Key Points
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Vitesse recently trimmed its dividend, but its yield is still around 9%.
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The company’s shares are up by about 3% so far this year.
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Vitesse went public in 2023 and has investments in more than 7,800 wells.
Oil stocks are having a moment due to rising crude prices amid global tensions. The State Street SPDR S&P Oil & Gas Exploration & Production ETF (NYSEMKT: XOP) is up more than 30% so far this year.
Vitesse Energy (NYSE: VTS) is a non-operating oil and gas company. It calls itself a “Bakken ETF,” though it isn’t exactly an exchange-traded fund (ETF). It invests in companies associated with the Bakken Shale, which stretches across North Dakota, Montana, and the Canadian provinces of Saskatchewan and Manitoba. Vitesse doesn’t own equipment or manage heavy machinery and drilling operations; instead, it holds minority interests in more than 7,800 productive wells.
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Oil well in a cornfield.
Image source: Getty Images.
Vitesse scared some of its investors when it announced fourth-quarter results on March 2, missing earnings targets and trimming its dividend. The stock, while it is up nearly 3% so far this year, is down roughly 13% from the 2026 high it touched ahead of the report.
This slump presents a great opportunity for investors, regardless of what happens in the Iran war. Here are three reasons why a long-term investment in this energy company could help make you a millionaire.
1. Even after its payout cut, it has a high-yield dividend
Some investors view the company’s decision to slice its quarterly dividend by 22% to $0.438 per share as a smart move. It shows that Vitesse is being managed conservatively, with an eye on maintaining a strong balance sheet. Even after the cut, it delivers a whopping 9% yield at the current share price.
But how safe is the dividend now? Based on the company’s free cash flow (FCF) per share of nearly $1.10, its FCF payout ratio is around 39%. That’s plenty safe. On top of that, the company has hedged its prices on 64% of its oil production and 44% of its natural gas production, meaning that even if oil plummets later this year, it will get paid between $64 and $66 a gallon of oil on more than half of its contracts.
The company has a solid balance sheet as well. It has $124.5 million in debt, but its net-debt-to-adjusted-EBITDA (earnings before interest, taxes, depreciation, and amortization) ratio is only 0.69.
2. Vitesse’s annual earnings made up for a down fourth quarter
Vitesse reported earnings per share (EPS) of $0.02 in the fourth quarter, compared to $0.16 in the same period a year ago. Revenue was $53.5 million, up 4.8% year over year, but both EPS and revenue were below analysts’ consensus expectations.
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The reason given for the earnings drop was that the companies it invests in are spending more money by drilling more wells. This makes sense, since oil prices have been rising and drilling is becoming more profitable. In the long run, this should help Vitesse’s business. And its yearly numbers were strong.
Vitesse reported 2025 revenue of $273.9 million, up 13% over 2024. Net income was $25.3 million, up 20%. The company, which just went public in 2023, has had total returns of more than 31% since then.
3. Its latest acquisition could be a game-changer
Vitesse has consistently grown through acquisitions, spending more than $795 million on more than 200 deals. It is in the process of closing a $35 million all-stock deal to buy assets in the Powder River Basin of Wyoming. The assets, primarily operated by EOG and Continental, include more than 6,000 acres and 29 undeveloped locations. The company said it expects the deal to be immediately accretive to its bottom line, as those assets extract an average of 1,400 net barrels of oil equivalent per day.
The combination of the company’s improving production, rising oil prices, and its high-but-safe dividend makes the stock a solid long-term choice, one that could help turn patient investors into millionaires.
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James Halley has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Vitesse Energy. The Motley Fool recommends EOG Resources. The Motley Fool has a disclosure policy.