Granite Ridge Resources Inc

Previous wording

Granite Ridge is a scaled, non-operated oil and gas exploration and production company. We own a portfolio of wells and top-tier acreage across the Permian and four other prolific unconventional basins across the United States. Rather than drill wells ourselves, we increase asset diversity and decrease overhead by investing in a smaller piece of a larger number of high-graded wells drilled by proven public and private operators. As a non-operating partner, we pay our pro rata share of expenses, but we are not burdened by long-term contracts and drilling obligations common to operators.

Current wording

Granite Ridge is a scaled, non-operated oil and gas exploration and production company. We own a portfolio of wells and top-tier acreage across the Permian and five other prolific unconventional basins across the United States. Rather than drill wells ourselves, we increase asset diversity and decrease overhead by investing in a smaller piece of a larger number of high-graded wells drilled by proven public and private operators. As a non-operating partner, we pay our pro rata share of expenses, but we are not burdened by long-term contracts and drilling obligations common to operators.

Previous wording

In addition to the factors that affect companies in our industry generally, the location of substantially all of our acreage in the Eagle Ford, Permian, Bakken, Haynesville and Denver-Julesburg Basins subjects our operating results to factors specific to these regions. These factors include the potential adverse impact of weather on drilling, production and transportation activities, particularly during the winter and spring months, as well as infrastructure limitations, transportation capacity, regulatory matters, and other factors that may specifically affect one or more of these regions.

Current wording

In addition to the factors that affect companies in our industry generally, the location of substantially all of our acreage in the Eagle Ford, Permian, Bakken, Haynesville, Denver-Julesburg, and Appalachian Basins subjects our operating results to factors specific to these regions. These factors include the potential adverse impact of weather on drilling, production and transportation activities, particularly during the winter and spring months, as well as infrastructure limitations, transportation capacity, regulatory matters, and other factors that may specifically affect one or more of these regions.

Previous wording

Our oil price differential to the NYMEX benchmark price during the three months ended June 30, 2024 and 2023 was a discount of $(3.97) per barrel and $(0.83) per barrel, respectively. For the six months ended June 30, 2024 and 2023, our oil price differential to the NYMEX benchmark price was a discount of $(1.68) per barrel and $(0.32) per barrel, respectively.

Current wording

Our oil price differential to the NYMEX benchmark price during the three months ended September 30, 2024 and 2023 was a discount of $(2.99) per barrel and $(3.79) per barrel, respectively. For the nine months ended September 30, 2024 and 2023, our oil price differential to the NYMEX benchmark price was a discount of $(2.27) per barrel and $(1.34) per barrel, respectively.

Previous wording

Our natural gas price differential to the average NYMEX price during the three months ended June 30, 2024 and 2023 was a discount of $(0.09) per Mcf and a premium of $0.71 per Mcf, respectively. For the six months ended June 30, 2024 and 2023, our natural gas price differential to the average NYMEX price was a discount of $(0.20) per Mcf and a premium of $0.29 per Mcf, respectively.

Current wording

Our natural gas price differential to the average NYMEX price during the three months ended September 30, 2024 and 2023 was a discount of $(0.87) per Mcf and $(0.08) per Mcf, respectively. For the nine months ended September 30, 2024 and 2023, our natural gas price differential to the average NYMEX price was a discount of $(0.43) per Mcf and a premium of $0.16 per Mcf, respectively.

Previous wording

Prices for various quantities of oil and natural gas that we produce significantly impact our revenues and cash flows. The following table lists average NYMEX prices for oil and natural gas for the three and six months ended June 30, 2024 and 2023.

Current wording

Prices for various quantities of oil and natural gas that we produce significantly impact our revenues and cash flows. The following table lists average NYMEX prices for oil and natural gas for the three and nine months ended September 30, 2024 and 2023.

