Vitesse Energy (VTS) FY Conference Summary Company Overview - Vitesse Energy operates primarily as a non-operated participant in oil and gas development, focusing on the Bakken Play in North Dakota, with over 95% of production from this region [3][4] - The company has a diversified asset base with interests in over 7,000 wells, averaging 2.5% to 3% ownership [4] Key Financial Metrics - Vitesse currently offers a dividend yield of approximately 9%, with an annual dividend of $2.25 per share [6][29] - The company has a conservative balance sheet, targeting a debt-to-EBITDA ratio of less than 1, currently at 0.6 [10] Recent Developments - Vitesse completed the acquisition of Lucero Energy for $200 million, which included operated properties and enhanced free cash flow, allowing for increased dividends [9][10] - The company has engaged in over 200 small acquisitions, investing more than $750 million to build its asset base [8] Operational Insights - Vitesse's assets are primarily undeveloped, with 80% still available for future drilling, indicating long-term growth potential [7] - The company has benefited from advancements in drilling technology, such as longer lateral wells, which have improved production efficiency [8][21] Production and Cost Efficiency - In Q2 2025, Vitesse reported a production increase of 46% year-over-year, averaging 19 Mboe per day [26] - The average cost to drill a well has decreased by 26% since 2014, from $973 to $716 per lateral foot, adjusted for inflation, representing a 46% decline [18][19] Strategic Focus - Vitesse prioritizes returning capital to shareholders through dividends rather than share buybacks or variable dividends [29] - The company employs a robust database for analyzing acquisitions, integrating public data with proprietary information to assess investment opportunities [12][38] Risk Management - Vitesse maintains a strong hedging strategy, with 70% of its oil production hedged for 2025 at an average price of $70 [43] - The company uses a combination of swaps for oil and natural gas callers to optimize its hedging strategy [44] Market Position and Competitive Landscape - The non-operated model has gained popularity, with increased competition from private equity and family offices, but Vitesse believes it retains a competitive edge due to its deep knowledge of the Bakken region [54][56] Long-term Outlook - Vitesse aims to leverage technological advancements and its extensive undeveloped acreage to sustain growth over the next 30 years [22][24] - The company is focused on maintaining a long-term annuitized cash flow stream, positioning itself favorably against inflation [47] Conclusion - Vitesse Energy's strategic focus on dividends, conservative financial management, and technological innovation positions it well for future growth in the oil and gas sector, particularly within the Bakken Play [48][56]

Core Viewpoint - Economic uncertainty and tariff wars are causing stock market volatility, but dividend-paying stocks can provide stability for investors [1] Group 1: Vitesse Energy (VTS) - Vitesse Energy is an energy company that primarily holds financial interests in oil and gas wells operated by leading U.S. operators [3] - The company recently acquired Lucero Energy, which is expected to enhance dividends and provide liquidity for further acquisitions [3][6] - Vitesse announced a quarterly dividend of $0.5625 per share for Q4, marking a 7% increase from the previous quarter, with a dividend yield of 9.3% [4] - Jefferies analyst Lloyd Byrne reiterated a buy rating on VTS with a price target of $33, noting that Q4 EBITDA slightly missed consensus estimates due to lower production and acquisition costs [5] - The Lucero acquisition is seen positively as it adds to Vitesse's production and inventory, providing about 10 years of operational life [7] Group 2: Viper Energy (VNOM) - Viper Energy, a subsidiary of Diamondback Energy, focuses on owning and acquiring mineral and royalty interests in oil-weighted basins, particularly the Permian Basin [9] - The company announced a total capital return of 65 cents per share for Q4 2024, representing 75% of the cash available for distribution [10] - JPMorgan analyst Arun Jayaram maintained a buy rating on VNOM but lowered the price target to $51, citing factors like natural gas demand and potential oil price declines [11] - Viper's policy of returning about 75% of distributable cash flow to shareholders through dividends and buybacks is highlighted as a unique aspect of the company [13] Group 3: ConocoPhillips (COP) - ConocoPhillips announced a dividend of 78 cents per share for Q1 2025, with a dividend yield of 3.1% [15] - Analyst Jayaram reaffirmed a buy rating on COP but reduced the price target to $115, reflecting concerns over potential oil price declines [15] - The company has executed multiple counter-cyclical transactions since its 2016 strategy reset, enhancing its cost structure and inventory durability [16] - ConocoPhillips is expected to be one of the few companies in JPMorgan's coverage that could increase cash returns in 2025, including $6 billion in stock buybacks [18]