger producing properties. Our combination of non-op expertise with operating capabilities provides enhanced flexibility in our investment strategy. We remain focused on pursuing only those opportunities that meet our rigorous return thresholds, are accretive to Net Asset Value and Distributable Cash Flow per share, and support the dividend. And we are selective at scale. Since 2013, Vitesse has closed 175 acquisitions comprised of both near-term development and 5 larger producing property acquisitions, in total representing roughly $800 million of acquisition spend. Because field-level work sits on our operating partners, new non-op assets integrate into Luminis without materially increasing G&A costs, thereby further driving shareholder value. This is the heart of the non-op model, it is why the business is built for durability. We own fractional interests in 7,868 productive wells across more than 30 leading operators in the Williston, Powder River, and DJ basins. An average working interest of roughly 3.6% per well. So, no single well can make or break Vitesse's results. And the returns have been there since 2022. Cash Return on Capital Invested has averaged approximately 14%, well above our weighted average cost of capital. The trend towards 3- and 4-mile laterals in the Williston Basin continues across our acreage, driving greater efficiencies. These extended laterals reduce cost-per-foot for well participation while delivering higher EURs. Year-to-date 2026, 3-mile or longer laterals constitute 69% of our AFEs, resulting in an average lateral length of nearly 15,000 feet, marking a 38% increase from 2022. On a per-foot basis, these longer laterals cost approximately 25% less than traditional 2-mile laterals, significantly enhancing capital efficiency. Just as important, longer laterals decline more slowly, which flattens out our corporate base decline, reducing the maintenance capital required to hold production flat and leaves more cash flow available for the dividend. And finally, our interests are aligned with yours. As shareholders ourselves, every capital allocation decision we make is guided by a single objective, creating durable long-term value per share through a sustainable dividend, disciplined capital allocation, and a strong balance sheet. I'll now turn the call over to our CFO, Jimmy Henderson. James Henderson: Good morning, everyone, and thanks, Jamie. I want to highlight just a few items from our financial results for the second quarter of 2026. You can refer to our earnings release and 10-Q, both of which were filed last night, for any further details. Production for the second quarter averaged 17,354 barrels of oil equivalent per day, a sequential increase of 9% from the first quarter, with a 60% oil cut. Oil production contributed 95% of total revenue in this quarter. These results include contributions from the Powder River Basin Acquisition that we closed early in April. For the quarter, adjusted EBITDA was $40.2 million, and we had Adjusted Net Income of $1.8 million. GAAP Net Income was $33.1 million, driven by a $40.2 million of unrealized hedging gains. As a reminder, this gain is due to the forward price of oil at June 30 and is a non-cash item. Despite the volatility of our Unrealized Gains and Losses, our cumulative realized hedge loss since Spin-off is less than 1% of total revenue during that period. Hedging creates a margin of safety around our dividend, which locks in a revenue floor through downturns in commodity prices. Free Cash Flow for the quarter was $16.3 million, after $21.1 million of development capital expenditures. With our hedge book now extending into 2029, we remain well-positioned to support our $1.75 annualized dividend. As for the balance sheet, we ended the quarter with a Total Debt of $158.5 million, putting Net Debt-to-Adjusted EBITDA at just less than 1x on a last-quarter annualized basis, which is in line with our target. Total liquidity before internal cash flows sits at roughly $117 million. I would also highlight the simplicity of our capital structure. It consists of our revolving credit facility and common shares. So no senior notes, no preferred stock, no convertibles. That simplicity is deliberate. It keeps the dividend protected and the balance sheet ready to act on opportunities. We also maintain a $60 million share-repurchase authorization, which provides some flexibility alongside the dividend. We have opportunistically layered on additional oil hedges through the end of 2029 at a weighted-average price of approximately $67, which is supportive to our dividend. For the remainder of 2026, we have approximately 70% of our oil production hedged through swaps and collars with a weighted-average floor of $63.57 and a ceiling of $66.53 per barrel. We have approximately half our 2026 natural-gas production hedged through collars with a weighted-average floor of $3.73 and a ceiling of $4.90 per MMBtu. Both percentages of hedged oil and natural gas volumes are based on our midpoint of the revised-annual guidance. We did revise our 2026 annual guidance for the remainder of the year by narrowing the ranges. Annual production has been narrowed to 16,300 to 17,200 Boe per day, with the tightened oil as a percentage of oil production now at 60% to 62%. We raised the bottom end of our total cash capital expenditure guidance, which now ranges from $65 million to $80 million for the year. Taken together, a hedge book extending into 2029, leverage at target, ample liquidity, and simple capital-structure, we believe Vitesse