10-Q · May 4, 2026
Vitesse Energy reported total revenue of $67.4 million for Q1 2026, surpassing the previous year's $66.2 million, marking a 1.9% increase. However, the company experienced a net loss of $42.3 million, primarily impacted…
Earnings analysis · 10-Q
VTS earnings analysis
Filed August 3, 2026 · Our reading of the company's report
The latest report
Vitesse delivered a strong Q2 revenue and margin recovery: revenue reached $91.004 million, operating margin was 22.9%, and diluted EPS was $0.77. The result was partly supported by a $40.213 million unrealized…
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Vitesse delivered a strong Q2 revenue and margin recovery: revenue reached $91.004 million, operating margin was 22.9%, and diluted EPS was $0.77. The result was partly supported by a $40.213 million unrealized derivative gain, while underlying production fell 8% to 17,354 Boe/d and realized hedging losses totaled $18.170 million. Liquidity appears adequate with $116.5 million of revolver availability, but $158.5 million of debt, low $0.9 million cash, and continued commodity and volume exposure keep the overall setup balanced.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $0.77
What stood out
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Revenue grew 11% year over year
Q2 revenue was $91.004 million, up $9.249 million from $81.755 million in Q2 2025 and up $23.593 million from the implied $67.411 million in Q1 2026. The year-over-year increase reflected a 22% increase in realized price per Boe before hedging, partly offset by an 8% volume decline.
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Margins improved sequentially
Gross margin, calculated as revenue less lease operating expense, expanded to 80.2% from 76.0% in Q2 2025 and 77.3% in Q1 2026. Operating income was $20.876 million, or 22.9% of revenue, versus $18.667 million, or 22.8%, a year earlier and $5.913 million, or 8.8%, in Q1.
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EPS rebounded, aided by derivative mark
Diluted EPS was $0.77, compared with $0.60 in Q2 2025 and a loss of $1.05 in Q1 2026. Q2 net income of $33.1 million included a $40.213 million unrealized commodity-derivative gain.
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Oil growth offset gas-revenue contraction
Oil revenue increased $19.896 million to $86.507 million, while natural-gas revenue fell $10.647 million to $4.497 million. Oil represented about 95% of the $91.004 million total revenue base.
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Cash flow remained positive after investment
Q2 operating cash flow was $25.4 million and capital development and acquisition investment, net of divestitures, was $20.7 million, implying approximately $4.7 million of free cash flow. For the first six months, operating cash flow was $49.468 million against $39.388 million of investing outflows.
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Working capital and revolver support liquidity
Working-capital surplus rose to $3.1 million at June 30 from $0.9 million at December 31, 2025, driven in part by a $21.8 million increase in accrued revenue. Revolver availability was $116.5 million, with $0.9 million of unrestricted cash.
What to watch
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Production volumes continue to decline
Combined production declined 8% year over year to 17,354 Boe/d, including a 16% decline in oil volumes to 1.119 million barrels. Lower volumes reduced Q2 oil and gas revenue by $8.4 million, partially offsetting the price-driven benefit.
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Hedging caps realized oil-price upside
Hedges covered 84% of Q2 oil volumes and produced a $19.6 million realized oil-derivative loss; total realized derivative loss was $18.170 million. The $40.213 million unrealized gain that lifted reported earnings is non-cash and can reverse with commodity-price moves.
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Leverage and market sensitivity remain material
Total debt was $158.5 million at June 30, 2026, while unrestricted cash was only $0.9 million. A hypothetical 10% increase in the WTI strip would reduce the net derivative position by approximately $29.3 million, and a 1% rate increase would add approximately $0.7 million of six-month interest expense.
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No risk-factor update; commodity volatility persists
Item 1A reports no material changes to risk factors from the 2025 Form 10-K. Nevertheless, management expects commodity-price volatility throughout 2026; Q2 WTI averaged $92.38 per barrel, while the June 30 WTI price used in derivative valuation was $69.50 per barrel.
Management's outlook
The 10-Q does not provide a quantitative production, revenue, EPS, or capital-spending outlook. Management says it expects commodity-price volatility to continue throughout 2026 and believes cash flow, cash on hand, and revolver capacity will fund budgeted capital spending and operating expenses for at least the next 12 months.
Earlier filings 4
10-K · March 2, 2026
Vitesse (VTS) positions itself as a non‑operator-focused upstream owner that returns capital to shareholders while growing production through targeted acquisitions and selective development; the company closed the…
10-Q · November 3, 2025
Q3 2025 revenue rose to $67,443 (in thousands), up from $58,280 in Q3 2024, driven by higher oil sales, and the company closed the Lucero acquisition (shares issued valued at $194,279 (in thousands)). However, operating…
10-K · February 26, 2024
Vitesse describes a non-operated, capital-return-focused strategy: acquiring minority working and royalty interests, prioritizing returns to stockholders while maintaining a conservative balance sheet. As of December…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.