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

Business overview and strategy

• Operates a non-operated model with diversified assets across major US basins, primarily in West Texas' Delaware Basin.

• Maintains a strong balance sheet with low leverage (0.4x) and a fixed dividend yield near 7%.

• Focuses on shareholder returns through dividends and buybacks, returning nearly $100 million since IPO.

• Seeks to unlock value as shareholder concentration transitions and research coverage expands.

• Targets maintaining leverage around 0.5x to enable opportunistic acquisitions during market downturns.

Growth initiatives and partnerships

• Pursues a controlled capital strategy, partnering with private operators to access higher-return, less competitive opportunities.

• Recently launched an 8-well pad in Loving County, holding a 70% working interest, marking a shift toward a synthetic operator model.

• Plans to increase the share of production from controlled capital partnerships over the next 3-5 years.

• Evaluates over 600 opportunities annually, focusing on minimum 20% rate of return and 1.5 ROI.

• Strategic partnerships allow for flexibility and alignment with both public and private operators.

Financial performance and capital allocation

• Trailing EBITDA is about $300 million, with enterprise value near $950 million.

• Forecasts 7% year-over-year growth for the current year at guidance midpoint.

• 2024 capital expenditures expected between $230 million and $250 million, with over $100 million for operated strategies.

• No near-term plans to increase the dividend; focus remains on reinvesting cash flow into high-return assets.

• G&A costs expected to remain stable even as production scales, supporting long-term margin expansion.