Granite Ridge Resources, Inc.

Good morning and welcome everyone to Granite Ridge Resources third quarter 2025 earnings conference call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star followed by the number one on your telephone keypad. If you would like to withdraw your question, press star one again. Thank you. I will now turn the call over to James Masters, Investor Relations Representative for Granite Ridge.

Thank you, operator. Good morning, everyone. We appreciate your interest in Granite Ridge Resources. We will begin our call with comments from Tyler Farquharson, our President and Chief Executive Officer, who will review the quarter's results and company strategy. We will then turn the call over to Kim Wymer, our Interim Chief Financial Officer and Chief Accounting Officer, who will review our financial results in greater detail. Tyler will then return to provide closing comments before we open the call 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 uncertainty that may cause actual results to differ from those expressed or implied. We ask that you review the cautionary statement in our earnings release. If an original 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 these statements. These and other risks are described in yesterday's press release and our filings with the Securities and Exchange Commission. This call also includes references to certain non-GAAP financial measures. Information reconciling these measures to the most directly comparable GAAP measures is available on our earnings release on our website. Finally, this call is being recorded, and a replay and transcript will be available on our website following today's call. With that, I'll turn the call over to Tyler.

Thank you, James, and good morning, everyone. I appreciate everyone joining us today for our third quarter 2025 earnings call. Our results this quarter once again highlight the strength of our business model, grounded in discipline to capital allocation, operational excellence, and strong execution across our platform and operating partners. In the third quarter, average daily production increased 27% year-over-year to 31.9 thousand barrels of oil equivalent per day. Adjusted EBITDAX rose 4% from the prior year period to 78.6 million. Capital expenditures totaled 80.5 million, consisting of 64 million in development and 16.5 million in acquisitions. We ended the quarter with a leverage ratio of 0.9 times, well below our long-term target range of less than 1.25 times. In addition, we continued our quarterly dividend of 11 cents per share, underscoring our commitment to a reliable, competitive return to our shareholders. Subsequent to quarter-end, we enhanced our capital structure and liquidity positions. Earlier this week, our lending group reaffirmed the $375 million borrowing base on our revolving credit facility, and we successfully issued $350 million of senior unsecured notes due to 2029 with an 8.875% annual coupon. Together, these actions increased our pro forma liquidity to $422 million and further enhanced our flexibility to execute our business plan while preserving balance sheet strength. 2025 marks an important inflection point for Granite Ridge as we scale our Operative Partnership platform and further define our model as publicly traded private equity. Through these partnerships, we combine the control of an operator with the capital discipline of an investment firm, a framework that supports deliberate, cycle-resilient decisions around capital allocation and inventory selection. Year-to-date, approximately 50% of our capital spending has been deployed in these partnerships. We are particularly pleased with the success of Admiral Permian Resources, our largest and longest standing operator partnership, which continues to set the benchmark for performance. Admiral now controls 30 distinct drilling units across the Permian Basin and has a quarter end at 63 producing wells with 14 more in progress. Admiral's multi-horizon portfolio has consistently delivered results in line with our underwriting expectations while advancing technologies such as U-turn well design, further enhancing efficiency and cost control, while also making them a preferred partner for larger asset managers. So far in 2025, Admiral has added 61 gross 17.2 net locations for an average of $1.9 million per net location, representing over $200 million of future development capital. In less than three years, the partnership has captured 198 wells, 94 net-to-granite, representing nearly $1 billion of development capital. Admiral now produces 7,400 BOE per day net-to-granite, or 23% of granite ribs total production. Admiral's success illustrates why we believe the Operated Partnership Model is our most capital-efficient path to scale. Unlike many EMPs that make large, point-in-time acreage acquisitions, exposed to multi-year commodity cycle risk, Granite Ridge executes drilling unit level acquisitions, narrowly underwritten at current script pricing for near-term development. We believe this approach provides superior risk-adjusted returns and flexibility. While each partnership is unique, Admiral's success has become a blueprint for our other partnerships, including PetroLegacy and two recently formed partnerships focused on the Midlands and Delaware Basins. Collectively, these partnerships now encompass 28.1 net producing wells, approximately 30.1 net undeveloped locations, with an additional 37.7 net locations expected to close before the end of the year. Each partnership is structured to generate operated deal flow, strong full cycle returns, and control over capital deployment and development timing. PetroLegacy initiated its drilling program in the Midland Basin at the end of the third quarter, with production contributions expected early next year. Meanwhile, our two newer operated partnerships are actively advancing business development initiatives, expected to add meaningful, high-quality inventory ahead of transitioning to development mode. Our traditional non-op business continues to deliver stable cash flow and diversification. During the third quarter, we participated in 59 gross, or 9.3 net, wells turned to sales, primarily across the Permian and Appalachian Basins. We remain particularly encouraged by our results in the Appalachian Basin, where we've added over 1,500 net acres this year and consistently outperformed our underwriting expectations. Earlier this year, we increased our acquisition capital guidance by $100 million to capture attractive opportunities across both our operated and traditional non-operated strategies. As of quarter end, we invested $42 million through our operator partnerships, adding 27 net wells, and $20 million through non-operated acquisitions adding 6.7 net wells, primarily in the Delaware Basin and in Appalachia. Before year-end, we expect to invest an additional $47 million to secure 38 net locations along with additional acreage in the Utica Play. Collectively, these additions will add nearly three years of drilling inventory at an average cost of $1.7 million per net location. Turning to the macro environment, oil and gas prices have remained relatively stable over the past 12 months, providing a constructive backdrop for continued disciplined growth. We remain focused on opportunities that clear our 25% full cycle return hurdle and exceed our cost of capital, even as we modestly outspend cash flow. As always, our spending and leverage remain guided by our leverage target range of 1 to 1.25 times, and we're committed to staying within those bounds. Looking ahead to 2026, we are constructive on the long-term oil outlook, but cautious near-term given uncertainty in global supply growth. We'll provide detailed guidance with our Q4 release, but our strategic framework remains clear. Above $50 oil, we plan on pursuing measured growth with modest outspend. If we see sustained oil prices below $55 per barrel, we plan on pivoting to a maintenance mode targeting roughly $225 million in capex, while maintaining flexibility for opportunistic acquisitions. Our strategy is designed for agility, supported by a just-in-time inventory model, diversified asset base, and minimal drilling commitments, allowing us to remain nimble through varying market conditions. We also continue to actively hedge around 75% of production each quarter, with nearly 50% of expected 2026 volumes already hedged. Combined with a strong balance sheet, this ensures we can operate in the best three cycles. Bonded markets will remain volatile, but our platform is built for it. We're confident Granite Ridge is well positioned for another year of disciplined growth, consistent returns, and sustainable shareholder value in 2026. With that, I'll turn it over to Kim for a detailed financial review.