Previous wording

For the three months ended June 30, 2024, the average NYMEX oil pricing was $81.81 per barrel of oil, or 11% higher than the average NYMEX price per barrel for the three months ended June 30, 2023. Our settled derivatives decreased our realized oil price per barrel by $0.38 for the three months ended June 30, 2024 and increased our realized oil price per barrel by $1.94 for the three months ended June 30, 2023. For the three months ended June 30, 2024, our average realized oil price per barrel after reflecting settled derivatives was $77.46 compared to $74.80 for the three months ended June 30, 2023. For the six months ended June 30, 2024, the average NYMEX oil pricing was $79.69 per barrel of oil, or 6% higher than the average NYMEX price per barrel for the six months ended June 30, 2023. Our settled derivatives decreased our realized oil price per barrel by $0.14 for the six months ended June 30, 2024 and increased our realized oil price per barrel by $1.98 for the six months ended June 30, 2023. For the six months ended June 30, 2024, our average realized oil price per barrel after reflecting settled derivatives was $77.87 compared to $76.49 for the six months ended June 30, 2023.

Current wording

$78.52 for the three months ended September 30, 2023. For the nine months ended September 30, 2024, the average NYMEX oil pricing was $78.58 per barrel of oil, or 2% higher than the average NYMEX price per barrel for the nine months ended September 30, 2023. Our settled derivatives increased our realized oil price per barrel by $0.11 for the nine months ended September 30, 2024 and increased our realized oil price per barrel by $1.29 for the nine months ended September 30, 2023. For the nine months ended September 30, 2024, our average realized oil price per barrel after reflecting settled derivatives was $76.42 compared to $77.25 for the nine months ended September 30, 2023.

Previous wording

For the three months ended June 30, 2024, the average NYMEX natural gas pricing was $2.07 per Mcf, or 11% lower than the average NYMEX price per Mcf for the three months ended June 30, 2023. Our settled derivatives increased our realized natural gas price per Mcf by $0.65 for the three months ended June 30, 2024 and increased our realized natural gas price per Mcf by $1.02 for the three months ended June 30, 2023. For the three months ended June 30, 2024, our average realized natural gas price per Mcf after reflecting settled derivatives was $2.63 compared to $4.06 for the three months ended June 30, 2023. For the six months ended June 30, 2024, the average NYMEX natural gas pricing was $2.11 per Mcf, or 17% lower than the average NYMEX price per Mcf for the six months ended June 30, 2023. Our settled derivatives increased our realized natural gas price per Mcf by $0.50 for the six months ended June 30, 2024 and increased our realized natural gas price per Mcf by $0.83 for the six months ended June 30, 2023. For the six months ended June 30, 2024, our average realized natural gas price per Mcf after reflecting settled derivatives was $2.41 compared to $3.67 for the six months ended June 30, 2023.

Current wording

For the three months ended September 30, 2024, the average NYMEX natural gas pricing was $2.11 per Mcf, or 21% lower than the average NYMEX price per Mcf for the three months ended September 30, 2023. Our settled derivatives increased our realized natural gas price per Mcf by $0.74 for the three months ended September 30, 2024 and increased our realized natural gas price per Mcf by $0.55 for the three months ended September 30, 2023. For the three months ended September 30, 2024, our average realized natural gas price per Mcf after reflecting settled derivatives was $1.98 compared to $3.13 for the three months ended September 30, 2023. For the nine months ended September 30, 2024, the average NYMEX natural gas pricing was $2.11 per Mcf, or 18% lower than the average NYMEX price per Mcf for the nine months ended September 30, 2023. Our settled derivatives increased our realized natural gas price per Mcf by $0.58 for the nine months ended September 30, 2024 and increased our realized natural gas price per Mcf by $0.72 for the nine months ended September 30, 2023. For the nine months ended September 30, 2024, our average realized natural gas price per Mcf after reflecting settled derivatives was $2.26 compared to $3.46 for the nine months ended September 30, 2023.

