8-K: Granite Ridge Resources Reports Strong 2023 Results and Provides Optimistic 2024 Outlook

• Granite Ridge Resources reported its financial and operating results for the fourth quarter and full year of 2023, along with initial guidance for 2024.
• The company's fourth-quarter production grew by 18% year-over-year, reaching 26,034 barrels of oil equivalent per day, with 47% being oil.
• Net income for the quarter was $17.5 million, or $0.13 per share, while adjusted net income was $26.4 million, or $0.20 per share.
• Adjusted EBITDAX for the quarter totaled $81.8 million.
• For the full year 2023, total production increased by 23% to 24,311 Boe per day, with a 14% increase in oil production and a 32% increase in natural gas production.
• Net income for the full year was $81.1 million, or $0.61 per share, and adjusted net income was $107.1 million, or $0.80 per share.
• The company's proved reserves increased by 6% to 53,472 MBoe as of December 31, 2023.
• Granite Ridge anticipates 2024 production to be between 23,250 and 25,250 Boe per day, a 7% increase from 2023 after adjusting for asset divestitures.

Score: 8

Explanation: The document conveys a positive sentiment due to strong production growth, increased reserves, and optimistic 2024 guidance. While there are some challenges, the overall tone is confident and forward-looking.

• Granite Ridge achieved significant production growth in both the fourth quarter and full year of 2023.
• The company successfully increased its proved reserves by 6%.
• The company is providing positive production guidance for 2024, projecting a 7% increase.
• Granite Ridge is actively managing its asset portfolio, including strategic acquisitions and divestitures.
• The company continues to support shareholders through its ongoing quarterly cash dividend program.

• Adjusted EBITDAX for the fourth quarter decreased slightly compared to the prior year quarter, from $83.2 million to $81.8 million.
• The company incurred significant costs for development activities and property acquisitions, totaling $78.4 million in the fourth quarter.
• The company sold certain Permian Basin assets, which reduced production by approximately 1,700 Boe per day.

• The company's future performance is subject to commodity price fluctuations.
• Operational risks, including the pace of drilling and completion activities, could impact production.
• The company's ability to acquire additional development opportunities and potential acquisitions could affect its cash position and debt levels.
• Changes in environmental regulations and geopolitical risks could impact the company's operations.
• The company's reserve estimates depend on many assumptions that may turn out to be inaccurate.

Granite Ridge anticipates a 7% increase in production for 2024, with a range of 23,250 to 25,250 Boe per day, after adjusting for the divestiture of assets to Vital Energy. The company also provided guidance for capital expenditures, acquisitions, and lease operating expenses.

• Luke Brandenberg, President and CEO of Granite Ridge, stated that the company was pleased to end the fourth quarter and full year 2023 with an average daily production increase of 18% and 23%, respectively.
• Mr. Brandenberg also noted a year-over-year increase in proved reserves of 6%.
• Mr. Brandenberg mentioned that the company continues to see a lot of runway in front of them, supporting their 2024 guidance.
• Mr. Brandenberg stated that the company looks forward to keeping everyone apprised of their progress as they continue to execute their proven growth strategy and support shareholders through their ongoing quarterly cash dividend payment program.

Granite Ridge's results reflect a trend of increased production in the oil and gas industry, with a focus on strategic asset management through acquisitions and divestitures. The company's focus on non-operated assets and partnerships aligns with a broader industry trend of optimizing capital allocation and risk management.

• Granite Ridge's production growth of 18% in Q4 and 23% for the full year is strong compared to many of its peers in the non-operated space, such as Kimbell Royalty Partners (KRP) and Viper Energy Partners (VNOM), which have shown more modest growth rates.
• The company's focus on strategic acquisitions and divestitures is similar to strategies employed by larger players like Devon Energy (DVN) and Pioneer Natural Resources (PXD), who actively manage their portfolios to optimize returns.
• The 6% increase in proved reserves is a positive sign, indicating the company's ability to replenish and grow its asset base, which is crucial for long-term sustainability and is comparable to reserve growth seen in companies like EOG Resources (EOG).
• Granite Ridge's 2024 production guidance of a 7% increase is competitive, suggesting a positive outlook compared to some peers who may be facing production challenges or focusing on capital discipline over growth.
• The company's adjusted EBITDAX of $81.8 million for Q4 and $305.4 million for the full year is a solid performance, but it is important to compare these figures to peers with similar asset bases and operational strategies to fully assess its relative performance.

• Shareholders will benefit from the increased production, reserve growth, and dividend payments.
• Employees will be impacted by the company's continued growth and operational activities.
• Customers will benefit from the company's reliable energy solutions.
• Suppliers and creditors will be impacted by the company's financial performance and capital expenditures.

• Granite Ridge will host a conference call on March 8, 2024, to discuss its results.
• The company will participate in several investor conferences in March and May 2024.
• The company will continue to execute its growth strategy and support shareholders through its dividend program.

• December 21, 2023: Granite Ridge completed the sale of certain Permian Basin assets to Vital Energy, Inc.
• December 31, 2023: The company's financial year ended, and proved reserves were calculated.
• March 7, 2024: Granite Ridge Resources issued a press release announcing its financial and operating results for the quarter and year ended December 31, 2023, as well as 2024 guidance.
• March 8, 2024: Granite Ridge will host a conference call to discuss its fourth quarter and full-year 2023 financial and operational results.
• March 18, 2024: Granite Ridge management will participate in the 36th Annual ROTH Conference.
• March 19, 2024: Granite Ridge management will participate in the Piper Sandler 24th Annual Energy Conference.
• May 28, 2024: Granite Ridge management will participate in the 2024 Louisiana Energy Conference.