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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