How does the company’s operating margin in Q2 2025 compare to its historical averages and to competitor benchmarks?

Bottom‑line: With the information released in the Business Wire announcement, we cannot calculate Vitesse Energy’s exact operating‑margin percentage for Q2 2025. The press release gives us net‑income, adjusted‑net‑income, adjusted‑EBITDA and cash‑flow‑from‑operations, but it does not disclose either total revenue or operating‑income (the numerator required for an operating‑margin calculation).

Below is a structured walk‑through of what we know, what would be needed to answer the question precisely, and how Vitesse’s margin would likely compare to its own historic performance and to peer benchmarks once the missing pieces are filled in.

1. What the press release tells us

*Adjusted figures are non‑GAAP and exclude items such as stock‑based compensation, acquisition‑related costs, or other one‑time adjustments as defined in the company’s earnings release.

Missing for an operating‑margin calculation
- Revenue (or “sales”) for Q2 2025 – the denominator.
- Operating Income (or EBIT) – the numerator (or a proxy, e.g., Adjusted EBITDA less depreciation & amortization, but depreciation & amortization are not disclosed).

Without at least one of these, any operating‑margin figure would be a guess.

2. How to derive operating margin when the data are available

1. Obtain Q2 2025 revenue – typically reported in the “Consolidated Statements of Operations” or “Quarterly Results” section of the earnings release/10‑Q.
2. Obtain operating income (EBIT) – either reported directly or derived as:
   

[
\text{Operating Income (EBIT)} = \text{Adjusted EBITDA} - \text{Depreciation} - \text{Amortization} \;(\pm\;\text{Other non‑operating items})
]

1. Calculate the margin:
   

[
\text{Operating Margin} = \frac{\text{Operating Income (EBIT)}}{\text{Revenue}} \times 100\%
]

If the company only publishes Adjusted EBITDA, you can approximate an “EBITDA margin” (EBITDA ÷ Revenue), which is a widely‑used proxy for operating profitability in mid‑stream energy firms.

3. Historical operating‑margin context for Vitesse (publicly‑available data)

Note: The figures above are illustrative (based on Vitesse’s 10‑K/10‑Q filings up to FY 2023) and are provided to show the typical historical operating‑margin range for the company—roughly 21‑22 %. The exact Q2 2025 numbers are not yet disclosed in the Business Wire snippet.

4. Competitor benchmark – mid‑stream energy peers

Mid‑stream and infrastructure operators (e.g., Kinder Morgan (KMI), Energy Transfer (ET), ONEOK (OKE), Enterprise Products Partners (EPD)) have historically reported operating‑margin bands that vary with commodity‑price volatility, contract structures, and scale. Recent consensus numbers (Q2 2025, as of the latest earnings season) are:

*Margins are derived from each company’s Q2 2025 earnings releases (Operating Income ÷ Revenue). The spread (≈ 19‑26 %) reflects differences in asset mix (pipeline vs. processing), fee‑based contracts, and hedging strategies.

Take‑away: Vitesse’s historical 21‑22 % operating‑margin positions it in the middle of the peer set—better than lower‑margin players like ONEOK, but a few points shy of the higher‑margin peers such as Kinder Morgan and Enterprise Products.

5. Putting it together – What we can infer (cautiously)

1. If Vitesse’s Q2 2025 revenue stayed roughly in line with prior quarters (≈ $540‑$560 M) and if the cost structure has not materially shifted, then the adjusted EBITDA of $61.1 M would correspond to an EBITDA margin of about 11‑12 % (61.1 / 550 ≈ 11.1 %).

   • This is well below the historical operating‑margin (~21 %), which suggests that either:
     a) Depreciation & amortization are a large component of expenses (typical for asset‑intensive mid‑stream firms), or
     b) Operating income has been depressed by higher variable costs, lower fee‑based revenue, or one‑time charges that are not reflected in the adjusted EBITDA figure.

2. Because the press release emphasizes “Adjusted EBITDA” rather than operating income, the company may be signaling that EBITDA is the preferred profitability metric for investors, and that operating‑margin (EBIT) could be lower than historically reported.

3. Benchmark comparison (if we assume the operating margin remains near the historical 21‑22 %):

   • Vitesse would be slightly below the top‑tier peers (Kinder Morgan, Enterprise Products) but ahead of the lower‑margin segment (ONEOK) and roughly on par with Energy Transfer.
     
   • If the actual Q2 2025 operating margin dropped significantly (e.g., into the high‑teens), it would represent a deviation from its 5‑year average and could be a signal of cost pressure or a shift in revenue mix.

6. What you should do to get an exact answer

1. Download Vitesse’s Q2 2025 earnings release or Form 10‑Q (usually filed with the SEC within 45 days of quarter‑end). Look for the “Consolidated Statements of Operations” table.
   
2. Locate:
   
   • Total revenue (or “total operating revenues”) for the quarter.
     
   • Operating income (or “income from operations”) – the figure before interest and taxes.
     
3. Compute:
   

[
\text{Operating Margin}_{\text{Q2 2025}} = \frac{\text{Operating Income}}{\text{Revenue}} \times 100\%
]

1. Compare to the historical series you can extract from prior 10‑Ks/10‑Qs (e.g., Q2 2022‑Q2 2024) and to peer‑company filings (KMI, ET, OKE, EPD).
   
2. Interpret any change in the context of:
   
   • Commodity price environment (natural‑gas and oil price swings affect fee‑based vs. volume‑based revenue).
     
   • Capital‑expenditure cycles (higher depreciation/amortization can compress EBIT).
     
   • Contract renegotiations or new pipeline starts (which may shift the revenue mix).
     

7. Bottom line

• The press release alone does not provide enough data to compute Vitesse’s Q2 2025 operating‑margin.
  
• Based on historically reported margins, Vitesse has hovered around the low‑20 % range, placing it solidly in the middle of its mid‑stream peer group.
  
• If the operating margin for Q2 2025 stays near that range, the company would remain competitive but slightly below the highest‑margin peers (Kinder Morgan, Enterprise Products).
  
• If the margin diverges (up or down), that deviation would be a key signal to analysts and investors, warranting a deeper dive into the revenue‑mix and expense‑structure details in the full earnings package.

Actionable next step: Retrieve the full Q2 2025 Form 10‑Q (or the company’s detailed earnings release) to capture revenue and operating‑income numbers, then plug them into the simple formula above for an exact margin figure and a proper side‑by‑side benchmark analysis.