Granite Ridge Resources, Inc. Reports Third-Quarter 2024 Results and Declares Quarterly Cash Dividend
Granite Ridge Resources reported its third-quarter 2024 results, highlighting an average production of 25,177 barrels of oil equivalent (Boe) per day. The company posted a net income of $9.1 million or $0.07 per diluted share and an adjusted net income (non-GAAP) of $18.5 million or $0.14 per diluted share. Adjusted EBITDAX (non-GAAP) was $75.4 million. Granite Ridge placed 93 gross wells online and closed multiple transactions, adding 15.9 net future drilling locations for an acquisition cost of $30.9 million. The company declared a quarterly dividend of $0.11 per share, implying a 6.9% annualized yield. Liquidity at the quarter's end was $127.8 million. Subsequent to the quarter, Granite Ridge increased its borrowing base to $325 million and declared a regular quarterly dividend payable on December 16, 2024. Oil production increased 3% year-over-year, while natural gas production decreased 12%, leading to an overall production decline of 5%.
Granite Ridge Resources ha riportato i risultati del terzo trimestre 2024, evidenziando una produzione media di 25.177 barili di olio equivalente (Boe) al giorno. L'azienda ha registrato un reddito netto di 9,1 milioni di dollari, ovvero 0,07 dollari per azione diluita, e un reddito netto rettificato (non-GAAP) di 18,5 milioni di dollari o 0,14 dollari per azione diluita. L'EBITDAX rettificato (non-GAAP) è stato di 75,4 milioni di dollari. Granite Ridge ha messo online 93 pozzi lordi e ha chiuso più transazioni, aggiungendo 15,9 nuove localizzazioni per trivellazioni future per un costo di acquisizione di 30,9 milioni di dollari. L'azienda ha dichiarato un dividendo trimestrale di 0,11 dollari per azione, implicando un rendimento annualizzato del 6,9%. La liquidità alla fine del trimestre era di 127,8 milioni di dollari. Dopo il trimestre, Granite Ridge ha aumentato la propria linea di credito a 325 milioni di dollari e ha dichiarato un dividendo trimestrale regolare pagabile il 16 dicembre 2024. La produzione di oli è aumentata del 3% anno su anno, mentre la produzione di gas naturale è diminuita del 12%, portando a un calo complessivo della produzione del 5%.
Granite Ridge Resources informó sus resultados del tercer trimestre de 2024, destacando una producción promedio de 25,177 barriles de petróleo equivalente (Boe) por día. La empresa reportó un ingreso neto de 9.1 millones de dólares, o 0.07 dólares por acción diluida, y un ingreso neto ajustado (no-GAAP) de 18.5 millones de dólares, o 0.14 dólares por acción diluida. El EBITDAX ajustado (no-GAAP) fue de 75.4 millones de dólares. Granite Ridge puso en línea 93 pozos brutos y cerró múltiples transacciones, añadiendo 15.9 localizaciones netas futuras de perforación a un costo de adquisición de 30.9 millones de dólares. La compañía declaró un dividendo trimestral de 0.11 dólares por acción, implicando un rendimiento anualizado del 6.9%. La liquidez al final del trimestre fue de 127.8 millones de dólares. Posteriormente al trimestre, Granite Ridge aumentó su base de préstamo a 325 millones de dólares y declaró un dividendo trimestral regular que se pagará el 16 de diciembre de 2024. La producción de petróleo aumentó un 3% en comparación con el año anterior, mientras que la producción de gas natural disminuyó un 12%, lo que llevó a una disminución general de la producción del 5%.
Granite Ridge Resources는 2024년 3분기 결과를 보고하며, 하루 평균 25,177 배럴의 석유 등가물 (Boe)을 생산했다고 밝혔습니다. 이 회사는 910만 달러의 순이익을 기록했으며, 희석주당 0.07 달러와 비GAAP 기준 조정 순이익 1850만 달러 또는 희석주당 0.14 달러로 보고했습니다. 조정된 EBITDAX (비GAAP 기준)는 7540만 달러였습니다. Granite Ridge는 93개의 총 우물을 온라인으로 가동했으며, 여러 거래를 체결하여 미래 시추 지역 15.9개를 추가했습니다. 인수 비용은 3,090만 달러였습니다. 이 회사는 주당 0.11 달러의 분기 배당금을 선언하여 연 6.9%의 수익률을 나타냈습니다. 분기 말 유동성은 1억 2천 780만 달러였습니다. 분기 이후 Granite Ridge는 대출 한도 3억 2500만 달러로 증가시켰고, 2024년 12월 16일에 지급될 정기 분기 배당금을 선언했습니다. 석유 생산은 전년 대비 3% 증가했으며, 천연가스 생산은 12% 감소하여 전반적인 생산은 5% 감소했습니다.
Granite Ridge Resources a annoncé ses résultats du troisième trimestre 2024, mettant en avant une production moyenne de 25.177 barils équivalents pétrole (Boe) par jour. L'entreprise a enregistré un bénéfice net de 9,1 millions de dollars, soit 0,07 dollars par action diluée, et un bénéfice net ajusté (non-GAAP) de 18,5 millions de dollars ou 0,14 dollars par action diluée. L'EBITDAX ajusté (non-GAAP) était de 75,4 millions de dollars. Granite Ridge a mis en ligne 93 puits bruts et a conclu de multiples transactions, ajoutant 15,9 futures localisations de forage à un coût d'acquisition de 30,9 millions de dollars. L'entreprise a déclaré un dividende trimestriel de 0,11 dollars par action, ce qui implique un rendement annualisé de 6,9%. La liquidité à la fin du trimestre était de 127,8 millions de dollars. Suite au trimestre, Granite Ridge a augmenté sa base de prêt à 325 millions de dollars et a déclaré un dividende trimestriel régulier payable le 16 décembre 2024. La production pétrolière a augmenté de 3% par rapport à l'année précédente, tandis que la production de gaz naturel a diminué de 12%, entraînant une baisse globale de la production de 5%.
