Q1 2024 Granite Ridge Resources Inc Earnings Call Transcript
Key Points
- Granite Ridge Resources Inc (GRNT) expanded its credit facility to a $300 million borrowing base, successfully syndicating the facility from six to 14 banks.
- The company reported production slightly higher than expected at 23,800 barrels of oil equivalent per day, despite a projected decline.
- Adjusted EBITDAX for the quarter was $64 million, higher than expected due to favorable oil prices and production levels.
- Granite Ridge Resources Inc (GRNT) closed four transactions during the quarter, focusing primarily on the Delaware side of the Permian Basin.
- The company maintains a strong balance sheet with pro forma liquidity over $180 million and leverage of 0.4 times net debt to trailing EBITDA.
- Production was down 8% from the previous quarter, and the company expects production to be flat for the next couple of quarters.
- The deferral of some dry gas production expected to come online in the second quarter will likely slow down the timeline for production ramp-up.
- Total entry costs for new net locations were higher than the target, at $2.7 million per net location compared to a target closer to $2 million.
- Oil production mix for the quarter was lower than expected at 45%, below the guidance expectation of 47% for the year.
- The company is experiencing temporary dislocation due to demand destruction or sustained decline in demand response to limited supply.
Good morning and welcome to Granite Ridge Resources First Quarter 2024 earnings conference call. Currently, all participants are in a listen only mode. A question and answer session will follow the formal presentation. If you would like to ask a question during this time, simply press star followed by the number one on your telephone keypad. If you'd like to withdraw your question, please press star one again. As a reminder, this call is being recorded. I will now turn the call over to West Harris, Investor Relations representative for Granite Ridge. Please go ahead.
Thank you, operator, and good morning, everyone. We appreciate your interest in Granite Ridge resources. We will begin our call with comments from Luke, Brandon Burke, our President and Chief Executive Officer, who will provide an overview of key matters for the first quarter and an outlook for 2024. We will then turn the call over to Tyler Parkinson, our Chief Financial Officer, who will review our financial results. Luke will then return
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