# EDGAR Filing Document

**Accession Number:** 0001928446
**File Stem:** 0001558370-23-004740
**Filing Date:** 2023-3
**Character Count:** 46240
**Document Hash:** 1008650214880c9b60bf20895aeebeee
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001558370-23-004740.hdr.sgml**: 20230327

**ACCESSION NUMBER**: 0001558370-23-004740

**CONFORMED SUBMISSION TYPE**: 424B3

**PUBLIC DOCUMENT COUNT**: 2

**FILED AS OF DATE**: 20230327

**DATE AS OF CHANGE**: 20230327

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Granite Ridge Resources, Inc.
- **CENTRAL INDEX KEY:** 0001928446
- **STANDARD INDUSTRIAL CLASSIFICATION:** CRUDE PETROLEUM & NATURAL GAS [1311]
- **IRS NUMBER:** 000000000
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 424B3
- **SEC ACT:** 1933 Act
- **SEC FILE NUMBER:** 333-268478
- **FILM NUMBER:** 23765380

**BUSINESS ADDRESS:**
- **STREET 1:** 5217 MCKINNEY AVENUE
- **STREET 2:** SUITE 400
- **CITY:** DALLAS
- **STATE:** TX
- **ZIP:** 75205
- **BUSINESS PHONE:** 214-396-2850

**MAIL ADDRESS:**
- **STREET 1:** 5217 MCKINNEY AVENUE
- **STREET 2:** SUITE 400
- **CITY:** DALLAS
- **STATE:** TX
- **ZIP:** 75205

**Filed Pursuant to Rule 424(b)(3)**

**Registration No. 333-268478**

PROSPECTUS SUPPLEMENT NO. 3

(To the Prospectus dated January 18, 2023)

![Graphic](tmb-20230327x424b3_a001.jpg)

**Granite Ridge Resources, Inc.**

**128,233,953 Shares of Common Stock**

**10,349,975 Shares of Common Stock issuable**

**upon the exercise of Warrants**

This prospectus supplement supplements the prospectus, dated January 18, 2023 (as supplemented or amended, the "Prospectus") of Granite Ridge Resources, Inc. (the "Company" or "Granite Ridge"), which forms a part of our registration statement on Form S-1 (No. 333-268478). This prospectus supplement is being filed to update and supplement the information in the Prospectus with the information contained in our Current Report on Form 8-K filed with the Securities and Exchange Commission on March 27, 2023 (the "Current Report"). Accordingly, we have attached the Current Report on Form 8-K to this prospectus supplement.

The Prospectus and this prospectus supplement relate to (i) the issuance by us of up to an aggregate of 10,349,975 shares of common stock, $0.0001 par value (the "Granite Ridge common stock") that may be issued upon exercise of warrants to purchase Granite Ridge common stock at an exercise price of $11.50 per share (the "Granite Ridge warrants") and (ii) the offer and sale from time to time by the selling securityholders named in the Prospectus (the "Selling Securityholders"), or their permitted transferees, of up to 128,233,953 shares of Granite Ridge common stock

Granite Ridge common stock and Granite Ridge warrants are listed on the New York Stock Exchange under the symbols "GRNT" and "GRNT WS," respectively. On March 24, 2023, the closing price of Granite Ridge common stock was $5.25 per share and the closing price of Granite Ridge warrants on March 24, 2023 was $0.62 per warrant.

This prospectus supplement should be read in conjunction with the Prospectus and is not complete without, and may not be delivered or utilized except in connection with, the Prospectus, including any amendments or supplements thereto. This prospectus supplement is qualified by reference to the Prospectus, including any amendments or supplements thereto, except to the extent that the information in this prospectus supplement updates and supersedes the information contained therein. If there is any inconsistency between the information in the Prospectus and this prospectus supplement, you should rely on the information in this prospectus supplement.