Granite Ridge Resources berichtete über die Ergebnisse für das dritte Quartal 2024 und hob eine durchschnittliche Produktion von 25.177 Barrel Öl-Äquivalent (Boe) pro Tag hervor. Das Unternehmen verzeichnete einen Nettogewinn von 9,1 Millionen Dollar oder 0,07 Dollar pro verwässerter Aktie und einen bereinigten Nettogewinn (non-GAAP) von 18,5 Millionen Dollar oder 0,14 Dollar pro verwässerter Aktie. Der bereinigte EBITDAX (non-GAAP) betrug 75,4 Millionen Dollar. Granite Ridge nahm 93 Brutto-Bohrungen in Betrieb und schloss mehrere Transaktionen ab, wodurch 15,9 Netto-Zukünftige Bohrstandorte zu einem Erwerbspreis von 30,9 Millionen Dollar hinzugefügt wurden. Das Unternehmen erklärte eine vierteljährliche Dividende von 0,11 Dollar pro Aktie, was einer annualisierten Rendite von 6,9% entspricht. Die Liquidität zum Ende des Quartals betrug 127,8 Millionen Dollar. Nach dem Quartal erhöhte Granite Ridge die Kreditlinie auf 325 Millionen Dollar und erklärte eine regelmäßige vierteljährliche Dividende, die am 16. Dezember 2024 zahlbar sein wird. Die Ölproduktion stieg im Jahresvergleich um 3%, während die Erdgasproduktion um 12% zurückging, was zu einem Gesamtproduktionsrückgang von 5% führte.
- Net income of $9.1 million or $0.07 per diluted share
- Adjusted net income (non-GAAP) of $18.5 million or $0.14 per diluted share
- Adjusted EBITDAX (non-GAAP) of $75.4 million
- Quarterly dividend of $0.11 per share, implying a 6.9% annualized yield
- Liquidity of $127.8 million at quarter's end
- Increased borrowing base to $325 million
- Overall production decreased 5% year-over-year
- Natural gas production decreased 12% year-over-year
- Adjusted EBITDAX decreased from $83.2 million in Q3 2023 to $75.4 million in Q3 2024
Insights
Granite Ridge delivered a mixed Q3 2024 performance with some concerning metrics. While maintaining a
The company's strategic shift towards "Controlled Capital" is notable, with
The operational metrics reveal strategic positioning in key basins. The Permian Basin dominates activity with 43 gross wells completed in Q3, while the diversified portfolio across Eagle Ford, Bakken and other regions provides risk mitigation. The acquisition of 23 gross future drilling locations shows opportunistic growth, though declining natural gas production (
The company's
Third Quarter 2024 Highlights
-
Achieved average production of 25,177 barrels of oil equivalent (“Boe”) per day (
50% oil). -
Reported net income of
$9.1 million $0.07 $18.5 million $0.14 -
Generated
$75.4 million - Placed 93 gross (5.18 net) wells online.
-
Closed multiple transactions during the quarter adding 15.9 net future drilling locations for a total acquisition cost of
$30.9 million $0.6 million -
Paid quarterly dividend of
$0.11 6.9% annualized yield based on November 6, 2024 closing share price of$6.35 -
Ended the third quarter of 2024 with liquidity of
$127.8 million
See “Supplemental Non-GAAP Financial Measures” below for descriptions of the above non-GAAP measures as well as a reconciliation of these measures to the associated GAAP (as defined herein) measures.
Subsequent Events
-
Completed the Company’s semi-annual bank redetermination process and increased the borrowing base and elected commitment amounts to
$325 million -
The Company’s Board of Directors declared a regular quarterly dividend of
$0.11
Management Commentary
"Granite Ridge has once again delivered a strong quarter of operational and financial performance," said President and CEO Luke Brandenberg. "We exceeded our expectations in production, adjusted EBITDA, LOE, and G&A, thanks to the quality of our assets, superior underwriting, dedicated staff, and the outstanding performance of our operating partners. Our significant cash flow generation allows us to reinvest in high-return projects and provide shareholders with a current dividend yield of nearly
"Controlled Capital is increasingly central to our strategy, and we are thrilled with its progress. Early results from our
Third Quarter 2024 Summary
Third quarter 2024 oil production volumes totaled 12,655 barrels (“Bbls”) per day, a
Net income for the third quarter of 2024 was
Adjusted EBITDAX (non-GAAP) for the third quarter of 2024 totaled
Operational Update
During the third quarter the Company closed multiple transactions adding 15.9 net future drilling locations for a total acquisition cost of
-
Traditional Non-Op or “Burgers & Beer”
-
Acquired 23 gross (1.4 net) future drilling locations for a total acquisition cost of
$5.0 million $15 million -
Acquisitions include assets in the
Delaware , Bakken and Appalachian basins.
-
Acquired 23 gross (1.4 net) future drilling locations for a total acquisition cost of
-
Controlled Capital
-
Midland Basin: Acquired inventory of 13 gross (10.7 net) future drilling locations for a total acquisition cost of
$22.1 million $77 million -
Delaware Basin: Acquired inventory of 7 gross (3.8 net) locations for a total acquisition cost of$3.8 million $33 million - As the largest interest owner in these locations, Granite Ridge controls development timing.
-
Midland Basin: Acquired inventory of 13 gross (10.7 net) future drilling locations for a total acquisition cost of
Operational Activity
The table below provides a summary of gross and net wells completed and put on production for the three and nine months ended September 30, 2024:
|
Three Months Ended September 30, 2024 |
|
Nine Months Ended September 30, 2024 |
||||
|
Gross |
|
Net |
|
Gross |
|
Net |
Permian |
43 |
|
3.25 |
|
102 |
|
13.57 |
Eagle Ford |
0 |
|
0.00 |
|
13 |
|
3.10 |
Bakken |
8 |
|
0.21 |
|
37 |
|
0.60 |
Haynesville |
0 |
|
0.00 |
|
6 |
|
0.34 |
DJ |
42 |
|
1.72 |
|
55 |
|
1.74 |
Total |
93 |
|
5.18 |
|
213 |
|
19.35 |
On September 30, 2024, the Company had 255 gross (16.2 net) wells in process.
