Vitesse closes $190 million negotiated acquisition

April 2, 2018 — Vitesse Energy, 97%-owned by Leucadia, has completed the acquisition of a package of non-operated Bakken assets from an institutional seller for $190 million in cash, of which $145 million was funded as equity by Leucadia and the balance drawn under Vitesse’s credit line. Vitesse is acquiring 4,200 boe/day of flowing production and 23,000 net acres in the Bakken core, with over 85% of the assets remaining to be developed.

Messrs. Handler and Friedman noted, “The acquisition of these assets is a compelling investment for Leucadia and Vitesse, essentially doubling the size of Vitesse’s assets in the valuable core of the Bakken Field. The risk/return profile of this acquisition is attractive to us as most of the acquired assets are already well known to Bob Gerrity, CEO of Vitesse, and his team. In many cases, Vitesse is simply increasing its working interest in high returning Bakken drilling spacing units and flowing wells in which Vitesse has an existing interest. This acquisition should improve Vitesse’s future financial performance as we continue to finance, as a non-operating partner, the development of a larger pool of new high quality horizontal oil wells that are projected to produce strong returns.”

Leucadia’s pro forma year-end 2017 total parent company liquidity increased to about $2.8 billion following the transactions announced on April 9, 2018. Consistent with past practice, Leucadia plans to deploy available capital to continue to add to existing businesses where appropriate, to make acquisitions of new businesses and investments when possible and, from time to time, to repurchase common shares.