Granite Ridge Resources, Inc.
For the period ended Mar 31, 2025. Filed May 8, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Mar 31, 2025 · Filed May 8, 2025
GRNT$5.29+13.3%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-09-30; filed 2024-11-07.
0001928446-24-000046
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-03-31; filed 2025-05-08.
0001928446-25-000030
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 126 previous paragraphs and 106 current paragraphs.
60 unchanged; 37 reworded; 7 added; 27 removed; 2 previous and 2 current paragraphs rearranged.
Tables are not compared: 7 previous and 7 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (7)
Current report
Granite Ridge is a scaled energy company which aims to provide shareholders with exposure similar to energy private equity through operated partnerships and traditional non-operated assets. We own assets in six prolific unconventional basins across the United States. We aim to deliver a diversified portfolio with best-in-class full cycle returns by investing in a large number of high-graded opportunities developed by proven public and private operators. We focus on success as measured by total shareholder returns, which we seek to balance with a low leverage profile.
Current report
Oil, Natural Gas and Related Product Sales
Current report
Lease operating expenses were $16.2 million ($6.17 per Boe) for the three months ended March 31, 2025, an increase of 5% from $15.5 million ($7.13 per Boe) during the same period in 2024. The increase was primarily due to an increase in well count due to acquisitions and additional wells successfully drilled and completed. The decrease in lease operating expenses per Boe was primarily due to the increase in production.
Current report
For the three months ended March 31, 2024, we recognized impairment expense of $0.7 million on unproved properties in the Permian Basin as a result of a change in the operator's drilling plans.
Current report
Gain/(Loss) on Equity Investments
Current report
Income Tax Expense
Current report
The $7.4 million increase in operating cash flows during the three months ended March 31, 2025 as compared to the same period in 2024 was primarily due to the increase in oil and natural gas sales during the three months ended March 31, 2025 as compared to the same period in 2024.
Removed paragraphs (27)
Previous report
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 report
Business Combination
Previous report
On October 24, 2022 (the “Closing Date”), Granite Ridge and ENPC consummated the business combination pursuant to the terms of the Business Combination Agreement, dated as of May 16, 2022 (the “Business Combination Agreement”), by and among ENPC, Granite Ridge, ENPC Merger Sub, Inc., a Delaware corporation and a wholly-owned subsidiary of Granite Ridge (“ENPC Merger Sub”), GREP Merger Sub, LLC, a Delaware limited liability company and a wholly-owned subsidiary of Granite Ridge (“GREP Merger Sub”), and Granite Ridge Holdings, LLC, a Delaware limited liability company formerly known as GREP Holdings, LLC (“GREP”).
Previous report
Pursuant to the Business Combination Agreement, on the Closing Date, (i) ENPC Merger Sub merged with and into ENPC (the “ENPC Merger”), with ENPC surviving the ENPC Merger as a wholly-owned subsidiary of Granite Ridge and (ii) GREP Merger Sub merged with and into GREP (the “GREP Merger,” and together with the ENPC Merger, the “Mergers”), with GREP surviving the GREP Merger as a wholly-owned subsidiary of Granite Ridge (the transactions contemplated by the foregoing clauses (i) and (ii) the “Business Combination,” and together with the other transactions contemplated by the Business Combination Agreement, the “Transactions”).
Previous report
For additional information on the Business Combination, see Note 1 of the Notes to Condensed Consolidated Financial Statements.
Previous report
$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 report
Oil and Natural Gas Sales
Previous report
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 report
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 report
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 report
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 report
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 report
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 report
Exploration Expense
Previous report
Exploration expense was $0.3 million for the three and nine months ended September 30, 2024, a decrease of 82% from $1.6 million during the same time periods in 2023. The decrease in exploration expense was primarily due to $1.6 million of costs related to certain mechanical issues encountered on two wells that made them unable to produce hydrocarbons in the three and nine months ended September 30, 2023, partially offset by delay rentals recognized during the same periods in 2024.
