Vitesse Energy has acquired additional oil and gas interests in the Williston basin of North Dakota that will result in approximately $50 million of acquisition and related development capital expenditures, primarily in the third and fourth quarters of 2023, the company said on Oct. 9.
These acquisitions increase the company’s 2023 capital expenditures guidance range and are expected to provide material increases to production and cash flows in the fourth quarter of 2023 and, more significantly, for the full year of 2024.
These interests were acquired through Vitesse’s Near-Term Development acquisition program and were underwritten above the company’s internal rate of return hurdle using a discount on current NYMEX strip prices. The company subsequently capitalized on higher oil prices and hedged fourth quarter 2023 and 2024 oil production associated with these acquisitions, which enhanced the expected rates of return.
