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Here are 1-3 brief analogies to describe Granite Ridge Resources (GRNT):

• Pioneer Natural Resources (PXD) for the Permian Basin, but on a smaller, independent scale.
• A focused Permian Basin oil and gas producer, similar to a younger, smaller Devon Energy (DVN).

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• Crude Oil: Extraction, production, and sale of crude oil primarily from wells in the Permian Basin.
• Natural Gas: Extraction, production, and sale of natural gas, often produced in conjunction with crude oil reservoirs.
• Natural Gas Liquids (NGLs): Production and sale of liquid components separated from natural gas, such as ethane, propane, and butane.

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Major Customers of Granite Ridge Resources (GRNT)

Granite Ridge Resources (GRNT) is an independent oil and natural gas company focused on the acquisition, development, and production of oil and gas properties. As such, it sells its crude oil, natural gas, and natural gas liquids (NGLs) primarily to other companies in the energy sector, including marketers, gatherers, processors, and refiners. It does not sell directly to individual consumers.

Based on their latest public filings (e.g., 2023 10-K), the company has significant revenue concentration with the following major customers:

• Vitol Inc. (Privately held company)
• Shell Trading (US) Company (A subsidiary of **Shell plc**, Symbol: SHEL)

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Tyler S. Farquharson, President and Chief Executive Officer

Mr. Farquharson has over 16 years of experience in the energy industry. He was promoted to President and Chief Executive Officer of Granite Ridge Resources on June 12, 2025, after serving as the company's Chief Financial Officer since 2022. Prior to joining Granite Ridge, he served as Vice President, Chief Financial Officer, and Treasurer at EXCO Resources, Inc., an independent oil and natural gas company, from October 2017 to May 2022. He was instrumental in shaping Granite Ridge's financial strategy and establishing its presence in the public market.

Kim Weimer, Interim Chief Financial Officer and Chief Accounting Officer

Ms. Weimer was appointed Interim Chief Financial Officer and Chief Accounting Officer of Granite Ridge Resources on June 12, 2025. She brings over 20 years of accounting experience, primarily within the energy sector. Before joining Granite Ridge, Ms. Weimer served as the Chief Financial Officer of Titanium Exploration Partners, an oil and gas asset manager, from October 2018 through December 2023, where she oversaw all aspects of finance and accounting. She is a licensed Certified Public Accountant.

Emily Fuquay, Corporate Secretary

Ms. Fuquay provides legal services to Granite Ridge through the company's Management Services Agreement with Grey Rock, which she joined in 2021. Her previous roles include Senior Counsel at EnLink Midstream, a publicly traded midstream company, and General Counsel and Chief Compliance Officer at Parallel Resource Partners, a private equity firm focused on investments in the upstream oil and gas sector.

Eric Holley, Partner – Accounting and Finance

Mr. Holley provides finance and accounting services to Granite Ridge via the company's Management Services Agreement with Grey Rock, which he joined in 2016. Before Grey Rock, Mr. Holley founded Silverthorn Accounting Services, a firm offering outsourced accounting, audit preparation, and operating consulting to energy fund managers and small business owners. Earlier in his career, he was a financial statement auditor at Rothstein Kass, where he specialized in audits of energy-related private equity funds and oil field service companies.

Ryan Riggelson, Partner – Engineering

Mr. Riggelson provides engineering services to Granite Ridge through its Management Services Agreement with Grey Rock, which he joined in 2016. He has nearly 25 years of experience in the oil and gas industry, holding various production, operations, and reservoir engineering positions with major operators in both Canada and the United States. Prior to Grey Rock, his work at EP Energy significantly increased the value of EP's Haynesville asset and he led the technical aspects of a $420-Million Haynesville asset sale in 2016. Mr. Riggelson holds a BS in Petroleum Engineering from the University of Calgary.

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The key risks to Granite Ridge Resources' (GRNT) business include:

1. Rising Leverage and Cash Flow Concerns: Granite Ridge Resources has been aggressively spending to grow production, leading to increasing debt levels and leverage. The company's leverage is projected to increase, and there are concerns about its ability to generate sufficient free cash flow, having burned a significant amount of cash in recent years. This rising debt and cash burn increase the risk to its common stock.
2. Poor Reinvestment of Profits and Shrinking Earnings: The company has a high payout ratio, with a significant portion of its profits being distributed to shareholders rather than being reinvested into the business. This limited reinvestment is cited as a reason for shrinking earnings and a low return on equity (ROE), which is a "quite worrisome" trend.
3. Dividend Coverage Issues: Granite Ridge Resources' dividend is currently not well covered by either its earnings or free cash flows. This indicates a potential strain on the company's financial resources to maintain its dividend payments, posing a risk to dividend-focused investors.

