• Economy
  • Editor’s Pick
Money Rise Today – Investing and Stock News
  • Investing
  • Stock
Investing

Vitesse Energy stock: How safe is the 9% dividend yield?

by August 12, 2024
written by August 12, 2024

Vitesse Energy (VTS) stock price has done well after being spun out from Jefferies in 2023. It has soared from a low of $12.18 to a record high of over $26.70, helped by the robust energy prices. 

Vitesse is a top dividend payer

Vitesse Energy is a leading player in the energy sector that was recently spun off as a separately traded company from Jefferies, the giant financial services firm.

Unlike companies like Chevron and Exxon Mobil, Vitesse does not drill its oil and gas. Instead, the firm acquires and develops fields that are then used by leading operators in the industry. It owns fields in North Dakota, Montana, Colorado, and Wyoming. It has interests in 7,018 productive wells that produces 13.5 MBoe/d.

This business model ensures that the company has higher margins than other players in the energy sector. In its most recent results, the company had a gross margin of 80.3%, higher than the sector median of 44.65%. 

Its EBIT margin stood at 22.90%, higher than the sector median of 19.6% while its EBITDA margin was 63.6%, higher than the sector’s average of 34%. In contrast, ExxonMobil, the biggest oil and gas company in the US, has a gross profit margin of 31% and an EBITDA margin of 20.5%.

Vitesse has other benefits for investors. It pays a fixed dividend yield of 9%, higher than most dividend stocks and ETFs like the Schwab US Dividend Equity Fund (SCHD) and the SPDR US Dividend Aristocrats ETF (UDVD). 

Vitesse recent earnings

The most recent financial results shows that the company was doing well in the second quarter of this year. Its net income stood at $10.9 million during the quarter while its adjusted net income jumped to $11.7 million. 

Vitesse Energy had an adjusted EBITDA of over $43.1 million while its cash flow from operations rose to over $35.2 million. This growth happened as it produced over 13,500 barrels of oil equivalent per day. 

Analysts expect that Vitesse Energy will continue doing well, helped by supportive oil prices and its hedges. The average estimate is that the company’s revenue will come in at $65 million in the current quarter, an 18% increase from the $55 million it made in the same period in 2023. 

Analysts also expect its revenue to increase to $70.34 million in Q4. If this is correct, then its annual revenues will be $269 million, higher than the $233 million it made in 2023. For 2025, analysts see the company’s revenue rising to almost $300 million.

These estimates mean that Vitesse Energy’s business is expected to do well. This trend will continue if oil prices remains at an elevated level. 

Oil has remained at higher levels this year. Brent was trading at $80 while the West Texas Intermediate (WTI) rose to $77.7. These prices could continue rising as tensions in the Middle East continues rising. 

Most analysts believe that Israel and Irab could have some confrontation, especially after Netanyahu’s speech in Congress. 

Also, the upcoming Federal Reserve interest rate cuts could support oil prices by influencing demand. All this means that oil companies like Vitesse Energy could continue doing well. 

Fed cuts could also impact Vitesse Energy’s stock because they will reduce the payouts investors receive by investing in the bond market. Indeed, the yields of the 10-year and 30-year Treasuries has dropped recently.

Most analysts expect that the Vitesse Energy stock price has more upside. 4 of the five analysts who follow the stock have a buy rating. The average stock target is $27.15, 20% above Friday’s close of $23.12.

Therefore, Vitesse Energy is a company with a strong dividend yield, a good balance sheet, and is in an industry that is doing modestly well. The only key risk to remember is that it is a highly illiquid stock with a volume of just 76,540 on Friday. Its average volume stood at 176,000.

Vitesse Enervy stock price analysis

Turning to the daily chart, we see that the Vitesse Enervy share price bottomed at $12.18 in January last year and then soared to a record high of $26.70. It recently suffered a harsh reversal and bottomed at $22.15, its lowest point on August 5th. As it dropped, it moved below the 23.6% retracement point. 

The stock also dropped below the key support level at $24.6, its highest level on June 7th last year, and $23.82, its October 19th high. It remains below the 50-day moving average while the Relative Strength Index (RSI) has moved below 50.