Previous wording

Our revenues vary from year to year primarily due to changes in realized commodity prices and production volumes. Our oil and natural gas sales for the three months ended June 30, 2024 increased 4% from the same period in 2023. Oil revenues for the three months ended June 30, 2024 increased by 12% compared to the same period in 2023, driven by a 5% increase in production and a 7% increase in realized prices, excluding the effect of settled commodity derivatives. Natural gas revenues decreased by 29% for the three months ended June 30, 2024 compared to 2023 as a result of a 35% decrease in realized natural gas prices, excluding the effect of settled commodity derivatives, partially offset by an increase in production.

Current wording

Our revenues vary from year to year primarily due to changes in realized commodity prices and production volumes. Our oil and natural gas sales for the three months ended September 30, 2024 decreased 13% from the same period in 2023. Oil revenues for the three months ended September 30, 2024 decreased by 3% compared to the same period in 2023, driven by a 6% decrease in realized prices, excluding the effect of settled derivatives, partially offset by a 3% increase in production. Natural gas revenues decreased by 58% for the three months ended September 30, 2024 compared to 2023, driven by a 52% decrease in realized natural gas prices, excluding the effect of settled commodity derivatives, and a 12% decrease in production.

Previous wording

Our oil and natural gas sales for the six months ended June 30, 2024 were slightly higher than the same period in 2023. Oil revenues for the first half of 2024 increased by 8% compared to the same period in 2023, driven by a 5% increase in realized prices, excluding the effect of settled commodity derivatives, and a 3% increase in production. Natural gas revenues decreased by 27% for the first half of 2024 compared to 2023 as a result of a 33% decrease in realized natural gas prices, excluding the effect of settled commodity derivatives, partially offset by an increase in production.

Current wording

Oil revenues for the nine months ended September 30, 2024 increased by 3% compared to the same period in 2023, driven by a 3% increase in production. Natural gas revenues decreased by 38% for the nine months ended September 30, 2024 compared to 2023 as a result of a 39% decrease in realized natural gas prices, excluding the effect of settled commodity derivatives, partially offset by a 1% increase in production.

Previous wording

Production from oil and gas properties increased for the three and six months ended June 30, 2024 as compared to the same periods of 2023 due to drilling success and the acquisition of additional net revenue interests. This increase in production is offset by the natural decline of the production rate of existing oil and natural gas wells as well as the sale of certain of our Permian Basin assets to Vital Energy, Inc. ("Vital Energy") in December 2023. The number of wells we participated in increased from 157.57 net wells on June 30, 2023 to 191.94 net wells on June 30, 2024.

Current wording

Production from oil and gas properties increased for the nine months ended September 30, 2024 as compared to the same period of 2023 due to drilling success and the acquisition of additional net revenue interests. This increase in production is offset by the natural decline of the production rate of existing oil and natural gas wells as well as production lost from the sale of certain of our Permian Basin assets to Vital Energy, Inc. ("Vital Energy") in December 2023. The number of net producing wells increased from 175.24 net wells on September 30, 2023 to 195.88 net wells on September 30, 2024.

Previous wording

Lease operating expenses were $13.7 million ($6.50 per Boe) for the three months ended June 30, 2024, a decrease of 5% from $14.4 million ($7.34 per Boe) during the same period in 2023. The decrease was primarily due to a decrease of $0.6 million in transportation and gathering expenses related to certain take in kind arrangements on natural gas volumes, which have declined in the Haynesville area. In addition, workover and repair and maintenance expenses for the second quarter of 2024 are lower than the same period of 2023, partially offset by an increase in certain other lease operating expenses as a result of an increase in well count due to acquisitions and additional wells successfully drilled and completed.

Current wording

Lease operating expenses were $13.0 million ($5.62 per Boe) for the three months ended September 30, 2024, a decrease of 23% from $16.9 million ($6.96 per Boe) during the same period in 2023. The decrease was partially due to a decrease of $0.5 million in transportation and gathering expenses related to certain take in kind arrangements on natural gas volumes, which have declined in the Haynesville area. In addition, workover and repair and maintenance expenses for the third quarter of 2024 are lower than the same period of 2023, partially offset by an increase in certain other lease operating expenses as a result of an increase in well count due to acquisitions and additional wells successfully drilled and completed.

