Granite Ridge Resources, Inc Q4 FY2025 earnings call

• Tyler Parkerson noted the company's evolution from a traditional non-operated company to a capital allocator focused on the Permian Basin, partnering with proven management teams. • Production increased significantly, with average daily production up 27% year over year in Q4 and 28% for the full year. • Developed the Operative Partnership Model, partnering with multiple operators in the Permian, with over 50 transactions in the past three years. • Announced the appointment of Kyle Kepler as Chief Financial Officer. • Mentioned the conduit power transaction to support natural gas fired power generation in the Permian, expected to enhance gas realizations. • Highlighted capital efficient growth, with focus on short cycle opportunities underwritten at strip pricing.

For the fourth quarter, oil and natural gas sales totaled $105.5 million. Production grew 27% year over year. Adjusted EBITDAX for the quarter was $69.5 million. Operating cash flow was $64.5 million. For the full year, oil and natural gas sales totaled $450.3 million. Production increased 28% year over year to 31,984 barrels equivalent a day. Full year adjusted EBITDAX was $315 million. Operating cash flow was $296.4 million. Lease operating expense in the fourth quarter was $7.72 per barrel equivalent, higher than last year due to focus on Permian Basin. For full year, LOE averaged $7.27 a barrel equivalent. 2026 guidance for LOE is $6.75 to $7.75 per barrel equivalent. Production and ad valorem taxes ran just under 6% of revenue in the quarter. G&A was $8 million in the quarter including $1.4 million of non-cash stock compensation. Annual guidance for production taxes is 6% to 7% of revenue and cash G&A of $25 to $27 million. Capital expenditures: fourth quarter $127.5 million, split half to development and half to acquisitions. Full year capital $401 million, including $279 million of drilling and completion capital and $122 million of property acquisitions.

• 2026 production expected to average 34,000 to 36,000 barrels equivalent per day, a 9% increase over 2025, with oil just under half the mix. • Development capital expenditures projected at $300 to $330 million with total capital of $320 to $360 million including acquisitions. • Expect to achieve free cash flow from operations in 2027. • 2026 guidance for LOE is $6.75 to $7.75 per barrel equivalent. • Production taxes expected to be 6% to 7% of revenue and cash G&A of $25 to $27 million.

Q: Phillips Johnston asked about fourth quarter realized oil and gas prices and 2026 differentials.

A: Natural gas realization was driven by Waha pricing, modeled for 2026. Oil had a bit of negative difference, modeled for 2026.

Q: Phillips Johnston followed up on net wells planned for 2026 and mix.

A: 2026 expected 29 net wells online, mix tilting back to oil.

Q: Derek Whitfield asked about transition to sustainable free cash flow in 2027.

A: Driven by leverage, planned in $60 oil environment.

Q: Derek Whitfield followed up on Operated Partnerships.

A: Provided color on activity and inventory levels of different operated partners.

Q: Jared Giroux asked about generating free cash flow vs growing and return of free cash flow.

A: Transition to durable business, free cash flow return TBD.

Q: Jared Giroux followed up on slide nine.

A: Explained the economics between Granite Ridge and operating partners.

Q: Noah Hungness asked about opportunity set and competitiveness to add inventory.

A: Opportunity still exists, operator teams executing on transactions, strong deal flow in certain areas.

Q: Noah Hungness followed up on oil cadence through 2026 and exit to exit oil production growth.

A: Exit to exit oil production growth 12%, oil growth down in first half 2026, increasing in second half.