is well positioned to fund the dividend through the cycle. With that, let me pass the call back to the operator for your questions. Operator: [Operator Instructions] Our first question is from Jeff Grampp with Northland Capital Markets. Jeffrey Grampp: Hey, good morning, guys. I was curious, you know, last quarter, obviously, markets are dynamic and things can change from call to call given a few months' time. But you guys had mentioned operated activity as a potential vector for some organic growth CapEx. Any update there on contemplations there? And was that a factor at all with respect to the narrowing of the CapEx guide? Jamie Benard: Hey Jeff, this is Jamie. I'll take that one. Yes, on the operated piece for development, we are in the heat of evaluating that. You know, when we talk about extended laterals, that's obviously the optimal situation. So we're looking at acreage that is operated by others around us to see if there's partnering opportunities to extend those laterals. And so, more to come there, and it's very much in the works right now. Jeffrey Grampp: Understood. That makes a lot of sense. And my follow-up, first off, I have a new slide deck that you guys put up. You know, on slide, I think it's 10, that you guys kind of talk about different investment buckets. And just curious to get an update, maybe in particular buckets 3 and 4 for near-term development acquisitions and producing property acquisitions. Like what's the latest on those markets? Obviously, very volatile commodity markets. So I imagine underwriting dynamics kind of change day to day, but is that affecting your ability to transact or having an impact on timing of deals you're looking at? Just any kind of updates in those particular markets would be interesting. Ben Messier: Thanks, Jeff. Yes, I'm glad you like the slide deck. We put it out for that exact reason. We get a lot of questions over the last 2.5 years since being public around the different buckets where we allocate capital and wanted to be clear on the differences between each one and where we source them and how we underwrite them. I would say the near-term development acquisition market has gotten a little bit more competitive in the last year or two. You can just tell from the dollars we spend each year on acquisitions that we're not spending quite as much as we have in prior years. Big reason for that is we kept our return hurdles high there, and we're hesitant to adjust those downwards. To the extent we can buy near-term drilling, it's a really, really economic use of our capital. The producing property acquisitions, there was an article that came out about how deal flow slowed down in the second quarter. We did not find that to be true in the non-op specific part of the market. There were a lot of large packages that came to market in our backyard right after the Iran war started. So talking Powder River Basin, DJ Basin, Williston Basin, which obviously is where we have a lot of data with our Luminis system. And what's nice about these larger packages is they generate a lot of cash flow on day 1, and we tend to be able to buy those at sort of teens to low 20% free cash flow yields for the next few years. So obviously, very accretive to the dividend and coverage in general of that dividend. So that market has been very robust. I think there are some soft spots in that market that are less competitive than other basins. And we're doing everything we can do to exploit that advantage that we have in data, and cost of capital, and access to deal flow. Operator: [Operator Instructions] Our next question is from Noel Parks with Tuohy Brothers. Please proceed with your question. Noel Parks: Hi, good morning. I just wondered, with a full quarter now, a little more of the Powder River Basin acquisition under your belt, just wondered if you had any updated thoughts either in terms of maybe what you're most interested in pursuing out there, geologically, for example? And also if you have any sort of thoughts from sort of what's happening on the ground there as far as A&D? Jamie Benard: Good morning, this is Jamie. I'll address that one. As far as the Powder River Basin goes, as Jimmy touched on, we're excited to have that one. We're fully implementing those assets and evaluating under the different sensitivities and market prices where those things will go. Again, getting that cash flow in-house was a big hurdle for us and happy that's done. Now we're going to start looking at the AFEs that come in and what we want to do with those, so more to follow on the DJ, Powder River as well. James Henderson: Great. Obviously, just to add on to that, I would say, you know, we announced that Powder River Basin acquisition right around when the Iran war was starting. So underwritten at Strip Prices in the low $60s going into the $50s. So it's a little soon to do a full look-back analysis, but as we do that and running the Higher Strip, I mean that just looks like a very good deal at these prices and starting to see AFEs on that asset as we underwrite. So that acquisition is going as planned, given we're only 3 to 4 months in. But I think in general, we're targeting basins where we have the information. So again, Williston, Powder River, DJ, we look everywhere. We want the exposure to other basins, but just feel a little more likely to win larger deals in the basin where we have assets currently. Noel Parks: Sure, absolutely. And I think, I don't know actually if you've talked much about the operator profile of the assets you acquired there. Is it