Previous report
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 report
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 report
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 report
Loss on Derivatives – Common Stock Warrants
Previous report
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 report
Loss on Equity Investments
Previous report
Income Tax Expense (Benefit)
Previous report
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 report
Stock Repurchase Program
Previous report
In December 2022, we announced that our Board of Directors approved a stock repurchase program for up to $50 million of our common stock through December 31, 2023. Under the stock repurchase program, we repurchased shares of our common stock from time to time in open market transactions or in privately negotiated transactions as permitted under applicable rules and regulations. The stock repurchase program terminated on December 31, 2023.
Previous report
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 report
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, (a) appointed Bank of America as administrative agent and L/C Issuer (as defined therein), replacing Texas Capital Bank, (b) increased the size of the lender group by adding nine new banks, with one bank exiting the facility, (c) increased the borrowing base from $275.0 million to $300.0 million, and (d) increased the aggregate elected commitments from $240.0 million to $300.0 million.
Reworded paragraphs (37)
Previous 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.
Current wording
Our oil price differential to the NYMEX benchmark price during the three months ended March 31, 2025 and 2024 was a discount of $(2.60) per barrel and a premium of $0.67 per barrel, respectively. Our natural gas price differential to the average NYMEX price during the three months ended March 31, 2025 and 2024 was a discount of $(0.17) per Mcf and $(0.31) 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 nine months ended September 30, 2024 and 2023.
Current wording
Prices for various quantities of natural gas and oil that we produce significantly impact our revenues and cash flows. The following table lists average NYMEX spot prices for oil and natural gas for the three months ended March 31, 2025 and 2024.
Previous wording
For the three months ended September 30, 2024, the average NYMEX oil pricing was $76.43 per barrel of oil, or 7% lower than the average NYMEX price per barrel for the three months ended September 30, 2023. Our settled derivatives increased our realized oil price per barrel by $0.55 for the three months ended September 30, 2024 and increased our realized oil price per barrel by $0.11 for the three months ended September 30, 2023. For the three months ended September 30, 2024, our average realized oil price per barrel after reflecting settled derivatives was $73.99 compared to
Current wording
For the three months ended March 31, 2025, the average NYMEX oil pricing was $71.78 per barrel of oil, or 7% lower than the average NYMEX price per barrel for the three months ended March 31, 2024. Our settled derivatives decreased our realized oil price per barrel by $0.05 for the three months ended March 31, 2025 and increased our realized oil price per barrel by $0.10 for the three months ended March 31, 2024. For the three months ended March 31, 2025, our average realized oil price per barrel after reflecting settled derivatives was $69.13 compared to $78.27 for the three months ended March 31, 2024.
Previous 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.
Current wording
For the three months ended March 31, 2025, the average NYMEX natural gas pricing was $4.14 per Mcf, or 93% higher than the average NYMEX price per Mcf for the three months ended March 31, 2024. Our settled derivatives decreased our realized natural gas price per Mcf by $0.01 for the three months ended March 31, 2025 and increased our realized natural gas price per Mcf by $0.36 for the three months ended March 31, 2024. For the three months ended March 31, 2025, our average realized natural gas price per Mcf after reflecting settled derivatives was $3.96 compared to $2.20 for the three months ended March 31, 2024.
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 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.
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 March 31, 2025 increased 38% from the same period in 2024. Oil revenues for the three months ended March 31, 2025 increased by 21% compared to the same period in 2024, driven by a 37% increase in production, partially offset by an 11.5% decrease in realized prices, excluding the effect of settled derivatives. Natural gas revenues increased by 135% for the three months ended March 31, 2025 compared to the same period in 2024, driven by a 116% increase in realized natural gas prices, excluding the effect of settled commodity derivatives, and a 9% increase in production.
Previous 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.
Current wording
Production from oil and gas properties increased as a result of drilling success and the acquisition of additional net revenue interests. The number of wells we participated in during the period increased from 181.34 net wells on March 31, 2024 to 211.63 net wells on March 31, 2025.
Previous 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.
