BUSINESS WIRE<\/a>)–
\nVitesse Energy, Inc. (NYSE: VTS) (\u201cVitesse\u201d or the \u201cCompany\u201d) today announced several impactful acquisitions, revised 2023 guidance and a preliminary outlook on 2024, and additional hedging.<\/p>\nACQUISITIONS<\/b><\/p>\n
\nVitesse has acquired additional oil and gas interests in the Williston Basin of North Dakota that will result in approximately $50 million of acquisition and related development capital expenditures, primarily in the third and fourth quarters of 2023. These acquisitions increase the Company\u2019s 2023 capital expenditures guidance range and are expected to provide material increases to production and cash flows in the fourth quarter of 2023 and, more significantly, for the full year of 2024.<\/p>\n
\nThese interests were acquired through Vitesse\u2019s Near-Term Development (\u201cNTD\u201d) acquisition program and were underwritten above the Company\u2019s 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.<\/p>\n
MANAGEMENT COMMENTS<\/b><\/p>\n
\n\u201cAs 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,\u201d commented Bob Gerrity, Vitesse\u2019s Chairman and Chief Executive Officer.<\/p>\n
REVISED 2023 GUIDANCE AND PRELIMINARY 2024 OUTLOOK<\/b><\/p>\n
\nWith these additional investments and updated timing of well connects, the Company has revised its 2023 guidance and is providing a preliminary outlook for 2024.<\/p>\n
\nVitesse 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 $110 to $130 million.<\/p>\n
\nThe Company\u2019s early estimates for 2024 indicate a production range of 12,500 to 13,500 Boe per day andtotal capital spending, including NTD acquisitions, of $90 to $110 million.<\/p>\n
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