Granite Ridge Resources has reported financial and operating results for the second quarter 2024.

Second Quarter 2024 Highlights

• Increased production by 7% to 23,106 barrels of oil equivalent per day (47% oil) from the second quarter of 2023.
• Reported net income of $5.1 million, or $0.04 per diluted share, and adjusted net income (non-GAAP) of $17.2 million, or $0.13 adjusted earnings per diluted share.
• Generated $68.3 million of Adjusted EBITDAX (non-GAAP).
• Placed 62 gross (9.10 net) wells online.
• Closed multiple transactions during the quarter adding 16.4 net future drilling locations for a total acquisition cost of $22.4 million (including $5.8 million of expected future drilling carries).
• Paid dividend of $0.11 per share of common stock during the second quarter.
• Ended the second quarter of 2024 with liquidity of $148.2 million.

Subsequent Events

• Closed additional transactions acquiring 8.7 net future drilling locations for a total acquisition cost of $25 million (inclusive of $3 million of expected future drilling carries).
• The Company’s Board of Directors declared a regular quarterly dividend of $0.11 per share payable on September 13, 2024 to shareholders of record as of August 30, 2024. Future declarations of dividends are subject to approval by the Board of Directors.

“The second quarter 2024 was workmanlike from a results standpoint, but the deal side was anything but,” commented Granite Ridge President and Chief Executive Officer Luke Brandenberg. “While our Traditional Non-Op business continued to generate high quality locations with near-term development at an attractive cost basis, it is our Controlled Capital strategy that stood out. By nearly doubling our operated location inventory and adding a Midland Basin-focused Strategic Partner, we continue to increase our capital allocation to Controlled Capital projects. Based on the success of our business model and our compelling fixed dividend that is underpinned by hedged cash flow and conservative leverage, we believe Granite Ridge is positioned to drive long-term value for shareholders.”

Second Quarter 2024 Summary

Second quarter 2024 oil production volumes totaled 10,940 barrels (“Bbls”) per day, a 5% increase from the second quarter of 2023. Natural gas production for the second quarter of 2024 totaled 72,997 thousand cubic feet of natural gas (“Mcf”) per day, a 9% increase from the second quarter of 2023. As a result, the Company’s total production for the second quarter of 2024 grew 7% from the second quarter of the prior year to 23,106 Boe per day.

Net income for the second quarter of 2024 was $5.1 million, or $0.04 per diluted share. Excluding non-cash and nonrecurring items, second quarter 2024 Adjusted Net Income (non-GAAP) was $17.2 million, or $0.13 per diluted share. The Company’s average realized price for oil and natural gas for the second quarter of 2024, excluding the effect of commodity derivatives, was $77.84 per Bbl and $1.98 per Mcf, respectively.

Adjusted EBITDAX (non-GAAP) for the second quarter of 2024 totaled $68.3 million, compared to $69.7 million for the second quarter of 2023. Second quarter of 2024 cash flow from operating activities was $64.2 million, including $0.6 million in working capital changes. Operating Cash Flow Before Working Capital Changes (non-GAAP) was $64.8 million. Costs incurred for development activities totaled $67.0 million for the second quarter of 2024.

Operational Update

During the second quarter the Company closed multiple transactions adding 16.4 net future drilling locations for a total acquisition cost of $22.4 million (including $5.8 million of expected future drilling carries).

Traditional Non-Op or “Burgers & Beer”

• Acquired 51 gross (4.7 net) future drilling locations for a total acquisition cost of $12.6 million. Estimated future development costs for the acquired properties is $50 million.
• Acquisitions include assets in the Midland, Delaware, DJ, Williston and Appalachian basins.

Controlled Capital

• Midland Basin: Acquired inventory of 8 gross (4.1 net) future drilling locations for a total acquisition cost of $3.4 million and estimated future development costs of $24 million.
• Delaware Basin: Acquired inventory of 10 gross (7.7 net) locations for a total acquisition cost of $6.4 million and estimated future development costs of $66 million.
• As the largest interest owner in these locations, Granite Ridge controls development timing.

Subsequent to quarter end, the Company closed additional transactions acquiring 8.7 net future drilling locations for a total acquisition cost of $25 million (inclusive of $3 million of future drilling carries).

KeyFacts Energy Industry Directory: Granite Ridge Resources