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Vitesse Seals Acquisition of Lucero

Vitesse Energy Inc. has completed its purchase of Lucero Energy Corp., an oil and gas producer focused on the North Dakota side of the Williston Basin, in an all-stock transaction with a diluted equity value of $222 million. “Pursuant to the Arrangement Agreement between Vitesse and Lucero, dated December 15, 2024, at the closing of […]

Vitesse Energy Inc. has completed its purchase of Lucero Energy Corp., an oil and gas producer focused on the North Dakota side of the Williston Basin, in an all-stock transaction with a diluted equity value of $222 million.

“Pursuant to the Arrangement Agreement between Vitesse and Lucero, dated December 15, 2024, at the closing of the Arrangement each common share of Lucero has the right to receive 0.01239 of a share of Vitesse common stock”, Greenwood Village, Colorado-based well investor Vitesse said in an online statement announcing completion.

The Vitesse units to be issued to Lucero shareholders will trade in New York. Calgary, Canada-based Lucero will delist from the Toronto exchange and the OTCQB Market.

Vitesse’s board has increased to nine members with the addition of two of Lucero’s owners. They are Lucero director Gary Reaves, managing partner at First Reserve Management LP, which owns 37 percent of Lucero, and Lucero chair M. Bruce Chernoff, who owns 22 percent of Lucero.

Contributing over 65 producing wells, Lucero will provide an “operational component” to Vitesse’s  portfolio, said the announcement of the transaction deal December 16, 2024.

“Our recently completed Lucero acquisition is expected to be accretive to all key financial metrics and supports today’s increase in the dividend to an annualized rate of $2.25 per share”, Vitesse chair and chief executive Bob Gerrity said separately in the company’s quarterly report.

“We believe we are well positioned operationally and financially to pursue additional acquisitions facilitated by the continued evolution of our proprietary database, Luminis, which enhances our evaluation process”.

As of the first week of March, Lucero had 1.9 net wells that were either drilling or in the completion phase and an additional 5.3 net locations that had been permitted for development.

Accounting for the new assets Vitesse expects its first quarter 2025 production to average 14,000-15,000 barrels of oil equivalent a day (boed), compared to the 2024 fourth quarter’s (Q4) actual figure of 12,945 boed.

“Vitesse expects to promptly hedge a significant portion of the commodity risk associated with this transaction through 2026 and has hedged a meaningful portion of its own production into 2026”, the December statement said.

“Vitesse historically hedges a portion of its expected oil production volumes to increase the predictability and certainty of its cash flow and to help maintain a strong financial position to support its dividend. Vitesse does not currently have hedges in place on its expected natural gas production volumes”.

In its Q4 report, Vitesse said, “In connection with the closing of the Lucero acquisition, Vitesse increased its borrowing base to $315.0 million and its commitments to $250.0 million, increasing its liquidity”.

Its current assets stood at $50.91 million including $2.97 million in cash as of the end of 2024. Vitesse had $100.33 million in current liabilities including $34.32 million in accounts payable.

Q4 oil revenue totaled $230.16 million while that of gas came at $11.83 million.

Before non-GAAP adjustments, Q4 net results settled at a $5.13 million loss. Adjusted net income was $6.12 million. Adjusted EBITDA came at $36.98 million.

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John Deere unveils more autonomous farm machines to address skill labor shortage

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