Granite Ridge Resources Q3 2023 Earnings Call Transcript

Quartr
Provided by Quartr
November 10, 2023

There are 6 speakers on the call.

Operator

Good morning. My name is Rob, and I will be your conference operator today. At this time, I would like to welcome everyone to the Granite Ridge Resources Third Quarter 2023 Earnings Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question and answer session.

Operator

Thank you. Wes Harris, Investor Relations representative for Granite Ridge, you may begin your conference.

Speaker 1

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 Q3 and our outlook for the remainder of 2023. We will 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 up the call for questions.

Speaker 1

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.

Speaker 1

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.

Speaker 2

So with that, I'll turn

Speaker 1

the call over to Lou. Lou?

Speaker 2

Thank you, Wes, and thanks to everyone for joining our Q3 call. Lot of excitement over here as we crossed the 1 year mark as a public company a couple of weeks ago. By dialing into this call, you are all part of the celebration, and I hope that you'll join me and 1 thanking our team for all their hard work to continue to grow the business and to complete the transition from private to public, our legal, accounting and banking partners for keeping the wheels of capitalism turning. The folks on the research and IR side are helping us to spread the Granite Ridge story, Our operating partners for fighting the good fight in the field every day and finally for our investors for trusting us to be good stewards of your capital. Now this is one of those fun quarters to talk about.

Speaker 2

On the asset side, we outperformed our internal expectations. On the business side, we're firing on all cylinders. And on the corporate side, the company is more investable than ever. My plan for this morning is to walk through each of those in a little more detail, Then to discuss how this impacts the remainder of 2023. And while we plan to issue 2024 guidance when we report year end earnings in March, I would also like to share a bit about where we see 2024 heading.

Speaker 2

Starting with the assets, we want to give credit where credit is due to our operating partners for a great quarter of execution. These folks turned 77 gross or just over 8.5 net wells to sales this quarter, which drove over 20% quarter over quarter production growth. A lot of moving pieces in 77 gross wells, but ultimately 2 development units led to the beat. We had 3.5 net wells in a core Delaware unit that turned to sales a month earlier than expected and came in under budget. Additionally, we have one net well in a Haynesville unit that hit the trifecta by coming in about a month early, exceeding internal production expectations and coming in significantly under AFE.

Speaker 2

Now before I shift to the business, I should mention something about costs. While we have Seeing green shoots of costs coming in below expectations, we are not modeling in cost declines going forward. On the business side, the opportunity set continues to be robust, both on the traditional non op or burgers and beers front, as well as the controlled CapEx or strategic partnership front. We've closed on 23 transactions year to date and have another handful that we expect to close by the end of the year. These deals represent a nice blend of flowing production, near term development and longer dated inventory.

Speaker 2

7 of these are in the controlled CapEx or strategic partnership leg of our business development stool. As a reminder, These are opportunities where we take a controlling interest in well defined areas through direct partnership with proven operators. These are higher concentration investments and we mitigate that concentration risk with higher expected returns and full control over development timing. Finally, I'll turn to the corporate side. Our big event for the quarter was a secondary sale of about 8,000,000 shares from our largest shareholder.

Speaker 2

As this was all secondary, Granite Ridge did not make the determination to sell nor did we receive any proceeds, but the offering did a lot to make GRNT more investable. We've seen a material increase in trading volume. We added over 40 new investors and we significantly increased research coverage with Bank of America, Water Tower and Stephens picking up coverage post offer. Phillips at Capital One was a bit lonely as a consensus of 1 and we sure appreciate all of you sharing your time and mind share with us. Now all these benefits did not come without a cost.

Speaker 2

While we've recovered a bit, the secondary pricing was painful. But in addition to trading volume increase, broader investor base and increase in research coverage. The offering demonstrated that our largest shareholder continues to be willing to make the hard decisions in order to make Granite Ridge more investable. Turning our attention to our updated outlook for full year 2023, We're making some adjustments to the full year to account for the Q3 outperformance. The first one is production, where we are increasing both low and the high end of our 2023 production guidance by 1,000 barrels of oil equivalent per day.

