Granite Ridge Resources, Inc.

Good day and welcome to the Granite Ridge Resources second quarter 2026 earnings conference call. At this time, all participants are in listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question, you will need to press star 1-1 on your touchtone phone. Please note this call is being recorded. I would like to turn the call over to James Masters, Vice President, Investor Relations. Please go ahead.

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. He will then turn the call over to Kyle Kettler, our chief financial officer, to 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 uncertainties that may cause actual results to differ from those expressed or implied. We ask that you 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 these statements. These and other risks are described in our 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 in 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. Let me start with the most important takeaway. 2026 is the last year we plan to invest ahead of our free cash flow. And every dollar we are putting to work is building towards the free cash flow inflection we have laid out for 2027. This quarter advanced that plan on the fronts that matter most. We brought new wells online. We added high return inventory to feed our growth. We kept our balance sheet strong while maintaining our dividend. Quarter's numbers reflect that progress. Production was 32,044 barrels of oil equivalent per day, 51% oil, and we generated $79.6 million of adjustment tax with strong early results from the 7.2 net wells we turned in line late in the quarter. But the real story is not the quarter, it's the trajectory. We are getting closer to that inflection, and we are executing the plan to get there. Our operator partnership platform continues to be the standout. The advantage starts with how the deals are sourced. Through Admiral Permian Resources and our other operating partners, we fund development on acreage that is captured through our partners' own leasing, ground game, and operator relationships, rather than competing for it in broadly marketed packages where prices get bid up. Because we bring the capital and our partners bring the operational footprint and the local deal flow, we see opportunities that never reach an auction