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Research from Water Tower Research

Water Tower Research is a leading equity research firm that provides research on micro, small and mid cap companies.

Water Tower Research was founded by Wall Street veterans after witnessing a fundamental shift in the investment research industry with the result being a declining knowledge base among investors, a lack of awareness and a shrinking pool of fundamental research being conducted on companies across the small-cap and micro-cap spectrum. The same issues are now increasingly occurring in the mid-cap space. This sea change within the investment community is impacting not only the companies themselves but also current shareholders and potential investors. With significantly less active sell-side sponsorship by Wall Street, a substantial information gap has developed between companies and various constituents in the financial community. The net result is fewer channels for insight and information to flow between companies and investors.

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<ul><li>Near-term development (NTD) acquisitions closed in 1H24 are expected to add significant production volumes in 4Q24 and early in 2025.</li><li>So far this year, Vitesse has closed acquisitions that will result in more than $40 million of development capital expenditures, most of which is expected to be incurred in 2H24.</li><li>Successful execution of the NTD acquisition program and organic growth from development on Vitesse’s existing acreage in the Bakken drove total production gains of 8% Q/Q and 19% Y/Y in 2Q24.</li></ul>

Near-term development (NTD) acquisitions closed in 1H24 are expected to add significant production volumes in 4Q24 and early in 2025.So far this year, Vitesse has closed acquisitions that will result in more than $40 million of development capital expenditures, most of which is expected to be incurred in 2H24.Successful execution of the NTD acquisition program and organic growth from development on Vitesse’s existing acreage in the Bakken drove total production gains of 8% Q/Q and 19% Y/Y in 2Q24.

Vitesse Energy, Inc. - NTD Acquisitions to Add Volumes in 4Q24/FY25

<ul><li>Vitesse increased its 2Q24 quarterly dividend 5% to $0.525, reflecting a strong production outlook driven by the execution of management’s strategy to grow the asset base with near-term development acquisitions and organic growth projects that surpass its economic hurdle rates. The current yield is 8.7%.</li><li>Vitesse’s business philosophy is built on the premise of compounding cash invested in oil-oriented producing assets in the Bakken play to sustain and grow the asset base in a fiscally conservative manner to support a fixed dividend.</li><li>Management’s capital allocation framework revolves around returning cash to shareholders through the dividend policy.</li></ul>

Vitesse increased its 2Q24 quarterly dividend 5% to $0.525, reflecting a strong production outlook driven by the execution of management’s strategy to grow the asset base with near-term development acquisitions and organic growth projects that surpass its economic hurdle rates. The current yield is 8.7%.Vitesse’s business philosophy is built on the premise of compounding cash invested in oil-oriented producing assets in the Bakken play to sustain and grow the asset base in a fiscally conservative manner to support a fixed dividend.Management’s capital allocation framework revolves around returning cash to shareholders through the dividend policy.

Vitesse Energy, Inc. - Execution Drives 5% Dividend Boost

<ul><li>Vitesse’s strategy is to compound cash flow derived from its diverse portfolio of oil-prone assets in the Bakken/Three Forks play to fund capital returns to shareholders and reinvest in the underlying asset base.</li><li>Management’s preferred method for returning cash is through a sustainable fixed dividend, currently $2.00/share annualized.</li><li>The dividend is sacrosanct and lies at the heart of management’s capital allocation model.</li></ul>

Vitesse’s strategy is to compound cash flow derived from its diverse portfolio of oil-prone assets in the Bakken/Three Forks play to fund capital returns to shareholders and reinvest in the underlying asset base.Management’s preferred method for returning cash is through a sustainable fixed dividend, currently $2.00/share annualized.The dividend is sacrosanct and lies at the heart of management’s capital allocation model.

Vitesse Energy, Inc. - Compounding Capital to Support Dividend Strategy

<ul><li>We are updating our 4Q23 and FY24 estimates to reflect actual 4Q23 reference prices and lower estimated FY24 natural gas prices.</li><li>Our 4Q23 NYMEX reference prices averaged $78.32/bbl for oil and $2.92/MMBtu for natural gas compared with our $85.00 and $3.00/MMBtu estimates.</li><li>We have lowered our average FY24 natural gas price estimate to $2.66/MMBtu from $3.44/MMBtu. We are currently modeling average FY24 oil prices of $80/bbl.</li></ul>

We are updating our 4Q23 and FY24 estimates to reflect actual 4Q23 reference prices and lower estimated FY24 natural gas prices.Our 4Q23 NYMEX reference prices averaged $78.32/bbl for oil and $2.92/MMBtu for natural gas compared with our $85.00 and $3.00/MMBtu estimates.We have lowered our average FY24 natural gas price estimate to $2.66/MMBtu from $3.44/MMBtu. We are currently modeling average FY24 oil prices of $80/bbl.

<ul><li>Vitesse’s business mission is to return capital to stockholders from free cash flow generated from its capital allocation model targeting non-operated interests in oil &amp; gas assets in major onshore US producing regions.</li><li>Favored assets are located in plays where advancing technology can positively affect future returns.</li><li>A fixed common stock dividend is management’s preferred vehicle to return capital to stockholders.</li></ul>

Vitesse’s business mission is to return capital to stockholders from free cash flow generated from its capital allocation model targeting non-operated interests in oil &amp; gas assets in major onshore US producing regions.Favored assets are located in plays where advancing technology can positively affect future returns.A fixed common stock dividend is management’s preferred vehicle to return capital to stockholders.

Vitesse Energy, Inc. - Turning Oil into Dividends

United States

Vitesse Energy, Inc. is an investment company. The Company focuses on returning capital to stockholders through owning financial interests as a non-operator in oil and gas wells drilled. Vitesse Energy operates in the United States.

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Vitesse Energy (VTS US)

Vitesse Energy, Inc. - NTD Acquisitions to Add Volumes in 4Q24/FY25

Near-term development (NTD) acquisitions closed in 1H24 are expected to add significant production volumes in 4Q24 and early in 2025.

Water Tower Research

Vitesse Energy, Inc. - Execution Drives 5% Dividend Boost

Vitesse increased its 2Q24 quarterly dividend 5% to $0.525, reflecting a strong production outlook driven by the execution of management’s strategy

Water Tower Research

Vitesse Energy, Inc. - Compounding Capital to Support Dividend Strategy

Vitesse’s strategy is to compound cash flow derived from its diverse portfolio of oil-prone assets in the Bakken/Three Forks play to fund capital...

Water Tower Research

Vitesse Energy, Inc. - Estimate Update

We are updating our 4Q23 and FY24 estimates to reflect actual 4Q23 reference prices and lower estimated FY24 natural gas prices.

Water Tower Research

Vitesse Energy, Inc. - Turning Oil into Dividends

Vitesse’s business mission is to return capital to stockholders from free cash flow generated from its capital allocation model targeting non...

Water Tower Research

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