Previous wording

Lease operating expenses were $29.1 million ($6.82 per Boe) for the six months ended June 30, 2024, an increase of 3% from $28.2 million ($6.96 per Boe) during the same period in 2023. The increase was primarily due to an increase in well count due to acquisitions and additional wells successfully drilled and completed, higher compression and saltwater disposal costs and overall increased cost of services, partially offset by a decrease of $0.9 million in transportation and gathering expenses related to certain take in kind arrangements on natural gas volumes.

Current wording

Lease operating expenses were $42.2 million ($6.40 per Boe) for the nine months ended September 30, 2024, a decrease of 7% from $45.1 million ($6.96 per Boe) during the same period in 2023. The decrease was primarily due to a decrease of $1.4 million in transportation and gathering expenses related to certain take in kind arrangements on natural gas volumes, which have declined in the Haynesville area. In addition, workover and repair and maintenance expenses for thenine months ended September 30, 2024 are lower than the same period of 2023, partially offset by an increase in certain other lease operating expenses.

Previous wording

We generally pay production taxes based on realized oil and natural gas sales. Production taxes were $5.4 million ($2.59 per Boe) for the three months ended June 30, 2024 compared to $5.7 million ($2.90 per Boe) during the same period in 2023. As a percentage of oil and natural gas sales, our production taxes were 6% and 7% during the three months ended June 30, 2024 and 2023, respectively.

Current wording

We generally pay production taxes based on realized oil and natural gas sales. Production taxes were $5.3 million ($2.29 per Boe) for the three months ended September 30, 2024, compared to $7.1 million ($2.93 per Boe) during the same period in 2023. As a percentage of oil and natural gas sales, our production taxes were 6% and 7% during the three months ended September 30, 2024 and 2023, respectively.

Previous wording

Production taxes were $9.7 million ($2.28 per Boe) for the six months ended June 30, 2024 compared to $10.8 million ($2.66 per Boe) during the same period in 2023. As a percentage of oil and natural gas sales, our production taxes were 5% and 6% during the six months ended June 30, 2024 and 2023, respectively.

Current wording

Production taxes were $15.0 million ($2.28 per Boe) for the nine months ended September 30, 2024 compared to $17.9 million ($2.76 per Boe) during the same period in 2023. As a percentage of oil and natural gas sales, our production taxes were 5% and 6% during the nine months ended September 30, 2024 and 2023, respectively.

Previous wording

Ad valorem taxes increased during both the three and six months ended June 30, 2024 as compared to the same periods in 2023, primarily due to additional wells drilled and completed and new wells acquired.

Current wording

Ad valorem taxes increased during both three and nine months ended September 30, 2024 as compared to the same periods in 2023, primarily due to additional wells drilled and completed and new wells acquired.

Previous wording

Depletion and accretion was $82.5 million ($19.32 per Boe) for the six months ended June 30, 2024, an increase of 20% from $68.8 million ($17.01 per Boe) during the same period in 2023. The increase in depletion and accretion expense was primarily due to the increase in depletion expense resulting from the increase in production and depletion rate.

Current wording

Depletion and accretion was $44.1 million ($19.06 per Boe) for the three months ended September 30, 2024, a decrease of 1% from $44.3 million ($18.20 per Boe) during the same period in 2023. The decrease in depletion and accretion expense was primarily due to the decrease in production partially offset by an increase in the depletion rate.

Previous wording

Depletion and accretion was $41.6 million ($19.78 per Boe) for the three months ended June 30, 2024, an increase of 19% from $35.0 million ($17.82 per Boe) during the same period in 2023. The increase in depletion and accretion expense was primarily due to the increase in depletion expense resulting from the increase in production and depletion rate.