Speaker 2

This takes the midpoint up to 23,250 barrels of oil equivalent per day or about an 18% increase over the full year 2022 and 4% higher than the midpoint of our previous full year 2023 guidance. A couple of things to keep in mind here. First, while some of the 3rd quarter production beat was due to outperformance, some of it was due to acceleration, meaning less volumes from those wells in the 4th quarter. We mentioned in the previous call that the Q3 will be the high point for the year. Internally, we're looking at about a 7% production decline from the 3rd to the 4th quarter.

Speaker 2

The second thing I would point out is while our oil production outperformed expectations a bit year to date, the outperformance has primarily been on the gas side. With that, we are taking our oil waiting for the year down to 47%. On the 2023 CapEx side, We are increasing our inventory acquisition and producing property acquisition bucket up from $50,000,000 to $90,000,000 As a reminder, we only guide the transactions that are either closed or in definitive dots, not the future deals. But the incremental 40,000,000 new deal since the last call that we have closed or expect to close by year end. About half of the $40,000,000 increase is one acquisition in the Haynesville and roughly a quarter of the increase is a couple of opportunistic diversified PDP buys.

Speaker 2

And while we are not typically buyers of PDP, Part of the thesis for going public was that there may be some long in the tooth funds that may need to divest of assets. We were able to offer ease and certainty of close in exchange for an attractive valuation. On the drilling side, we are taking the midpoint up $15,000,000 This is due primarily beginning operations with a strategic partner during the Q4 as well as some acceleration of wells that we thought would come online in 2024, that we now expect in 2023. That acceleration has the impact of increasing 2023 net term to sales, But we do not expect much in the way of production from this increase in well activity as they will be turned on so late in the year. Before I pass the ball to Tyler, I'll wrap up with a few thoughts on 2024.

Speaker 2

From a capital allocation standpoint, we've previously mentioned that our normal course of business debt target is half a turn of leverage. We are sitting at about a quarter turn now. So long as the opportunity set justifies it, Our Board has been supportive of reinvesting all of our post dividend cash flow and borrowing to fund compelling new opportunities. Once we get closer to that half a turn of leverage, I expect that you'll see us live within cash flow. The other thing I would note is where drilling dollars are going.

Speaker 2

As our strategic partnership program continues to gain traction, we will begin to have full control over the timing of some of our drilling capital. If we want to pause, we can pause. If we believe the conditions are right to accelerate, we can accelerate. Based on what we're seeing for 2024, We expect that roughly a quarter of our drilling dollars will be controlled. And with success, we hope to increase that in future years.

Speaker 2

So with that, I'll turn it over to Tyler to discuss our financial results in more detail. Tyler? Thanks, Luke, and good morning, everyone. During the Q3, our Q3 average daily production was above the high end of our internal estimates at 26,433 BOE per day, a 20% increase compared to Q3 of 2022 and 23% higher than this year's Q2. Both oil and natural gas volumes were higher versus Q2 as we experienced favorable timing adjustments on key wells in the Permian and Haynesville and production outperformance on gas wells recently turned to sales in the Haynesville.

Speaker 2

As Luke mentioned, we increased our full year 2023 production mid point of guidance to 23,250 BOE per day, which represents 18% growth compared to last year. Our adjusted EBITDA was $83,200,000 in Q3, up 19% from this year's Q2. Adjusted EPS was $0.21 per diluted share for the quarter. Non cash depletion and accretion expense for the 3rd quarter totaled $44,300,000 impacting EPS by $0.33 per share. 3rd quarter oil differential of negative $3.89 per barrel was higher than our historical trend due to less favorable local market pricing in the Bakken.

Speaker 2

Natural gas price realizations during the quarter were 99% of benchmark prices lower than our historical trend and a result of weaker shoulder month pricing and lower NGL value net of processing costs. Per unit lease operating costs were $6.96 per BOE, a 5% decrease compared to the 2nd quarter and within our guided range of $6.50 to $7.50 per BOE. Production and ad valorem taxes were 7% of sales with our view for the remainder of 2023 unchanged at 7% to 8% of sales. G and A expense for the Q3 was $2.16 per BOE. Included in our Q3 G and A expense was $379,000 of non cash stock based compensation.

