Granite Ridge Resources : First Quarter 2025 Earnings Press Release

About this update from Granite Ridge Resources, Inc.

NEWS RELEASE Granite Ridge Resources, Inc. Reports First Quarter 2025 Results and Declares Quarterly Cash Dividend 2025-05-08 DALLAS--(BUSINESS WIRE)-- Granite Ridge Resources, Inc. ("Granite Ridge" or the "Company") (NYSE: GRNT) today reported nancial and operating results for the rst quarter of 2025. First Quarter 2025 Highlights Grew daily production 23% to 29,245 barrels of oil equivalent ("Boe") per day (50% oil), from 23,842 Boe per day for the rst quarter of 2024. Reported net income of $9.8 million, or $0.07 per diluted share, versus $16.2 million, or $0.12 per diluted share, for the prior year period. Adjusted Net Income (non-GAAP) totaled $28.9 million, or $0.22 Adjusted Earnings Per Diluted Share (non-GAAP). Generated $91.4 million of Adjusted EBITDAX (non-GAAP). Invested $71.4 million in development capital expenditures and $34.4 million in acquisition capital to capture high quality drilling opportunities. Placed 13.7 net wells online. Declared dividend of $0.11 per share of common stock. Maintained Net Debt to Trailing Twelve Months Adjusted EBITDAX (non-GAAP) of 0.7x, and subsequent to quarter end, Granite Ridge and its lenders agreed to increase the Company's borrowing base to $375.0 million, resulting in total pro forma liquidity of $140.8 million at March 31, 2025. Subsequent to quarter end, the Company's Board of Directors declared a regular quarterly dividend of $0.11 per share payable on June 13, 2025 to shareholders of record as of May 30, 2025. Future declarations of dividends are subject to approval by the Board of Directors. 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 de ned herein) measures. Luke Brandenberg, President and CEO of Granite Ridge, commented, "Our rst quarter results highlight the quality of our asset base, the consistency of our execution, and the advantages of our diversi ed, capital-e cient model. We achieved 23% year-over-year daily production growth and generated $91 million in Adjusted EBITDAX, exceeding our internal forecasts. This success was primarily driven by strong new well performance and favorable timing across multiple basins. "We continue to realize the bene ts of our Operated Partnership program, which is currently focused on controlled investments in high-value drilling opportunities in the Permian Basin. This initiative enhances our exibility and visibility around capital deployment. Concurrently, we continue to selectively allocate capital across our Traditional Non-Op portfolio, positioning Granite Ridge to drive cash ow, support our dividend, and pursue accretive acquisitions. "Granite Ridge is intentionally positioned to navigate market volatility. With low leverage and a robust hedge book covering approximately 75% of current our production through 2026, we are well-prepared to capitalize on opportunities. Our exposure to some of the most promising drilling activities in the Lower 48 further strengthens our position. We remain disciplined in our capital allocation, ready to swiftly reduce or defer capital expenditures if market conditions soften, ensuring substantial long-term value for our shareholders." Financial Results Oil and natural gas sales for the rst quarter of 2025 were $122.9 million. Net income was $9.8 million, or $0.07 per diluted share. Excluding non-cash and special items, Adjusted Net Income (non-GAAP) was $28.9 million, or $0.22 per diluted share. Adjusted EBITDAX (non-GAAP) for the rst quarter of 2025 totaled $91.4 million, compared to $64.5 million for the rst quarter of 2024. Cash ow from operating activities was $76.1 million, including $10.6 million in working capital changes. Operating Cash Flow Before Working Capital Changes (non-GAAP) was $86.7 million. Production Results First quarter 2025 oil production volumes totaled 14,752 barrels ("Bbls") per day, a 39% increase from the rst quarter of 2024. Natural gas production for the rst quarter of 2025 totaled 86,960 thousand cubic feet of natural gas ("Mcf") per day, a 10% increase from the rst quarter of 2024. The Company's daily production for the rst quarter of 2025 grew 23% from the rst quarter of the prior year to 29,245 Boe per day. Oil, Natural Gas and Related Product Sales The Company's average realized price for oil and natural gas for the rst quarter of 2025, excluding the e ect of commodity derivatives, was $69.18 per Bbl and $3.97 per Mcf, respectively, compared to $78.17 per Bbl and $1.84 per Mcf realized in the rst quarter of 2024. Operating Costs Lease operating expenses were $16.2 million in the rst quarter of 2025, or $6.17 per Boe, 13% lower on a per unit basis compared to the rst quarter of 2024 as a result of recent development activity with lower per unit costs. Production