Current wording

Depletion and accretion was $126.7 million ($19.23 per Boe) for the nine months ended September 30, 2024, an increase of 12% from $113.1 million ($17.45 per Boe) during the same period in 2023. The increase in depletion and accretion expense was primarily due to the increase in production and depletion rate.

Previous wording

In the first quarter of 2024, we recognized impairment expense of $0.7 million on unproved properties in the Permian Basin as the operator of those properties no longer intends to drill certain locations.

Current wording

No impairment of unproved properties was recorded for the three months ended September 30, 2024 and 2023. Impairment of unproved properties was $0.7 million for the nine months ended September 30, 2024, and no impairment recorded during the same period in 2023. The impairment in 2024 was recorded on unproved properties in the Permian Basin as the operator of those properties no longer intends to drill certain locations.

Previous wording

The following table provides components of our general and administrative expenses for the three and six months ended June 30, 2024 and 2023:

Current wording

The following table provides components of our general and administrative expenses for the three and nine months ended September 30, 2024 and 2023:

Previous wording

Total general and administrative expenses were $6.6 million ($3.15 per Boe) for the three months ended June 30, 2024, a decrease of 17% from $8.0 million ($4.08 per Boe) during the same period in 2023. The decrease was primarily due to $2.5 million of costs directly related to the Warrant Exchange in the three months ended June 30, 2023, partially offset by increased professional service expenses.

Current wording

Total general and administrative expenses were $18.7 million ($2.84 per Boe) for the nine months ended September 30, 2024, a decrease of 14% from $21.8 million ($3.37 per Boe) during the same period in 2023. The decrease was primarily due to $2.5 million of costs directly related to the Warrant Exchange in the nine months ended September 30, 2023, as well as lower insurance costs for the nine months ended September 30, 2024.

Previous wording

The following table sets forth the gain (loss) on derivatives for the three and six months ended June 30, 2024 and 2023:

Current wording

The following table sets forth the gain (loss) on derivatives for the three and nine months ended September 30, 2024 and 2023:

Previous wording

The following table represents our net cash receipts from (payments on) derivatives for the three and six months ended June 30, 2024 and 2023:

Current wording

The following table represents our net cash receipts from (payments on) derivatives for the three and nine months ended September 30, 2024 and 2023:

Previous wording

Interest expense was $5.8 million for the three months ended June 30, 2024 compared to $1.2 million for the three months ended June 30, 2023. The increase in interest expense during three months ended June 30, 2024 as compared to 2023 was primarily due to the increase in interest rates and amortization of deferred financing costs, and higher average outstanding balance on the revolving credit facility.

Current wording

Interest expense was $4.8 million for the three months ended September 30, 2024 compared to $1.4 million for the three months ended September 30, 2023. The increase in interest expense during three months ended September 30, 2024 as compared to 2023 was primarily due to the higher average outstanding balance on the revolving credit facility.

Previous wording

Interest expense was $9.0 million for the six months ended June 30, 2024 compared to $1.6 million for the six months ended June 30, 2023. The increase in interest expense during the six months ended June 30, 2024 as compared to 2023 was primarily due to the increase in interest rates and amortization of deferred financing costs, and higher average outstanding balance on the revolving credit facility.

Current wording

Interest expense was $13.8 million for the nine months ended September 30, 2024 compared to $2.9 million for the nine months ended September 30, 2023. The increase in interest expense during the nine months ended September 30, 2024 as compared to 2023 was primarily due the increase in interest rates and amortization of deferred financing costs, and higher average outstanding balance on the revolving credit facility.

Previous wording

In connection with the Third Amendment to the Credit Agreement as further discussed in Note 8 of the Notes to Condensed Consolidated Financial Statements, due to an increase in the size of the lender group, certain lenders decreased their commitment amounts and one bank exited the facility, which resulted in a write-off of $2.2 million in deferred financing costs that were previously capitalized. This $2.2 million is included in interest expense in the accompanying condensed consolidated statements of operations for the three and six months ended June 30, 2024, which contributed to the increase in interest expense compared to the same periods of the prior year.

