Vitesse Energy — Third Quarter 2026 Earnings Summary

Financial Performance:

• Reported a GAAP net loss of $36.4 million for the quarter, including a non-cash unrealized loss on commodity derivatives of $46.6 million.
• Reported Adjusted Net Income of $2.5 million and Adjusted EBITDA of $39.3 million.
• Generated cash flow from operations of $39.4 million and Free Cash Flow of $9.4 million.
• Total revenue was $82.95 million, a 23% increase from $67.44 million in the prior year period, driven by a 19% increase in oil revenue to $76.52 million and a 113% increase in natural gas revenue to $6.44 million.
• Total debt was $190.5 million, resulting in a Net Debt to Adjusted EBITDA ratio of 1.3x.
• Lease operating expenses were $19.2 million ($12.42 per Boe), an increase from $11.05 per Boe in the prior year.
• General and administrative expenses totaled $4.9 million ($3.19 per Boe), a 14% decrease from the prior year.
• Interest expense was $3.25 million, up 37% from $2.38 million in the prior year.

Guidance and Future Outlook:

• Revised 2026 annual production guidance upward to 16,600–17,200 Boe per day from a prior range of 16,300–17,200 Boe per day.
• Revised 2026 drilling and completion cash capital expenditures guidance upward to $80–$90 million from a prior range of $65–$80 million.
• Maintained oil production percentage guidance at 60%–62% of annual production.
• Management expects the Denver-Julesburg Basin Acquisition to add meaningful cash flow at a valuation accretive to key metrics.
• The company targets leverage at or below 1.0x.

Business Segments and Product Lines:

• Production averaged 16,824 Boe per day, with oil representing 60% of production and 92% of total revenue.
• The Denver-Julesburg Basin Acquisition closed in September 2026, contributing one month of production to the third quarter.
• Average realized oil price before hedging was $82.56 per Bbl; with hedging, it was $68.33 per Bbl.
• Average realized natural gas price before hedging was $1.73 per Mcf; with hedging, it was $2.06 per Mcf.
• The company hedges approximately 76% of oil production and 57% of remaining 2026 two-stream natural gas production.
• As of September 30, 2026, the company owned an interest in 314 gross wells in drilling or completion phases and 349 gross permitted locations.
• During the quarter, operators began drilling 2.0 net wells and brought 2.0 net wells into production.

Market and Competitive Landscape:

• The company focuses on owning financial interests predominantly as a non-operator in oil and gas wells drilled by leading U.S. operators.
• The Denver-Julesburg Basin Acquisition is intended to expand the company's position in the DJ Basin.

Risks and Challenges:

• Significant unrealized losses on commodity derivatives impacted reported net income.
• Risks include changes in oil and natural gas prices, the pace of drilling and completions, integration of acquisitions, cost inflation, supply chain disruptions, and regulatory changes.
• Ongoing legal disputes over the Dakota Access Pipeline and geopolitical conflicts affecting maritime shipping routes are cited as potential risks.

Management Commentary and Tone:

• CEO Jamie Benard stated the quarter was highlighted by the successful closing of the DJ Basin acquisition, reinforcing the ability to capitalize on attractive investment opportunities.
• CFO James Henderson noted the balance sheet remains conservative with a target leverage at or below 1.0x, and the hedge portfolio supports confidence in maintaining the quarterly dividend.
• Management emphasized a strategy of disciplined capital allocation to strengthen the portfolio and generate sustainable returns.

Other Key Points:

• In October 2026, the company expanded its revolving credit facility availability by $15 million, increasing elected commitments and the borrowing base to $290 million.
• Total cash capital expenditures were $53.0 million, including $25.9 million for the DJ Basin Acquisition.
• Declared a fourth-quarter cash dividend of $0.4375 per share, payable on December 31, 2026, to stockholders of record as of December 15, 2026.
• Paid a third-quarter cash dividend of $0.4375 per share on September 30, 2026.
• Total liquidity was $85.2 million as of September 30, 2026, consisting of $0.7 million in cash and $84.5 million in committed borrowing availability.
• The company will participate in the Southwest IDEAS Conference in Dallas on November 18, 2026.