Speaker 2

Adjusting for this, our recurring cash G and A expense was 4,900,000 for $2 per BOE. We continue to expect full year 2023 recurring cash G and A to be in the range of $20,000,000 to $22,000,000 excluding the $2,500,000 in warrant exchange transaction costs incurred in the 2nd quarter. Our operating partners completed and placed on production a total of 77 gross or 8.6 net wells with nearly 2 thirds of the activity occurring in the Permian Basin. An additional 196 gross or 10.6 net wells were in progress at quarter end. We are increasing our full year expectation by 2 net wells on the low and high end to now target 21 to 23 net wells placed on production during full year 2023.

Speaker 2

Capital spending during the quarter was $95,100,000 including $20,100,000 of acquisitions. Year to date, our spending totals $284,600,000 including $62,400,000 of acquisitions, primarily to reflect an increased level of company acquisitions as well as the expanded development efforts by our operating partners on their respective acreage. We're increasing the midpoint of our annual capital guidance by $55,000,000 Our total capital spending guidance is now 345,000,000 to 355,000,000 for 2023. We also continued our ongoing quarterly cash dividend. During the quarter, the Board declared an $0.11 per share dividend that on an annualized basis represents a 7.2% dividend yield measured against Wednesday's closing price.

Speaker 2

In addition, we also repurchased 869,000 shares at an aggregate cost of $6,300,000 during the quarter. As of September 30, we have repurchased a total of 1,800,000 shares at a cost of approximately 12,300,000 Subsequent to quarter end, we completed our semiannual bank redetermination, increasing our elected commitment amount from $150,000,000 to $240,000,000 Pro form a for this redetermination, our liquidity at the end of Q3 was $161,000,000 with 85,000,000 drawn on our revolving credit facility. Our leverage ratio at quarter end was approximately a quarter of a turn and below our half turn target. Finally, over the past months, we have added a number of defensive hedges to where we now have approximately 75% of our current PDP hedged for 2024 Oil and Gas. I'll now hand it back to Luke for his closing comments.

Speaker 2

Luke? Thank you, Tyler. To sum it up, we are pleased with our Q3 results and believe we are strongly positioned as we enter 2024. And while it may sound like a broken record, I do think it is worth repeating that we believe Granite Ridge's investment thesis for non op oil and gas companies differentiated. Practically, we're a hybrid oil and gas company and investment firm.

Speaker 2

Our objective is to tighten the band of outcomes in oil and gas investing with high diversification, low leverage and disciplined investment decision making. While many of our small cap peers trade more like an asset than a business, We look forward to demonstrating in the public space as we have in the private space for a decade that there is real value in the Granite Ridge business above and beyond our asset value. I'd also like to make the distinction that while we had a decline in stock price from the secondary, we did not have a decline in stock value. This decline in stock price does not increase risk, it decreases it. We have something special here, particularly at this price point.

Speaker 2

I'll wrap up by thanking all of our shareholders once again for your continued support. We appreciate. And with that, we're happy to answer any questions folks may have on today's call. Operator?

Operator

And your first question comes from the line of Michael Scialla from Stephens. Your line is open.

Speaker 3

Hi, good morning guys. Luke, you mentioned talking or you mentioned you've got control of 25% of expenditures or you think you're going to for next year. I guess based on where strip prices are now, when do you think you would hit that leverage target of 0.5 times. And what does that imply for growth next year relative to, call it, the high teens you'll do this year?

Speaker 2

Yes. Good morning, Mike. Good question. So from a leverage perspective, at the pace that we're going, I'd anticipate that we would hit that half turn target somewhere, call it, middle of the year. That would be the best guess at this time.

Speaker 2

Again, price This will play a pretty big impact on that, as will acceleration on that control capital or strategic partnership side. As I mentioned, we'll be picking up a rig, I have actually 2 rigs for a short period of time this year, but we're practically looking at about a rig full time next year and so that will certainly play a role in it.

Speaker 3

Okay. And can you characterize kind of the percentage of working interest you take in those strategic partnerships versus your Typical burgers and beer and what's the pipeline of opportunities look like for more of the strategic partnerships?

Speaker 2

Yes, great question. So, on the burgers and beer side, that Varies quite a bit from the DJ Basin where we brought on 32 wells, but only 0.07 net, so very small working Generally across the DJ and some areas of the Permian, we may be closer to 10%. But on the strategic partnership side, So that gets a lot higher. That's much more concentrated investments. And so generally speaking, when we partner with the group, we may We being Granite Ridge, maybe 95% of the capital in that partnership.