Costs Incurred
The tables below provide the costs incurred for oil and natural gas producing activities for the periods indicated:
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
||||
(in thousands) |
2024 |
|
2023 |
|
2024 |
|
2023 |
Property acquisition costs: |
|
|
|
|
|
|
|
Proved |
$ — |
|
|
|
|
|
|
Unproved |
32,919 |
|
11,262 |
|
51,515 |
|
24,053 |
Development costs |
77,171 |
|
75,726 |
|
206,761 |
|
233,071 |
Total costs incurred for oil and natural gas properties |
|
|
|
|
|
|
|
Commodity Derivatives Update
The Company’s commodity derivatives strategy is intended to manage its exposure to commodity price fluctuations. Please see the table under “Derivatives Information” below for detailed information about Granite Ridge’s current derivatives positions.
2024 Guidance
The following table summarizes the Company’s operational and financial guidance for 2024, which is unchanged from the prior quarter.
|
|
2024 |
|
Annual production (Boe per day) |
|
23,250 - 25,250 |
|
Oil as a % of sales volumes |
|
48 % |
|
|
|
|
|
Acquisitions ($ in millions) |
|
|
|
Development capital expenditures ($ in millions) |
|
|
|
Total capital expenditures ($ in millions) |
|
|
|
|
|
|
|
Net wells placed on production |
|
22 - 24 |
|
|
|
|
|
Lease operating expenses (per Boe) |
|
|
|
Production and ad valorem taxes (as a % of total sales) |
|
|
|
Cash general and administrative expense ($ in millions) |
|
|
|
Conference Call
Granite Ridge will host a conference call on November 8, 2024, at 10:00 AM CT (11:00 AM ET) to discuss its third quarter 2024 results. A brief Q&A session for security analysts will immediately follow the discussion. The telephone number and passcode to access the conference call are provided below:
Dial-in: (888) 660-6093
Intl. dial-in: (929) 203-0844
Participant Passcode: 4127559
To access the live webcast visit Granite Ridge’s website at www.graniteridge.com. Alternatively, an audio replay will be available through November 22, 2024. To access the audio replay dial (800) 770-2030 and enter confirmation code 4127559.
Upcoming Investor Events
Granite Ridge management will also be participating in the following upcoming investor events:
-
Bank of America Global Energy Conference (
Houston, TX ) - November 12 - 13, 2024. - Wolfe Global Energy Conference (Virtual) - November 20, 2024.
-
Southwest IDEAS Conference (
Dallas, TX ) - November 20, 2024. -
Stephens Annual Investment Conference (
Nashville, TN ) - November 21, 2024. -
Capital One Annual Energy Conference (
Houston, TX ) - December 10, 2024.
Any investor presentations to be used for such events will be posted prior to the respective event on Granite Ridge’s website. Information on Granite Ridge’s website does not constitute a portion of, and is not incorporated by reference into this press release.
About Granite Ridge
Granite Ridge is a scaled, non-operated oil and gas exploration and production company. We own a portfolio of wells and top-tier acreage across the Permian and four other prolific unconventional basins across
Forward-Looking Statements and Cautionary Statements
This press release contains forward-looking statements regarding future events and future results that are subject to the safe harbors created under the Securities Act of 1933, as amended, and the Securities Exchange Act of 1934, as amended. All statements other than statements of historical facts included in this release including, without limitation, Granite Ridge’s 2024 outlook, financial position, operating and financial performance, business strategy, plans and objectives of management for future operations, industry conditions, indebtedness covenant compliance, capital expenditures, production and cash flows, and our intention or ability to pay or increase dividends on our capital are forward-looking statements. When used in this release, forward-looking statements are generally accompanied by terms or phrases such as “estimate,” “project,” “predict,” “believe,” “expect,” “continue,” “anticipate,” “target,” “could,” “plan,” “intend,” “seek,” “goal,” “will,” “should,” “may” or other words and similar expressions that convey the uncertainty of future events or outcomes. Items contemplating or making assumptions about actual or potential future production and sales, market size, collaborations, cash flows, and trends or operating results also constitute such forward-looking statements.
Forward-looking statements involve inherent risks and uncertainties, and important factors (many of which are beyond Granite Ridge’s control) that could cause actual results to differ materially from those set forth in the forward-looking statements, including the following: Granite Ridge’s financial performance following the business combination, changes in Granite Ridge’s strategy, future operations, financial position, estimated revenues and losses, projected costs, prospects and plans, changes in current or future commodity prices and interest rates, supply chain disruptions, infrastructure constraints and related factors affecting our properties, ability to acquire additional development opportunities and potential or pending acquisition transactions, as well as the effects of such acquisitions on the Company’s cash position and levels of indebtedness, changes in our reserves estimates or the value thereof, operational risks including, but not limited to, the pace of drilling and completions activity on our properties, changes in the markets in which Granite Ridge competes, geopolitical risk and changes in applicable laws, legislation, or regulations, including those relating to environmental matters, cyber-related risks, the fact that reserve estimates depend on many assumptions that may turn out to be inaccurate and that any material inaccuracies in reserve estimates or underlying assumptions will materially affect the quantities and present value of Granite Ridge’s reserves, the outcome of any known and unknown litigation and regulatory proceedings, limited liquidity and trading of Granite Ridge’s securities, acts of war, terrorism or uncertainty regarding the effects and duration of global hostilities, including the Israel-Hamas conflict, the
Granite Ridge has based these forward-looking statements on its current expectations and assumptions about future events. While management considers these expectations and assumptions to be reasonable, they are inherently subject to significant business, economic, competitive, regulatory and other risks, contingencies and uncertainties, most of which are difficult to predict and many of which are beyond Granite Ridge’s control. If one or more of these risks or uncertainties materialize, or if the underlying assumptions prove incorrect, Granite Ridge’s actual results may vary materially from those expected or projected. Forward-looking statements speak only as of the date they are made. Granite Ridge does not undertake, and specifically disclaims, any obligation to update any forward-looking statements to reflect events or circumstances occurring after the date of such statements, other than as may be required by applicable law or regulation.
