The following is a summary of the Granite Ridge Resources, Inc. (GRNT) Q3 2024 Earnings Call Transcript:
Financial Performance:
GRNT reported Q3 average daily production of 25,200 BoE per day, marking an increase of 9% from Q2 and 5% year-over-year.
Oil volumes increased by 16% from the prior quarter to 12,700 BoE per day.
Net income for the quarter was $9.1 million with an adjusted net income of $18.5 million, or $0.14 per share.Adjusted EBITDAX for Q3 was $75.4 million, a 10% increase from Q2, despite a 6% decline in realized pricing per BoE.
Business Progress:
Granite Ridge is increasing its focus on the Controlled Capital program, which is expected to account for nearly 50% of 2024's CapEx and projected to rise to about 60% in 2025.
Successfully closed over a dozen transactions in Q3, including the acquisition of approximately 16 net locations at a total cost of $31 million.
Plan to develop over 40 net locations in the Permian over the next two to three years.
Anticipates significant production increases from their 2024 CapEx on controlled capital projects by early 2025.
Opportunities:
The Controlled Capital program indicates a strategic focus on increasing controlled development projects, intending to drive substantial production and cash flow growth especially in early 2025.
Expansion of production capabilities with plans to acquire additional rigs in the Midland Basin, indicating scalable increases in production capacity.
Risks:
Despite increases in production, there is a projected decline in gas production by up to 10% in Q4 as flush gas production tapers off.
Increased focus on controlled capital projects could introduce timing and development risks associated with tighter operational control.
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