Current wording

In connection with the Third Amendment to the Credit Agreement executed in April 2024, due to an increase in the size of the lender group, certain lenders decreased their commitment amounts and one bank exited the facility, which resulted in a write-off of $2.2 million in deferred financing costs that were previously capitalized. This $2.2 million is included in interest expense in the accompanying condensed consolidated statements of operations for the nine months ended September 30, 2024, which contributed to the increase in interest expense compared to the nine months ended September 30, 2023.

Previous wording

We recognized a loss of $11.0 million and $5.7 million during the three and six months ended June 30, 2023, respectively, from the change in fair value of the warrant liability. See Note 3 and Note 9 of the Notes to the Condensed Consolidated Financial Statements for additional information on the common stock warrants and the Warrant Exchange.

Current wording

We recognized a loss of $5.7 million during the nine months ended September 30, 2023 from the change in fair value of the warrant liability. See Note 3 and Note 9 of the Notes to the Condensed Consolidated Financial Statements for additional information on the common stock warrants and the Warrant Exchange.

Previous wording

We recorded a loss of $8.8 million and $1.0 million during the three and six months ended June 30, 2024, respectively, from the change in fair value of the common and preferred stock of Vital Energy. See Note 4 of the Notes to Condensed Consolidated Financial Statements for additional information on the common and preferred stock of Vital Energy.

Current wording

We recorded a loss of $18.3 million and $19.3 million during the three and nine months ended September 30, 2024, respectively, from the change in fair value of the common and preferred stock of Vital Energy. See Note 2 and Note 4 of the Notes to Condensed Consolidated Financial Statements for additional information on the common and preferred stock of Vital Energy.

Previous wording

We recorded an income tax expense of $1.7 million and $6.5 million for the three and six months ended June 30, 2024 compared to $4.1 million and $14.9 million for the three and six months ended June 30, 2023. The effective income tax rate differs from the statutory rate primarily due to the impact of certain discrete items and state income taxes. See Note 7 of the Notes to Condensed Consolidated Financial Statements for additional discussion of income taxes.

Current wording

We recorded an income tax expense of $4.3 million and $10.8 million for the three and nine months ended September 30, 2024 compared to $5.2 million and $20.1 million for the three and nine months ended September 30, 2023. The effective income tax rate differs from the statutory rate primarily due to the impact of certain discrete items, such as adjusting deferred balances for filed tax returns, and state income taxes. See Note 7 of the Notes to Condensed Consolidated Financial Statements for additional discussion of income taxes.

Previous wording

As of June 30, 2024, we had $165.0 million of debt outstanding under our Credit Agreement (as defined below). We had $148.2 million of liquidity as of June 30, 2024, consisting of $134.7 million of committed borrowing availability under the Credit Agreement and $13.5 million of cash on hand. On April 1, 2024, the Company entered into the Resignation, Appointment, Assignment and Third Amendment to Credit Agreement (the “Third Amendment”) by and among the Company, as borrower, Texas Capital Bank, as resigning administrative agent, Bank of America, N.A. (“Bank of America”), as successor administrative agent, and the lenders from time to time party thereto. The Third Amendment, among other things, increased the borrowing base from $275.0 million to $300.0 million, and increased the aggregate elected commitments from $240.0 million to $300.0 million. See Note 8 to the Notes to the Condensed Consolidated Financial Statements for additional information.

Current wording

As of September 30, 2024, we had $195.0 million of debt outstanding under our Credit Agreement (as defined below). We had $127.8 million of liquidity as of September 30, 2024, consisting of $104.7 million of committed borrowing availability under the Credit Agreement and $23.1 million of cash on hand. On November 1, 2024, the Company and its lenders entered into the Fourth Amendment to the Credit Agreement, which amended the Credit Agreement to, among other things, increase the borrowing base and aggregate elected commitments from $300 million to $325 million.

