Vitesse (VTS) investor relations material

Business overview and strategy

• Focuses on non-operated participation in oil and gas development, primarily in the Bakken Play of North Dakota, with over 7,000 wells and 2.5–3% average ownership per well.

• Generates significant free cash flow, supporting a fixed dividend of $2.25 per share, yielding around 9%.

• Maintains a conservative balance sheet with low leverage (0.6x debt/EBITDA) and uses a reserves-based lending revolver.

• Employs a robust data-driven approach for underwriting acquisitions, leveraging proprietary and public data.

• Strong insider alignment, with about 25% of shares held by insiders, many from the original Jefferies spin-out.

Asset base, technology, and operational improvements

• Asset base is highly diversified across 7,500+ wells and multiple top operators, with a large portion of undeveloped acreage.

• Technological advances have led to longer laterals (up to 4 miles), denser well spacing, and improved drilling economics.

• Drilling and completion costs have declined 26% (46% inflation-adjusted) since 2014, while first-year production per lateral foot increased from 12 to 21 barrels.

• Recent Lucero Energy acquisition added operated properties and optionality for capital allocation.

• Maintains low maintenance CapEx ($95M) and a 50% reinvestment rate, supporting dividend stability.

Capital allocation and risk management

• Prioritizes funding organic CapEx, followed by near-term development acquisitions and larger transformative deals.

• Opportunistic share buybacks and consistent debt paydown are part of the capital framework.

• Uses a proprietary database and AI tools for acquisition analysis, contract comparison, and financial modeling.

• Maintains a heavy hedge book, with 70% of 2025 oil production hedged at ~$70 and 50% of 2026 at $66.43.

• Hedges natural gas and NGLs using collars and swaps, leveraging AI for optimization.