**We are an "emerging growth company" and a "smaller reporting company" as those terms are defined under applicable federal securities laws, and as such, are subject to certain reduced public company reporting requirements.**

**Investing in our securities involves a high degree of risk. Before buying any securities, you should carefully read the discussion of the risks of investing in our securities in "Risk Factors" beginning on page 15 of the Prospectus.**

**Neither the Securities and Exchange Commission nor any other regulatory body has approved or disapproved of these securities or passed upon the accuracy or adequacy of this prospectus supplement or the Prospectus. Any representation to the contrary is a criminal offense.**

Prospectus Supplement dated March 27, 2023.

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**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

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**FORM 8-K**

**CURRENT REPORT**

**Pursuant to Section 13 OR 15(d) of the Securities Exchange Act of 1934**

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Date of Report (Date of earliest event reported): **March 27, 2023**

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**GRANITE RIDGE RESOURCES, INC.**

(Exact name of registrant as specified in its charter)

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| | | |
|:---|:---|:---|
| **Delaware** | **333-264986** | **88-2227812** |
| (State or other jurisdiction<br>of incorporation) | (Commission<br>File Number) | (IRS Employer<br>Identification No.) |

---

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| | |
|:---|:---|
| **5217 McKinney Avenue, Suite 400**<br>**Dallas, Texas** | **75205** |
| (Address of principal executive offices) | (Zip Code) |

---

**(214) 396-2850**

(Registrant's telephone number, including area code)

**Not Applicable**

(Former name or former address, if changed since last report.)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

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| | | |
|:---|:---|:---|
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered |
| Common stock, par value $0.0001 per share | GRNT | New York Stock Exchange |
| Warrants to purchase Common Stock, each whole warrant exercisable for one share of common stock at an exercise price of $11.50 per share | GRNT WS | New York Stock Exchange |

---

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☒

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

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**Item 2.02** **Results of Operations and Financial Condition.**

On March 27, 2023, Granite Ridge Resources, Inc., a Delaware corporation ("the Company"), issued a press release announcing its financial and operating results for the quarter and year ended December 31, 2022 as well as 2023 guidance. A copy of the press release is attached as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated herein by reference.

The information in this Current Report on Form 8-K, including Exhibit 99.1, is being furnished herewith and shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or otherwise subject to liabilities of that section, and shall not be incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Exchange Act except to the extent expressly stated in such filing.

**Item 7.01** **Regulation FD Disclosure.**

On March 27, 2023, the Company published an Investor Presentation, which is available on the Company's website, www.graniteridge.com, under "Investors." The Company may from time to time publish additional materials for investors at the same website address. In addition, the information set forth under Item 2.02 is incorporated by reference as if fully set forth herein.

**Item 9.01** **Financial Statements and Exhibits.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*(d) Exhibits.*

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| | |
|:---|:---|
| **Exhibit No.** | **Description** |
| 99.1\* | Press Release of Granite Ridge Resources, Inc., dated as of March 27, 2023. |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |

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\*Filed herewith

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**SIGNATURE**

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

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| | | | |
|:---|:---|:---|:---|
|  |  | **GRANITE RIDGE RESOURCES, INC.** | **GRANITE RIDGE RESOURCES, INC.** |
| Date: March 27, 2023 | By: | /s/ Luke C. Brandenberg | /s/ Luke C. Brandenberg |
|  |  | Name: | Luke C. Brandenberg |
|  |  | Title: | President and Chief Executive Officer |

---

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**Exhibit 99.1**

**Granite Ridge Resources Inc. Reports Fourth-Quarter and Full-<br>Year 2022 Results, Provides 2023 Outlook** 

**Dallas, Texas, March 27, 2023 – Granite Ridge Resources Inc. ("Granite Ridge" or the "Company") (NYSE: GRNT)** today reported financial and operating results for the fourth quarter and full year 2022.

#### Fourth Quarter 2022 Highlights
● Produced 22,031 barrels of oil equivalent ("Boe") per day (52% oil), a 45% increase from the fourth quarter of the prior year.

● Reported net income of $56.7 million, or $0.43 per share. Adjusted net income (non-GAAP) totaled $50.7 million, or $0.38 per share.

● Generated $83.2 million of adjusted EBITDAX (non-GAAP).

● Paid $10.7 million in dividends.