It has also formed a bearish pennant chart pattern. Therefore, the stock will likely drop and retest the support at $19.50, its 50% retracement point. In the long term, the stock will likely bounce back and retest the resistance at $25.

The post Vitesse Energy stock: How safe is the 9% dividend yield? appeared first on Invezz

0 comment
0
FacebookTwitterPinterestEmail

previous post
Long HOLX: Hologic Stock in Strong Uptrend, Rejection Pattern at EMA Trigger Zone Signals Bullish Continuation
next post
Silver gains 1.6% as geopolitical tensions intensify over Ukraine-Russia conflict

related articles

Asian markets close: Nikkei, Kospi down; Sensex closes...

May 19, 2025

Qualcomm unveils AI chips for data centres with...

May 19, 2025

Best crypto to buy now: Bitcoin Pepe leads...

May 19, 2025

JPMorgan cuts Netflix rating, citing balanced risk-reward post-rally;...

May 19, 2025

Bitcoin ETF open interest dips 5% to $29.47B...

May 19, 2025

US stocks slip in the red on Monday:...

May 19, 2025

Should Klarna IPO remain on watch list after...

May 19, 2025

Why this brokerage downgraded UnitedHealth’s rating to ‘hold’

May 19, 2025

Nvidia opens NVLink Fusion ecosystem, expands Taiwan footprint...

May 19, 2025

Cathie Wood says Trump’s tariffs could unlock tech...

May 19, 2025
Enter Your Information Below To Receive Free Trading Ideas, Latest News, And Articles.


Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

Latest News

  • Energy chief envisions US nuclear renaissance: restoring ‘pit’ production, localizing nuke power

    March 30, 2025
  • Democrats coordinate multi-state response to Trump’s funding freeze

    January 29, 2025
  • Harris takes aim at Trump as she vows ‘to be a president for all Americans’

    August 23, 2024
  • Iran remembers Hamas leader Yahya Sinwar as a ‘martyr’ and ‘model for the youth and children’

    October 18, 2024
  • Nifty continues to make new all-time highs on Monday

    July 30, 2024

Popular Posts

  • 1

    Secret Service admits leaning on ‘state and local partners’ after claim it ignored Trump team’s past requests

    July 21, 2024
  • 2

    Elon and Vivek should tackle US funding for this boondoogle organization and score a multimillion dollar win

    December 4, 2024
  • 3

    Forex Profit Calculator: Maximize Your Trading Potential

    July 10, 2024
  • 4

    Five more House Democrats call on Biden to drop out, third US senator

    July 19, 2024
  • 5

    Biden calls to ‘lower the temperature’ then bashes Trump in NAACP speech

    July 17, 2024

Categories

  • Economy (829)
  • Editor's Pick (4,723)
  • Investing (624)
  • Stock (773)

Latest Posts

  • Biden’s ‘Woke Green Agenda’ on chopping block as EPA announces ‘most consequential day of deregulation’

    March 12, 2025
  • Elon Musk to upgrade security after left-wing magazine labels him ‘Public Enemy No. 2’

    October 21, 2024
  • ‘Peace through strength’: Trump and Netanyahu expected to discuss Iran, Hamas at White House meeting

    February 4, 2025

Recent Posts

  • Microsoft Stock: $10B AI Gamble Stalls After 10% Surge

    October 8, 2024
  • Pentagon announces new counter-drone strategy as unmanned attacks on US interests skyrocket

    December 9, 2024
  • Ted Cruz wants Uncle Sam to give each American baby $1,000

    May 13, 2025

Editor’s Pick

  • EURGBP and EURCHF: EURCHF is sinking deeper and deeper

    July 25, 2024
  • Putin says Trump plans for Greenland ‘has nothing to do’ with Russia

    March 28, 2025
  • Bitcoin is on track to return to $70,000 this week

    July 29, 2024
  • About us
  • Contacts
  • Privacy Policy
  • Terms & Conditions

Disclaimer: moneyrisetoday.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2025 moneyrisetoday.com | All Rights Reserved

Money Rise Today – Investing and Stock News
  • Economy
  • Editor’s Pick
Money Rise Today – Investing and Stock News
  • Investing
  • Stock