Granite Ridge Resources(US:GRNT)2025-11-07 02:44Revenue and Sales Performance - For the three months ended September 30, 2025, total revenues increased by 20% to $112.67 million compared to $94.08 million in the same period of 2024[155]. - Oil sales for the three months ended September 30, 2025, were $91.96 million, an increase of 8% from $85.50 million in 2024, driven by a 28% increase in production[155]. - Natural gas revenues surged by 142% to $20.71 million for the three months ended September 30, 2025, compared to $8.57 million in 2024, due to a 93% increase in realized prices[155]. - For the nine months ended September 30, 2025, total revenues increased by 26% to $344.82 million compared to $273.72 million in 2024[156]. Pricing and Market Conditions - Average NYMEX oil pricing for the three months ended September 30, 2025, was $65.78 per barrel, which is 14% lower than the $76.43 per barrel in the same period of 2024[150]. - Average realized oil price per barrel after reflecting settled derivatives was $61.64 for the three months ended September 30, 2025, down from $73.99 in 2024[150]. - Average NYMEX natural gas pricing for the three months ended September 30, 2025, was $3.03 per Mcf, a 44% increase from $2.11 per Mcf in 2024[151]. - The oil price differential to the NYMEX benchmark price was a discount of $(4.16) per barrel for the three months ended September 30, 2025, compared to $(2.99) per barrel in 2024[144]. Production and Operational Metrics - The number of net producing wells increased from 195.88 on September 30, 2024, to 235.27 on September 30, 2025, reflecting successful drilling and acquisitions[157]. Operating Expenses - Operating expenses for the three months ended September 30, 2025, were $92.08 million, up from $74.11 million in 2024, reflecting increased lease operating expenses and depletion[153]. - Lease operating expenses for Q3 2025 were $23.6 million ($8.03 per Boe), an 81% increase from $13.0 million ($5.62 per Boe) in Q3 2024[158]. - For the nine months ended September 30, 2025, lease operating expenses totaled $60.0 million ($7.10 per Boe), a 42% increase from $42.2 million ($6.40 per Boe) in the same period of 2024[159]. - Production taxes for Q3 2025 were $5.4 million ($1.83 per Boe), slightly up from $5.3 million ($2.29 per Boe) in Q3 2024, representing 5% of oil and natural gas sales for both periods[160]. - Total general and administrative expenses for Q3 2025 were $7.0 million ($2.38 per Boe), a 25% increase from $5.6 million ($2.41 per Boe) in Q3 2024[166]. Financial Performance - The company recorded a gain on equity investments of $0.5 million for Q3 2025, compared to a loss of $18.3 million in Q3 2024[171]. - Net cash provided by operating activities for the nine months ended September 30, 2025 was $231.9 million, an increase from $207.5 million in the same period of 2024[183]. - Net cash used in investing activities for the nine months ended September 30, 2025 was $280.8 million, primarily due to $233.1 million in capital expenditures and $57.0 million in acquisitions[187]. Debt and Liquidity - As of September 30, 2025, the company had $300.0 million of debt outstanding under its Credit Agreement and $86.5 million of liquidity[175]. - Interest expense for Q3 2025 was $6.1 million, an increase from $4.8 million in Q3 2024, primarily due to a higher average outstanding balance on the revolving credit facility[169]. - As of September 30, 2025, the Company had outstanding borrowings of $300.0 million and $0.3 million of letters of credit, with availability of $74.7 million under the Credit Agreement[191]. - The borrowing base was increased from $325.0 million to $375.0 million on April 29, 2025, and reaffirmed on November 5, 2025[194][200]. - The Company had total indebtedness of $300.0 million under the Credit Agreement as of September 30, 2025, with a potential $3.0 million increase in annual interest expense for a 1% rise in interest rates[219]. Capital Expenditures and Future Plans - The Company issued $350.0 million of 8.875% senior unsecured notes on November 5, 2025, at 96.0% of par, with a maturity date of November 5, 2029[201]. - For 2025, the Company is budgeting approximately $400 million to $420 million in total planned capital expenditures, including $120 million for acquisitions of oil and natural gas properties[206]. - The Company plans to fund capital expenditures with cash generated from operations and, if necessary, borrowings under the Credit Agreement[206]. Compliance and Financial Covenants - The Credit Agreement includes financial covenants requiring a leverage ratio not greater than 3.00 to 1.00 and a current ratio of not less than 1.00 to 1.00[198]. - As of September 30, 2025, the Company was in compliance with all covenants required by the Credit Agreement[199].