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- **Revenue & Production Growth**: Q3 2025 revenue up 19.7% YoY to $112.7M, with 27% YoY production increase to 31,900 BOE/d.
- **Partnership Success**: Admiral Permian contributes 23% of production, with 198 wells drilled via partnerships (94 net). 
- **Capital Efficiency**: 0.9x leverage ratio, $422M liquidity post $350M senior notes issuance.
- **Strategic Flexibility**: 2026 CapEx range $225M (low oil) to $420M (high oil), with 75%+ of 2026 production hedged.
- **Operational Focus**: Appalachia non-op drilling and Permian U-turn well tech reduce costs by $0.5M/well.

**【CEO Summary Section】**
- **Revenue Growth**: Q3 2025 revenue reached $112.7 million, up 19.7% YoY, driven by Permian Basin production growth. Adjusted EBITDAX rose 4% to $78.6 million.
- **Production Expansion**: Average daily production increased 27% YoY to 31,900 BOE/d, with oil comprising 50% of the mix. Admiral Permian Resources contributed 23% of total production (7,400 BOE/d).
- **Operator Partnerships**: 50% of 2025 capital spending ($200 million) allocated to partnerships, adding 198 wells (94 net). New partnerships in Midland and Delaware Basins are aggregating 3 years of inventory at $1.7M/net location.
- **Capital Discipline**: Leverage ratio of 0.9x (below 1.25x target). Q3 2025 CapEx $80.5 million ($64M drilling/completion, $16.5M acquisitions).
- **Dividend Policy**: Maintained $0.11 quarterly dividend, yielding ~8.3%.

**【CFO Financial Commentary】**
- **Cash Flow**: Operating cash flow $73.1 million (before working capital). Net debt to EBITDAX 0.9x, liquidity $86.5 million.
- **Cost Management**: LOE $8.03/BOE (Permian-focused costs). 2025 CapEx guidance $400-420 million, with $120M for 75 net locations.
- **Hedging**: ~75% of 2025 production hedged. Issued $350M senior notes at 8.875% coupon, boosting pro forma liquidity to $422M.

**【Q&A Highlights】**
- **LOE Trends**: Permian saltwater disposal costs drove Q3 LOE up. Expect higher LOE in 2026 as Permian production grows to 70% of mix.
- **Waha Gas Strategy**: Exploring power-offtake agreements to monetize Waha gas exposure, complementing hedging.
- **2026 Outlook**: If oil < $55/bbl, pivot to $225M CapEx (maintenance mode). If > $60/bbl, pursue growth via partnerships and Appalachia non-op drilling.
- **Inventory Management**: Target 3-5 years of controlled inventory via partnerships, avoiding long-dated non-op exposure.

Granite Ridge Resources, Inc. (GRNT) Q3 2025 Earnings Call Transcript

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