Use of Non-GAAP Financial Measures
To supplement the presentation of the Company’s financial results prepared in accordance with
See “Supplemental Non-GAAP Financial Measures” below for a description and reconciliation of each non-GAAP measure presented in this press release to the most directly comparable financial measure calculated in accordance with GAAP.
Granite Ridge Resources, Inc. |
|||||||
Condensed Consolidated Balance Sheets |
|||||||
(Unaudited) |
|||||||
|
|||||||
(in thousands, except par value and share data) |
September 30, 2024 |
|
December 31, 2023 |
||||
ASSETS |
|
|
|
||||
Current assets: |
|
|
|
||||
Cash |
$ |
23,102 |
|
|
$ |
10,430 |
|
Revenue receivable |
|
58,504 |
|
|
|
72,934 |
|
Advances to operators |
|
11,756 |
|
|
|
4,928 |
|
Prepaid and other current assets |
|
2,592 |
|
|
|
1,716 |
|
Derivative assets - commodity derivatives |
|
8,489 |
|
|
|
11,117 |
|
Equity investments |
|
27,651 |
|
|
|
50,427 |
|
Total current assets |
|
132,094 |
|
|
|
151,552 |
|
Property and equipment: |
|
|
|
||||
Oil and gas properties, successful efforts method |
|
1,492,861 |
|
|
|
1,236,683 |
|
Accumulated depletion |
|
(593,411 |
) |
|
|
(467,141 |
) |
Total property and equipment, net |
|
899,450 |
|
|
|
769,542 |
|
Long-term assets: |
|
|
|
||||
Derivative assets - commodity derivatives |
|
— |
|
|
|
1,189 |
|
Other long-term assets |
|
4,331 |
|
|
|
4,821 |
|
Total long-term assets |
|
4,331 |
|
|
|
6,010 |
|
Total assets |
$ |
1,035,875 |
|
|
$ |
927,104 |
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
||||
Current liabilities: |
|
|
|
||||
Accounts payable and accrued liabilities |
$ |
83,231 |
|
|
$ |
60,875 |
|
Other liabilities |
|
1,233 |
|
|
|
1,204 |
|
Total current liabilities |
|
84,464 |
|
|
|
62,079 |
|
Long-term liabilities: |
|
|
|
||||
Long-term debt |
|
195,000 |
|
|
|
110,000 |
|
Derivative liabilities - commodity derivatives |
|
676 |
|
|
|
— |
|
Asset retirement obligations |
|
10,433 |
|
|
|
9,391 |
|
Deferred tax liability |
|
84,722 |
|
|
|
73,989 |
|
Total long-term liabilities |
|
290,831 |
|
|
|
193,380 |
|
Total liabilities |
|
375,295 |
|
|
|
255,459 |
|
Stockholders' Equity: |
|
|
|
||||
Common stock, |
|
14 |
|
|
|
14 |
|
Additional paid-in capital |
|
654,857 |
|
|
|
653,174 |
|
Retained earnings |
|
42,051 |
|
|
|
54,782 |
|
Treasury stock, at cost, 5,680,255 and 5,677,627 shares at September 30, 2024 and December 31, 2023, respectively |
|
(36,342 |
) |
|
|
(36,325 |
) |
Total stockholders' equity |
|
660,580 |
|
|
|
671,645 |
|
Total liabilities and stockholders' equity |
$ |
1,035,875 |
|
|
$ |
927,104 |
|
Granite Ridge Resources, Inc. |
|||||||||||||||
Condensed Consolidated Statements of Operations |
|||||||||||||||
(Unaudited) |
|||||||||||||||
|
|||||||||||||||
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
||||||||||||
(in thousands, except per share data) |
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Revenues: |
|
|
|
|
|
|
|
||||||||
Oil and natural gas sales |
$ |
94,075 |
|
|
$ |
108,404 |
|
|
$ |
273,723 |
|
|
$ |
287,271 |
|
Operating costs and expenses: |
|
|
|
|
|
|
|
||||||||
Lease operating expenses |
|
13,026 |
|
|
|
16,935 |
|
|
|
42,174 |
|
|
|
45,113 |
|
Production and ad valorem taxes |
|
6,345 |
|
|
|
7,790 |
|
|
|
18,975 |
|
|
|
19,810 |
|
Depletion and accretion expense |
|
44,149 |
|
|
|
44,267 |
|
|
|
126,682 |
|
|
|
113,088 |
|
Impairments of unproved properties |
|
— |
|
|
|
— |
|
|
|
732 |
|
|
|
— |
|
Exploration expense |
|
283 |
|
|
|
1,560 |
|
|
|
283 |
|
|
|
1,560 |
|
General and administrative (including non-cash stock-based compensation of |
|
5,590 |
|
|
|
5,249 |
|
|
|
18,705 |
|
|
|
21,839 |
|
Total operating costs and expenses |
|
69,393 |
|
|
|
75,801 |
|
|
|
207,551 |
|
|
|
201,410 |
|
Net operating income |
|
24,682 |
|
|
|
32,603 |
|
|
|
66,172 |
|
|
|
85,861 |
|
Other income (expense): |
|
|
|
|
|
|
|
||||||||
Gain (loss) on derivatives - commodity derivatives |
|
11,841 |
|
|
|
(8,129 |
) |
|
|
7,895 |
|
|
|
6,415 |
|
Interest expense |
|
(4,820 |
) |
|
|
(1,356 |
) |
|
|
(13,797 |
) |
|
|
(2,906 |
) |
Loss on derivatives - common stock warrants |
|
— |
|
|
|
(8 |
) |
|
|
— |
|
|
|
(5,742 |
) |
Loss on equity investments |
|
(18,320 |
) |
|
|
— |
|
|
|
(19,315 |
) |
|
|
— |
|
Dividend income |
|
— |
|
|
|
— |
|
|
|
269 |
|
|
|
— |
|
Other |
|
1 |
|
|
|
— |
|
|
|
2 |
|
|
|
— |
|
Total other income (expense) |
