KITECATTLECOMPANY
2026AnnualOperatingPlan
PresentedForBoardApproval—March2026
By:WestRangeVenturesManagementTeam
Thisdocumentestablishestheoperationalplanagainstwhich WestRangeVentureswillbemeasuredquarterly.
WhereWe’veBeen
WRVengagementtimeline:May2025–March2026|Fromfirstcontacttofulloperations
5/23:Initialcallwith HenryBedford
6/4:Firstmeeting withHenry
Relationshipbegins
MAY–JUN
JUL–AUG
7/18:MetKiteBoard membersforfirsttime
8/4:WRVdeliversfirst ManagementProposal
Multiplesitevisitsfollow
9/19:HelpedRowdy atRaggedPoint
10/1:StartedfeedingKite cattleatDoubleLFeedlot
10/25:PregcheckRaggedPt 10/27:PregcheckChimneyButte
SEP–OCT
DEC2025
12/10:ShippedKite Wagyucalves
Year-endfinancials: $285Knetincome Feedingthroughwinter
1/5&1/10:Fedcattle atChimneyButte
1/10:Processedcows purchasedfromClay
1/24:ProcessedKite cowsatRaggedPoint
JAN2026
FEB–MAR
2/2:SIGNEDOFFICIAL RANCHMANAGEMENT CONTRACT
2/16:Huntingallotmentsigned 2/24:Replacementheifers 3/3:Mappingpastures
WhereWe’reGoing
2026OperatingCalendar:March–December|Keydecisionpointsanddeliverablesbyquarter
Calvingseasonbegins
Springvax&health
Creategrazingplan
Stateleaserenewals
Capitalprojectbids
MAR–APR
MAY–JUN
Springturnout Calvingwrap-up
Capitalprojectsstart
Hunterlistdue?(Jun)
[DrawResultsMidAPR] BrandingBegins
BullTurnOut
ContinuetoMonitorthe
Grazingplan
Droughtassessment Prepfor huntingseason
JUL–AUG
SEP–OCT
Archeryelk(Sep)
Pregcheck(Oct)
Weaningbegins
Rifleelk(Oct)
Q3reportdue
Cullcowshipping Cowelkhunts
Capitalprojects Review
NOV
DEC
Annualperformance
reportfromWRV 2027budgetdraft
Boardyear-endreview
OperatingPlanFramework
Herd Management
Land& Infrastructure
Financial Controls
Risk& Contingency
Breeding,calving,weaning, marketingcalendarwithtarget datesandKPIs
Grazingplan,waterdevelopment, fencing,capitalimprovements
Quarterlyreporting,budget variance,leaseadministration
Droughttriggers,destockingplan, insurance,regulatorycompliance
WRViscontractuallyrequiredtodeliverquarterlyoperationalupdatesandanannualperformancereport.Thisplandefinesthebenchmarks.
2026BudgetFinancialSummary
2025"Other/Misc"includesbreedingstocksales($148Kfromherdrestructuring—willnotrecur),patronage,insuranceproceeds,gastax,ranchlease.2026budgetexcludesbreedingstocksalesentirely.
Hourglassrevenueshownatfull-yearaccrual($288,900).Cashreceiptsin2026=$144,450(firstpaymentJul1).SeeReconciliationBridgetabinbudgetworkbook.
HerdProfile&LivestockInventory
CurrentinventoryasofMarch2026|510ownedcows+535Hourglassheadundermanagement
NORTHUNIT(RaggedPoint)—KiteHerd
~386Angus/Angus-crossbaseMatureCows
1st-CalfHeifers
~97Calvingspring2026
~103From2025calfcrop+purchasedReplacement Heifers
~161:18ratio;WayguBulls(naturalsvc)
TOTALKITEHERD
BreedingProgram:
~602Breedingherd+replacements
*doesnotincludeRowdyorJosh’scattle
Angus-basedcowherd. Naturalservicecleanupbulls.Wagyucalves.
ReplacementStrategy: 8–12%annualcullrate. Purchasetomaintain500breedingfemales. 103replacementheiferspurchased/raised.
Hourglass-owned;alloffspringto Hourglass
Hourglass-owned;pertheirbreeding program
SubjecttoFullCareGrazingLease Terms
Ownership:
Allcattle,offspring,andprogenyaresolepropertyof HourglassRanchLLC.Kiteprovidesland;WRVprovideslabor.
CostAllocation:
Hourglassbears:feed,mineral,vet,mortalityinsurance. Kitebears:land,infrastructure,labor(throughWRV).
