Vitesse Energy (VTS) Conference Summary Company Overview - Vitesse Energy focuses on providing a high fixed dividend yield, currently at 9%, and has increased its dividend twice since going public in 2023 [3][32] - The company has a unique strategy that prioritizes dividend support over oil and gas production [2][16] Key Financial Metrics - Vitesse has made nearly 200 acquisitions, with a significant focus on maintaining and increasing dividends [3] - The recent acquisition of Lucero for $195 million was financed entirely with equity and was accretive to all key financial metrics, reducing debt to about half of EBITDA [4] - The company has a cash position of $50 million post-acquisition, allowing for further financial flexibility [4] Resource Development and Strategy - 80% of Vitesse's resources remain undeveloped, with plans to convert these into cash flow over the next 30 years [3] - The company employs a non-operated approach, allowing it to benefit from the efficiencies of larger operators while maintaining a market cap of $1 billion [15] - Vitesse has interests in over 7,500 wells across more than 30 operators, making it comparable to a mutual fund for the Bakken [14] Operational Insights - The average well spacing in the Bakken has decreased from 1,000 feet in 2014 to 700 feet in 2025, improving oil recovery [10] - Drilling and completion costs have declined by 26% from 2014 levels, now averaging $716 per lateral foot [11] - Production from Bakken wells has increased by 75% since 2014, averaging 21 BOE per lateral foot [12] Risk Management - Vitesse has a conservative leverage policy, aiming to keep leverage below one times EBITDA [25] - The company hedges its oil production, with 70% hedged at just under $70 per barrel for 2025 [30] - A proprietary data system, Luminous, enhances investment decisions and operational efficiency [25][26] Shareholder Alignment - Management and the board own over 25% of the company's shares, aligning their interests with those of shareholders [7] - The company emphasizes accountability in capital allocation, ensuring investments maximize free cash flow [18] Market Position and Future Outlook - Vitesse is well-positioned to benefit from ongoing improvements in drilling technology and cost efficiencies in the Bakken [32] - The company is exploring various acquisition opportunities and has established partnerships to finance larger deals [23] Conclusion - Vitesse Energy presents a compelling investment opportunity with a strong focus on dividends, risk management, and operational efficiency in the Bakken region [32]