Speaker 2

Now we generally have 100% control of the drilling unit, so maybe we're 60%, 70% of that, but net to Granite Ridge, so if you look at the drilling unit, we're probably somewhere between 50% 60% typically. So much more concentration there. And As we talked about, we really like the balance there. You have higher concentration, but we expect higher rates of return there. And then also just that control piece, I think it's really a differentiator for what we're doing.

Speaker 2

It just gives us the ability to deposit if it makes sense, accelerate if it makes sense and just look a lot more like an operator from that perspective.

Speaker 3

Great. And just one more if I could. You mentioned you're seeing some green shoots on pricing. You're not ready to change your official, I guess, well costs for next year, but anything you can say In general and where you think well costs are heading based on what you've seen with AFE so far relative to 2023?

Speaker 2

Yes. I think basin by basin changes a lot. Where we've seen the best beats, if you will, is in the Haynesville. And I think a big factor of that was you probably just had a pretty big swing on the pendulum when prices for drilling really ramped in late 2022, like a lot of folks just got bit by that. I think you saw a company has probably had AFEs a little bit more to make up for that and we've seen them come in under.

Speaker 2

I mean, in one case, we were gosh, we were almost 20% under, which was tremendous and certainly Happy to be part of that operator there. But that said, it's I could tell you a handful of data points where we beat, but the majority of them We're really coming in line pretty darn close to AFE. So again, there are some green shoots, but rigs are getting a bit tighter in the Permian than they were 6 months ago. And so you're seeing some rig rates that are approaching the low 30,000 of dollars a day. And so I don't know that we're seeing any relief there.

Speaker 2

So I'd say steady as she goes is our expectation as we look towards 2024. Appreciate that. Thanks, Luke. Yes, sir. Thank you.

Operator

Your next question comes from the line of Jeff Robertson from Water Tower Research. Your line is open.

Speaker 4

Thank you. Good morning. Luke, with what you all have going on closing out the year with some of the incremental acquisitions, will that give you some production momentum as you start up in or as you head into the Q1 of 2024.

Speaker 2

Yes. Good morning, Jeff. So I'd say maybe a little bit, but most of the acquisitions, I referenced the one in the Haynesville that was plus or minus $20,000,000 that was A little bit of production, but the vast majority of that is inventory weighted. That said, the group that we partner with there, they'll actually be completing some wells late this year. And so I'd say we could see a little bit of acceleration, if you will, or increase going into 'twenty four from the $40,000,000 increase, but I don't think it's going to be a ton.

Speaker 2

Most of that is really inventory weighted where we may start drilling that next year at some point, but not necessarily immediately. We did have A little bit of a production buy that also mentioned, I guess it was through 2 transactions that we were just fortunate to really get to capitalize on, hey, there's some late life funds and they may need to get out of assets. The good funds, the fund made money, they just need to exit and we were just a natural buyer and we can make it really easy Forum. So we did buy a little bit of production there at valuations that we're very happy with, but it's really de minimis in the big scheme of things.

Speaker 4

Is the Haynesville acquisition in nearby in the well that was brought in recently under budget and over performing in terms of production?

Speaker 2

No, not particularly. This one is going to be on the Texas side.

Speaker 4

Lastly, a question on the partnerships. I You said you'd like to have 1 rig year in 2024. Is that one partnership, Luke? Or would that be spread over a couple of different Projects.

Speaker 2

Good question. Glad you asked that. So the goal is for each partnership to have effectively a rig full time. Now That may not be a whole rig again if we're call it 70% of the unit, you're not multiplying the full rig rate times 365 days, But it is 1 per group. And so really the objective is these guys are putting together deals or getting creative, getting scrappy and putting together drilling units and stacking 1 on top of the other, Such as they can run a rig full time and just really try to get some of the benefits of keeping a rig running as opposed to picking it up and putting it down.

Speaker 2

Thank you. Yes, sir. Thanks for the questions.

