A 30% Jump Ahead for Bullish 9%-Yielding Vitesse Energy Inc Stock?
September 4, 2025
More Reasons to Put VTS Stock on Your Radar
With the S&P 500 trading at record levels, and valuations at lofty levels, more and more investors are turning to reliable dividend stocks for passive income to help them weather any potential volatility.
One great sector that is home to some of the biggest dividend payouts on Wall Street is energy. Unfortunately, the energy sector has been underperforming this year, up just 1.5%. This is due in large part to lower crude oil prices. With that said, there is still a large number of oil and gas companies that continue to do well and have bullish calls from Wall Street.
One in particular that I think investors should keep an eye on is Vitesse Energy Inc (NYSE:VTS).
Most investors aren’t familiar with Vitesse Energy, but that’s only because it just went public in early 2023.
The Colorado-based company is engaged in the acquisition, development, and production of non-operated oil and natural gas properties in the U.S. (Source: “Investor Presentation August 2025,” Vitesse Energy Inc, last accessed August 18, 2025.)
Vitesse Energy is a predominantly non-operated working and mineral interest owner of oil and gas assets primarily in the Bakken oil field in North Dakota.
This past March, it acquired Lucero Energy Corp. The acquisition was immediately accretive to Vitesse’s earnings, operating cash flow, free cash flow (FCF), and net value. (Source: “Vitesse Energy Announces Completion Of Lucero Acquisition,” Vitesse Energy Inc, March 7, 2025.)
Vitesse Energy’s assets are diversified across 30+ operators and 7,500+ wells over more than 50,000 net acres. This diversification means that no single well can make or break Vitesse’s financial results.
And, with 25% to 55% of the rigs drilling in the Williston Basin, it effectively creates a Bakken exchange-traded fund (ETF). Some of Vitesse Energy’s biggest operators are Chord Energy Corp (NASDAQ:CHRD), Devon Energy Corp (NYSE:DVN), Chevron Corp (NYSE:CVX), and ConocoPhillips (NYSE:COP).
Another Solid Quarter for Vitesse Energy Inc
After a strong start to the year, Vitesse announced another solid quarter. For the period ended June 30, 2025, the company announced that total revenue jumped 23% year over year to $81.75 million. Of that, oil revenues were up four percent at $66.6 million, while natural gas revenues jumped 513% to $15.1 million. (Source: “Vitesse Energy Announces Second Quarter 2025 Results ,” Vitesse Energy Inc, May 5, 2025.)
Daily production of barrels of oil equivalent (BOE) grew by approximately 65% to 18,950 BOE, of which 65% was oil.
Vitesse Energy’s second-quarter net income more than doubled to $24.6 million, or $0.60 per share. Its adjusted net income came in at $18.4 million, while adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) hit $61.1 million.
Commenting on the results, Bob Gerrity, the company’s chairman and chief executive officer, said, “In the second quarter, we fully integrated the Lucero assets, successfully settled a multi-year lawsuit, continued to invest capital selectively, and used our free cash flow to pay down debt,”
Gerrity added, “In addition, we capitalized on a period of increased oil prices resulting from the conflict in the Middle East by adding oil hedges in 2025 and 2026 at price levels that support our dividend. As a result, we believe we are well positioned to benefit from the transaction opportunity set, especially for non-operated assets.”
Business Outlook
Vitesse has revised its 2025 annual guidance in response to recent commodity price volatility and market uncertainty in an effort to preserve returns and maintain financial flexibility. As a result, it now expects to report:
- Annual daily production of 15,000–17,000 BOE/day
- Oil as a percentage of annual production of 64%–68%
- Total capital expenditures of $80.0–$110.0 million
Quarterly Dividend Maintained at $0.5625
For passive income investors should know that “vitesse” is French for “velocity,” representing the velocity of capital compounding. Now, thanks to limited capital expenditures (capex) required to keep production flat, Vitesse Energy is able to report solid FCF, which, in turn, helps it provide shareholders with a reliable dividend.
Back in December 2024, the company increased its annual dividend by seven percent to $0.5625, or $2.25 per share on an annual basis. It has held the distribution there since then, for a forward dividend yield of 8.9%.
Vitesse will pay its third-quarter cash dividend to stockholders of record as of September 15, 2025, on September 30, 2025. (Source: “Vitesse Energy Declares $0.5625 Quarterly Cash Dividend,” Vitesse Energy Inc, July 30, 2025.)
Despite volatile crude oil prices, the outlook for the company’s dividend remains solid. Vitesse hedges to protect the dividend and reduce the volatility of returns and its stock price. This includes robust oil, natural gas, and natural gas liquids hedge book through the first quarter of 2027.
VTS Stock Hits Record High
VTS stock took a big hit in early April after President Donald Trump unveiled his global tariffs. Investors were worried about what kind of impact a global trade war could have on crude oil prices. Oil is used in almost everything, so an economic slowdown would hurt supply and demand, as well as oil prices.
Since bottoming in May though, VTS has come roaring back, advancing approximately 37%. In fact, the stock hit a new record high of $26.92 on August 6.
Investors are increasingly optimistic that a number of major trade deals will be made. The U.S. economy has also, so far, been resilient against tariffs, and second-quarter earnings season has been strong, too.
Wall Street expects VTS to continue to climb into record territory over the coming quarters, with analysts providing a 12-month share price forecast of $26.50 to $33.00 per share. At current levels, this points to potential upside of up to 30%.
Chart courtesy of StockCharts.com
The Lowdown on Vitesse Energy Inc
Over two short years, Vitesse Energy has emerged as a top energy stock and dividend player. The company has a high-quality, long-duration asset base, with 80%+ made up of undeveloped locations. It also has a history of strategic economic transactions; nearly 200 acquisitions and divestitures, totaling $757.0 million.
For income hogs, Vitesse has reliable FCF, which helps support fixed quarterly distributions of $0.5625 per share. Since going public in 2023, the company has raised its annual dividend twice.
Institutions are bullish on VTS stock, with 313 holding 52.63% of outstanding shares. Some of the top holders include The Vanguard Group, BlackRock Inc, and Dimensional Fund Advisors LP. (Source: “Holders,” Yahoo! Finance, last accessed August 18, 2025.)
