Granite Ridge Resources(GRNT)2025-03-06 21:10Financial Performance - Granite Ridge reported a net loss of $11.6 million for Q4 2024, or $(0.09) per diluted share, while Adjusted Net Income was $22.7 million, or $0.17 per diluted share[5]. - For the full year 2024, net income was $18.8 million, or $0.14 per diluted share, with Adjusted Net Income at $73.8 million, or $0.57 per diluted share[6]. - Net income for the year ended December 31, 2024, was $18,759,000, a decrease of 76.9% compared to $81,099,000 in 2023[34]. - The company reported a net loss of $11.6 million for Q4 2024, contrasting with a net income of $17.5 million in Q4 2023, while the annual net income for 2024 was $18.8 million compared to $81.1 million in 2023[46]. - Adjusted net income for the year ended December 31, 2024, was $73,776 thousand, down 30.9% from $107,072 thousand in 2023[51]. - Adjusted earnings per diluted share for Q4 2024 was $0.17, a decrease of 15% from $0.20 in Q4 2023[51]. Production and Sales - Total production for Q4 2024 increased by 7% year-over-year to 27,734 Boe per day, with oil production rising by 20% to 14,717 Bbls per day[7]. - Granite Ridge's 2025 guidance anticipates production of approximately 28,000 to 30,000 Boe per day, representing a 16% increase from 2024[17]. - Oil and natural gas sales for the year ended December 31, 2024, were $380,030,000, down 3.5% from $394,069,000 in 2023[33]. - Oil sales increased to $88.7 million in Q4 2024 from $86.3 million in Q4 2023, with annual oil sales rising to $327.5 million from $317.1 million[37]. - Average daily oil production rose to 14,717 Bbl in Q4 2024, up 20% from 12,280 Bbl in Q4 2023, while total production for the year increased to 9,140 MBoe from 8,873 MBoe[37]. Expenses and Liabilities - Total capital expenditures for 2024 were $354.4 million, with $93.3 million spent in Q4 alone[12]. - Lease operating expenses for Q4 2024 were $15.3 million, or $5.99 per Boe, a 7% decrease on a per unit basis compared to the prior year[10]. - Total current liabilities rose to $101,808,000 in 2024, up 63.9% from $62,079,000 in 2023[31]. - Long-term debt increased to $205,000,000 in 2024 from $110,000,000 in 2023, marking an increase of 86.4%[31]. - Operating expenses for Q4 2024 totaled $49.8 million, compared to $47.6 million in Q4 2023, with lease operating expenses slightly decreasing to $15.3 million from $15.4 million[37]. Assets and Reserves - Total assets increased to $1,036,479,000 in 2024 from $927,104,000 in 2023, representing an increase of approximately 11.8%[31]. - Proved reserves increased to 54,315 MBoe as of December 31, 2024, up from 53,472 MBoe a year earlier, with approximately 52% being oil[15]. Cash Flow and Liquidity - As of December 31, 2024, Granite Ridge had total liquidity of $129.1 million and a Net Debt to Adjusted EBITDAX ratio of 0.7x[14]. - The company reported a net cash provided by operating activities of $275,733,000 for the year ended December 31, 2024, compared to $302,867,000 in 2023, a decrease of 8.9%[34]. - The company's net debt as of December 31, 2024, was $195.6 million, with a net debt to Adjusted EBITDAX ratio of 0.7[47][48]. Derivatives and Impairments - The company experienced a loss on derivatives of $8,803,000 in Q4 2024, compared to a gain of $19,129,000 in Q4 2023[33]. - Impairments of long-lived assets increased to $35,637 thousand in Q4 2024 from $26,496 thousand in Q4 2023, reflecting a rise of 34.5%[51]. - The company reported a loss on derivatives related to commodity derivatives of $8,803 thousand in Q4 2024, compared to a gain of $(19,129) thousand in Q4 2023[51]. Future Outlook - The company plans to continue focusing on operational efficiency and cost management to improve financial performance in the upcoming periods[42]. - The company has significant derivative contracts in place for 2025 and 2026, including oil collars with a total volume of 3,431,379 Bbl and natural gas collars totaling 11,201,989 Mcf[40].