● Exited 2022 with liquidity of $200.8 million as of December 31, 2022, including $50.8 million of cash.

#### 2023 Outlook
● Anticipate paying a quarterly dividend of $0.11 per share for each quarter of 2023.

● Planning $260 million to $270 million of capital expenditures, including $46 million of identified acquisitions.

● Expecting to generate 9% midpoint annual production volume growth as compared to the full year 2022, based on placing 18 – 20 net new wells on production.

See "Supplemental Non-GAAP Financial Measures" below for descriptions of the above non-GAAP measures as well as a reconciliation of these measures to the associated GAAP (as defined herein) measures.

Luke Brandenberg, President and CEO of Granite Ridge, commented, "We were pleased with our strong fourth quarter results, including a year-over-year increase of almost 60% in Adjusted EBITDAX and growth of more than 70% in Adjusted Net Income. Contributing to our success was the continued execution of our operating partners' well-designed plans to promote efficient and safe operations and increase value through the drill bit and other field development programs.

"2022 was a transformative year for Granite Ridge, with the most significant highlight being the business combination with Executive Network Partnering Corporation ("ENPC") and GREP Holdings LLC on October 24, 2022 that created NYSE-listed Granite Ridge Resources. The past five months have been a time of integration as we transitioned to a public company; I am proud of our progress and I want to thank our entire team for their hard work and dedication throughout this process. Our asset base performed extremely well in 2022, which is directly attributable to the deep and talented group of public and private operators with whom we are partnered. Their targeted capital investment programs remain squarely focused on executing high rate-of-return projects located in key prolific producing onshore basins that helped drive net production growth of 22%, a 16% increase in proved reserves, Adjusted EBITDA and Adjusted Net Income growth of 73% and 118%, respectively.

"Looking forward, we plan to leverage the positive momentum generated in 2022 to continue to invest in the business. Our development program for 2023 anticipates capital spending across our asset base of $260 million to $270 million, including approximately $46 million of acquisitions and opportunity capture that has been spent or committed to year to date. We will continue to execute on our proven business plan that focuses on responsible growth, including a targeted year-over-year net production increase of 9% using the mid-point of our 2023 full year guidance. Supporting our efforts is a fortress balance sheet that provides maximum flexibility as we increase our asset diversity beyond the interests we currently own in over 2,350 wells across the Permian, Eagle Ford, Haynesville, DJ and Bakken. Finally, we will continue to support the long-term interests of our shareholders through an ongoing and well-defined shareholder return program highlighted by the payment of a meaningful fixed quarterly cash dividend, as well as the opportunistic repurchase of shares depending on market conditions."

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#### Fourth Quarter 2022 Summary
For the fourth quarter of 2022 oil production volumes increased 29% from the fourth quarter of the prior year to 11,359 barrels ("Bbls") per day. Natural gas production for the fourth quarter of 2022 totaled 64,033 thousand cubic feet of natural gas ("Mcf") per day. The Company's total production for the fourth quarter of 2022 grew 45% from the fourth quarter of the prior year to 22,031 Boe per day.

Net income for the fourth quarter of 2022 was $56.6 million, or $0.43 per share. Excluding non-cash and special items, the fourth quarter 2022 adjusted net income (non-GAAP) was $50.7 million, or $0.38 per share. The Company's average realized price for oil and natural gas for the fourth quarter of 2022, excluding the effect of commodity derivatives, was $83.32 per Bbl and $4.97 per Mcf, respectively.

Adjusted EBITDAX (non-GAAP) for the fourth quarter of 2022 totaled $83.2 million, compared to $52.5 million for the fourth quarter of 2021. The fourth quarter of 2022 cash flow from operating activities was $95.0 million, including $12.1 million in working capital changes. Operating cash flow before working capital changes (non-GAAP) was $83.0 million. Costs incurred for development activities totaled $91.7 million for the fourth quarter of 2022.

