Contradictions Unveiled: Analyzing Production Growth, Debt Strategy, and CapEx in Recent Earnings Calls

Production Growth and Market Strategy:
- Granite Ridge Resources reported a 37% increase in production to 31,576 barrels of oil equivalent per day in Q2 2025, driven by a 46% rise in oil production and a 28% rise in natural gas production.
- This growth reflects the strength of the company's diversified portfolio of oil and natural gas assets and its disciplined approach to capital allocation, which prioritizes high risk-adjusted returns.

Capital Expenditure and Acquisitions:
- The company spent approximately $77 million on development and $10 million on acquisitions in Q2 2025, with total CapEx spend of $87 million.
- Granite Ridge raised its full-year capital expenditure guidance to an all-in range of $400 million to $420 million, driven mainly by new unbudgeted acquisitions expected to close in 2025.

Operator Partnership Strategy and Inventory:
- Granite Ridge's operator partnership strategy accounted for approximately 65% of development capital spend this year.
- The company anticipates deploying approximately $120 million in acquisition capital, adding 74 net locations, with 80% targeting the Permian Basin through its operated partnership strategy.

Balance Sheet and Financial Flexibility:
- Granite Ridge's balance sheet remains strong with a leverage ratio of 0.8x net debt to adjusted EBITDA.
- The company plans to explore the credit markets in the fall, considering options to increase its RBL size or term out some debt in the high-yield market.

Leadership Transition and Future Outlook:
- Granite Ridge appointed Tyler Farquharson as the new CEO, succeeding Luke Brandenberg, with a focus on maintaining a balance between growth and returns.
- The company is confident in its future growth potential, leveraging its proven strategy, high-quality asset base, and talented team to navigate market volatility and create long-term value.