Granite Ridge Resources, Inc. · NYSE:GRNT
Granite Ridge Resources — Q1 2025 Earnings Presentation
30 slides from Granite Ridge Resources's earnings presentation, May 9, 2025
Slide 1: Investor Presentation | May 2025
INVESTOR PRESENTATION | MAY 2025
Slide 2: Granite Ridge Provides Public Investors Private Equity-Like Exposure
Granite Ridge Provides Public Investors Private Equity-Like Exposure With Daily Liquidity and Enhanced Alignment
Slide 3: Granite Ridge at a Glance
Granite Ridge at a Glance Key Statistics ($MM except per share metrics) Assets Ticker / Exchange GRNT / NYSE Share Price (as of 5/5/2025) $4.91 Market Capitalization $644 Enterprise Value1 $878 TTM Adjusted EBITDAX2 $318 Dividend Yield3 9.0% Vital Energy, Inc Shares Held on Balance Sheet4 $22 1Q ’25
Slide 4: Granite Ridge by the Numbers
Granite Ridge by the Numbers INCOME PRODUCTION STRONG TRADING AT STOCK GROWTH BALANCE SHEET VALUE PRICE 9.0% 16% 0.7x 2.7x Dividend Yield 1 Year-over-Year Target Leverage Ratio3 EV / 2025 Production Growth2 EBITDA1,4 1. As of 5/5/2025; based on last quarter annualized dividend payment of $0.44/share
Slide 5: Our Opportunity Set
Our Opportunity Set Target assets with low breakeven cost that generate compelling full-cycle, risk-adjusted returns Operated Partnerships Traditional Non-Op Controlled investments with proven value Minority interests in core areas creators in their area of expertise managed by experienced operators
Slide 6: Significant Production Growth Using Minimal Debt
Significant Production Growth Using Minimal Debt Disciplined underwriting has allowed for outperformance through multiple commodity cycles Net Production (Mboe/d) | Net Debt / Adj. EBITDAX1 | WTI Spot Price ($/Bbl) 30.0 $94.90 Conservative DNA Leverage has remained below target of 1.25x Net Debt / A
Slide 7: What Do We Do?
What Do We Do? Simple business model that invests across cycles to deliver superior, full-cycle risk-adjusted returns 1 2 3 4 Generate cash flow1 Source and evaluate Allocate capital Prioritize Shareholders from our diversified asset base of over 650 opportunities based on risk-adjusted by offering
Slide 8: Diversification Across Basin, Operator & Commodity
Diversification Across Basin, Operator & Commodity Bakken Utica 2024 Adj. EBITDAX1: 8% 2024 Adj. EBITDAX1: <1% Net Acres2,3: 13,167 Net Acres2,3: 1,439 Gross Wells4: 1,002 Gross Wells4: 27 % Private Operators5: 31% % Private Operators5: 93% Oil5: 71% Oil5: 45% DJ Haynesville 2024 Adj. EBITDAX1: 8% 2
Slide 9: Rigorous Sourcing Drives Better Economics
Source and Evaluate Rigorous Sourcing Drives Better Economics Highly selective and focused only on deals that offer the best full-cycle returns Initial screen on Engineering and Business Development Deal Sourcing Final negotiations basin, size, operator finance diligence High Volume Deal Funnel Revi
Slide 10: Tech-Enabled Platform Drives Accuracy & Efficiency
Source and Evaluate Tech-Enabled Platform Drives Accuracy & Efficiency Market Leading Data Set Gives Unique Insights to Evaluate Each Transaction Proprietary Database Drives Informed Decisions Ownership in over 3,100 wells Engineering Finance Robust Technology Synchronized Data Capabilities streamli
Slide 11: Sophisticated & Accurate Underwriting Process
Source and Evaluate Sophisticated & Accurate Underwriting Process Evaluation Steps 1 2 3 Screen Deal for Deep dive acquisition Operate and Relative Attractiveness target with subsurface portfolio expertise management Key Points Leverage proprietary data for production Treat each drilling decision as
Slide 12: Capital Allocation Evolves With the Opportunity Set
Allocate Capital Capital Allocation Evolves With the Opportunity Set 2014 - 2023 2024 + Private equity capitalizing on Flywheel of cash in market inefficiencies in Traditional Non-Op business non-operated investing OPERATED OPERATED PARTNERSHIPS PARTNERSHIPS E&P consolidation and PE Built a comprehe
Slide 13: Operated Partnership Overview
Allocate Capital Operated Partnership Overview Controlled investments with proven value creators within their area of expertise Granite Ridge Operated Partnerships Inventory Summary Benefit to Management Teams • Strategic Opportunity: Addressing the gap left by • Conservative Underwriting: Inventory
Slide 14: Traditional Non-Op Market Opportunity
Allocate Capital Traditional Non-Op Market Opportunity 2024 Shale Capex of ~$105 Billion1 Large Opportunity Set De-Risks Each Capital Decision Publicly Traded3,4,5 2024 GRNT Non-Op Capex Split Across 250+ Wells $2.1B Delaware Eagle Ford DJ Mid. Will. ~$79B ~$26B Operator Non-Op OTHER ~$24B ... ... O
Slide 15: Financial Strategy: The Best Offense is Good Defense
Allocate Capital Financial Strategy: The Best Offense is Good Defense Uses of Capital by Priority and Illustrative Uses of Cash Commodity Non-op asset base offers Base Business 1 Prices significant operational flexibility in low-price environments 1 Defend Balance Sheet: Aim to maintain a long-term