#### Full Year 2022 Summary
Total production for 2022 increased 22% to 19,765 Boe per day, including a 7% increase in oil production to 10,016 Bbl per day. Natural gas production for 2022 was 58,496 Mcf per day. For 2022, the Company's average realized price for oil and natural gas, excluding the effect of commodity derivatives, was $92.50 per Bbl and $7.46 per Mcf, respectively, compared to $63.07 per Bbl and $5.04 per Mcf, respectively, for 2021.

Net income for 2022 was $262.3 million, or $1.97 per share, compared with net income of $108.5 million, or $0.82 per share, in 2021. Excluding non-cash and special items, 2022 adjusted net income (non-GAAP) was $247.2 million, or $1.86 per share, compared with adjusted net income of $113.4 million, or $0.85 per share, for 2021.

Adjusted EBITDAX (non-GAAP) for 2022 totaled $365.5 million, compared with $210.4 million in 2021. For 2022, cash flow from operating activities was $346.4 million, including $17.2 million in working capital changes. Operating cash flow before working capital changes (non-GAAP) was $363.6 million. Costs incurred for development activities totaled $256.7 million for the year.

**Operational Activity**

The table below provides a summary of gross and net wells completed and put on production for the fourth quarter and full year 2022:

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended** | **Three Months Ended** | **Year Ended** | **Year Ended** |
|  | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** |
|  | **Gross** | **Net** | **Gross** | **Net** |
| Permian | 54 | 3.59 | 134 | 12.41 |
| Eagle Ford | 6 | 0.56 | 19 | 3.62 |
| Bakken | 11 | 0.54 | 27 | 0.79 |
| Haynesville | 4 | 1.03 | 9 | 2.75 |
| DJ | 13 | 0.48 | 76 | 1.21 |
| Total | 88 | 6.20 | 265 | 20.78 |

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#### 2022 Proved Reserves
At December 31, 2022, Granite Ridge's estimated proved reserves totaled 50,534 MBoe, compared to 43,710 MBoe at December 31, 2021. The Company's proved reserves are approximately 50% oil and 50% natural gas. Proved developed reserves totaled 30,886 MBoe, or 61% of total proved reserves. The table below provides a summary of changes in total proved reserves for the year ended December 31, 2022, as well as the proved developed reserves balance at the beginning and end of the year.

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| | | | |
|:---|:---|:---|:---|
|  | **Oil**<br>**(MBbl)** | **Natural Gas**<br>**(MMcf)** | <br>**MBoe** |
| **Proved developed and undeveloped reserves at December 31, 2021** | 22818 | 125347 | 43710 |
| Revisions of previous estimates | (456) | 6225 | 581 |
| Extensions and discoveries  | 3690 | 27126 | 8211 |
| Divestiture of reserves |  |  |  |
| Acquisition of reserves | 3098 | 12892 | 5247 |
| Production | (3656) | (21351) | (7215) |
| **Proved developed and undeveloped reserves at December 31, 2022** | 25494 | 150239 | 50534 |

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| | | | |
|:---|:---|:---|:---|
|  | **Oil**<br>**(MBbl)** | **Natural Gas**<br>**(MMcf)** | <br>**MBoe** |
| **Proved developed reserves:** |  |  |  |
| December 31, 2021 | 11658 | 54257 | 20702 |
| December 31, 2022 | 15714 | 91034 | 30886 |
| **Proved undeveloped reserves:** |  |  |  |
| December 31, 2021 | 11160 | 71090 | 23008 |
| December 31, 2022 | 9780 | 59205 | 19648 |

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#### Commodity Derivatives Update
The Company's commodity derivatives strategy is intended to manage its exposure to commodity price fluctuations. Please see the table under "Derivatives Information" below for detailed information about Granite Ridge's current derivatives positions. The Company has not entered into any additional derivatives subsequent to year end.

**2023 Guidance**

#### The following table summarizes the Company's operational and financial guidance for 2023.

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| | |
|:---|:---|
|  | **2023 Guidance** |
| Annual production (Boe per day) | 20500 - 22500 |
| Oil as a % of sales volumes | 50% |
| Capital expenditures ($ in millions)<sup>(1)</sup> | $260 - $270 |
| Net wells placed on production | 18 - 20 |
| Lease operating expenses (per Boe) | $6.50 - $7.50 |
| Production and ad valorem taxes (as a % of total sales) | 7% - 8% |
| Cash general and administrative expense ($ in millions) | $20 - $22 |

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&nbsp;&nbsp;&nbsp;&nbsp;(1) Includes $46 million of acquisition capital expenditures.