Current wording
We generally pay production taxes based on realized oil and natural gas sales. Production taxes were $6.6 million ($2.49 per Boe) for the three months ended March 31, 2025 compared to $4.3 million ($1.98 per Boe) during the same period in 2024. As a percentage of oil and natural gas sales, our production taxes were 5% and 5% during the three months ended March 31, 2025 and 2024, respectively.
Previous 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.
Current wording
Ad valorem taxes increased by $0.3 million during the three months ended March 31, 2025 as compared to the same period in 2024, primarily due to additional wells drilled and completed and new wells acquired.
Previous 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.
Current wording
Depletion and accretion was $48.4 million ($18.41 per Boe) for the three months ended March 31, 2025, an increase of 18% from $40.9 million ($18.87 per Boe) during the same period in 2024. The increase in depletion and accretion expense was primarily due to the increase in depletion expense resulting from an increase in production between the two periods.
Previous wording
The following table provides components of our general and administrative expenses for the three and nine months ended September 30, 2024 and 2023:
Current wording
The following table provides components of our general and administrative expenses for the three months ended March 31, 2025 and 2024:
Previous wording
Total general and administrative expenses were $5.6 million ($2.41 per Boe) for the three months ended September 30, 2024, an increase of 6% from $5.2 million ($2.16 per Boe) during the same period in 2023. The increase was primarily due to higher salary expense and administrative fees during three months ended September 30, 2024.
Current wording
Total general and administrative expenses were $7.5 million ($2.84 per Boe) for the three months ended March 31, 2025, an increase of 15% from $6.5 million ($2.99 per Boe) during the same period in 2024. The increase was primarily due to increased professional and legal service expenses during the three months ended March 31, 2025 as compared to the same period of 2024.
Previous wording
The following table sets forth the gain (loss) on derivatives for the three and nine months ended September 30, 2024 and 2023:
Current wording
The following table sets forth the gain (loss) on derivatives for the three months ended March 31, 2025, and 2024:
Previous 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:
Current wording
The following table represents our net cash receipts from (payments on) derivatives for the three months ended March 31, 2025, and 2024:
Previous 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.
Current wording
Interest expense was $5.0 million for the three months ended March 31, 2025 compared to $3.2 million for the three months ended March 31, 2024. The increase in interest expense during the three months ended March 31, 2025 as compared to 2024 was primarily due to an increase in the average outstanding balance on the Credit Agreement during 2025.
Previous 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.
Current wording
We recorded a loss of $10.0 million for the three months ended March 31, 2025 compared to a gain of $7.8 million for the three months ended March 31, 2024 resulting from the change in fair value of the common and preferred stock of Vital Energy.
Previous 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.
Current wording
We recorded income tax expense of $2.9 millionfor the three months ended March 31, 2025 compared to $4.8 million for the three months ended March 31, 2024. The effective income tax rate differs from the statutory rate primarily due to the impact of certain discrete items and state income taxes.
Previous 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.
Current wording
As of March 31, 2025, we had $250.0 million of debt outstanding under our Credit Agreement. We had $90.8 million of liquidity as of March 31, 2025, consisting of $74.7 million of committed borrowing availability under the Credit Agreement and $16.1 million of cash on hand.
Previous wording
Any payment of future dividends will be at the discretion of the Company’s Board of Directors.
Current wording
We paid dividends of $14.4 million, or $0.11 per share, and $14.3 million, or $0.11 per share, during the first quarter of 2025 and 2024, respectively. Any payment of future dividends will be at the discretion of the Company’s Board of Directors.
Previous wording
The following table summarizes our changes in cash and cash equivalents for the nine months ended September 30, 2024 and 2023:
Current wording
The following table summarizes our changes in cash and restricted cash for the three months ended March 31, 2025 and 2024:
Previous 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.
Current wording
Our net cash provided by operating activities included a reduction of $10.6 million and a benefit of $7.1 million for the three months ended March 31, 2025 and 2024, 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 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.