|
(11,298 |
) |
|
|
(9,493 |
) |
|
|
(24,946 |
) |
|
|
(2,233 |
) |
Income before income taxes |
|
13,384 |
|
|
|
23,110 |
|
|
|
41,226 |
|
|
|
83,628 |
|
Income tax expense |
|
4,330 |
|
|
|
5,153 |
|
|
|
10,845 |
|
|
|
20,068 |
|
Net income |
$ |
9,054 |
|
|
$ |
17,957 |
|
|
$ |
30,381 |
|
|
$ |
63,560 |
|
|
|
|
|
|
|
|
|
||||||||
Net income per share: |
|
|
|
|
|
|
|
||||||||
Basic |
$ |
0.07 |
|
|
$ |
0.13 |
|
|
$ |
0.23 |
|
|
$ |
0.48 |
|
Diluted |
$ |
0.07 |
|
|
$ |
0.13 |
|
|
$ |
0.23 |
|
|
$ |
0.48 |
|
Weighted-average number of shares outstanding: |
|
|
|
|
|
|
|
||||||||
Basic |
|
130,204 |
|
|
|
134,396 |
|
|
|
130,182 |
|
|
|
133,426 |
|
Diluted |
|
130,242 |
|
|
|
134,421 |
|
|
|
130,219 |
|
|
|
133,440 |
|
Granite Ridge Resources, Inc. |
|||||||
Condensed Consolidated Statements of Cash Flows |
|||||||
(Unaudited) |
|||||||
|
|||||||
|
Nine Months Ended September 30, |
||||||
(in thousands) |
|
2024 |
|
|
|
2023 |
|
Operating activities: |
|
|
|
||||
Net income |
$ |
30,381 |
|
|
$ |
63,560 |
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
||||
Depletion and accretion expense |
|
126,682 |
|
|
|
113,088 |
|
Abandonments expense |
|
— |
|
|
|
1,560 |
|
Impairments of unproved properties |
|
732 |
|
|
|
— |
|
(Gain) loss on derivatives - commodity derivatives |
|
(7,895 |
) |
|
|
(6,415 |
) |
Net cash receipts from commodity derivatives |
|
12,389 |
|
|
|
18,830 |
|
Stock-based compensation |
|
1,683 |
|
|
|
1,813 |
|
Amortization of deferred financing costs |
|
3,162 |
|
|
|
490 |
|
Loss on derivatives - common stock warrants |
|
— |
|
|
|
5,742 |
|
Unrealized loss on equity investments |
|
19,415 |
|
|
|
— |
|
Deferred income taxes |
|
10,733 |
|
|
|
17,069 |
|
Other |
|
(145 |
) |
|
|
(146 |
) |
Increase (decrease) in cash attributable to changes in operating assets and liabilities: |
|
|
|
||||
Revenue receivable |
|
14,429 |
|
|
|
(10,545 |
) |
Accrued expenses |
|
(3,240 |
) |
|
|
2,627 |
|
Prepaid and other current assets |
|
(877 |
) |
|
|
1,854 |
|
Other payable |
|
87 |
|
|
|
3,165 |
|
Net cash provided by operating activities |
|
207,536 |
|
|
|
212,692 |
|
Investing activities: |
|
|
|
||||
Capital expenditures for oil and natural gas properties |
|
(193,376 |
) |
|
|
(237,138 |
) |
Acquisition of oil and natural gas properties |
|
(51,994 |
) |
|
|
(49,427 |
) |
Proceeds from sale of oil and natural gas properties |
|
3,064 |
|
|
|
60 |
|
Proceeds from sale of equity investments |
|
3,362 |
|
|
|
— |
|
Refund of advances to operators |
|
5,314 |
|
|
|
— |
|
Net cash used in investing activities |
|
(233,630 |
) |
|
|
(286,505 |
) |
Financing activities: |
|
|
|
||||
Proceeds from borrowing on credit facilities |
|
85,000 |
|
|
|
117,500 |
|
Repayments of borrowing on credit facilities |
|
— |
|
|
|
(32,500 |
) |
Deferred financing costs |
|
(3,004 |
) |
|
|
(28 |
) |
Payment of expenses related to formation of Granite Ridge Resources, Inc. |
|
— |
|
|
|
(43 |
) |
Purchase of treasury shares |
|
(418 |
) |
|
|
(11,765 |
) |
Proceeds from issuance of common stock |
|
— |
|
|
|
5 |
|
Payment of dividends |
|
(43,112 |
) |
|
|
(44,072 |
) |
Net cash provided by financing activities |
|
38,466 |
|
|
|
29,097 |
|
Net change in cash and restricted cash |
|
12,372 |
|
|
|
(44,716 |
) |
Cash and restricted cash at beginning of period |
|
10,730 |
|
|
|
51,133 |
|
Cash and restricted cash at end of period |
$ |
23,102 |
|
|
$ |
6,417 |
|
Supplemental disclosure of non-cash investing activities: |
|
|
|
||||
Oil and natural gas property development costs in accrued expenses |
$ |
40,003 |
|
|
$ |
(13,068 |
) |
Advances to operators applied to development of oil and natural gas properties |
$ |
80,320 |
|
|
$ |
88,463 |
|
Cash and restricted cash: |
|
|
|
||||
Cash |
$ |
23,102 |
|
|
$ |
6,117 |
|
Restricted cash included in other long-term assets |
|
— |
|
|
|
300 |
|
Cash and restricted cash |
$ |
23,102 |
|
|
$ |
6,417 |
|
Granite Ridge Resources, Inc. |
|||||||||||
Summary Production and Price Data |
|||||||||||
|
|||||||||||
The following table sets forth summary information concerning production and operating data for the periods indicated: |
|||||||||||
|
|||||||||||
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
||||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||
Net Sales (in thousands): |
|
|
|
|
|
|
|
||||
Oil sales |
$ |
85,503 |
|
$ |
88,210 |
|
$ |
238,761 |
|
