Fireside Chat: Strategy Discussion
Join us for an open-access fireside chat discussion with Chairman and Chief Executive Officer Bob Gerrity and President Brian Cree on Thursday, December 7, 2023, at 4:00 pm ET. Participants can access the event here. Our discussion will focus on Vitesse’s mission of returning capital to stockholders through dividends funded by free cash flow generated from its capital allocation model targeting non-operated interests in oil & gas assets in major US producing basins. Vitesse’s current annualized dividend is $2.00 per share equating to an 8.8% yield. The next declared quarterly dividend of $0.50 per share will be paid on December 29, 2023, to shareholders of record as of December 15, 2023. Management’s capital allocation strategy revolves around exposing shareholders to a steady fixed dividend. Capital is allocated to organic development opportunities and acquisitions of near-term development opportunities. Management’s founding thesis was based on the concept that long-lived producing assets provide value-add potential through “Deeper, Denser, Cheaper, Better, Expanded” technology-driven opportunities. The current asset base is concentrated in the Bakken oil play in North Dakota’s Williston Basin. Vitesse’s inventory of undeveloped drilling locations provides a long runway to sustain and grow the production base through organic capex. More than 80% of the company’s assets are undeveloped. The company’s assets are operated by a diverse set of public and private companies. At last count, roughly 40% of the rigs operating in the Williston Basin were drilling in units where Vitesse owned an interest. The impact of ~$50 million of near-term development acquisitions closed in October 2023 is expected to provide production momentum heading into 2024. The 13.0 MBOE/d midpoint of preliminary FY24 production guidance represents a 12% increase over midpoint FY23 projected output. Maintaining an asset base with low maintenance capital requirements and conservative financial posture is a key element of management’s strategy to ensure excess cash flow generation. At the end of 3Q23, net debt equated to 0.4x annualized adjusted EBITDA.
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