essentially the handful of larger guys who are active out there or more maybe smaller under the radar, not real familiar about what's going on out there on the private side? James Henderson: Yes, no, this is Jimmy. That package was definitely advantaged by primarily being operated by a couple of the bigger operators there, namely EOG and Continental. So very happy to be aligned with them and have them as partner operators on that asset. That's one of the reasons we liked it so much. Operator: There are no further questions at this time. This concludes the question and answer session. I'd like to turn the floor back over to Jamie Benard for closing comments. Jamie Benard: Well, thanks everyone for joining today. I just want to leave you with the same message we started with. Vitesse's strategy hasn't changed. We're going to remain committed to our core priorities, returning capital to stockholders through our durable dividend, disciplined capital allocation, identifying and pursuing accretive growth opportunities, and maintaining a strong and conservative balance sheet. If you have any questions, please don't hesitate to reach out to Ben Messier directly. We look forward to connecting with you on an upcoming investor event, including EnerCom Denver and the Midwest IDEAS Conference later this month, or during our next quarterly earnings call. Operator: This concludes today's teleconference. You may disconnect your lines at this time. Thank you for your participation. 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This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has positions in and recommends Vitesse Energy. The Motley Fool has a disclosure policy. Vitesse Energy (VTS) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

Interested in Vitesse Energy, Inc.? Here are five stocks we like better. Second-quarter production rose 9% sequentially to 17,354 BOE per day, helped by the Powder River Basin acquisition. Adjusted EBITDA was $40.2 million and free cash flow totaled $16.3 million after development spending. Vitesse maintained its strategy of funding a durable dividend with free cash flow and declared a third-quarter dividend at an annualized $1.75 per share. The company also kept leverage conservative, with net debt below one times adjusted EBITDA. The company narrowed its 2026 production guidance to 16,300–17,200 BOE per day and raised the low end of its full-year capital spending range to $65 million. Management remains selective on acquisitions while emphasizing longer laterals, which it says reduce costs and support future cash flow. Vitesse Energy (NYSE:VTS) said its second-quarter results reflected higher production following its early-April Powder River Basin acquisition, while management reiterated that its strategy remains centered on a free-cash-flow-funded dividend, return-focused investments and conservative leverage. Chief Executive Officer and President Jamie Benard addressed investor questions surrounding the company’s dividend resizing and leadership transition earlier this year, saying the company’s underlying strategy has not changed. → No Hangover: Revisiting Microsoft One Week After Earnings “Our priorities are what they’ve always been, pay a durable dividend funded by free cash flow, allocate capital only where returns exceed our hurdle rates, and maintain a strong conservative balance sheet,” Benard said. Vitesse’s board last week declared a third-quarter cash dividend at an annualized rate of $1.75 per share. Benard said the declaration marked the company’s 15th consecutive quarterly dividend since its January 2023 spin-off. Cumulative dividends declared have totaled $7.6375 per share, he said. → MarketBeat Week in Review – 08/03 - 08/07 Chief Financial Officer Jimmy Henderson said second-quarter production averaged 17,354 barrels of oil equivalent per day, up 9% sequentially from the first quarter. Oil represented 60% of production and contributed 95% of total revenue during the quarter. The results included contributions from the Powder River Basin acquisition completed in early April, Henderson said. Adjusted EBITDA totaled $40.2 million. Adjusted net income was $1.8 million. GAAP net income was $33.1 million, including $40.2 million in unrealized hedging gains. Free cash flow was $16.3 million after $21.1 million of development capital expenditures. → Why the Landlord of the AI Boom Could Outlast the Chipmakers Henderson said the unrealized hedging gain was a non-cash item tied to forward oil prices as of June 30. He added that Vitesse’s cumulative realized hedge loss since its spin-off has been less than 1% of revenue over that period. Management described hedging as a means of protecting the company’s cash flows and dividend through commodity-price downturns. The company’s hedge book now extends into 2029. Vitesse narrowed its 2026 production outlook to a range of 16,300 to 17,200 BOE per day. The company also tightened its oil mix outlook to 60% to 62% of production. The company raised the bottom end of its total cash capital expenditure guidance, which now calls for $65 million to $80 million in spending for the full year. For the remainder of 2026, Vitesse has approximately 70% of anticipated oil production hedged through swaps and collars, with a weighted average floor price of $63.57 per barrel and a ceiling of $66.53 per barrel. About half of expected natural gas output is hedged through collars with a weighted average floor of $3.73 per MMBtu and a ceiling of $4.90 per MMBtu, according to Henderson. The company ended the quarter with $158.5 million of total debt and net debt to adjusted EBITDA of just under one times on a last-quarter annualized basis. That is in line with its leverage target of less than one times, Henderson said. Total liquidity before internal cash flows was approximately $117 million. Benard said Vitesse had 19.4 net wells in its development pipeline as of June 30, including 6.4 net wells being drilled or completed and 13 net permitted locations. The company evaluates each well proposal as a standalone investment through its Luminis data platform, underwriting opportunities using strip prices. Since 2023, 93% of wells proposed on Vitesse acreage have met the company’s return requirements, according to Benard. Management also highlighted the increasing use of three- and four-mile laterals in the Williston Basin. Year to date, wells with laterals of three miles or more represented 69% of Vitesse’s authorizations for expenditure, producing an average lateral length of nearly 15,000 feet, up 38% from 2022. Benard said these longer laterals cost approximately 25% less per foot than traditional two-mile laterals while offering higher estimated ultimate recoveries and slower declines. Those factors can lower maintenance capital needs and leave more cash flow available for dividends, he said. During the question-and-answer session, Director of Investor Relations and Business Development Ben Messier said the market for near-term development acquisitions has become more competitive over the past one to two years. Vitesse has maintained its return thresholds rather than lowering them to pursue more deals, he said. Messier said the market for larger producing-property acquisitions in Vitesse’s core operating areas has remained robust. The company focuses on assets in the Williston, Powder River and DJ basins, where it has accumulated data through its Luminis platform. He said larger producing-property packages can provide cash flow immediately and have generally been available at free-cash-flow yields in the teens to low 20% range for the next several years. Vitesse has completed 175 acquisitions since 2013, representing about $800 million in aggregate acquisition spending, according to Benard. The company owns fractional interests in 7,868 productive wells operated by more than 30 operators across the Williston, Powder River and DJ basins. Regarding the recently acquired Powder River assets, Henderson said the package is primarily operated by EOG and Continental. Management said the acquisition was performing as expected in its first several months, with the company beginning to receive and evaluate drilling proposals associated with the assets. Vitesse Energy (NYSE: VTS) is an independent exploration and production company primarily focused on onshore oil and gas assets in the United States. Headquartered in Calgary, Alberta, the company identifies, acquires and develops low-decline, shallow to intermediate depth vertical wells, targeting predictable production profiles and stable cash flows. Vitesse leverages a lean operational model to optimize well performance and reduce unit operating costs across its asset base. The company’s core operations are concentrated in the Arkoma Basin of eastern Oklahoma and the Ark-La-Tex region, where it holds acreage positions in multiple formations. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Vitesse Energy Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

This article first appeared on GuruFocus. Production: Averaged 17,354 barrels of oil equivalent per day in Q2 2026, a sequential increase of 9% from Q1, with a 60% oil cut. Revenue Contribution: Oil production contributed 95% of total revenue in the quarter. Adjusted EBITDA: $40.2 million for the quarter. Adjusted Net Income: $1.8 million for the quarter. GAAP Net Income: $33.1 million, driven by $40.2 million of unrealized hedging gains. Free Cash Flow: $16.3 million for the quarter, after $21.1 million of development capital expenditures. Development Capital Expenditures: $21.1 million in Q2 2026. Total Debt: $158.5 million at quarter end, with net debt to adjusted EBITDA at just less than 1 times. Liquidity: Approximately $117 million before internal cash flows. Dividend: Declared a third quarter cash dividend at an annualized rate of $1.75 per share, marking the 15th consecutive quarter. Cumulative Dividends: Total cumulative dividends declared of $7.6375 per share since the January 2023 spin-off. 2026 Annual Production Guidance: Narrowed to 16,300 to 17,200 BOE per day. 2026 Oil Production Guidance: Tightened to 60% to 62% of total production. 2026 Total Cash Capital Expenditure Guidance: Raised bottom end, now ranging from $65 million to $80 million. Hedging: Approximately 70% of 2026 oil production hedged through swaps and collars with a weighted average floor of $63.57 and ceiling of $66.53 per barrel; approximately half of 2026 natural gas production hedged with a weighted average floor of $3.73 and ceiling of $4.90 per MMBTU. Warning! GuruFocus has detected 7 Warning Signs with VTS. High Yield Dividend Stocks in Gurus' Portfolio This Powerful Chart Made Peter Lynch 29% A Year For 13 Years How to calculate the intrinsic value of a stock? Is VTS fairly valued? Test your thesis with our free DCF calculator. Release Date: August 04, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Vitesse Energy Inc (NYSE:VTS) has maintained a durable dividend, declaring its 15th consecutive quarterly dividend at an annualized rate of $1.75 per share, with cumulative dividends of $7.6375 per share since