Granite Ridge Resources, Inc Q1 FY2026 earnings call

• Strong operational execution in first quarter with 18% production growth year-over-year to 34,500 barrels of oil equivalent per day and adjusted EBITDA of $71 million. • Addressed Waha pricing weakness through active basis hedging program. • LOE was a near-term outlier but viewed as temporary with volumes coming online in 2026. • Opportunity set improved with better spot prices and forward curve, acceleration in ASEs in Utica, and active evaluation of additions to 2026 capital program including Permian basin opportunity with Admiral. • Invested $68.4 million in first quarter, with development capital and acquisitions, and first half development capital weighted towards second quarter.

Oil and natural gas sales totaled $128.3 million, a $5.3 million increase over the first quarter of 2025. Oil revenues improved with an 11% production increase and essentially flat realized pricing of $69.94 per barrel. Natural gas revenues declined by $6.3 million year over year, driven by a 36% decline in realized gas prices to $2.55 per MCF. Lease operating expense (LOE) came in at $9.57 per VOE, above prior guide, due to factors like increased early life flowback expense, saltwater disposal costs, asset impairment, and fixed costs in DJ at Bakken spreading over fewer barrels.

• Raised full year LOE guidance range to 775 to 875 per BOE. • Increased acquisition capital by 25 million at the midpoint. • Development capital guidance unchanged at 300 to 330 million, resulting in total capital guidance of 345 to 385 million. • Production guidance remains 34,000 to 36,000 per day and on track to meet or exceed midpoint. • 2027 free cash flow inflection story intact.

• Ongoing impact of negative Waha pricing in Permian affecting natural gas revenues. • Lease operating expense being above prior guide as near-term outlier but expected to improve as volumes come online. • Uncertainties related to commodity price fluctuations and execution of acquisition and development projects.

Q: Michael Ciala asked about plans to increase acquisition capex, including details on the Admiral opportunity and incremental spending.

A: There's incremental spending beyond the Admiral opportunity, spread across half a dozen to a dozen transactions mainly Permian based, with some in Utica shale. The $25 million increase in acquisition CapEx is for transactions expected to close in second quarter.

Q: Derek Whitfield asked about the Permian opportunity with Admiral, scale, duration, and other operational levers.

A: Admiral opportunity is part of large independents and majors seeking partners to expand capital budgets, scale varies, and there are other operator partners with inventory and opportunities in operated and non-op portfolios, with higher prices not negatively impacting sourcing of near-term development opportunities.