Granite Ridge Resources (GRNT) 15th Annual Midwest IDEAS Investor Conference summary

Business overview and strategy

• Transitioned from private equity to a public oil and gas company, focusing on sourcing and evaluating investment opportunities for optimal risk-adjusted returns.

• Operates as a hybrid growth and income entity, targeting about 7% annual production growth and maintaining a fixed $0.44/share dividend, yielding just under 7%.

• Maintains a diversified asset base across multiple U.S. basins, allocating capital dynamically based on market conditions and opportunity sets.

• Leverages partnerships with both large and small operators, acting as a fast follower to capitalize on proven innovations.

• About half of operators are private and half are public, ensuring broad deal flow and opportunity access.

Capital allocation and business model evolution

• Allocates capital to both traditional non-operated (non-op) interests and a growing controlled capital program, with the latter expected to reach about 50% of capital allocation next year.

• Controlled capital partnerships provide greater control over timing and operations, enabling more concentrated investments and higher returns.

• Targets at least a 25% project-level return for new investments, with disciplined capital recycling.

• Strategic shift toward controlled capital is driven by reduced private equity funding in the sector, creating opportunities to back experienced teams.

• The company is in a transitional phase, aiming to be valued more like an operator, which typically trades at a premium.

Financial performance and shareholder value

• Currently generates about $300 million in annual cash flow, with 20% allocated to dividends and the remainder split between maintenance and growth capital.

• Maintains conservative leverage, currently at about half a turn, with $150 million in debt used to fund growth.

• Expects double-digit production growth next year as new wells come online, driven by recent investments.

• Trading volume and tightly held shareholder base have limited institutional ownership, but efforts are underway to broaden the investor base.

• Believes the market is undervaluing the company, not fully accounting for the impact of debt-funded growth and the evolving business model.