its 2023 spin-off. The company's organic acreage conversion is driving results, with 19.4 net wells in its development pipeline and 93% of proposed wells clearing return hurdles since 2023. Extended laterals (three-mile or longer) now constitute 69% of AFEs year-to-date 2026, reducing costs per foot by approximately 25% and enhancing capital efficiency. The Powder River Basin acquisition, closed in April 2026, contributed to a 9% sequential production increase, with production averaging 17,354 BOE per day in Q2 2026. Vitesse Energy Inc (NYSE:VTS) maintains a strong balance sheet with net debt to adjusted EBITDA below 1x, ample liquidity of $117 million, and a simple capital structure with no senior notes or preferred stock. The company has extended its hedge book into 2029, with approximately 70% of 2026 oil production hedged at a weighted average floor of $63.57 per barrel, supporting dividend coverage. Since 2022, cash return on capital invested has averaged approximately 14%, well above the weighted average cost of capital, demonstrating strong returns. Adjusted net income was only $1.8 million in Q2 2026, indicating lower profitability despite strong production, partly due to hedging losses and capital expenditures. The company revised its 2026 annual production guidance downward to a range of 16,300 to 17,200 BOE per day, reflecting a more conservative outlook. Total cash capital expenditure guidance was raised at the bottom end to $65 million to $80 million, potentially reducing free cash flow available for dividends. The near-term development acquisition market has become more competitive, leading to reduced acquisition spending and higher return hurdles, which may limit growth opportunities. The company's dividend was resized earlier in 2026, and leadership transition has raised questions about strategy, though management reaffirms its commitment to the current approach. The Powder River Basin acquisition was underwritten at low oil prices (low $60s to $50s), and with higher strip prices, it may not yield the expected returns, though it is still early to assess. The company's reliance on non-operated assets means it has limited control over operators' activities, which could impact well performance and capital efficiency. Q: Can you provide an update on the potential for operated organic growth CapEx, and was this a factor in narrowing the capital expenditure guidance?A: Jamie Benard, President and CEO, confirmed that the company is actively evaluating operated development opportunities, particularly focusing on acreage operated by others to explore partnering opportunities that could extend lateral lengths. He noted this is "very much in the works right now" and more details will be provided as the evaluation progresses. Q: What is the latest on the near-term development acquisition and producing property acquisition markets, and how are volatile commodity prices affecting your ability to transact?A: Ben Messier, Director of IR and Business Development, noted that the near-term development acquisition market has become more competitive, leading the company to maintain high return hurdles and reduce spending in this area. However, the producing property acquisition market has remained robust, with large packages coming to market in the Williston, Powder River, and DJ Basins. These larger deals generate significant day-one cash flow and offer free cash flow yields in the low-to-mid 20% range, making them highly accretive to the dividend. Q: With a full quarter of the Powder River Basin acquisition under your belt, what are your updated thoughts on geological targets and the A&D landscape in that region?A: Jamie Benard stated that the company is fully implementing the acquired assets and evaluating them under different market price sensitivities. Ben Messier added that the acquisition was underwritten at strip prices in the low $60s, and with higher current prices, it looks like a very good deal. The company is now starting to see AFEs on the asset, and the acquisition is progressing as planned. Q: What is the operator profile of the assets acquired in the Powder River Basin?A: James Henderson, CFO, revealed that the package is primarily operated by two of the larger operators in the region, EOG and Continental. The company is very pleased to be aligned with these operators, which was a key reason for pursuing the acquisition. Q: How does the company view its dividend strategy and capital allocation framework in light of recent leadership changes and the dividend resizing?A: Jamie Benard emphasized that the company's strategy has not changed. The priorities remain paying a durable dividend funded by free cash flow, allocating capital only where returns exceed hurdle rates, and maintaining a strong, conservative balance sheet. The dividend is the primary output of the business model, not a residual, and every reinvestment dollar is screened to support it. Q: Can you elaborate on the company's hedging strategy and how it protects the dividend?A: James Henderson explained that the company has layered on additional oil hedges through the end of 2029 at a weighted average price of approximately $67. For the remainder of 2026, approximately 70% of oil production is hedged with a weighted average floor of $63.57 and a ceiling of $66.53. This hedging creates a margin of safety around the dividend, locking in a revenue floor through commodity price downturns. Q: What were the key financial highlights for the second quarter of 2026?A: James Henderson reported that production