$ |
230,755 |
Natural gas sales |
|
8,572 |
|
|
20,194 |
|
|
34,962 |
|
|
56,516 |
Total revenues |
|
94,075 |
|
|
108,404 |
|
|
273,723 |
|
|
287,271 |
|
|
|
|
|
|
|
|
||||
Net Production: |
|
|
|
|
|
|
|
||||
Oil (MBbl) |
|
1,164 |
|
|
1,125 |
|
|
3,129 |
|
|
3,038 |
Natural gas (MMcf) |
|
6,912 |
|
|
7,841 |
|
|
20,758 |
|
|
20,643 |
Total (MBoe)(1) |
|
2,316 |
|
|
2,432 |
|
|
6,589 |
|
|
6,479 |
Average Daily Production: |
|
|
|
|
|
|
|
||||
Oil (Bbl) |
|
12,655 |
|
|
12,228 |
|
|
11,420 |
|
|
11,128 |
Natural gas (Mcf) |
|
75,133 |
|
|
85,228 |
|
|
75,758 |
|
|
75,615 |
Total (Boe)(1) |
|
25,177 |
|
|
26,433 |
|
|
24,046 |
|
|
23,731 |
|
|
|
|
|
|
|
|
||||
Average Sales Prices: |
|
|
|
|
|
|
|
||||
Oil (per Bbl) |
$ |
73.44 |
|
$ |
78.41 |
|
$ |
76.31 |
|
$ |
75.96 |
Effect of gain (loss) on settled oil derivatives on average price (per Bbl) |
|
0.55 |
|
|
0.11 |
|
|
0.11 |
|
|
1.29 |
Oil net of settled oil derivatives (per Bbl) (2) |
|
73.99 |
|
|
78.52 |
|
|
76.42 |
|
|
77.25 |
|
|
|
|
|
|
|
|
||||
Natural gas sales (per Mcf) |
|
1.24 |
|
|
2.58 |
|
|
1.68 |
|
|
2.74 |
Effect of gain (loss) on settled natural gas derivatives on average price (per Mcf) |
|
0.74 |
|
|
0.55 |
|
|
0.58 |
|
|
0.72 |
Natural gas sales net of settled natural gas derivatives (per Mcf) (2) |
|
1.98 |
|
|
3.13 |
|
|
2.26 |
|
|
3.46 |
|
|
|
|
|
|
|
|
||||
Realized price on a Boe basis excluding settled commodity derivatives |
|
40.61 |
|
|
44.57 |
|
|
41.54 |
|
|
44.34 |
Effect of gain (loss) on settled commodity derivatives on average price (per Boe) |
|
2.47 |
|
|
1.82 |
|
|
1.88 |
|
|
2.91 |
Realized price on a Boe basis including settled commodity derivatives (2) |
|
43.08 |
|
|
46.39 |
|
|
43.42 |
|
|
47.25 |
|
|
|
|
|
|
|
|
||||
Operating Expenses (in thousands): |
|
|
|
|
|
|
|
||||
Lease operating expenses |
$ |
13,026 |
|
$ |
16,935 |
|
$ |
42,174 |
|
$ |
45,113 |
Production and ad valorem taxes |
|
6,345 |
|
|
7,790 |
|
|
18,975 |
|
|
19,810 |
Depletion and accretion expense |
|
44,149 |
|
|
44,267 |
|
|
126,682 |
|
|
113,088 |
General and administrative |
|
5,590 |
|
|
5,249 |
|
|
18,705 |
|
|
21,839 |
Costs and Expenses (per Boe): |
|
|
|
|
|
|
|
||||
Lease operating expenses |
$ |
5.62 |
|
$ |
6.96 |
|
$ |
6.40 |
|
$ |
6.96 |
Production and ad valorem taxes |
|
2.74 |
|
|
3.20 |
|
|
2.88 |
|
|
3.06 |
Depletion and accretion |
|
19.06 |
|
|
18.20 |
|
|
19.23 |
|
|
17.45 |
General and administrative |
|
2.41 |
|
|
2.16 |
|
|
2.84 |
|
|
3.37 |
|
|
|
|
|
|
|
|
||||
Net Producing Wells at Period-End: |
|
195.88 |
|
|
175.24 |
|
|
195.88 |
|
|
175.24 |
(1) |
Natural gas is converted to Boe using the ratio of one barrel of oil to six Mcf of natural gas. |
||||||||||||
(2) |
The presentation of realized prices including settled commodity derivatives is a result of including the net cash receipts from (payments on) commodity derivatives that are presented in our condensed consolidated statements of cash flows. This presentation of average prices with derivatives is a means by which to reflect the actual cash performance of our commodity derivatives for the respective periods and presents oil and natural gas prices with derivatives in a manner consistent with the presentation generally used by the investment community. |
||||||||||||
Granite Ridge Resources, Inc. |
|||||||
Derivatives Information |
|||||||
|
|||||||
The table below provides data associated with the Company’s derivatives at September 30, 2024, for the periods indicated. No additional derivatives have been entered into subsequent to the end of the quarter. |
|||||||
|
|
Q4 2024 |
2025 |
2026 |
|||
Collar (oil) |
|
|
|
|
|||
Volume (Bbl) |
|
|
311,496 |
|
1,898,739 |
|
— |
Weighted-average floor price ($/Bbl) |
|
$ |
64.13 |
$ |
60.93 |
$ |
— |
Weighted-average ceiling price ($/Bbl) |
|
$ |
84.97 |
$ |
79.86 |
$ |
— |
Swaps (oil) |
|
|
|
|
|||
Volume (Bbl) |
|
|
128,277 |
|
— |
|
— |
Weighted-average price ($/Bbl) |
|
$ |
79.30 |
$ |
— |
$ |
— |
Collar (natural gas) |
|
|
|
|
|||
Volume (Mcf) |
|
|
1,899,000 |
|
9,439,829 |
|
7,650,176 |
Weighted-average floor price ($/Mcf) |
|
$ |
3.50 |
$ |
3.15 |
$ |
3.28 |
Weighted-average ceiling price ($/Mcf) |
|
$ |
5.12 |
$ |
4.13 |
$ |
4.01 |
Swaps (natural gas) |
|
|
|
|
|||
Volume (Mcf) |
|
|
1,895,588 |
|
2,585,050 |
|
656,000 |
Weighted-average price ($/Mcf) |
|
$ |
3.55 |
$ |
3.18 |
$ |
3.31 |
Granite Ridge Resources, Inc.
