Vitesse Closes DJ Basin Deal, Lifts 2026 Capex Outlook

The Tip Desk · November 10, 2026 · 3 min read

Third-quarter revenue including realized hedges was $71.0 million as the company booked a $36.4 million GAAP net loss and raised 2026 drilling-and-completion spending to $80 million–$90 million.

Vitesse Energy, Inc. (VTS), a non-operator in U.S. oil and gas wells, closed its Denver-Julesburg Basin acquisition in September and used the deal to lift its 2026 drilling-and-completion cash capital-expenditure outlook to $80 million–$90 million from $65 million–$80 million.

The company said the quarter included only one month of contribution from the DJ Basin purchase, which closed in September 2026. Production averaged 16,824 barrels of oil equivalent per day, with oil at 60% of volumes. That followed a 9% sequential production increase in the second quarter after the April Powder River Basin close.

Total revenue including the effects of realized hedges was $71.0 million. Oil represented 92% of oil and natural gas revenue. Average realized oil prices before hedging were $82.56 a barrel, down from $91.98 a barrel in the second quarter. With hedges covering 76% of oil production, the realized oil price with hedging was $68.33 a barrel. Realized natural gas with hedging was $2.06 a Mcf.

GAAP results flipped to a $36.4 million net loss, or $0.86 a share, after $33.1 million of net income in the second quarter. The third-quarter loss included a $46.6 million non-cash unrealized loss on commodity derivatives. Adjusted Net Income was $2.5 million. Adjusted EBITDA was $39.3 million.

Cash flow from operations was $39.4 million and Free Cash Flow was $9.4 million. Lease operating expenses were $19.2 million, or $12.42 a Boe. General and administrative expenses were $4.9 million, or $3.19 a Boe.

Total cash capital expenditures net of divestitures were $53.0 million, including $25.9 million for the DJ Basin Acquisition. Development capital expenditures were $26.9 million and other oil and gas property acquisitions were $26.2 million. The closing payment was net of preliminary and customary purchase-price adjustments and remains subject to post-closing cash settlements.

Total debt was $190.5 million at September 30, 2026, and the Net Debt to Adjusted EBITDA ratio was 1.3. Cash was $0.7 million and total liquidity was $85.2 million, including $84.5 million of committed borrowing availability. In October, Vitesse expanded revolving-credit elected commitments and the borrowing base to $290 million from $275 million.

President and Chief Executive Officer Jamie Benard said the company expects the transaction to add meaningful cash flow at a valuation accretive to all key metrics while expanding its position in the DJ Basin. Chief Financial Officer James Henderson said the balance sheet remains conservative, with target leverage at or below 1.0x, and that the hedge portfolio supports confidence in maintaining the quarterly dividend.

Vitesse revised 2026 annual production guidance to 16,600–17,200 Boe per day from 16,300–17,200. Oil as a percentage of annual production remains 60%–62%. Operators began drilling on 2.0 net wells and brought 2.0 net wells into production in the third quarter, compared with 1.8 net wells and 1.7 net wells in the second quarter. As of September 30, the company owned an interest in 314 gross (6.5 net) wells drilling or in completion and 349 gross (13.0 net) permitted locations.

Based on the midpoint of revised 2026 guidance, Vitesse has approximately 64% of remaining 2026 oil production hedged and approximately 57% of remaining 2026 two-stream natural gas production hedged. On October 28, the company declared a fourth-quarter cash dividend of $0.4375 a share, payable December 31, 2026, to stockholders of record December 15.