Previous wording

We paid dividends of $14.4 million, or $0.11 per share, and $28.7 million, or $0.22 per share during the three and six months ended June 30, 2024, respectively. For the three and six months ended June 30, 2023, we paid dividends of $14.6 million, or $0.11 per share, and $29.3 million, or $0.22 per share, respectively.

Current wording

We paid dividends of $14.4 million, or $0.11 per share, and $43.1 million, or $0.33 per share during the three and nine months ended September 30, 2024, respectively. For the three and nine months ended September 30, 2023, we paid dividends of $14.8 million, or $0.11 per share, and $44.1 million, or $0.33 per share, respectively.

Previous wording

During the three and six months ended June 30, 2023, the Company repurchased 660,568 and 933,585 shares under the program at an aggregate cost of $4.1 million and $5.8 million, respectively.

Current wording

During the three and nine months ended September 30, 2023, we repurchased 868,726 and 1,802,311 shares under the program at an aggregate cost of $6.3 million and $12.1 million, respectively.

Previous wording

The following table summarizes our changes in cash and cash equivalents for the six months ended June 30, 2024 and 2023:

Current wording

The following table summarizes our changes in cash and cash equivalents for the nine months ended September 30, 2024 and 2023:

Previous wording

Our net cash provided by operating activities included a benefit of $6.4 million and a benefit of $19.4 million for the six months ended June 30, 2024 and 2023, respectively, associated with changes in working capital items. Changes in working capital items adjust for the timing of receipts and payments of actual cash.

Current wording

The $5.2 million decrease in operating cash flows during the nine months ended September 30, 2024 as compared to the same period in 2023 was primarily due to decreased oil and gas sales and higher interest expense affecting net income. This was offset in part by net cash provided by operating activities which included a benefit of $10.4 million and a reduction of $2.9 million for the nine months ended September 30, 2024 and 2023, respectively, associated with changes in working capital items. Changes in working capital items adjust for the timing of receipts and payments of actual cash.

Previous wording

For the six months ended June 30, 2024, our net cash used in investing activities was $152.6 million, which consisted primarily of $135.9 million of capital expenditures for oil and natural gas properties and $20.9 million of acquisitions of oil and natural gas properties.

Current wording

For the nine months ended September 30, 2024, our net cash used in investing activities was $233.6 million, which consisted primarily of $193.4 million of capital expenditures used in the development of oil and natural gas properties and $52.0 million of acquisitions of oil and natural gas properties.

Previous wording

For the six months ended June 30, 2023, our net cash used in investing activities was $211.8 million, which consisted primarily of $182.3 million of capital expenditures for oil and natural gas properties and $29.5 million of acquisitions of oil and natural gas properties.

Current wording

For the nine months ended September 30, 2023, our net cash used in investing activities was $286.5 million, which consisted primarily of $237.1 million of capital expenditures used in the development of oil and natural gas properties and $49.4 million of acquisitions of oil and natural gas properties.

Previous wording

For the six months ended June 30, 2024, our net cash provided by financing activities was $22.8 million, primarily due to $55.0 million of borrowings under our Credit Agreement, partially offset by $28.7 million of dividends paid on our common stock and $0.4 million of common stock repurchases.

Current wording

For the nine months ended September 30, 2024, our net cash provided by financing activities was $38.5 million, primarily due to $85.0 million of borrowings under our Credit Agreement, partially offset by $43.1 million of dividends paid on our common stock and $3.0 million of deferred financing costs.

Previous wording

For the six months ended June 30, 2023, our net cash provided by financing activities was $19.8 million, primarily due to $55.0 million of net borrowings under our Credit Agreement, partially offset by $29.3 million of dividends paid on our common stock and $5.9 million of common stock repurchases.

Current wording

For the nine months ended September 30, 2023, our net cash provided by financing activities was $29.1 million, primarily due to $85.0 million of net borrowings under our Credit Agreement, partially offset by $44.1 million of dividends paid on our common stock, and $11.8 million of common stock repurchases.

