Why Vitesse Energy Stock Slumped Today
Shares in Vitesse Energy (NYSE: VTS) were down by 6.6% at 12:30 a.m. today, only to recover a little later in the afternoon. The move comes as the price of oil corrected in light of President Trump's commentary on a constructive dialogue with the regime in Iran. While Iran has denied that any negotiations have taken place, investors are pricing in a more favorable outcome to the conflict, and one that could take the pressure off of oil supplies.
As an oil company with significant exposure to higher-cost oil in the Bakken formation (primarily North Dakota), Vitesse is sensitive to oil prices. Vitesse operates an unusual business model: it owns and operates only 9% of the wells in which it has an operating interest, with the rest coming from owning stakes in wells operated by other oil producers.
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Source Fool.com