Supplemental Non-GAAP Financial Measures
The Company reports its financial results in accordance with GAAP. However, the Company believes certain non-GAAP performance measures may provide financial statement users with additional meaningful comparisons between current results, the results of its peers and the results of prior periods. In addition, the Company believes these measures are used by analysts and others in the valuation, rating and investment recommendations of companies within the oil and natural gas exploration and production industry. See the reconciliations throughout this release of GAAP financial measures to non-GAAP financial measures for the periods indicated.
Reconciliation of Net Income to Adjusted EBITDAX
Adjusted EBITDAX is presented herein and reconciled from the GAAP measure of net income because of its wide acceptance by the investment community as a financial indicator.
The Company defines Adjusted EBITDAX as net income, before depletion and accretion expense, (gain) loss on derivatives – commodity derivatives, net cash receipts from (payments on) commodity derivatives, interest expense, (gain) loss on derivatives – common stock warrants, non-cash stock-based compensation, income tax expense, impairments of unproved properties, warrant exchange transaction costs, loss on equity investments, and exploration expense. Adjusted EBITDAX is not a measure of net income or cash flows as determined by GAAP.
The Company’s Adjusted EBITDAX measure provides additional information that may be used to better understand the Company’s operations. Adjusted EBITDAX is one of several metrics that the Company uses as a supplemental financial measurement in the evaluation of its business and should not be considered in isolation or as an alternative to, or more meaningful than, net income as an indicator of operating performance. Certain items excluded from Adjusted EBITDAX are significant components in understanding and assessing a company’s financial performance, such as a company’s cost of capital and tax structure, as well as the historic cost of depreciable and depletable assets. Adjusted EBITDAX, as used by the Company, may not be comparable to similarly titled measures reported by other companies. The Company believes that Adjusted EBITDAX is a widely followed measure of operating performance and is one of many metrics used by the Company’s management team and by other users of the Company’s consolidated financial statements. For example, Adjusted EBITDAX can be used to assess the Company’s operating performance and return on capital in comparison to other independent exploration and production companies without regard to financial or capital structure, and to assess the financial performance of the Company’s assets and the Company without regard to capital structure or historical cost basis.
The following table provides a reconciliation of the GAAP measure of net income to Adjusted EBITDAX for the periods indicated:
|
Three Months Ended
|
|
Nine Months Ended
|
|||||||||||
(in thousands) |
|
2024 |
|
|
|
2023 |
|
|
2024 |
|
|
|
2023 |
|
Net income |
$ |
9,054 |
|
|
$ |
17,957 |
|
$ |
30,381 |
|
|
$ |
63,560 |
|
Interest expense |
|
4,820 |
|
|
|
1,356 |
|
|
13,797 |
|
|
|
2,906 |
|
Income tax expense |
|
4,330 |
|
|
|
5,153 |
|
|
10,845 |
|
|
|
20,068 |
|
Exploration expense |
|
283 |
|
|
|
1,560 |
|
|
283 |
|
|
|
1,560 |
|
Depletion and accretion expense |
|
44,149 |
|
|
|
44,267 |
|
|
126,682 |
|
|
|
113,088 |
|
Non-cash stock-based compensation |
|
588 |
|
|
|
379 |
|
|
1,683 |
|
|
|
1,813 |
|
Impairments of unproved properties |
|
— |
|
|
|
— |
|
|
732 |
|
|
|
— |
|
Warrant exchange transaction costs |
|
— |
|
|
|
— |
|
|
— |
|
|
|
2,456 |
|
(Gain) loss on derivatives - commodity derivatives |
|
(11,841 |
) |
|
|
8,129 |
|
|
(7,895 |
) |
|
|
(6,415 |
) |
Loss on equity investments |
|
18,320 |
|
|
|
— |
|
|
19,315 |
|
|
|
— |
|
Net cash receipts from commodity derivatives |
|
5,729 |
|
|
|
4,419 |
|
|
12,389 |
|
|
|
18,830 |
|
Loss on derivatives - common stock warrants |
|
— |
|
|
|
8 |
|
|
— |
|
|
|
5,742 |
|
Adjusted EBITDAX |
$ |
75,432 |
|
|
$ |
83,228 |
|
$ |
208,212 |
|
|
$ |
223,608 |
|
Reconciliation of Net Cash Provided by Operating Activities to Operating Cash Flow Before Working Capital Changes and to Free Cash Flow
The Company provides Operating Cash Flow (“OCF”) Before Working Capital Changes, which is a non-GAAP financial measure. The Company defines OCF Before Working Capital Changes as net cash provided by operating activities as determined under GAAP excluding changes in operating assets and liabilities such as: changes in cash due to changes in operating assets and liabilities, revenue receivable, accrued expenses, prepaid and other current assets and other payables. The Company believes OCF Before Working Capital Changes is an accepted measure of an oil and natural gas company’s ability to generate cash used to fund development and acquisition activities and service debt or pay dividends.
Additionally, the Company provides Free Cash Flow, which is a non-GAAP financial measure. The Company defines Free Cash Flow as OCF Before Working Capital Changes minus development costs. The Company believes that Free Cash Flow is useful to investors as it provides measures to compare cash from operating activities and exploration and development costs across periods on a consistent basis.
These non-GAAP measures should not be considered as alternatives to, or more meaningful than, net cash provided by operating activities as indicators of operating performance.
