Granite Ridge Resources, Inc (NYSE:GRNT) Q3 2023 Earnings Call Transcript

We get comfortable with that because, one, we’re focused on proven areas. And two, we’re doing a lot of these in addition to 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, again, two main reasons, more control over the company, also getting the opportunity for project-by-project payouts. I think those are two reasons that we can really be a better partner for the right folks.

Jeff Robertson : 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 to stay consistent with what it is today?

Tyler Farquharson: No, I think we like, is even at half a turn of 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.

Jeff Robertson : Thanks for taking my follow-up.

Luke Brandenberg: 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.

Luke Brandenberg : 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. Tyler and I are, we’re perpetually on the road and we’re always around. And so, please tune in everyone.

Operator: Ladies and gentlemen, this concludes today’s conference call. Thank you for your participation. You may now disconnect.