Operator

Your next question comes from the line of Jon Abbott from Bank of America. Your line is

Speaker 5

open. Good morning and thank you for taking our questions. Just sticking with the strategic partnership. So, if I understand, it's going to be about 1 rig next year Related to basically one partnership, 25 percent of CapEx. These partnerships, It requires a little bit since you have a higher working interest, it requires a bit more capital.

Speaker 5

I guess just starting off here, I'm starting off here, and I know you want to grow that over time, but As you sort of think about, I mean, how quickly do you want to grow that strategic partnership capital Since it is a bit more chunky and you do you would be looking at a dedicated rig per partnership. Do you want to grow that gradually at 25% then 50% and 175 percent, you want to grow that over a multiyear basis. How do you think about comfortably as you grow the business, how much strategic capital do you want out there?

Speaker 2

Yes, it's a great question. The way that we look at it, I'd say, truth be told, it's less of

Speaker 4

a

Speaker 2

plan of, hey, let's try to get 1 a year and increase Yes, from 25 to 50 to 75. It's really more opportunity driven. And so our partners here, these are really unique opportunities in the sense that We're not here trying to replace your large private equity firms. That's not the role that we play. It's really for folks who are More focused on putting together kind of drilling unit by drilling unit, not the large format acquisitions.

Speaker 2

And there are several criteria that really make A good partner for us and allow us to be a good partner for them. A lot of these folks, they need to be proven moneymakers and that's for two reasons. 1, From a risk management for us, we know that they know how to build a business, they know how to execute. But the other point is, we're not necessarily covering all the overhead of these groups. These are folks that are willing to put their own money in a deal, real substantial dollars.

Speaker 2

If they're 5 plus percent, we're running a rig full time, that's $5,000,000 a year that they're reinvesting. So, it's real dollars. So, that's a criteria. The other piece is, Again, we're not really competing with private equity in the sense of backing teams. And so a lot of this is really opportunity driven.

Speaker 2

They're not finding opportunities to keep a rig running full time. Those are multi $100,000,000 deals that are generally the world of the This mid cap guys are the larger private equity firms. These are kind of unit by unit. So, when I look at next year, well, maybe let's rewind. We anticipate running a rig basically full time next year, but we've been working with this team for over a year to get that drill schedule built out.

Speaker 2

So if today, we found a team, it was a great partnership, both sides are really excited about it and we hit the ground running. They might have identified an initial opportunity, but you're probably a year plus away from really running a rig full time. So that's a bounce around with you there. But ultimately, I'd say it's more opportunity driven than it is a specific formula for layering and one every year. And We're talking to groups in the Bakken, in the Midland Basin, in particular.

Speaker 2

Those are areas where I think There could be opportunities to put together units from folks that have had experience there and have deep relationships there. But I wouldn't anticipate Next year's capital doubling, even if we shook hands with the team today, that would probably be later next year To early 'twenty five that you really put dollars to work with that second team.

Speaker 5

Appreciate that color. And then the next question, I think, goes here to Tyler. And it's really on liquidity and strategic partnerships as well. So, now the opportunity of the strategic partners is more control, More visibility on cash flow, but cash flow can be lumpier and you have to spend money for these calls, you have to wait for them to come online. And so when you sit and looking at, it looks like you increased your credit facility up to about $240,000,000 So I guess when When you sort of think about the strategic partnership sort of model and how you think about liquidity that you want to maintain and how do you think about the possibility of further expansion to your revolver over time?

Speaker 2

Yes. So you're right. We did increase our revolver by $90,000,000 added liquidity post quarter and You know that that's exactly why we did that. We wanted to get ahead of the big ramp up in strategic partnership capital that we expect next year. So I think we're comfortable there in that kind of $250,000,000 range that allows us to start to fund those strategic partnerships and gives us the opportunity to get to our half turn leverage target, while still giving us enough capacity to where if we do end up Maybe getting a second team or deploying a team in the Bakken or somewhere else.

Speaker 2

We'd have the capacity to start that process as well. And I think if we did were successful on getting a second strategic partnership, we'd have to go back to market to increase our RBL at that point.

Speaker 5

Understood. Maybe just a quick follow-up on that. So if you got a second so the goal not the goal, but One of the thresholds you've talked about is getting up to 0.5x leverage. If you've got another strategic partner, Would that be a situation where you could possibly take leverage up to one times or would that not qualify that?

