We invest in a large number of high-graded (typically directly sourced) opportunities which allow us to build a portfolio of oil and gas assets across the United States that is highly diversified in terms of geography, geology, hydrocarbon mix, and operator (both public and private) as well as operatorship. This diversification reduces the risk of our portfolio across commodity price cycles and idiosyncratic project-level risks.

We are highly selective and focused only on investments that offer the best full cycle returns. We typically find higher risk-adjusted returns from aggregating multiple smaller transactions rather than larger marketed packages. As such, we seek to capture opportunities at an attractive entry cost by targeting non-marketed packages and developing creative partnerships.

We focus on investments with high-graded drilling inventory. Historically, we have achieved higher returns by focusing on projects with near-term development rather than buying assets with a higher proportion of flowing production. We have a diverse range of opportunities, significantly reducing the risk associated with any single capital allocation decision. We allocate capital towards investments with compelling risk-reward balances and best-in-class full cycle returns.

As an owner in thousands of wells with dozens of operators across almost every core basin, we collect and analyze an immense amount of data. We invest in technology to drive accuracy and efficiency when evaluating opportunities, using our significant data set to gain unique insights for each transaction. Our robust technology capabilities allow for streamlined engineering processes, enabling our team to focus on value drivers to help us make effective and efficient investment decisions.

Prudent balance sheet management is a core tenet of both our risk management and value-creation strategies. In a challenging commodity price environment, our goal is to maintain liquidity to capitalize on accretive opportunities and to stay comfortably within credit covenants across commodity price cycles.

We believe that a quarterly cash dividend is the cornerstone of a sustainable and resilient business model. Subject to compliance with applicable law, and depending on, among other things, economic conditions, financial condition, results of operations, projections, liquidity, earnings, legal requirements, and restrictions in the Credit Agreement, we expect that Granite Ridge will pay quarterly cash dividends.

We take a programmatic approach to commodity price risk management by hedging new drilling and acquisitions to protect near-term cash flow and provide through-cycle financial stability. While we cannot remove commodity price risk, we use a significant amount of hedging to help reduce that risk within a rolling 18 to 24-month period. In addition to entering into hedging derivative instruments tied to the price of oil or natural gas, we actively pursue diversification across hydrocarbon, basin, and operator to mitigate price swings specific to any particular area, company or contract.

We lean heavily on our operating partners. By building relationships across multiple disciplines and actively seeking creative opportunities to be a value-added partner, we can often access off-market opportunities and mitigate risks inherent in the energy business.

Our people are the lifeblood of our organization. We aim to encourage, support, and incentivize our team to develop and implement ideas that make us better.