The following is a summary of the Granite Ridge Resources, Inc. (GRNT) Q2 2024 Earnings Call Transcript:
Financial Performance:
Granite Ridge reported a 7% increase in average daily total production to 23,100 BOE per day.
Adjusted EBITDA was $68.3 million and adjusted EPS was $0.13 per diluted share for the second quarter.
Increased 2024 oil production mix guidance to 48%, with an exit around 50%. Adjusted guidance for year-end production to reflect more oil production.
Raised acquisition CapEx guidance from $35 million to $60 million and development CapEx by $60 million to between $355 million and $365 million.
Business Progress:
Closed multiple acquisitions adding 16.4 net future drilling locations in the Permian Basin.
About half of the $60 million development CapEx increase is due to changes in the controlled capital drilling schedule, emphasizing the strategic shift towards oil-weighted projects.
Company expects to place about 22 to 24 net wells online during 2024, primarily in the Permian Basin.
Set for more aggressive oil production through aligning operational focus and CapEx on high-value projects influenced by current market dynamics.
Opportunities:
Strategic focus on controlled capital deployment allowing for above 50% of 2025's development capital, highlighting robust growth prospects.
Significantly increased investments in higher conviction operated projects within the controlled capital program.
Risks:
Potentially limited near-term natural gas development opportunities due to declined gas prices putting pressure on CapEx allocation and project competitiveness.
More details: Granite Ridge Resources IR
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