Water Tower Research Publishes Initiation of Coverage Report on Granite Ridge Resources, Inc. Titled, “Private Equity Growth Strategy in a Public E&P Company”

October 9, 2023, ST. PETERSBURG, FL – Water Tower Research (www.watertowerresearch.com) has published an Initiation of Coverage Report on Granite Ridge Resources, Inc. (NYSE: GRNT) titled, “Private Equity Growth Strategy in a Public E&P Company”. The report can be accessed here.

Granite Ridge was formed in 2022 to execute a private equity investment strategy in a public company vehicle. The strategy is to allocate capital to non-operated oil and natural gas development opportunities in order to grow the company’s underlying asset base and support its common stock dividend. Grey Rock Investment Partners contributed the assets of three investment funds to facilitate Granite Ridge’s business combination transaction with Executive Network Partnering Corporation (ENPC). Grey Rock grew production on the contributed assets to ~22,000 BOE/d in 4Q22 from zero when it began deploying capital in its first fund in 2014.

Grante Ridge owns a diverse set of assets in five major US onshore producing regions, including the Permian, Eagle Ford, Bakken, Haynesvillle, and DJ Basin. Operators include a who’s who list of premier public and private companies. Proved reserves at year-end 2022 totaled 50.5 MMBOE (50% oil/61% natural gas), with a PV-10 value of ~$1.6 billion. The Permian Basin accounted for 45% of production and 58% of revenue during 2Q23.

The shares are trading at 2.8x/2.5x our FY23/FY24 adjusted EBITDA estimates. The current annualized dividend of $0.44/share equates to a 7.4% yield. Based on FactSet consensus estimates, Granite Ridge trades at a discount to a group of peers on an EV/EBITDA multiple basis.

About Water Tower Research 

Water Tower Research is modernizing Investor Relations through research-driven communications and Investor Engagement. Sound investment research begins with good information. At WTR, we help companies and investors connect by creating expert information flow and strategies that are the foundation of a successful modern investor relations platform. Our analysts and capital markets professionals bring decades of unrivaled Wall Street experience and insight to a new digital world of investor communications and engagement. Our research and investor content is distributed across traditional research aggregators like Bloomberg, FactSet, etc., proprietary direct distribution lists, social media, search engines, and our website. As a result, every institutional and retail investor has equal access to our high-quality company research. Our mission is to help companies take control of their IR program and proactively reach investors while bringing investors a consistent flow of quality information to help them understand our clients’ businesses, industries, and the investment opportunities they present.

Tags: Private Equity, dividend, Oil and Gas, Exploration and Production, Permian Basin, Haynesville Shale