Previous wording

At June 30, 2024, the Company had outstanding borrowings of $165.0 million and $0.3 million of outstanding letters of credit issued and outstanding under the Credit Agreement, resulting in availability of $134.7 million. The Credit Agreement is guaranteed by the restricted subsidiaries of Granite Ridge and is secured by a first priority mortgage and security interest in substantially all of the Company’s and its restricted subsidiaries’ assets.

Current wording

At September 30, 2024, the Company had outstanding borrowings of $195.0 million and $0.3 million of outstanding letters of credit issued and outstanding under the Credit Agreement, resulting in availability of $104.7 million. The Credit Agreement is guaranteed by the restricted subsidiaries of Granite Ridge and is secured by a first priority mortgage and security interest in substantially all of the Company’s and its restricted subsidiaries’ assets.

Previous wording

The Credit Agreement initially provided for aggregate elected commitments of $150.0 million, a borrowing base of $325.0 million and an aggregate maximum revolving credit amount of $1.0 billion. The borrowing base is redetermined semiannually on or about April 1 and October 1 of each calendar year, and is subject to additional adjustments from time to time, including for asset sales, elimination or reduction of hedge positions and incurrence of other debt. On November 7, 2023, Granite Ridge entered into a First Amendment to the Credit Agreement (the "First Amendment") which, among other things, decreased the borrowing base from $325.0 million to $275.0 million and increased the aggregate elected commitments from $150.0 million to $240.0 million. This borrowing base decrease was a result of the disposition of certain assets in the Permian Basin to Vital Energy.

Current wording

On November 1, 2024, the Company and its lenders entered into the Fourth Amendment to Credit Agreement, which amended the Credit Agreement to, among other things, increase the borrowing base and aggregate elected commitments from $300 million to $325 million. The borrowing base is redetermined semiannually on or about April 1 and October 1 of each calendar year, and is subject to additional adjustments from time to time, including for asset sales, elimination or reduction of hedge positions and incurrence of other debt.

Previous wording

Borrowings under the Credit Agreement may be base rate loans or secured overnight financing rate (“SOFR”) loans. Interest is payable quarterly for base rate loans and at the end of the applicable interest period for SOFR loans. Prior to the First Amendment, SOFR loans accrued interest at SOFR plus an applicable margin ranging from 250 to 350 basis points, depending on the percentage of the borrowing base utilized, plus an additional 10, 15 or 20 basis point credit spread adjustment for a one, three or six month interest period, respectively. Base rate loans accrued interest at a rate per annum equal to the greatest of: (i) the U.S. prime rate as published by the Wall Street Journal; (ii) the federal funds effective rate plus 50 basis points; and (iii) the adjusted SOFR rate for a one-month interest period plus 100 basis points, plus, in the case of this clause (iii) an additional 10 basis point credit spread adjustment, plus, in the case of any base rate loan, an applicable margin ranging from 150 to 250 basis points, depending on the percentage of the borrowing base utilized.

Current wording

Borrowings under the Credit Agreement may be base rate loans or secured overnight financing rate (“SOFR”) loans. Interest is payable quarterly for base rate loans and at the end of the applicable interest period for SOFR loans. Prior to entry into the First Amendment to the Credit Agreement on November 7, 2023 (the “First Amendment”), SOFR loans accrued interest at SOFR plus an applicable margin ranging from 250 to 350 basis points, depending on the percentage of the borrowing base utilized, plus an additional 10, 15 or 20 basis point credit spread adjustment for a one, three or six month interest period, respectively. Base rate loans accrued interest at a rate per annum equal to the greatest of: (i) the U.S. prime rate as published by the Wall Street Journal; (ii) the federal funds effective rate plus 50 basis points; and (iii) the adjusted SOFR rate for a one-month interest period plus 100 basis points, plus, in the case of this clause (iii) an additional 10 basis point credit spread adjustment, plus, in the case of any base rate loan, an applicable margin ranging from 150 to 250 basis points, depending on the percentage of the borrowing base utilized.