Granite Ridge Resources, Inc.

Simply press star, followed by the number one on your telephone keypad. To withdraw your question, press star one again. I will now turn the call over to James Masters, Investor Relations Representative for Granite Ridge.

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. We will review the quarter's results and company strategy. We will then turn the call over to Tyler Farquharson, our Chief Financial Officer, who will review our financial results in greater detail. 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 our 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 conference call is being recorded. A replay and transcript will be made available on our website following today's call. With that, I will now turn the call over to Luke.

Thank you, James, and thank you all for joining us today. This morning I plan to cover the key highlights from the first quarter discuss the recent market volatility, and review our current 2025 budget along with the flexibility we have within it. I will then share thoughts on the outlook for the rest of 2025 before passing it over to Tyler. Kicking off with the quarter, I'm pleased to share that Granite Ridge had an outstanding first quarter in 2025. We achieved a production rate of over 29,000 barrels of oil equivalent per day, reflecting a 23% increase compared to the same period last year. Additionally, we generated $91 million of adjusted EBITDAX, surpassing our internal projections. These impressive results highlight the success of our strategic focus on geographic and hydrocarbon diversity, currently a balanced 50-50 split between oil and gas, and our partnership with top-tier operators. Our outperformance in the first quarter was primarily driven by traditional non-op wells that came online earlier than anticipated or outperformed their expected tight curves throughout the quarter. A standout performer continues to be our operated partnership program, where we are excited to see substantial growth in volumes over the past year. Our partner in the Delaware Basin has increased gross daily operated oil production by 400%, from 2,500 barrels of oil per day to approximately 10,000 barrels of oil per day, with interest in over 50 producing wells. With every dollar we invest in this business, we are targeting full cycle returns of greater than 25%. And we're pleased that the results to date aligned with those expectations. For the quarter, we turned 13.7 net wells to sales, increased oil volumes by 39% and natural gas volumes by 10% with robust initial production from new wells, primarily in the Permian Basin. One area I'm particularly proud of is our cost structure, which continues to improve on a per unit basis as we scale the business. As the denominator grows, our efficiency improves. In the first quarter, we reported LOE of $6.17 per BOE, 13% lower than last year. On an operating margin basis, we improved from 83% in the first quarter of last year to 87% this year. These are not one-time savings. They are repeatable cost structure improvements thanks to increased scale that will continue to drive enhanced cash flow and shareholder returns. Turning to the macro environment, while volatility has been a prevailing theme lately, Granite Ridge remains well-positioned with a diversified asset base. Our production is approximately 75% hedged through 2026, and we maintain a leverage ratio of just 0.7 times net debt to adjusted EBITDA. This combination preserves our expected cash flows and provides significant optionality as we look to capitalize on opportunities in this environment. Our diversification in particular proves incredibly valuable during times of volatility. After two years on the doldrums, It is great to see the macro picture improve for natural gas, and we are pleased with both the production and operating margin growth of our natural gas assets. Year over year, while gas volumes grew by 10%, our revenue from gas more than doubled to $31 million, thanks to realized prices of $3.97 per m compared to just $1.84 per m a year ago. We continue to evaluate opportunities to accelerate capital deployment in response to today's improved gas pricing. particularly in the Hainesville and Drygas-Eagleford. Moving to our 2025 budget, during our last call, I mentioned the possibility of an accelerated CapEx scenario of approximately $380 million. However, due to recent market volatility, we've decided to proceed with our base case of $310 million. This approach is projected to achieve a 16% production growth at the midpoint. Let's take a quick look at our sources and uses for 2025. Using round numbers, the uses include the $300 million budget for CapEx, about $60 million for dividends, and $25 million for interest and other costs, totaling $395 million. On the sources side, while production growth does not directly translate to cash flow, with gas prices up, oil prices down, and hedges in place, it serves as a reasonable proxy. Starting with $291 million of 2024 EBITDA, and applying a 16% increase at the production guidance midpoint, we estimate about $335 million. This leaves us with $60 million in incremental debt. I walk through this for a couple of reasons. First, to assist those of you who model Granite Ridge. We appreciate you. Second, to highlight that in the current hydrocarbon price environment, our plan puts us roughly cash flow neutral, excluding the dividend. I recognize that excluding the dividend is a lightning rod for some. In this environment where oil and gas stocks trade more like assets from businesses, people often take the negative and criticize us for borrowing to pay the dividend. I would like to offer a different perspective. We believe we can fund our dividend and achieve mid- to high-single-digit production growth out of cash flow. As we continue to find accretive opportunities, even in this price environment, we are taking on conservative leverage to generate mid-teens production growth and accelerate cash flows. As we consider budget flexibility, our focus on full cycle returns and efficient operating cost management has enabled us to maintain a low leverage profile while achieving significant asset growth. In the face of an uncertain market, these priorities remain crucial. We are confident in our assets and balance sheet's ability to withstand fluctuations in hydrocarbon prices, and our capital program is designed to adapt to various price scenarios. like our peers in oil and gas industry, we are closely monitoring hydrocarbon prices and will continue to adjust our budget accordingly if oil remains below $60 per barrel. As recently as this week, we have non-consented well proposals that do not meet our return threshold and identified approximately $30 million in capex within our operated partnerships that we can swiftly cut or defer with additional flexibility if market conditions require. Our guiding principle for capital allocation remains a focus on full cycle returns combined with conservative leverage. Production growth is merely a result of this strategy. With estimated maintenance capital accounting for less than two-thirds of our 2025 budget, we have substantial flexibility to make decisions that enhance long-term shareholder value. To review, we've had an outstanding quarter with performance exceeding expectations across the board. Our balance sheet remains in great shape at just 0.7 times leverage, and our hedging program is solid, covering roughly 75% of current production through 2026. We are growing responsibly with increased margins and lower capital reinvestment rates than ever before. Strategically, where are we? After a decade of building a significant non-op portfolio with diversified interest across six premier oil and gas basins in the United States, Our current focus on operated partnerships brings balance to the portfolio. This focus adds control over the timing of CapEx and cash flows while partnering with some of the highest quality operating teams in the country. We have built Granite Ridge on the principles of diversification and strict underwriting standards to generate steady returns for our shareholders. Our approach remains rooted in capital stewardship with disciplined allocation falling close behind. Over the past two and a half years as a public company, we have ensured that our intent to grow and add scale has not come at the expense of financial prudence. I'm proud of our efforts. The growth we have experienced is due to sound capital allocation strategies, always with good rocks and outstanding partners. Looking ahead to the rest of 2025, we are focused on three key priorities. First, developing our Operated Partnership Program. We currently have two operating partners, and have agreed to terms with a third, all targeting the Permian Basin. Earlier this year, we were running two rigs in the Delaware Basin, but have since scaled back to one rig. We are pleased with the results we have achieved so far and maintain total control and flexibility to adjust the program according to the hydrocarbon price environment. This program will account for about 60% of our capital this year, up from 50% in 2024. Second, maintaining a careful balance between growth and returns. We continue to guide to a 16% production growth while maintaining our $0.11 per share quarterly dividend, which at current prices offers almost a 9% dividend yield. And finally, preserving our financial flexibility. With the support of our banking partners, we successfully increased our borrowing base in April by $50 million to $375 million, providing enhanced pro forma liquidity of $141 million as of March 31st. Leverage stands at just 0.7x net debt to EBITDAX. This conservative approach has served us well through multiple cycles. With that, let me turn it over to Tyler to walk through the numbers in more detail.