Speaker 2

It could. I think we really view though going up to one times being more of a consolidation opportunity. So maybe a larger format transaction where we'd take it up to one times if it had a clear pathway back down to our half turn target. Yes. The only thing that I would add is that You think about adding a rig, just picking up a rig, right, you got negative cash flow for a period of time and you get to be cash flow neutral.

Speaker 2

And so just spending on timing of those 2 partnerships or 3, I think you could paint a picture where you certainly would go over half a term, but you want to have real clear line of sight. And frankly, you'd hear us talk about it On calls or in some sort of press release of, hey, we've talked about half a term, we're going above that. But here's a line of sight to get back to that comfortable level. And the other piece of it too, A neat thing about the non op space is because we have control over these, but we're still non op. If we get to a point where we've got more concentration and more capital than we're comfortable with, you can always sell down a piece of that.

Speaker 2

That's one of my favorite things about non op is it's infinitely divisible. If I want to go settle on 20% in a well that we're about to spud, there's a great market for that and we know those folks well. We compete with them day in and day out. It's a great way to lay off some capital to make sure that we're rightsizing our exposure in a quick way.

Speaker 5

Appreciate it. Very, very helpful. Thank you, guys.

Speaker 2

You got it. Thank you. Have a great weekend.

Operator

Your next question comes from the line of Jeff Robertson from Water Tower Research. Your line is open.

Speaker 4

Thanks. Just to follow-up on the discussion around partnerships. Luke, why do you think Granite Ridge's capital is a better source of capital Some of the people you all are discussing opportunities with and some of the alternatives they have.

Speaker 2

Yes, it's a great question because look, I talked about the characteristics of a good strategic partner and most private equity firms would probably be chomping at the best to get to partner with these folks So it's really good question. There's a few things that Granite Ridge really offers when we think about how we can be a better partner to these folks are, 1, if you think about a partnership with a private equity firm, a lot of times the private equity firms, they not only control the assets, but they also control the company. And most importantly, that means they control when to sell. With our partnerships, everything is at the asset level. And so while we control the asset, we can't never make the group sell.

Speaker 2

They can sell when they want to or they can hold on to the asset forever, which for a lot of these folks that again have proven money makers Really created some value. They want to build a long term oil and gas company. We're differentiated group for them. The other thing that we do that we really think is Important and different to teams really stands out is when we talk about deal with a group, it's Really almost a drilling unit by drilling unit basis, and each of those drilling units are their own project. And so the management teams have the opportunity Great value to get into the incentive piece of it on a unit by unit basis versus having to wait for an exit from entire vehicle.

Speaker 2

That's a real differentiator. And I think something that separates us and management teams really like is that they can effectively get funding on a project by project basis. We get comfortable with that because one, we're focused on proven areas and 2, we're doing A lot of these in addition to the strategic partnerships, we're in many wells over the course of the year. So we're able to diversify our risk across our portfolio. So Yes, two main reasons, more control over the company, also getting the opportunity for project by project payouts.

Speaker 2

I think those are two reasons that we can really be a better partner for the right folks.

Speaker 4

And then Just a follow-up for Tyler. I think you said Tyler you're about 75% of 2024 PDP production is hedged today. Will Granite Ridge's hedging strategy change as you approach the half a turn of leverage or will it pretty much be the stay consistent with what it is today?

Speaker 2

No, I think we like even at half internal leverage, that's pretty low leverage. So I think that we'd have to go quite a bit higher on the leverage side before we consider really adding a lot more hedges and thinking about moving into hedging some of the development opportunities as well. So I think what you'll see from us is just consistency In that 50% to 75% range of current PDP.

Speaker 4

Thanks for taking my follow ups.

Speaker 2

You got it.

Operator

There are no further questions at this time. Mr. Luke Brandenburg, I turn the call back over to you for some final closing remarks.

Speaker 2

Excellent. Thanks, Robin. Just want to say thank you to everyone on the call. This is a neat quarter for us. It's fun to talk about and sure appreciate everyone's interest.

Speaker 2

Yes, Tyler and I are we're perpetually on the road and we're always around. And so please don't ever

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Granite Ridge Resources Q3 2023
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