Vitesse Energy, an oil-and-gas investment company, has announced an increase in its 2023 guidance and provided a preliminary outlook for 2024. The company’s recent acquisitions of oil and gas interests in North Dakota have played a significant role in shaping these projections.
Acquisitions in the Williston Basin
Vitesse Energy’s acquisitions in the Williston Basin of North Dakota, along with the development of these interests, will require approximately $50 million in capital expenditures during the third and fourth quarters. As a result of these investments, the company expects a boost in oil and gas production in the fourth quarter, with an average range of 12,300 to 13,000 barrels of oil per day. This marks an increase from the third quarter’s average of about 11,000 barrels per day.
Revised Production Estimates and Capital Expenditures
The revised guidance for full-year production in 2023 now stands at 11,500 to 11,700 barrels of oil per day. Vitesse Energy anticipates total capital expenditures to reach $110 million to $130 million during this period. Looking ahead to 2024, the company’s early estimates suggest a production range of 12,500 to 13,500 barrels of oil per day. The projected capital spending for 2024 is expected to be between $90 million and $110 million.
Hedging Strategy
In addition to the revised guidance, Vitesse Energy has also increased its oil hedge positions for both 2023 and 2024. During the third quarter, the company added 75,000 barrels of oil swaps at a weighted average price of $85.54 per barrel. For the following year, Vitesse Energy added 695,000 barrels of oil swaps at a weighted average price of $81.83 per barrel.
These strategic moves reflect Vitesse Energy’s commitment to optimizing its operations and capitalizing on opportunities in the oil and gas market.