The following is a summary of the Granite Ridge Resources, Inc. (GRNT) Q3 2024 Earnings Call Transcript:

Financial Performance:

• GRNT reported Q3 average daily production of 25,200 BoE per day, marking an increase of 9% from Q2 and 5% year-over-year.

• Oil volumes increased by 16% from the prior quarter to 12,700 BoE per day.

• Net income for the quarter was $9.1 million with an adjusted net income of $18.5 million, or $0.14 per share.

• Adjusted EBITDAX for Q3 was $75.4 million, a 10% increase from Q2, despite a 6% decline in realized pricing per BoE.

Business Progress:

• Granite Ridge is increasing its focus on the Controlled Capital program, which is expected to account for nearly 50% of 2024's CapEx and projected to rise to about 60% in 2025.

• Successfully closed over a dozen transactions in Q3, including the acquisition of approximately 16 net locations at a total cost of $31 million.

• Plan to develop over 40 net locations in the Permian over the next two to three years.

• Anticipates significant production increases from their 2024 CapEx on controlled capital projects by early 2025.

Opportunities:

• The Controlled Capital program indicates a strategic focus on increasing controlled development projects, intending to drive substantial production and cash flow growth especially in early 2025.

• Expansion of production capabilities with plans to acquire additional rigs in the Midland Basin, indicating scalable increases in production capacity.

Risks:

• Despite increases in production, there is a projected decline in gas production by up to 10% in Q4 as flush gas production tapers off.

• Increased focus on controlled capital projects could introduce timing and development risks associated with tighter operational control.

Tips: For more comprehensive details, please refer to the IR website. The article is only for investors' reference without any guidance or recommendation suggestions.