and ad valorem taxes were $8.4 million for the quarter, or 6.8% of oil and natural gas sales. During the quarter, general and administrative expenses totaled $7.5 million, or $2.84 per Boe, inclusive of $0.7 million of non-cash stock-based compensation. Capital Expenditures and Operational Activity Capital expenditures for the quarter were $105.8 million comprised of $71.4 million of development capital and $34.4 million of property acquisition costs. The Company closed ten acquisitions in the Delaware and Utica Basins, adding an aggregate inventory of 12.0 net undeveloped locations. The table below provides the costs incurred for oil and natural gas producing activities for the periods indicated: Three Months Ended March 31, (in thousands) 2025 2024 Property acquisition costs: Proved $ 13,341 $ 1,147 Unproved 21,021 1,481 Development costs 71,402 62,639 Total costs incurred for oil and natural gas properties $ 105,764 $ 65,267 The Company had 13.7 net wells turned in-line ("TIL") during the rst quarter 2025, compared to 5.1 net wells TIL in the rst quarter of 2024. Granite Ridge saw strong well performance across multiple basins, highlighted by robust initial production from recently TIL wells in the Permian Basin. The table below provides a summary of gross and net wells completed and TIL for the rst quarter 2025: Three Months Ended March 31, 2025 Gross Net Permian 44 12.6 Eagle Ford 1 0.0 Bakken 5 0.1 Haynesville 0 0.0 DJ 61 0.4 Appalachian 21 0.6 Total 132 13.7 On March 31, 2025, the Company had 126 gross (15.1 net) wells in process. Liquidity and Capital Resources As of March 31, 2025, Granite Ridge had $250.0 million of debt outstanding under its Credit Agreement and $90.8 million of liquidity, consisting of $74.7 million of committed borrowing availability and $16.1 million of cash on hand. On April 29th the Company and its lenders entered into the Fifth Amendment to the Credit Agreement, which amended the Credit Agreement to, among other things, increase the borrowing base and aggregate elected commitments from $325.0 million to $375.0 million. On an as-adjusted basis after giving e ect to the Fifth Amendment, as of March 31, 2025, Granite Ridge would have had $140.8 million of liquidity. Commodity Derivatives Update The Company's commodity derivatives strategy is intended to manage its exposure to commodity price uctuations. Please see the table under "Derivatives Information" below for detailed information about Granite Ridge's current derivatives positions. 2025 Guidance The following table summarizes the Company's operational and nancial guidance for 2025, which is unchanged. Annual production (Boe per day) 28,000 - 30,000 Oil as a % of sales volumes 51% - 53% Total capital expenditures ($ in millions) $300 - $320 Lease operating expenses (per Boe) $6.25 - $7.25 Production and ad valorem taxes (as a % of total sales) 6% - 7% Cash general and administrative expense ($ in millions) Conference Call $25 - $27 Granite Ridge will host a conference call on May 9, 2025, at 10:00 AM Central Time (11:00 AM Eastern Time) to discuss its rst quarter 2025 results. A brief Q&A session will immediately follow the discussion. The telephone number and passcode to access the conference call are provided below: Dial-in: (888) 660-6093 International dial-in: (929) 203-0844 Participant Passcode: 4127559 To access the live webcast visit Granite Ridge's website at https://www.graniteridge.com . Alternatively, an audio replay will be available through May 23, 2025. To access the audio replay dial (800) 770-2030 and enter con rmation code 4127559. Upcoming Investor Events Granite Ridge management will also be participating in the following upcoming investor events: Louisiana Energy Conference (New Orleans, LA) - May 28, 2025. Stifel 2025 Cross Sector 1x1 Conference (Boston, MA) - June 3-4, 2025. Sidoti Small-Cap Virtual Conference (Virtual) - June 11-12, 2025. 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 energy company which aims to provide shareholders with exposure similar to energy private equity through operated partnerships and traditional non-operated assets. We own assets in six proli c unconventional basins across the United States. We aim to deliver a diversi ed portfolio with best-in-class full cycle returns by investing in a large number of high-graded deals developed by proven public and private operators. We focus on success as measured by total shareholder returns, which we seek to balance with a low leverage pro le. For more information, visit Granite Ridge's website at https://www.graniteridge.com . 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 regarding, without limitation, Granite Ridge's 2025 outlook, nancial position, operating and nancial performance, business strategy,

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