Granite Ridge Resources (GRNT) Sidoti Small-Cap Virtual Investor Conference summary

Company overview and strategy

• Operates as a hybrid oil and gas company and investment firm with a diversified asset base, primarily Permian-weighted, and a market cap of $830–840 million.

• Focuses on broad opportunity sets and concentrated capital allocation to outperform the market, with trailing EBITDA near $300 million and a 7% yield.

• Targets mid-teens production growth for next year, underpinned by a conservative balance sheet with leverage at 0.6x.

• Maintains diversification across basins and operators, including both major public and private players, providing unique access for public investors.

• Emphasizes a shareholder-focused strategy: fixed dividend, production growth, and low leverage.

Capital allocation and business model evolution

• Operates mainly as a non-operator, sourcing and evaluating deals, but is shifting toward a controlled capital program for greater development control.

• Controlled capital program backs proven management teams to acquire and develop assets, allowing full control over drilling timing and strategy.

• Recent partnership with Admiral Permian has delivered costs 15% under budget and production 15% over budget, with typical project returns of 25% or better.

• Majority of capital will be allocated to the controlled strategy next year, aiming for operator-like returns and potential multiple expansion.

• Underwriting accuracy is a point of pride, with actual production matching 99% of forecasts across over 1,000 wells evaluated.

Market positioning and shareholder base

• Trades at a discount to operator peers due to a tightly held shareholder base, with only about 30% of shares actively trading.

• Increasing trading volume is expected to broaden the investor base and act as a tailwind for the stock.

• Management and board members are actively buying shares, viewing current equity as undervalued and avoiding dilution.

• Maintains leverage below 1x EBITDA to preserve flexibility for opportunistic acquisitions and to remain offensive during market downturns.