averaged 17,354 BOE per day, a 9% sequential increase, with a 60% oil cut. Adjusted EBITDA was $40.2 million, and free cash flow was $16.3 million after $21.1 million in development capital expenditures. The company ended the quarter with total debt of $158.5 million, keeping net debt to adjusted EBITDA at just under 1x. Q: How are extended laterals impacting the company's capital efficiency and production decline rates?A: Jamie Benard highlighted that three-mile or longer laterals now constitute 69% of AFEs year-to-date, with an average lateral length of nearly 15,000 feet, a 38% increase from 2022. These longer laterals cost approximately 25% less per foot than traditional two-mile laterals, significantly enhancing capital efficiency. Additionally, they decline more slowly, which flattens the corporate base decline and reduces maintenance capital requirements. Q: What is the company's current development pipeline and how does it underwrite new wells?A: Jamie Benard stated that as of June 30, 2026, the company had 19.4 net wells in its development pipeline, including 6.4 net wells drilling or completing and 13 net permitted locations. Every well proposal is a standalone election underwritten at strip prices through Luminous, the company's proprietary data platform. Since 2023, 93% of proposed wells have cleared the company's return hurdles. Q: Can you provide details on the company's balance sheet and liquidity position?A: James Henderson emphasized the simplicity of the capital structure, which consists solely of a revolving credit facility and common shares, with no senior notes, preferred stock, or convertibles. Total liquidity sits at roughly $117 million, and the company maintains a $60 million share repurchase authorization. This simplicity is deliberate, keeping the dividend protected and the balance sheet ready to act on opportunities. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Management emphasized that the corporate strategy remains unchanged following a leadership transition, prioritizing a durable dividend funded by free cash flow and a conservative balance sheet. The dividend is viewed as the primary output of the business model rather than a residual, sized specifically to allow for both shareholder returns and economic reinvestment. Operational efficiency is being driven by a shift toward 3- and 4-mile laterals, which now constitute 69% of year-to-date authorizations for expenditure (AFEs). Extended laterals have reduced well participation costs by approximately 25% on a per-foot basis compared to traditional 2-mile laterals while delivering higher estimated ultimate recoveries (EURs). The non-operated model is designed for durability through diversification, with fractional interests in 7,868 wells across more than 30 operators, ensuring no single well significantly impacts results. Proprietary data platform Luminis allows for the integration of new assets without materially increasing general and administrative (G&A) costs. Management maintains a strict capital allocation hierarchy, prioritizing organic CapEx on existing acreage followed by near-term drilling and producing-property acquisitions. Revised 2026 annual production guidance has been narrowed to 16,300 to 17,200 Boe per day, with oil expected to comprise 60% to 62% of total production. The bottom end of the total cash capital expenditure guidance was raised, now ranging from $65 million to $80 million for the full year. Management is actively evaluating partnering opportunities with adjacent operators to extend lateral lengths on acreage where Vitesse holds operating rights. The hedge book has been extended into 2029, with approximately 70% of remaining 2026 oil production protected by swaps and collars to provide a 'margin of safety' for the dividend. Longer laterals are expected to flatten the corporate base decline over time, reducing the maintenance capital required to hold production levels flat. Net debt-to-adjusted EBITDA is maintained at just less than 1x, consistent with the company's long-term leverage target. The capital structure remains intentionally simple, consisting only of a revolving credit facility and common shares, with no senior notes or preferred stock. A $60 million share-repurchase authorization remains in place to provide financial flexibility alongside the primary dividend commitment. The Powder River Basin acquisition, closed in April, contributed to a 9% sequential increase in production for the second quarter. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management is currently evaluating acreage operated by others to identify partnering opportunities that would allow for the drilling of extended laterals. This evaluation is a key focus for the development team, though specific timelines for new operated projects were not disclosed. The market for near-term development has become more competitive, leading Vitesse to spend less in this category to maintain high return hurdles. Conversely, the market for larger producing property packages remains robust, particularly in the Williston, Powder River, and DJ basins. Management noted they are finding opportunities to acquire these larger packages at free cash flow yields in the teens to low 20% range. The recently acquired Powder River Basin assets are primarily operated by large players including EOG and Continental. Management expressed high confidence in the deal's economics, noting it was underwritten at strip prices in the $50s and $60s, making it highly accretive at current market rates.

