Vitesse Energy Reports 6% Revenue Growth, Net Income Turnaround in Q3 2024

Vitesse Energy, Inc. reported significant financial improvements in its third quarter and year-to-date results for 2024, as detailed in its recent 10-Q filing. For the three months ended September 30, 2024, the company generated revenue of $58.3 million, a 6% increase from $55.1 million in the same period of 2023. Oil revenue specifically rose to $56.2 million, up 5% from $53.3 million year-over-year. For the nine months ended September 30, 2024, total revenue reached $186.1 million, reflecting a 13% increase compared to $164.6 million in the prior year.

The company’s profitability also saw a marked turnaround. Vitesse reported a net income of $17.4 million for Q3 2024, compared to a net loss of $1.5 million in Q3 2023. For the nine-month period, net income was $26.2 million, a significant recovery from a net loss of $41.5 million in the same timeframe last year. This improvement was attributed to increased oil production, which rose by 20% to 2,481 MBbls, and a notable commodity derivative gain of $3.9 million, reversing a loss of $4.9 million in the previous year.

The company’s cash position strengthened considerably, with cash increasing to $2.4 million as of September 30, 2024, up from $552,000 at the end of 2023. Total assets also grew to $791.2 million, compared to $766.0 million at the end of the previous fiscal year. However, total liabilities increased to $270.9 million from $219.6 million, primarily due to a rise in accounts payable and a higher credit facility balance, which stood at $105 million.

Vitesse Energy continued its strategic focus on acquisitions, spending $20.7 million on proved oil and gas properties during the nine months ended September 30, 2024, slightly down from $21.8 million in the same period of 2023. The company also maintained a robust hedging strategy, with approximately 63% of oil volumes covered by financial hedges in Q3 2024, resulting in a realized gain on oil derivatives of $1.4 million.

Operationally, the company reported production of 13,009 BOE/day for Q3 2024, with 68% of this production coming from oil. Lease operating expenses decreased to $9.71 per BOE, attributed to reduced workover costs and a higher percentage of production from newer wells. General and administrative expenses rose to $5.2 million, driven by increased legal and employee-related costs.

Overall, Vitesse Energy's financial performance in 2024 reflects a significant recovery and growth trajectory, supported by strategic acquisitions and operational efficiencies.