Executive Summary

Q1 2025 delivered an EPS beat vs S&P Global consensus but a revenue and EBITDA miss; Primary EPS normalized came in at $0.23 vs $0.18 consensus, while revenue was $60.4M vs $65.1M and EBITDA $36.4M vs $39.6M, reflecting commodity volatility and elevated G&A from acquisition and litigation costs *. Values retrieved from S&P Global.
Production averaged 14,971 Boe/d (+16% q/q), at the top end of guidance; management reaffirmed a fixed dividend at an annual rate of $2.25 per share, highlighting capital return durability .
2025 guidance was revised: CapEx midpoint cut ~32%, production midpoint reduced ~9%, and range widened; Vitesse deferred completion of 2 gross (1.9 net) operated DUCs and walked away from ~$20M of planned acquisitions given pricing dynamics .
Strategic catalyst: Lucero acquisition closed March 7, 2025, expanding operated optionality and a larger development pipeline; management emphasized flexibility to pivot spending, pursue “chunky” deals, and protect the dividend amid volatile oil prices .

What Went Well and What Went Wrong

What Went Well

Production and cash generation: Q1 production of 14,971 Boe/d was at the top end of guidance and +16% q/q; adjusted EBITDA was $39.9M and adjusted net income $8.0M, supporting dividend coverage .
Operated optionality post-Lucero: Closing Lucero added operated wells and permitted locations; management can “toggle” activity and defer completions to optimize returns .
Hedging discipline: ~61% of remaining 2025 oil hedged at $70.75/bbl and ~30% of 2025 gas hedged at a $3.73/MMBtu floor; added 2026 hedges and initiated NGL hedges to increase cash flow certainty .

Selected management quotes:

“Our low leverage, disciplined hedging strategy, and foundational asset base provide us the flexibility to navigate market volatility.” — CEO Bob Gerrity .
“We proactively decided to defer the completion of these drilled but uncompleted wells due to recent commodity price volatility.” — President Brian Cree .

What Went Wrong

Revenue/EBITDA miss vs consensus: Despite company-reported total revenue of $66.2M, S&P Global “Revenue” actual tracked at $60.4M vs $65.1M consensus; EBITDA $36.4M vs $39.6M, reflecting price headwinds and timing *. Values retrieved from S&P Global.
Elevated G&A: Q1 G&A was $12.1M ($9.00/Boe), including $4.6M one-time Lucero costs and ~$1.6M litigation spend; excluding these, G&A was $4.38/Boe, indicating temporary pressure .
Price mix headwind: Average realized oil price before hedging declined 9% y/y to $64.18/bbl, while combined realized price per Boe fell 8–9% y/y; LOE increased 17% y/y in absolute terms (flat per Boe) .

Financial Results

Actuals vs Prior Year and Prior Quarter

Metric	Q1 2024	Q4 2024	Q1 2025
Revenue ($USD Millions)	$61.19	$59.80	$66.17
Diluted EPS (GAAP) ($)	$(0.07)	$(0.17)	$0.08

Notes: Q4 2024 EPS presented from GetFinancials is $(0.17)* if not explicitly disclosed in the Q4 8-K line items. Values retrieved from S&P Global.

Margins and EBITDA

Metric	Q1 2024	Q4 2024	Q1 2025
EBITDA ($USD Millions)	$22.80*	$24.86*	$36.37*
EBITDA Margin (%)	41.16%*	48.76%*	60.22%*
EBIT Margin (%)	(1.35%)*	(3.28%)*	16.24%*
Net Income Margin (%)	(3.95%)*	(10.05%)*	4.42%*

Values retrieved from S&P Global.

Segment Breakdown (Revenue)

Metric	Q1 2024	Q1 2025
Oil Revenue ($USD Millions)	$57.36	$58.93
Natural Gas Revenue ($USD Millions)	$3.83	$7.25
Total Revenue ($USD Millions)	$61.19	$66.17

KPIs

KPI	Q1 2024	Q4 2024	Q1 2025
Production (Boe/d)	12,557	12,945	14,971
Oil % of Production	—	68%	68%
Realized Oil Price (pre-hedge, $/Bbl)	$70.62	$64.78	$64.18
Realized Oil Price (with hedges, $/Bbl)	$71.65	$69.51	$64.93
LOE ($/Boe)	$10.32	$10.00	$10.28
G&A ($/Boe)	$4.70	$6.87 (incl. Lucero costs)	$9.00 (incl. $4.6M Lucero and ~$1.6M litigation)
DD&A+Accretion ($/Boe)	$20.61	$—	$19.72
Net Debt ($USD Millions)	—	$114.03	$112.51
Net Debt / Adjusted EBITDA (x)	—	0.73	0.71

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Annual Production (Boe/d)	FY 2025	17,000–18,000	15,000–17,000	Lowered (~9% at midpoint)
Oil % of Production	FY 2025	66%–70%	64%–68%	Widened/lowered range
Total Cash CapEx ($M)	FY 2025	$130–$150	$80–$110	Lowered (~32% midpoint)
Operated DUC Completions	FY 2025	Complete 2 gross (1.9 net)	Deferred 2 gross (1.9 net)	Deferred
Incremental Acquisitions	FY 2025	~$20M baked in	Elected not to close ~$20M in April; base ~$10M now	Reduced near term