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Granite Ridge Resources (GRNT) operates as a non-operated oil and natural gas exploration and production company, primarily focused on oil and natural gas across various unconventional basins in the United States, including the Permian, Eagle Ford, Bakken, Haynesville, and DJ basins. The company generates maximum revenue from oil.

The addressable market for Granite Ridge Resources' main products and services is the U.S. oil and natural gas market.

The U.S. oil and gas market was valued at approximately USD 453.2 billion in 2024, with projections indicating a rise to USD 474.5 billion in 2025. It is further expected to reach USD 665.5 billion by 2033, growing at a compound annual growth rate (CAGR) of 4.7% from 2024 to 2033. Another projection suggests the U.S. oil and gas market size could reach USD 2.24 trillion by 2034.

Specifically, the U.S. natural gas market was valued at USD 454.5 billion in 2024 and is anticipated to grow to USD 577.9 billion by 2032, at a CAGR of 3.2% between 2025 and 2032.

While Granite Ridge Resources generates maximum revenue from oil, a standalone market size in U.S. dollar value specifically for the U.S. crude oil market, separated from the broader U.S. oil and gas market, is not distinctly provided in the available information.

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Granite Ridge Resources (GRNT) is poised for future revenue growth over the next 2-3 years, driven by several key factors:

1. Increased Production Volumes: The company anticipates significant production growth, with expectations of double-digit year-over-year growth in 2025, projected to be in the mid-teens. Its full-year production guidance for 2025 was raised to between 31,000 and 33,000 barrels of oil equivalent per day (BOE/d), reflecting a 28% year-over-year increase. This growth is primarily fueled by new wells coming online, particularly a substantial increase expected in the first quarter of 2025, and a diversified asset strategy across multiple basins.
2. Strategic Acquisitions and Inventory Expansion: Granite Ridge Resources actively pursues and completes strategic acquisitions to expand its drilling inventory. For 2025, the company plans to deploy approximately $120 million in acquisition capital to add 74 net drilling locations, with about 80% of this capital targeting the Permian Basin. These "unbudgeted acquisitions" are a key component of their capital expenditure strategy, directly contributing to the expansion of future production capabilities.
3. Focus on Permian Basin and Operated Partnerships: A significant portion of Granite Ridge's drilling locations and acquisition capital is strategically allocated to the Permian Basin. The company consistently highlights its "Operated Partnership platform" as a strong performer, providing a repeatable path to growth, fostering operational excellence, and enhancing capital efficiency. This concentrated focus on high-return areas is expected to drive both production and revenue.
4. Favorable Commodity Prices and Hedging Strategy: While Granite Ridge hedges approximately 75% of its quarterly production to mitigate price volatility, its long-term growth strategy for 2026 is influenced by oil prices. A sustained environment with oil prices above $50 per barrel would support measured growth, directly enhancing revenue from increased production volumes.
5. Operational Efficiency and Disciplined Capital Allocation: The company emphasizes disciplined capital allocation, operational excellence, and strong execution across its operations. Improvements in per-unit lease operating costs and overall efficient cost management contribute to stronger financial health. This efficiency allows the company to fund its capital programs and dividends, thereby enabling continuous investment in high-return opportunities that support revenue expansion.

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Share Repurchases

• In the second quarter of 2023, Granite Ridge Resources purchased treasury stock totaling $4.178 million.

Share Issuance

• In June 2023, all outstanding Granite Ridge warrants were converted to shares of Granite Ridge common stock.

Outbound Investments

• Granite Ridge plans to allocate approximately $120 million in acquisition capital for the full year 2025, targeting 50 transactions to add 74 to 75 net locations to its inventory, primarily in the Permian Basin.
• During the third quarter of 2025, the company invested $16.5 million in property acquisition costs, resulting in the addition of 13.6 net undeveloped locations.
• Year-to-date through the third quarter of 2025, Granite Ridge made $57.0 million in acquisitions, largely focused on expanding its inventory in the Permian and Appalachian basins.

Capital Expenditures

• Granite Ridge Resources maintains a full-year 2025 capital expenditure guidance of $400 million to $420 million.
• For the third quarter of 2025, total capital spending amounted to $80.5 million, which included $64 million for drilling and completion activities and $16.5 million for acquisitions.
• Looking ahead to 2026, the company's capital expenditure strategy is flexible; it plans to target approximately $225 million in CapEx for a maintenance mode if oil prices are sustained below $55 per barrel, while allowing for opportunistic acquisitions.