The Gabelli Global Financial Services Fund on Vitesse Energy Inc.
Thesis
Vitesse was pressured by weaker first-quarter EBITDA and falling oil prices, but Gabelli believes the underlying value remains higher than the share price. Stronger oil prices earlier in the quarter should have improved realized pricing and allowed additional hedging for 2027 and 2028. The stock trades at a significant discount to Gabelli's estimate of net asset value and also offers a high dividend yield.
“Vitesse's common stock trades at a significant discount to our estimate of net asset value.”
Key risks
- Oil-price sensitivity
- Recent decline in adjusted EBITDA