Vitesse (VTS) 15th Annual Midwest IDEAS Investor Conference summary

Company history and business model

• Founders previously ran a successful NYSE oil company, focusing on low-cost operations and eventual sale, before starting this venture as a non-operator in the Bakken shale, aiming for long-term, inflation-protected oil income.

• Shifted from being an operator to a non-operator, investing in undeveloped acreage and partnering financially with operators, allowing for a lighter staff and less capital intensity.

• Secured long-term capital from Jefferies/Leucadia, enabling gradual asset development and compounding returns over many years.

• Spun off from Jefferies, with a significant portion of shares held by long-term aligned investors, and implemented a $2 dividend, later raised to $2.10.

• Focuses on high-yield, inflation-protected oil assets, leveraging technology improvements for better capital efficiency and returns.

Asset structure and risk management

• Holds mineral rights (not surface land) in the Bakken, participating in 7,000 wells with an average 3% interest, diversified across about 35 operators.

• Acts as a financial partner, sharing in well production and returns, with risk spread across many wells and operators.

• Employs hedging strategies, typically two years out, to manage oil price volatility and protect distributable cash flow.

• Maintains a proprietary database, Luminous, for company-wide financial decision-making and process orientation.

• Trades at a premium to NAV due to long-term drilling inventory not fully captured in reserve reports, differentiating from typical microcaps.

Capital allocation and financial strategy

• Plans to invest over $1.5 billion in undeveloped acreage over 10–15 years, targeting $3–$4 billion in returns at current strip prices.

• Prioritizes fixed dividend payments, with organic CapEx yielding 60–100% IRR and near-term development deals at 35–40% IRR.

• Considers asset acquisitions only if highly accretive, with a disciplined approach to capital deployment and a focus on dividend growth.

• Buyback program in place but only $2 million spent due to share price resilience; company remains lightly levered, with a preference for RBL over riskier debt.

• Production costs for existing wells are around $20 per barrel, with new well breakevens near $40, and flexibility to adjust CapEx in lower price environments.