Vitesse Energy Inc said Wednesday it had consummated the purchase of a stake in Chevron Corp-operated oil and gas assets in the Denver-Julesburg Basin for $26 million.
The Greenwood Village, Colorado-based company, whose business involves acquiring non-operating stakes in production or development wells led by major operators in the United States, expects the new assets to contribute 900 barrels of oil equivalent per day to its production over the next 12 months, with oil comprising 28 percent. Most of the assets are in Weld County, Colorado. Vitesse did not name the seller.
“In connection with the acquisition, Vitesse has entered into commodity derivative contracts covering a significant portion of the acquired production through 2030 to support the underwritten returns”, Vitesse said in a press release.
Vitesse chief executive and president Jamie Benard said, “This transaction adds a high-quality, predominantly proved developed producing asset base operated by Chevron”.
At the end of the second quarter Vitesse owned interests in 6.4 net wells (305 gross wells) that were either drilling or in the completion stage and 13 net wells (363 gross wells) permitted for development.
“During the second quarter of 2026, Vitesse invested $21.1 million in development capital expenditures and acquired $0.7 million of oil and gas properties”, it said in its quarterly report August 3.
In April 2026 it completed its acquisition of non-operated Powder River Basin assets in Campbell and Converse Counties, Wyoming, settled via a stock issuance worth $35 million.
The Powder River acquisition includes over 6,000 net acres expected to produce 1,400 boepd this year and 29 net undeveloped locations operated primarily by EOG Resources Inc and Continental Resources Inc, according to Vitesse’s initial announcement March 2 of the transaction with an unnamed company.
Vitesse averaged 17,354 boepd in oil and gas production in the second quarter (Q2), up nine percent from the first three months of 2026.
Vitesse narrowed its 2026 production forecast from 16,000-17,500 boepd to 16,300-17,200 boepd “in response to second quarter results and recent market conditions”, it said in its quarterly report.
Oil comprised 60 percent of the total Q2 volume and accounted for 95 percent of oil and gas revenues, which totaled $72.8 million including realized hedges.
“The company had hedges covering 84 percent of oil production and its realized oil price with hedging was $71.14 per barrel”, Vitesse said. “Its realized natural gas price with hedging was $1.55 per Mcf”.
Net profit was $33.1 million while net profit adjusted for nonrecurring items stood at $1.8 million including a non-cash unrealized gain on commodity derivatives of $40.2 million. Adjusted earnings before interest, taxes, depreciation and amortization totaled $40.2 million.
Operations generated $25.4 million in cash flow. Free cash flow stood at $16.3 million.
Vitesse had $58.36 million in current assets at the end of Q2, including $884,000 in cash. Current liabilities stood at $52.22 million. Net debt to adjusted EBITDA ratio was 1.0. Liquidity stood at $117.4 million.
source: RIGZONE