Vitesse Energy resumed with an In Line at Evercore ISI

Evercore ISI resumed coverage of Vitesse Energy (VTS) with an In Line rating and $28 price target following the completion of the company’s acquisition of Lucero Energy. The accretive all-stock acquisition enabled the company to increase the base dividend by about 7%, de-lever the balance sheet, and add operated flexibility and the “key appeal of the story remains an outsized dividend yield that looks to return more than 100% of excess cash to shareholders,” the analyst tells investors. While the payout looks secure for the next several years even at much lower oil prices, “pushback here is limited trading liquidity somewhat limits incremental flows and shares already trading in line with quality E&Ps,” the analyst added.