8-K: Granite Ridge Resources Reports Strong Q4 and Full-Year 2024 Results, Announces Optimistic 2025 Outlook

• Granite Ridge Resources reported their Q4 and full-year 2024 financial and operating results and provided initial guidance for 2025.
• Q4 total production increased by 7% to 27,734 Boe/day, with oil production up by 20%.
• The company reported a net loss of $11.6 million, or $(0.09) per share, but an adjusted net income of $22.7 million, or $0.17 per diluted share.
• Adjusted EBITDAX for the quarter was $82.6 million.
• Capital investments totaled $93.3 million, resulting in 86 gross (4.08 net) wells being placed online.
• A dividend of $0.11 per share was declared.
• The company ended the year with $129.1 million in total liquidity and a Net Debt to Adjusted EBITDAX ratio of 0.7x.
• Full-year net income was $18.8 million, or $0.14 per diluted share, while adjusted net income was $73.8 million, or $0.57 per diluted share.
• Adjusted EBITDAX for the year totaled $290.8 million.
• Proved reserves as of December 31, 2024, totaled 54,315 MBoe, with 52% oil and 48% natural gas.
• 2025 production is projected to be between 28,000 and 30,000 Boe per day, a 16% increase from 2024.
• Total capital expenditures for 2025 are estimated to be between $300 and $320 million.
• Lease operating expenses are projected to be $6.25 to $7.25 per Boe.
• Production and ad valorem taxes are expected to be 6% to 7% of total revenue.
• Cash general and administrative expenses are projected to be $25 to $27 million.

Score: 7

Explanation: The document presents a generally positive outlook, highlighting increased production, strong liquidity, and a commitment to shareholder returns. While there are some negative aspects, such as the net loss in Q4, the overall tone is optimistic and forward-looking.

• Total production increased by 7% in Q4 2024.
• Oil production increased by 20% in Q4 2024.
• The company maintains a strong liquidity position with $129.1 million.
• The Net Debt to Adjusted EBITDAX ratio is conservative at 0.7x.
• The declared dividend implies a current yield of over 7%.
• Proved reserves increased slightly from 53,472 MBoe in 2023 to 54,315 MBoe in 2024.

• The company reported a net loss of $11.6 million, or $(0.09) per share, for Q4 2024.
• Net income for the year was $18.8 million, a decrease from $81.099 million the previous year.

• The press release contains forward-looking statements that are subject to various risks and uncertainties.
• These risks include changes in commodity prices, interest rates, supply chain disruptions, and geopolitical risks.
• Reserve estimates depend on many assumptions that may turn out to be inaccurate.
• Increasing regulatory and investor emphasis on environmental, social and governance matters.

The company anticipates production of 28,000 to 30,000 Boe per day for 2025, a 16% increase from 2024, with capital expenditures between $300 and $320 million.

• Luke Brandenberg, President and CEO, stated that Granite Ridge concluded 2024 with outstanding performance across their portfolio.
• Mr. Brandenberg highlighted the company's disciplined investment strategy and strong liquidity position.
• He also expressed confidence in their partners' ability to capture compelling opportunities in the Permian Basin.
• Mr. Brandenberg stated that the company remains committed to driving sustainable growth and delivering shareholder returns.

Granite Ridge's focus on operated partnerships and non-operated assets in multiple unconventional basins aligns with a broader industry trend of diversification and strategic capital allocation. The company's emphasis on shareholder returns and low leverage also reflects a growing demand for financial discipline in the energy sector.

• Comparing Granite Ridge's Net Debt to Adjusted EBITDAX ratio of 0.7x to peers like Viper Energy Partners (VNOM) or Black Stone Minerals (BSM), which often operate with similar partnership models, indicates a relatively conservative leverage profile.
• The projected 16% production increase for 2025 is a strong growth target, potentially outperforming some larger, more established players in the current market environment.
• Granite Ridge's focus on maintaining a diversified portfolio across multiple basins mirrors strategies employed by companies like Devon Energy (DVN) and EOG Resources (EOG), aiming to mitigate risk and capitalize on regional opportunities.

• Shareholders can expect continued dividends and potential for capital appreciation.
• Employees can anticipate continued employment and growth opportunities.
• Customers and suppliers can expect continued business relationships.
• Creditors can be reassured by the company's strong liquidity and low leverage.

• Granite Ridge will host a conference call on March 7, 2025, to discuss the results.
• Management will participate in the 2025 Louisiana Energy Conference on May 28, 2025.
• The company will continue to execute its strategy and keep investors informed.

• December 31, 2023: Comparison point for proved reserves and other financial data.
• December 31, 2024: End of Q4 and full-year 2024 financial period; proved reserves reported.
• March 6, 2025: Date of the press release announcing Q4 and full-year 2024 results and 2025 guidance.
• March 7, 2025: Date of the conference call to discuss Q4 and full-year 2024 results.
• March 21, 2025: End date for accessing the audio replay of the conference call.
• May 28, 2025: Granite Ridge management will participate in the 2025 Louisiana Energy Conference.