The following is a summary of the Granite Ridge Resources, Inc. (GRNT) Q4 2023 Earnings Call Transcript:
Financial Performance:
Granite Ridge maintained a dividend of $0.11 per quarter equating to $0.44 per annum and repurchased $36 million of stock.
Granite Ridge generated $305 million of adjusted EBITDAX for the year and $298 million of operating cash flow.
The company reinvested $29 million in growth projects.
The year ended with debts at a desirable low of only 0.3x, below the target of 0.5x.
Financial deals closed or highly probable to close stand at $35 million but are expected to increase.
Adjusted EBITDA for the quarter was $81.8 million, with adjusted EPS sitting at $0.20 per diluted share.
Per unit lease operating cost and G&A expense were $6.43 per Boe and $2.54 per Boe, respectively, both within guided ranges.
Total capital expenditures for 2024 are expected to be between $265 million to $285 million, including $35 million of budgeted acquisitions.
Business Progress:
Granite Ridge added seven team members, achieving nine corporate milestones and implementing 140 different controls.
The company outperformed its growth goals with a 23% production increase, delivering over 26,000 barrels of oil equivalent per day for Q4.
Growth for 2024, is anticipated with a predicted 7% increase in production.
Partnership with an undisclosed Midland group to run a full-time rig.
GRNT will allocate a third or more of their CapEx for the strategic partnership.
About 5.5 net wells have finished drilling, slated to be operational by Q2.
GRNT maintains their unique approach as their value driver moving forward.
Company recorded a 14% growth in oil volumes and 23% increase in total production year-over-year.
The company successfully kept a rig running full time and added another rig in November 2023.
Sold some Permian assets to Vital Energy, expected to close in summer 2024.
The board declared an $0.11 cash dividend per share.
Approximately 60% of oil and 50% of gas PDP has been hedged for 2024.
More details: Granite Ridge Resources IR
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