Granite Ridge Resources, Inc.

Good morning and welcome everyone to Granite Ridge Resources second quarter 2023 earnings conference call. At this time, all lines have been placed on mute to prevent any background noise. A question and answer session will follow the formal presentation. If you would like to ask a question at that time, simply press star followed by the number one on your telephone keypad. If you would like to withdraw your question, again, press star one. Thank you. It is now my pleasure to turn call over to Wes Harris, Investor Relations Representative for Granite Ridge.

Wes Harris Thank you, Operator, and good morning, everyone. We appreciate your interest in Granite Ridge resources. We will begin our call with comments from Luke Brandenburg, our President and Chief Executive Officer, who will provide an overview of key matters for the second quarter and our outlook for the remainder of 2023. We'll then turn the call over to Tyler Farquharson, our Chief Financial Officer, who will review our financial results. Luke will then return to provide some closing comments before we open the call up for questions. Today's conference call contains certain projections and other forward-looking statements within the meaning of federal securities laws. These statements are subject to risks and uncertainties that may cause actual results to differ from those expressed or implied in these statements. We would ask that you also review the cautionary statement in our earnings release. Granite Ridge disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise. Accordingly, you should not place undue reliance on forward-looking statements. These and other risks are described in yesterday's press release and are filings with the Securities and Exchange Commission. This conference call also includes references to certain non-GAAP financial measures. Information reconciling non-GAAP financial measures discussed to the most directly comparable GAAP financial measures is available in our earnings release that is posted on our website. Finally, as a reminder, this call is being recorded. A replay and transcript will be made available on our website following today's call. So with that, I'll turn the call over to Luke. Luke?

Thank you, Wes, and good morning, everyone. We appreciate you joining us for today's call. This was a solid quarter for Granite Ridge. From a results perspective, I'll steal a term Tyler used in our board meeting and call it workmanlike. Across the board, results were in line to slightly better than our internal expectations. Production was a bit better, which led to a bit higher adjusted EBITDAX. CapEx and Wells turned to sales were roughly in line. It almost seems boring, but as a new public company, boring can be good, and a lot of hard work went into creating this boring-in-a-good-way outcome. I'd like to thank our team for all their efforts over the past quarter, as well as our operating partners. An immense amount of time and energy went into turning nearly well a day to sales. We greatly appreciate it. A particularly bright spot of the quarter was our business development and deal evaluation efforts. Historically, we have seen about a deal a day or roughly 400 unique deals a year. Year to date, we've already screened and or evaluated over 400 deals, representing over $10 billion in potential capital opportunities. We closed 10 transactions in the first half of the year, seven of which were in the Permian, and one transaction each in the Eagleford, Hainesville, and DJ Basin. A few of those Permian transactions are part of the strategic partnership leg to our opportunity set stool, where we make a more concentrated allocation in core areas with our strategic partners. We mitigate this concentration risk with higher expected returns and more insight into development timing. We look forward to sharing more on our strategic partnership initiative in the coming quarters. In addition to solid execution across the board, I'm pleased with the progress we have made on several of our key initiatives. While we still have wood to chop to increase trading volume, the one-two punch of Warren Exchange and Russell Index Edition at the end of June removed an overhang and has more than doubled previous volume. We continue to increase investor visibility at conferences and non-deal roadshows, and we are really starting to hit our stride as a public company. It's great to see some of this progress reflected in the share price as we are up roughly 35% since we spoke three months ago on our first quarter earnings call. Now with the table set, I'll turn to our outlook for the full year 2023. As a result of stronger than expected well performance in the Hainesville and Permian, we are increasing the low end of our 2023 production guidance by 500 barrels of oil equivalent per day. This takes the midpoint up to 22,250 barrels of oil equivalent, or a 13% increase over the full year 2022. On the CapEx side, we are not changing our development capital guidance, but we are increasing our guidance on inventory acquisitions, which in the past I've referred to as opportunity capture, by $5 million. Now, as a reminder, while our team continues to pursue new opportunities, we do not guide the future investments. The $50 million guide for inventory acquisitions and production acquisitions are deals that have either closed or where we have executed definitive agreements. As mentioned on the previous call, our development CapEx for 2023 is front half loaded, but our turn to sales count is back half loaded. The third quarter will be an exciting one. We anticipate that about three quarters of our remaining wells to be turned to sales as well as about three-quarters of our remaining development CapEx will occur in the quarter. So with that, I'll turn it over to Tyler to discuss our financial results in more detail.