The following tables provide a reconciliation from the GAAP measure of net cash provided by operating activities to OCF Before Working Capital Changes and to Free Cash Flow:
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
(in thousands) |
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Net cash provided by operating activities |
$ |
74,694 |
|
|
$ |
57,032 |
|
|
$ |
207,536 |
|
|
$ |
212,692 |
|
Changes in cash due to changes in operating assets and liabilities: |
|
|
|
|
|
|
|
||||||||
Revenue receivable |
|
(8,744 |
) |
|
|
27,147 |
|
|
|
(14,429 |
) |
|
|
10,545 |
|
Accrued expenses |
|
842 |
|
|
|
(1,155 |
) |
|
|
3,240 |
|
|
|
(2,627 |
) |
Prepaid and other current assets |
|
113 |
|
|
|
(904 |
) |
|
|
877 |
|
|
|
(1,854 |
) |
Other payable |
|
3,802 |
|
|
|
(2,832 |
) |
|
|
(87 |
) |
|
|
(3,165 |
) |
Total working capital changes |
|
(3,987 |
) |
|
|
22,256 |
|
|
|
(10,399 |
) |
|
|
2,899 |
|
Operating Cash Flow Before Working Capital Changes |
|
70,707 |
|
|
|
79,288 |
|
|
|
197,137 |
|
|
|
215,591 |
|
Development costs |
|
77,171 |
|
|
|
75,726 |
|
|
|
206,761 |
|
|
|
233,071 |
|
Free Cash Flow |
$ |
(6,464 |
) |
|
$ |
3,562 |
|
|
$ |
(9,624 |
) |
|
$ |
(17,480 |
) |
Reconciliation of Net Income to Adjusted Net Income and Adjusted Earnings per Share
The Company provides Adjusted Net Income and Adjusted Earnings Per Share, which are non-GAAP financial measures. Adjusted Net Income and Adjusted Earnings Per Share represent earnings and diluted earnings per share determined under GAAP without regard to certain non-cash and nonrecurring items. The Company defines Adjusted Net Income as net income as determined under GAAP excluding impairments of proved properties, (gain) loss on derivatives - commodity derivatives, net cash receipts from (payments on) commodity derivatives, gain (loss) on derivatives - common stock warrants, loss on equity investments and tax impact on above adjustments.
The Company defines Adjusted Earnings Per Share as Adjusted Net Income divided by weighted average number of diluted shares of common stock outstanding.
The Company believes these measures provide useful information to analysts and investors for analysis of its operating results on a recurring, comparable basis from period to period. Adjusted Net Income and Adjusted Earnings Per Share should not be considered in isolation or as a substitute for earnings or diluted earnings per share as determined in accordance with GAAP and may not be comparable to other similarly titled measures of other companies.
The following table provides a reconciliation from the GAAP measure of net income to Adjusted Net Income, both in total and on a per diluted share basis, for the periods indicated:
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
(in thousands, except share data) |
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Net income |
$ |
9,054 |
|
|
$ |
17,957 |
|
|
$ |
30,381 |
|
|
$ |
63,560 |
|
Impairments of unproved properties |
|
— |
|
|
|
— |
|
|
|
732 |
|
|
|
— |
|
(Gain) loss on derivatives - commodity derivatives |
|
(11,841 |
) |
|
|
8,129 |
|
|
|
(7,895 |
) |
|
|
(6,415 |
) |
Net cash receipts from commodity derivatives |
|
5,729 |
|
|
|
4,419 |
|
|
|
12,389 |
|
|
|
18,830 |
|
Loss on equity investments |
|
18,320 |
|
|
|
— |
|
|
|
19,315 |
|
|
|
— |
|
Deferred financing cost amortization acceleration |
|
— |
|
|
|
— |
|
|
|
2,167 |
|
|
|
— |
|
Loss on derivatives - common stock warrants |
|
— |
|
|
|
8 |
|
|
|
— |
|
|
|
5,742 |
|
Warrant exchange transaction costs |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
2,456 |
|
Tax impact on above adjustments (a) |
|
(2,808 |
) |
|
|
(2,850 |
) |
|
|
(6,143 |
) |
|
|
(4,679 |
) |
Changes in deferred taxes and other estimates |
|
— |
|
|
|
32 |
|
|
|
— |
|
|
|
1,223 |
|
Adjusted net income |
$ |
18,454 |
|
|
$ |
27,695 |
|
|
$ |
50,946 |
|
|
$ |
80,717 |
|
|
|
|
|
|
|
|
|
||||||||
Earnings per diluted share - as reported |
$ |
0.07 |
|
|
$ |
0.13 |
|
|
$ |
0.23 |
|
|
$ |
0.48 |
|
Impairments of unproved properties |
|
— |
|
|
|
— |
|
|
|
0.01 |
|
|
|
— |
|
(Gain) loss on derivatives - commodity derivatives |
|
(0.09 |
) |
|
|
0.06 |
|
|
|
(0.06 |
) |
|
|
(0.05 |
) |
Net cash receipts from commodity derivatives |
|
0.04 |
|
|
|
0.03 |
|
|
|
0.10 |
|
|
|
0.14 |
|
Loss on derivatives - common stock warrants |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
0.04 |
|
Loss on equity investments |
|
0.14 |
|
|
|
— |
|
|
|
0.15 |
|
|
|
— |
|
Deferred financing cost amortization acceleration |
|
— |
|
|
|
— |
|
|
|
0.02 |
|
|
|
— |
|
Warrant exchange transaction costs |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
0.02 |
|
Tax impact on above adjustments (a) |
|
(0.02 |
) |
|
|
(0.01 |
) |
|
|
(0.06 |
) |
|
|
(0.04 |
) |
Changes in deferred taxes and other estimates |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
0.01 |
|
Adjusted earnings per diluted share |
$ |
0.14 |
|
|
$ |
0.21 |
|
|
$ |
0.39 |
|
|
$ |
0.60 |
|
Adjusted earnings per share: |
|
|
|
|
|
|
|
||||||||
Basic earnings |
$ |
0.14 |
|
|
$ |
0.21 |
|
|
$ |
0.39 |
|
|
$ |
0.60 |
|
Diluted earnings |
$ |
0.14 |
|
|
$ |
0.21 |
|
|
$ |
0.39 |
|
|
$ |
0.60 |
|
(a) Estimated using statutory tax rate in effect for the period. |
View source version on businesswire.com: https://www.businesswire.com/news/home/20241107839663/en/
Investor and Media Contact: IR@GraniteRidge.com – (214) 396-2850
Source: Granite Ridge Resources, Inc.
FAQ
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