Current wording
For the three months ended March 31, 2025, our net cash used in investing activities was $100.0 million, which consisted primarily of $66.7 million of capital expenditures for oil and natural gas properties and $34.7 million of acquisitions of oil and natural gas properties.
Previous 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.
Current wording
For the three months ended March 31, 2024, our net cash used in investing activities was $71.0 million, which consisted primarily of $69.7 million of capital expenditures for oil and natural gas properties and $2.6 million of acquisitions of oil and natural gas properties.
Previous 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.
Current wording
For the three months ended March 31, 2025, our net cash provided by financing activities was $30.6 million, primarily due to $45.0 million of borrowings under our Credit Agreement, partially offset by $14.4 million of dividends paid on our common stock.
Previous 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.
Current wording
For the three months ended March 31, 2024, our net cash provided by financing activities was $12.7 million, primarily due to $27.5 million of borrowings under our Credit Agreement, partially offset by $14.3 million of dividends paid on our common stock and $0.4 million of common stock repurchases.
Previous 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.
Current wording
At March 31, 2025, the Company had outstanding borrowings of $250.0 million and $0.3 million of letters of credit issued and outstanding under the Credit Agreement, resulting in availability of $74.7 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
On October 24, 2022, Granite Ridge entered into a senior secured revolving credit agreement (as amended, the “Credit Agreement”) among Granite Ridge, as borrower, Texas Capital Bank, as administrative agent, and the lenders from time to time party thereto. The Credit Agreement has a maturity date of five years from the effective date thereof.
Current wording
On October 24, 2022, Granite Ridge entered into a senior secured revolving credit agreement with a syndicate of banks, currently led by Bank of America, N.A., as administrative agent. The Credit Agreement has a maturity date of five years from the effective date thereof, or October 24, 2027.
Previous 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.
Current wording
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. As of March 31, 2025, the Company had a borrowing base of $325.0 million and elected commitments of $325.0 million.
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 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.
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. SOFR loans bear interest at SOFR plus an applicable margin ranging from 300 to 400 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 bear 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 200 to 300 basis points, depending on the percentage of the borrowing base utilized.
Previous wording
(i)a leverage ratio, which is the ratio of Consolidated Total Debt to EBITDAX (each as defined in the Credit Agreement), of not greater than 3.00 to 1.00 as of the last day of each fiscal quarter, and
Current wording
(i)a leverage ratio, which is the ratio of Consolidated Total Debt to EBITDAX (each as defined in the Credit Agreement), of not greater than 3.00 to 1.00 as of the last day of any fiscal quarter, and
Previous wording
As of September 30, 2024, we were in compliance with all financial covenants required by the Credit Agreement.
Current wording
At March 31, 2025, we were in compliance with all covenants required by the Credit Agreement.
Previous wording
Our contractual obligations include long-term debt, cash interest expense on debt, derivative liabilities, asset retirement obligations and an annual service fee to the Manager. Since December 31, 2023, there have been no material changes in our contractual obligations, other than the $85.0 million increase in long-term debt due to borrowings under the Credit Agreement.
Current wording
Our contractual obligations include long-term debt, cash interest expense on debt, derivative liabilities, asset retirement obligations and an annual service fee to the Manager. Since December 31, 2024, there have been no material changes in our contractual obligations, other than the $45.0 million increase in long-term debt due to borrowings under the Credit Agreement.
Previous wording
For 2024, we are budgeting for approximately $355 million to $365 million in total planned capital expenditures, including approximately $60 million of acquisitions of oil and natural gas properties. Our costs incurred on oil and natural gas properties, excluding acquisitions, during the three months ended September 30, 2024 and 2023 totaled $77.2 million and $75.7 million, respectively, and $206.8 million and $233.1 million during the nine months ended September 30, 2024 and 2023, respectively. Our capital expenditures for the nine months ended September 30, 2024 were primarily funded with cash flows from operations and borrowings under the Credit Agreement. We expect to fund planned capital expenditures with cash generated from operations and, if required, borrowings under our Credit Agreement.