StockingAuthority:
450–600pairsauthorized.Adjustmentsfordrought/forage persemi-annualgrazingplan(March&July).
***Full-CareAgreement:DRAFT—notyetexecuted.***
Boardaction:Formalrangeinventoryrecommendedtovalidatecarryingcapacity(currentestimatesuserough15ac/AUavg).HerdagedistributiondatashouldbecompiledfromEIDrecordsduringspring processing.
Labor&OrganizationalStructure
Three-entymodel:Kite(ownership)→WRV(management)→Ranchcrew(operaons)
BoardResponsibilities
•Approveannualbudget&operatingplan
•Approvecapitalexpenditures>15%variance
•Reviewquarterlyoperationalreports
•Approve/executecontracts&leases
•Propertytax,insurance,estateplanning
WRVScope(perMgmtAgreement)
•Hire,manage,superviseallranchlabor
•Alllivestockoperations(bothunits)
•Infrastructuremaintenance
•Quarterlyreportswithin15daysofqtr-end
•Annualperformancereport(dueJan15)
•ForwardallrevenuetoKite
2026CrewPlan
Year-RoundPositions:
•Ranchforeman(1)
•Ranchhands(2–3)
Seasonal(May–Nov):
•Additionalhandsforsummer/fall(1–2)
•H-2Aoptionavailableforseasonallabor
Housing&Retention
10dwellingsonproperty;2uninhabitable. GodfreyHouseremodel($40K)=critical retentioninvestment.Only1dwellingrated “Good.”Labormarketforcompetentranch crewincentralMTisextremelytight.
PayrollBudget:$115K
MgmtFee:$100K(quarterlyinstallments)
GeneralHerdManagementCalendar
KITECATTLECOMPANY
2026CapitalImprovementProgram
AnnualBudget
$192,000
EastEndPipeline—finishtankinstalls(Chimney Butte)
Butte)
4-Sectionspipeline—~1.5minew(ChimneyButte)
ScoringCriteria:Grazingdistributionimprovement|Carryingcapacityincrease|Laborcostreduction|Safety improvement|Paybackperiod
CompleteClay’spipeline.Concrete,floats,gravelforremaining tanks. Apr–Jun
EliminatedailyHondageneratorfueling.Betweenupper/lower CarterCoulee. Apr–May
New2025well(30gpm)eastthrough4-SectionstoSE&NEtanks.
Materialsforcross-fenceandboundaryrepairs,North&South units.
Criticalcrewhousing.Retentiondependsonlivableemployee quarters.
Safetyimprovement,reduceslaboratprocessing
Reducesvehiclewear,improvesresponsetime
Pipelineunknowns,GodfreyHousescoperisk,materialprice changes
4-Sections:trenchingvs.surface-layTBD.GodfreyHouse:$40K=cosmetic;structural/HVACmayneedPhase2(2027).Allprojects:15%variancetriggersboardapproval.
2026OperatingEquipment&Personal Property
BudgetRequested
$121,500
Equipment,vehicles,andtoolsfordailyoperations
ScoringCriteria:Operationalnecessity|Safetyimprovement|Laborefficiency|Conditionofexistingasset| Unitserved
Currentunitpastservicelife.Essentialforfence,water,road,and generalearthwork.
DedicatedfeedingtruckforSouthUnit.Eliminatesequipment sharingbetweenunits.
Safelivestockhandlingandtransport.RequiredforSRanchcrew operations.
Dailyrangechecks,fence/watermonitoring.Reduceslaborhours perpastureride.
Maintenanceandrepair.Replacesfailingunitinmainshop.
Replacementandupgradeofdaily-usefieldtoolsforSRanch crew.
Pipefusionforwatersystemrepairs.Optional—deferredif budgetconstrained.
Allitemsarepersonalproperty(notrealpropertyimprovements).Backhoeandbalebedarethetwolargestitems—sourcingunderway.HDPEfuserisoptionalanddeferredfirstifbudgettightens.15% variancetriggersboardnotification.
