Granite Ridge Resources (GRNT) Noble Capital Markets Virtual Equity Conference summary

Strategic positioning and business model

• Operates as a non-operated (non-op) upstream oil and gas investor, focusing on partnerships with both public and private operators across major U.S. basins, including recent entry into the Utica.

• Maintains a diversified asset base, split roughly 50/50 between oil and gas, and leverages relationships with private operators for potential exit opportunities.

• Pursues a conservative balance sheet and offers a dividend yield over 7%, positioning as an income and production growth stock.

• Trades at a discount to peers, with a current multiple around three times, compared to four to five times for most peers.

• Transitioning from a traditional non-op model to a controlled capital strategy, providing more influence over capital deployment and production timing.

Capital allocation and investment criteria

• Allocates capital to private partnerships, acting as the sole capital provider for several private teams, especially in West Texas.

• Traditional non-op investments target 20%-25% rates of return and a 1.5 ROI minimum, with higher thresholds for controlled capital deals (starting at 25% rate of return and 1.6-1.7 ROI).

• Typical deal sizes range from $2.5 million to $100 million, focusing on relationship-driven, non-marketed opportunities.

• Funds acquisitions and development through cash flow and a reserve-based loan facility with a syndicate of 12 banks, maintaining conservative leverage.

Shareholder base and market positioning

• Originated from a SPAC merger in 2022, resulting in a concentrated ownership by Grey Rock, which has gradually decreased from 98% to 52% as shares are distributed to LPs.

• Daily trading volume has increased 12-fold over the past year, aided by expanded research coverage and addition to the Russell 2000.

• Expects further broadening of the shareholder base as additional shares are distributed from Grey Rock funds through 2027.