GREENWOOD VILLAGE, Colo., August 03, 2026--(BUSINESS WIRE)--Vitesse Energy, Inc. (NYSE: VTS) ("we," "our," "Vitesse," or the "Company") today reported the Company’s second quarter 2026 financial and operating results. SECOND QUARTER 2026 HIGHLIGHTS As previously announced, declared a quarterly cash dividend of $0.4375 per common share to be paid on September 30, 2026 Net income of $33.1 million and Adjusted Net Income(1) of $1.8 million, including a non-cash unrealized gain on commodity derivatives of $40.2 million Adjusted EBITDA(1) of $40.2 million Cash flow from operations of $25.4 million and Free Cash Flow(1) of $16.3 million Production of 17,354 barrels of oil equivalent ("Boe") per day (60% oil) Total cash capital expenditures of $20.7 million Total debt of $158.5 million and Net Debt to Adjusted EBITDA ratio(1) of 1.0 (1) Non-GAAP financial measure; see reconciliation schedules at the end of this release MANAGEMENT COMMENTS "In the second quarter, Vitesse’s capital allocation strategy continued to deliver results, with production increasing 9% from the previous quarter following the successful integration of the Powder River Basin assets acquired in April," stated Jamie Benard, Vitesse’s Chief Executive Officer and President. "While we’ve received a number of questions about whether Vitesse’s strategy has changed, the answer is simple: it has not. We will continue to prioritize a durable fixed dividend, allocate capital only where returns exceed our hurdle rates and maintain a strong balance sheet. With our third quarter dividend now declared, Vitesse has returned capital to stockholders for fifteen consecutive quarters since becoming a public company." STOCKHOLDER RETURNS On July 29, 2026, Vitesse declared its third quarter cash dividend of $0.4375 per share for stockholders of record as of September 15, 2026, which will be paid on September 30, 2026. On June 30, 2026, the Company paid its second quarter cash dividend of $0.4375 per share to common stockholders of record as of June 15, 2026. FINANCIAL AND OPERATING RESULTS Second quarter net income was $33.1 million and Adjusted Net Income was $1.8 million. Adjusted EBITDA was $40.2 million. See "Non-GAAP Financial Measures" below. Oil and natural gas production for the second quarter of 2026 averaged 17,354 Boe per day, a sequential increase of 9% from the first quarter of 2026. Oil represented 60% of production and 95% of total oil and natural gas revenue. Total revenue, including the effects of our realized hedges, was $72.8 million. Vitesse’s average realized oil and natural gas prices before hedging were $91.98 per Bbl and $1.17 per Mcf, respectively, during the second quarter of 2026. The Company had hedges covering 84% of oil production and its realized oil price with hedging was $71.14 per Bbl. Its realized natural gas price with hedging was $1.55 per Mcf. Lease operating expenses in the second quarter of 2026 were $18.0 million, or $11.38 per Boe. General and administrative expenses totaled $6.2 million, or $3.89 per Boe. LIQUIDITY AND CAPITAL EXPENDITURES As of June 30, 2026, Vitesse had $0.9 million in cash and $158.5 million of borrowings outstanding on its revolving credit facility. Vitesse had total liquidity of $117.4 million as of June 30, 2026, consisting of cash and $116.5 million of committed borrowing availability under its revolving credit facility. During the second quarter of 2026, Vitesse invested $21.1 million in development capital expenditures and acquired $0.7 million of oil and gas properties. Vitesse also recorded a $1.1 million purchase price adjustment received on the Powder River Basin Acquisition in the second quarter of 2026. OPERATIONS UPDATE As of June 30, 2026, the Company owned an interest in 305 gross (6.4 net) wells that were either drilling or in the completion phase, and another 363 gross (13.0 net) locations that had been permitted for development. REVISED 2026 ANNUAL GUIDANCE Vitesse tightened its 2026 annual guidance in response to second quarter results and recent market conditions as set forth below: SECOND QUARTER 2026 RESULTS The following table sets forth selected financial and operating data for the periods indicated. COMMODITY HEDGING Vitesse hedges a portion of its expected oil and natural gas production volumes to increase the predictability and certainty of its cash flow and to help maintain a strong financial position to support its dividend. Based on the midpoint of its revised 2026 guidance, Vitesse has approximately 70% of its remaining 2026 oil production hedged and approximately 48% of its remaining 2026 two-stream natural gas production hedged through its natural gas and natural gas liquids hedges. The following tables summarize Vitesse’s open commodity derivative contracts scheduled to settle after June 30, 2026. Crude oil swaps: Crude oil collars: Natural gas collars: Natural gas basis swaps: Natural gas liquids swaps: The following table presents Vitesse’s settlements on commodity derivative instruments and unsettled gains and losses on open commodity derivative instruments for the periods presented: SECOND QUARTER 2026 EARNINGS CONFERENCE CALL In conjunction with Vitesse’s release of its financial and operating results, investors, analysts and other interested parties are invited to listen to a conference call with management on Tuesday, August 4, 2026 at 11:00 a.m. Eastern Time. An updated corporate slide presentation that may be referenced on the conference call will be posted prior to the conference call on Vitesse’s website, www.vitesse-vts.com, in the "Investor