QuarterlyReporting&BoardGovernance
Q1 Jan–Mar
DELIVERABLES
•Q1OperationalReport(due Apr15)
•MarchGrazingPlan(mutual)
•Stateleaserenewals
confirmed
•Capitalprojectbids
OPERATIONS
Calvingprogress&deathloss
Winterfeedvs.budget
HourglasscattleonSouthUnit
Capitalplanningunderway
Q2 Apr–Jun
DELIVERABLES
•Q2OperationalReport(dueJul 15)
•Mid-YearBudgetVariance
•HunterlistfromS&S(Jun30)
OPERATIONS
Calfcropcountfinalized
Springturnout(rangereadiness)
Capitalprojectscommenced
Hourglass1stpaymentJul1
Q3 Jul–Sep
DELIVERABLES
•Q3OperationalReport(due Oct15)
•JulyGrazingPlan(mutual)
•Droughtassessment
OPERATIONS
Capitalprojectprogress
Archeryelkseason(Sep)
Housingprepforhunters
Fallpasturerotation
Q4 Oct–Dec
DELIVERABLES
•AnnualPerformanceReport (dueJan15)
•2027BudgetDraft
•2027OperatingPlanDraft
OPERATIONS
Pregcheck&conceptionrate
Weaningwts&calfcrop summary
Marketing:revenuevs.budget
Rifleelk,cowelk,antelope Hourglass2ndpmtDec31
Capitalprojectscomplete
WRVdeliversquarterlyreportswithin15daysofquarter-end.KiteBoardreviewsandrespondswithin15daysofreceipt(permanagementagreementSection8).
StateLease#8308Renewal
StateLease#5309Renewal
BLMLowerFattigCreekpermit
BLMWillowCouleepermit
BLMChimneyButtepermit
Montanabrandinspection
Propertytaxpayment
Huntingallotment—hunterlist
Grazinglease—semi-annualplan
Hourglasslivestockcountrecords
WRVCurrent(2031)
WRVCurrent(2033)
WRVCurrent(2031)
Verifyimmediately—560ac/98AUMsatrisk
Confirmrenewalfiled—200ac/48AUMs
Compliant—139AUMs
Compliant—110AUMs
Compliant—112AUMs
Renewpriortoanycattlemovement WRV Annual
KiteNov30,2026
Jun30–Jul31
Sylvester&Sons
Hourglass+KiteMarch&July
Kiteobligationpergrazinglease
Booked/paidhunternames&dates
Mutualagreementonstockinglevels
Turn-on/offdates,headcountstoKite Hourglass Monthly
2026HuntingRevenue Program
Why70%:Year1withnewoutfitter.Archeryelk($81KtoKite)istherevenueengine—booking10at$13,500inadebutseasonisoptimistic.Conservativebudgetletsusreportupside.
ExecutionRequirements
Housingprep:ChimneyButte&SouthRanch
BoardApprovalRequested
TheBoardisaskedtoapprove:
2026FinancialSummary
Revenue $1,663,984
Expenses ($1,268,000)
NetOperatingIncome $395,984
CapitalProgram ($313,500)
CashAfterCapEx $82,484
Upside:Ifcalvesholdat>$2,300+fullhuntingallotment
Pre-ConditionsforFullApproval
1.2026OperatingBudgetaspresented
2.$192KCapitalProgram(10%contingency)+121,500OpExInjection
OPERATIONAL
3.Herdtargets:≥90%calfcrop,≥550lb,≤2%deathloss
4.Quarterlyreportingcadence(15-daycycle)
REVENUEPROGRAMS
5.Huntingprogram:$100Kbudget/$143Kupside
Deadline Owner Item
Finalize&signFull-CareAgreement
Confirmstateleaserenewals(#8308,#5309)
Resolvehuntingon-sitemanagementfeesplit
Kite/Hourglass/WRV
WRV
Kite/Sylvester&Sons
Beforebudgettakeseffect
Immediate
Beforehuntingseason
ALETTERFROMTHETEAM
Weunderstandthatafarm/ranchismorethananasset.Itisanidentity,a purpose,andalegacy.Assixthgenerationproducers,webelieveinthe importanceofreputationandcharacter.Moreimportantly,webelievethatatthe endofthedaytheseshouldbethesamething.AsthefaceofWestRange Ventures,ourprofessionalsarehighlyfocusedonprovidingmassivevalueand optionstoourcustomers.Wearededicatedtomeetingourclients’relevant personalandprofessionalneedstothebestofourability.
Asbrotherswhogrewupranching,weunderstandwhatitmeanstobeonboth sidesofthetransaction.Ourhopeisthatbyservingtheindustrythatmadeus whoweare,wecanrelatetoourclientsatahighlevelandprovideauthentic valuetoyouroperationandlegacy.
Fromouroperationtoyours,
Thankyouinadvancefortheopportunitytoearnyourbusiness!
