Granite Ridge Resources(US:GRNT)2025-05-08 20:18Revenue and Production - For the three months ended March 31, 2025, total revenues increased by 38% to $122.93 million compared to $88.99 million in the same period of 2024[140] - Oil sales for the same period rose by 21% to $91.85 million, driven by a 37% increase in production, despite an 11.5% decrease in realized prices[140] - Natural gas revenues surged by 135% to $31.08 million, attributed to a 116% increase in realized prices and a 9% increase in production[140] - Net production of oil increased to 1,328 MBbl in 2025 from 969 MBbl in 2024, while natural gas production rose to 7,826 MMcf from 7,203 MMcf[138] - The number of net producing wells increased from 181.34 on March 31, 2024, to 211.63 on March 31, 2025[141] Prices and Expenses - Average NYMEX oil price for the three months ended March 31, 2025, was $71.78 per barrel, a 7% decrease from $77.50 per barrel in 2024[135] - Average NYMEX natural gas price for the same period was $4.14 per Mcf, representing a 93% increase from $2.15 per Mcf in 2024[136] - Lease operating expenses were $16.24 million ($6.17 per Boe) for the three months ended March 31, 2025, a 5% increase from $15.48 million ($7.13 per Boe) in 2024[142] - General and administrative expenses increased by 15% to $7.46 million ($2.84 per Boe) in 2025 from $6.49 million ($2.99 per Boe) in 2024[148] - Depletion and accretion expenses rose by 18% to $48.45 million ($18.41 per Boe) in 2025 from $40.94 million ($18.87 per Boe) in 2024[145] Financial Performance - For the three months ended March 31, 2025, the company reported a total loss on commodity derivatives of $14.9 million, compared to a loss of $3.2 million in the same period of 2024[149] - Interest expense increased to $5.0 million for the three months ended March 31, 2025, up from $3.2 million in the same period of 2024, primarily due to a higher average outstanding balance on the Credit Agreement[150] - The company recorded a loss of $10.0 million on equity investments for the three months ended March 31, 2025, compared to a gain of $7.8 million in the same period of 2024[151] - Income tax expense decreased to $2.9 million for the three months ended March 31, 2025, from $4.8 million in the same period of 2024[152] Capital Expenditures and Cash Flow - The company plans to budget approximately $300 million to $320 million in total capital expenditures for 2025, with $71.4 million incurred in the first quarter of 2025[176] - For the three months ended March 31, 2025, net cash provided by operating activities was $76.1 million, an increase from $68.7 million in the same period of 2024[159] - The company used $100.0 million in investing activities for the three months ended March 31, 2025, primarily for capital expenditures and acquisitions of oil and natural gas properties[163] - The company paid dividends of $14.4 million, or $0.11 per share, during the first quarter of 2025, consistent with the same amount paid in the first quarter of 2024[158] - The company expects to fund its near-term capital requirements with cash on hand, cash flows from operations, and available borrowing capacity under its Credit Agreement[157] Debt and Financial Position - As of March 31, 2025, the company had $250.0 million of debt outstanding under its Credit Agreement and $90.8 million of liquidity, consisting of $74.7 million of committed borrowing availability and $16.1 million of cash[154] - Total indebtedness of $250.0 million outstanding under the Credit Agreement at March 31, 2025[190] - A one percent increase in interest rates would result in increased annual interest expense of approximately $2.5 million[190] - No outstanding interest rate derivative contracts at March 31, 2025[191] Accounting and Reporting - No material changes in critical accounting policies and procedures during the three months ended March 31, 2025[185] - No off-balance sheet arrangements that materially affect financial condition or results of operations[187] - A 10% increase in average commodity prices would have decreased the fair value of commodity derivatives by $29.1 million for the three months ended March 31, 2025[188]