Relations" section of the site, under "News & Events," sub-tab "Presentations." Those wishing to listen to the conference call may do so via the Company’s website or by phone as follows: Website: https://event.choruscall.com/mediaframe/webcast.html?webcastid=GpKD5XwJ Dial-In Number: 877-407-0778 (US/Canada) and +1 201-689-8565 (International) Conference ID: 13761677 - Vitesse Energy Second Quarter 2026 Earnings Call Replay Dial-In Number: 877-660-6853 (US/Canada) and +1 201-612-7415 (International) Replay Access Code: 13761677 - Replay will be available through August 11, 2026 UPCOMING INVESTOR EVENTS Vitesse management will participate in the following upcoming investor events: EnerCom Denver Energy Conference - Denver - August 18-19, 2026 Midwest IDEAS Conference - Chicago - August 27, 2026 Any investor presentations to be used for this event will be posted prior to the event on Vitesse’s website, www.vitesse-vts.com, in the "Investor Relations" section of the site, under "News & Events," sub-tab "Presentations." ABOUT VITESSE ENERGY, INC. Vitesse Energy, Inc. is focused on returning capital to stockholders through owning financial interests predominantly as a non-operator in oil and gas wells drilled by leading U.S. 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 and the Securities Exchange Act of 1934. All statements other than statements of historical facts included in this release regarding Vitesse’s financial position, operating and financial performance, business strategy, dividend plans and practices, guidance, plans and objectives of management for future operations, and industry conditions are forward-looking statements. When used in this release, forward-looking statements are generally accompanied by terms or phrases such as "estimate," "project," "predict," "believe," "expect," "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 and sales, market size, collaborations, and trends 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 acquisitions, including the Powder River Basin Acquisition, 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 the Dakota Access Pipeline; the impact of general economic or industry conditions, nationally and/or in the communities in which Vitesse conducts business; changes in the interest rate environment, legislation or regulatory requirements; changes in U.S. trade policy, including the imposition of and changes in tariffs and resulting consequences; 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 continued hostilities in the Middle East, including conflict with Iran and disruption to key maritime shipping routes in the region, the conflict in Ukraine and developments in Venezuela) or terrorism, and other economic, competitive, governmental, regulatory and technical factors affecting Vitesse’s operations, products and prices. Additional information concerning potential factors that could affect future results is included in the section entitled "Item 1A. Risk Factors" and other sections of Vitesse’s Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Q, as updated from time to time in amendments and subsequent reports filed with the SEC, which describe factors that could cause Vitesse’s actual results to differ from those set forth in the forward-looking statements. 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. FINANCIAL INFORMATION NON-GAAP FINANCIAL MEASURES Vitesse defines Adjusted Net Income (Loss) as net income (loss) before (i) non-cash gains and losses on unsettled derivative instruments, (ii) non-cash equity-based compensation, (iii) provision for (Benefit from) income taxes, and (iv) certain other items such as material general and administrative costs, reduced by the estimated impact of income tax expense. Net Debt is calculated by deducting cash on hand from the amount outstanding on our revolving credit facility as of the balance sheet or measurement date. Adjusted EBITDA is defined as net income (loss) before expenses for interest, income taxes, depletion, depreciation, amortization and accretion, and excludes non-cash equity-based compensation and non-cash gains and losses on unsettled derivative instruments in addition to certain other items such as material transaction and general and administrative costs. Vitesse defines Free Cash Flow as cash flow from operations, adjusting for changes in operating assets and liabilities in addition to certain other items such as material general and administrative costs, less development of oil and gas properties. Management believes the use of these non-GAAP financial measures provides useful information to investors to gain an overall understanding of financial performance. Specifically, management believes the non-GAAP financial measures included herein provide useful information to both management and investors by excluding certain items that management believes are not indicative of Vitesse’s core operating results. In addition, these non-GAAP financial measures are used by management for budgeting and forecasting as well as subsequently measuring Vitesse’s performance, and management believes it is providing investors with financial measures that most closely align to its internal measurement processes. A reconciliation of each of the non-GAAP financial measures to the most directly comparable GAAP measure is included below. View source version on businesswire.com: https://www.businesswire.com/news/home/20260803109813/en/ Contacts INVESTOR AND MEDIA CONTACT Ben Messier, CFADirector – Investor Relations and Business Development(720) [email protected]