Slide 16: Active Hedging Program to Defend Cashflows
Prioritize Shareholders Active Hedging Program to Defend Cashflows 75% of Current Production Hedged Through 2026 Example Well Production Profile (Boe/d) Hedge Coverage Maintain 50-90% hedging of near-term production over Granite Ridge’s rolling 18-24 month periods Typical Initial Hedge Period Regula
Slide 17: Outsized Growth With Strong Balance Sheet
Prioritize Shareholders Outsized Growth With Strong Balance Sheet 3-Yr (2022-2025E) Production Growth Rate Per Share (%) Current Dividend Yield (%) 51% 49% 10.5% 33% 32% 32% 9.6% 9.0% 22% 7.4% 5.8% 5.5% GRNT 2.9% (24%) NM GRNT (55%) Net Debt / TTM Adjusted EBITDAX1 (x) Net Debt / Current Production
Slide 18: 2025 Strategic Plan
2025 Strategic Plan Forecast generates mid-teens production growth Guidance Low High 2025E Capital Allocation Breakdown1 ($MM) Net Production (Boe/d) 28,000 30,000 Oil % of Production 51% 53% Total Capital Expenditures ($MM) $300 $320 2025E Total Projected Traditional Non-Operated Lease Operating Ex
Slide 19: Granite Ridge Strategic Initiatives
Publicly Traded Private Equity: Provide public investors 1 private equity-like exposure with daily liquidity and enhanced alignment Shareholder Focus: Support fixed dividend1 of $0.44 per 2 share and pursue opportunistic share buybacks to enhance shareholder value Granite Ridge Asset Growth: Drive g
Slide 20: Appendix
ea GRANITE RIDGE APPENDIX
Slide 21: 2025 Q1 Results
2025 Q1 Results Adj. EBITDAX 1 Well Activity 1Q ’25: $91MM 13.7 net wells TTS TTM: $318MM 15.8 net wells in process +1% vs 4Q’23 +170% & +10%, respectively vs 1Q’24 Production (Boe/d) Pro Forma Liquidity2,4 1Q ’25: 29,245 $163MM +5% vs 4Q’24 | +23% vs 1Q ‘24 Includes $22MM of VTLE Shares2 1Q ‘25 Lev
Slide 22: Quarterly Financial Performance
Quarterly Financial Performance Oil and Gas Production (MBoe/d) Total Revenues ($MM) 40.0 85% 91% 83% 95% 29.2 75% 35.0 $160.0 27.7 25.2 $123 $140.0 75% 30.0 23.1 $106 14.5 $91 $94 $120.0 13.0 $31 25.0 55% 12.5 $18 $100.0 20.0 12.2 $80.0 $13 $9 35% 15.0 $60.0 14.7 14.8 15% 10.0 12.7 $77 $86 $89 $92
Slide 23: Current Hedges
Current Hedges 1 2025 2026 Oil 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Collars Bbl 997,903 933,266 802,210 698,000 606,400 544,580 497,000 457,000 Ceiling $77.86 $76.69 $77.54 $76.41 $71.06 $70.09 $70.65 $69.83 Floor $63.51 $62.67 $62.92 $60.72 $60.00 $60.00 $60.00 $60.00 Percent Hedged Current PDP 80% 71% 72% 74%
Slide 24: Year End 2024 SEC Reserves Summary
Year End 2024 SEC Reserves Summary Reserve Category Oil (MBbls) Gas (MMcf) Equivalent (Mboe) PV-10% ($M) Proved PV-10 by Operator ($MM)1,2 PDP 17,372 104,293 34,754 $634,483 PDNP 1,897 13,811 4,199 90,983 PERMIAN EAGLE FORD BAKKEN DJ BASIN PUD 8,918 38,666 15,362 116,463 Total Proved Reserves 28,187
Slide 25: Non-GAAP Reconciliation: Adjusted EBITDAX
Non-GAAP Reconciliation: Adjusted EBITDAX $M 2Q ’24 3Q ’24 4Q ‘24 1Q ‘25 2024 TTM Net income $5,101 $9,054 $(11,622) $9,812 $18,759 $12,345 Interest expense 5,817 4,820 4,673 5,015 18,470 20,325 Income tax expense (benefit) 1,678 4,330 (4,638) 2,880 6,207 4,250 Other, net — 283 (524) (120) (241) (36
Slide 26: Non-GAAP Reconciliation: Net Debt / Adjusted EBITDAX
Non-GAAP Reconciliation: Net Debt / Adjusted EBITDAX Net Debt, $M 12/31/2017 12/31/2018 12/31/2019 12/31/2020 12/31/2021 12/31/2022 12/31/2023 12/31/2024 3/31/2025 Long-term debt $31,300 $18,400 $56,500 $38,500 $51,100 — $110,000 $205,000 $250,000 Less: Cash 6,442 13,182 6,047 8,208 11,854 50,833 10
Slide 27: Non-GAAP Reconciliations
Non-GAAP Reconciliations PV-10%, $M 2024 Pre-tax present value of estimated future net revenues (Pre-Tax PV10%) $841,929 Future income taxes, discounted at 10% (120,961) Standardized measure of discounted future net cash flows $720,968 27
Slide 28: Disclaimer
Disclaimer NON-GAAP MEASURES Leverage: The Company defines leverage as Net Debt divided by TTM Adjusted EBITDAX. Adjusted EBITDAX: The Company defines Adjusted EBITDAX as net income before depletion and PV-10: The Company defines PV-10 as the pre-tax present value of estimated future net revenues (P
Slide 29: Disclaimer
Disclaimer FORWARD-LOOKING STATEMENTS 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, legal and contractual This investor presentation contains forward-looking stat
Slide 30: Disclaimer
Disclaimer INDUSTRY AND MARKET DATA Estimated Ultimate Recoveries, or “EURs,” refer to estimates of the sum of total gross remaining proved reserves per well as of a given date and cumulative production prior to such given date for developed The information, data and statistics contained herein are
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