Earnings Call Themes & Trends

Topic	Q3 2024 (Prior-2)	Q4 2024 (Prior-1)	Q1 2025 (Current)	Trend
Capital discipline & returns	Revised 2024 guidance, lowered CapEx; cash flow covered dividend + capex	Strategy: fixed dividend, allocate to highest-return projects; no fixed budget	CapEx cut ~32%, widened guidance; deferrals to preserve economics	Heightened discipline amid volatility
Hedging strategy	Oil swaps; no gas hedges yet	53% oil hedged 2025; added gas collars and basis swaps	~61% oil and ~30% gas hedged for 2025; added NGL hedges; 2026 hedges in place	Expanded and diversified hedges
Dividend policy	Quarterly dividend maintained; $0.525/share	Dividend increased to $0.5625; annualized $2.25; “product is our dividend”	Dividend reaffirmed; willingness to flex balance sheet within facility covenants	Confidence and commitment maintained
Operated vs non-op portfolio	Non-op focus; pipeline of wells	Lucero closes; operated optionality; broader acquisition lens (incl. gas)	Operated DUCs deferred; integration performing as underwritten	Operated optionality used tactically
Acquisition pipeline	Ground game with near-term development	“Chunky” deal flow rising; broaden basins; leverage Luminis analytics	Turned down $20M deal; still underwriting ~$10M base; ready to act if economics fit	Opportunistic, price-sensitive
Costs/AFEs	LOE per Boe improved q/q	Timing drove lumpiness; CapEx weighted H1	2-mile AFE down ~5%; 3-mile down ~8%; seeing 4-mile laterals increase	Efficiency tailwinds emerging
Infrastructure & takeaway	—	Bakken oil takeaway strong; gas/NGL capacity adequate but could improve	Similar commentary; no major constraints highlighted	Stable infrastructure backdrop
Legal/regulatory	DAPL dispute cited as risk in forward-look	DAPL and macro risks reiterated	Litigation expenses (~$1.6M) as plaintiff, tapering post-Q2	Ongoing but manageable

Management Commentary

“Our objective is to invest money at the highest rates of return possible, which allows us to return capital to our shareholders through all cycles… the Board… maintained our dividend at an annual rate of $2.25 per share.” — CEO Bob Gerrity .
“Production… averaged just under 15,000 Boe/d… we proactively decided to defer the completion of these drilled but uncompleted wells due to recent commodity price volatility.” — President Brian Cree .
“We are revising guidance for 2025… This wider guidance reflects a 32% reduction in CapEx… with only a 9% decline in production.” — CFO James Henderson .

Q&A Highlights

Guidance drivers and range: Higher vs lower ends depend on DUC completion timing, acquisition execution, operator timing amid oil price declines; the team widened ranges to reflect uncertainty .
Capital allocation and buybacks: Management weighs buybacks vs reinvestment by relative IRR; buybacks are permissible under the facility, but priority remains the fixed dividend and high-return projects .
Dividend flexibility: “Our product is our dividend.” No material near-term restrictions from the credit facility; management maintains buffer and comfort on coverage .
Lucero integration/performance: Performing as underwritten; operated portfolio allows trades to enhance undeveloped locations; operated WI ~75–80% vs legacy ~3% averages .
Costs/AFEs trend: 2-mile laterals down ~5%, 3-mile down ~8% between Q4 and Q1; increasing prevalence of 4-mile laterals for capital efficiency .
G&A run-rate and litigation: G&A targeted near ~~$4/Boe run-rate; litigation costs (~~$1.6M) expected to persist into Q2 given June trial, then fade .

Estimates Context

Metric	Q1 2025 Consensus	Q1 2025 Actual (S&P definition)	Surprise
Primary EPS (Normalized) ($)	$0.18	$0.2277	+$0.048 (beat)*
Revenue ($USD Millions)	$65.06	$60.40	−$4.66 (miss)*
EBITDA ($USD Millions)	$39.59	$36.37	−$3.22 (miss)*

Notes: Company reported GAAP diluted EPS of $0.08 and total revenue of $66.17M ; S&P Global’s “Primary EPS” reflects normalized EPS and “Revenue” may differ from company “Total revenue” definitions (e.g., treatment of realized hedges). Values retrieved from S&P Global.

Where estimates may need to adjust:

Lowered 2025 production and CapEx suggest consensus should reduce volume growth assumptions and near-term EBITDA, while dividend sustainability remains intact under hedging and low leverage .

Key Takeaways for Investors

Normalized EPS beat vs consensus, but revenue/EBITDA misses driven by commodity mix and temporary G&A; watch Q2 fade of litigation costs and post-Lucero integration benefits *. Values retrieved from S&P Global.
Strategic pivot to discipline: CapEx cut ~32% with only ~9% production impact demonstrates strong capital efficiency; deferrals preserve well economics .
Dividend remains core: Board reaffirmed $2.25 annual rate; hedging (~61% oil, ~30% gas) and net debt/Adj. EBITDA of 0.71x provide support through cycles .
Acquisition optionality: Management favors “chunky” deals at $55–$65 oil; base case FY25 acquisitions ~$10M with flexibility to scale if returns clear hurdles .
Cost tailwinds: Declining AFEs and increasing longer laterals could bolster capital efficiency into H2 2025; monitor operator timing .
Near-term trading watch: Guidance reduction and DUC deferrals may pressure growth narratives, but dividend stability, hedging, and potential accretive M&A are supportive catalysts .
Medium-term thesis: Operated leg + robust non-op data analytics (Luminis) enhance ability to redeploy capital quickly across basins, sustaining returns and dividend coverage through commodity cycles .

Footnote: All values marked with an asterisk are retrieved from S&P Global.

Vitesse Energy, Inc. (VTS)·Q1 2025 Earnings Summary