Granite Ridge Resources outlines plans to achieve positive free cash flow and 10% yield by 2027 while reducing leverage and boosting production.
Granite Ridge Resources (NYSE:GRNT) aims to generate positive free cash flow by 2027, targeting a yield above 10% and dividend coverage of at least 1.25 times. The company plans high-single-digit production growth through operated partnerships, with development spending and acquisitions totaling around $300 million.
The company’s enterprise-value multiple stands at 2.7 times, below mid-cap and Permian-focused peers. Management expects this multiple to rerate as cash flow improves. A potential share distribution by a Grey Rock fund could increase GRNT’s public float and end its controlled-company status.
GRNT is shifting capital toward operated partnerships, which offer strong returns and support production growth. The strategy includes a 25% asset-level rate of return target on investments.