Vitesse Energy Buys Stakes In Williston Basin, Boosts FY23 Production Outlook

Vitesse Energy Inc VTS disclosed value-accretive acquisitions, consequent FY23 guidance raise, and preliminary FY24 outlook.

Acquisitions: The company obtained additional oil and gas stakes in the Williston Basin of North Dakota, which led to purchase and related development capital expenditures of around $50 million in Q3 and Q4 FY23. 

The company has acquired these interests through its Near-Term Development (NTD) acquisition program.

FY23 Outlook Revised: To factor in the buyouts, VTS now expects Q4 FY23 oil and gas production expectations of an average of 12,300-13,000 Boe per day vs. 11,000 Boe per day in Q3 FY23. 

Consequently, the company raised FY23 production guidance to 11,500-11,700 Boe per day (from 10,800-11,800 earlier) and capital expenditure to $110 million to $130 million (from $60 million- $80 million previously).

Preliminary FY24 Guidance: The company expects production of 12,500 to 13,500 Boe per day and total capital expenditure (including NTD buyouts) of $90 million-$110 million.

Hedging: For Q4, the company added an additional 75,000 barrels of oil swaps at a weighted average price of $85.54 per barrel, boosting the price to $79.11 per barrel. 

For FY24, VTS added 695,000 barrels of oil swaps at a weighted average price of $81.83 per barrel, improving the price to $78.95 per barrel.

Based on the midpoint of its revised FY23 oil guidance and FY24 outlook, VTS has hedged 51% of its estimated Q4 FY23 oil production and 41% of its preliminary FY24 oil production.

Price Action: VTS shares are trading higher by 6.56% at $23.05 on the last check Monday.