Current wording
For 2025, we are budgeting approximately $300 million to $320 million in total planned capital expenditures. Our costs incurred on oil and natural gas properties, excluding acquisitions, during the three months ended March 31, 2025 and 2024 totaled $71.4 million and $62.6 million, respectively. Our capital expenditures for the three months ended March 31, 2025 were primarily funded with cash flows from operations and borrowings under the Credit Agreement. We expect to fund planned capital expenditures with cash generated from operations and, if required, borrowings under our Credit Agreement.
Previous wording
The following table reflects our expenditures for acquisitions of proved and unproved properties for the three and nine months ended September 30, 2024 and 2023:
Current wording
The following table reflects our expenditures for acquisitions of proved and unproved properties for the three months ended March 31, 2025 and 2024:
Previous wording
The establishment and consistent application of accounting policies is a vital component of accurately and fairly presenting our financial statements in accordance with generally accepted accounting principles in the United States (“U.S. GAAP”), as well as ensuring compliance with applicable laws and regulations governing financial reporting. While there are rarely alternative methods or rules from which to select in establishing accounting and financial reporting policies, proper application often involves significant judgment regarding a given set of facts and circumstances and a complex series of decisions. Further, these estimates and other factors, including those outside of management’s control, could have a significant adverse impact to the financial condition and results of operations.
Current wording
The establishment and consistent application of accounting policies is a vital component of accurately and fairly presenting our financial statements in accordance with generally accepted accounting principles in the United States (“U.S. GAAP”), as well as ensuring compliance with applicable laws and regulations governing financial reporting. While there are rarely alternative methods or rules from which to select in establishing accounting and financial reporting policies, proper application often involves significant judgment regarding a given set of facts and circumstances and a complex series of decisions. Further, these estimates and other factors, including those outside of management’s control, could have a significant adverse impact to the financial condition, results of operations and cash flows of the Company.
Previous wording
In management’s opinion, the more significant reporting areas impacted by management’s judgments and estimates are the choice of accounting method for oil and natural gas activities, oil and natural gas reserve estimation, asset retirement obligations, revenue recognition, impairment of long-lived assets and valuation of financial derivatives.
Current wording
In management’s opinion, the more significant reporting areas impacted by management’s judgments and estimates are the choice of accounting method for oil and natural gas activities, oil and natural gas reserve estimation, revenue recognition, impairment of long-lived assets and valuation of financial derivatives.
Previous wording
There have been no material changes in our critical accounting policies and procedures during the nine months ended September 30, 2024. See our disclosure of critical accounting policies in “Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations” and “Item 8. Financial Statements and Supplementary Data” of our 2023 Form 10-K.
Current wording
There have been no material changes in our critical accounting policies and procedures during the three months ended March 31, 2025. See our disclosure of critical accounting policies in “Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations” and “Item 8. Financial Statements and Supplementary Data” of our 2024 Form 10-K.
Previous wording
For discussion of recently issued or adopted accounting pronouncements, see Note 2 of the Notes to Condensed Consolidated Financial Statements.
Current wording
For discussion of recent accounting pronouncements, see Note 2 of the Notes to Condensed Consolidated Financial Statements.
Rearranged current paragraphs (2)
Current report — wording carried from elsewhere
On April 29, 2025, the Company and its lenders entered into the Fifth Amendment to the Credit Agreement, which amended the Credit Agreement to, among other things, increase the borrowing base and aggregate elected commitments from $325.0 million to $375.0 million.
Current report — wording carried from elsewhere
On April 29, 2025, the Company and its lenders entered into the Fifth Amendment to the Credit Agreement, which amended the Credit Agreement to, among other things, increase the borrowing base and aggregate elected commitments from $325.0 million to $375.0 million.
Rearranged previous paragraphs (2)
Previous report — wording carried elsewhere
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 report — wording carried elsewhere
As a result of the First Amendment, SOFR loans now bear interest at SOFR plus an applicable margin ranging from 300 to 400 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 now bear 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 200 to 300 basis points, depending on the percentage of the borrowing base utilized.