#### Conference Call
Granite Ridge will host a conference call on March 28, 2023, at 10:00 AM CT (11:00 AM ET) to discuss the fourth quarter and full year 2022 results. The telephone number and passcode to access the conference call are provided below:

Dial-in: (888) 660-6093

Intl. dial-in: (929) 203-0844

Participant Passcode: 4127559

To access the live webcast and view the related earnings presentation, visit Granite Ridge's website at **www.graniteridge.com**. Alternatively, an audio replay will be available through April 10, 2023. To access the audio replay dial (800) 770-2030 and enter confirmation code 4127559.

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#### About Granite Ridge
Granite Ridge is a scaled, non-operated oil and gas exploration and production company. We own a portfolio of wells and top-tier acreage across the Permian and four other prolific unconventional basins across the United States. Rather than drill wells ourselves, we increase asset diversity and decrease overhead by investing in a smaller piece of a larger number of high-graded wells drilled by proven public and private operators. We create value by generating sustainable full-cycle risk adjusted returns for investors, offering a rewarding experience for our team, and delivering reliable energy solutions to all – safely and responsibly. For more information, visit Granite Ridge's website at www.graniteridge.com.

#### Forward-Looking Statements and Cautionary Statements
This press release contains forward-looking statements regarding future events and future results that are subject to the safe harbors created under the Securities Act of 1933 (the "Securities Act") and the Securities Exchange Act of 1934 (the "Exchange Act"). All statements other than statements of historical facts included in this release regarding Granite Ridge's 2023 outlook, dividend plans and practices, financial position, operating and financial performance, business strategy, plans and objectives of management for future operations, industry conditions, and indebtedness covenant compliance are forward-looking statements. When used in this release, forward-looking statements are generally accompanied by terms or phrases such as "estimate," "project," "predict," "believe," "expect," "continue," "anticipate," "target," "could," "plan," "intend," "seek," "goal," "will," "should," "may" or other words and similar expressions that convey the uncertainty of future events or outcomes. Items contemplating or making assumptions about actual or potential future production and sales, market size, collaborations, and trends or operating results also constitute such forward-looking statements.

Forward-looking statements involve inherent risks and uncertainties, and important factors (many of which are beyond Granite Ridge's control) that could cause actual results to differ materially from those set forth in the forward-looking statements, including the following: the ability to recognize the anticipated benefits of the business combination, Granite Ridge's financial performance following the business combination, changes in Granite Ridge's strategy, future operations, financial position, estimated revenues and losses, projected costs, prospects and plans, changes in current or future commodity prices and interest rates, supply chain disruptions, infrastructure constraints and related factors affecting our properties, ability to acquire additional development opportunities or make acquisitions, changes in reserves estimates or the value thereof, operational risks including, but not limited to, the pace of drilling and completions activity on our properties, changes in the markets in which Granite Ridge competes, geopolitical risk and changes in applicable laws, legislation, or regulations, including those relating to environmental matters, cyber-related risks, the fact that reserve estimates depend on many assumptions that may turn out to be inaccurate and that any material inaccuracies in reserve estimates or underlying assumptions will materially affect the quantities and present value of the Granite Ridge's reserves, the outcome of any known and unknown litigation and regulatory proceedings, legal and contractual limitations on the payment of dividends, limited liquidity and trading of Granite Ridge's securities, acts of war or terrorism and market conditions and global, regulatory, technical, and economic factors beyond Granite Ridge's control, including the potential adverse effects of the COVID-19 pandemic, or another major disease, affecting capital markets, general economic conditions, global supply chains and Granite Ridge's business and operations, and increasing regulatory and investor emphasis on environmental, social and governance matters.

Granite Ridge has based these forward-looking statements on its current expectations and assumptions about future events. While management considers these expectations and assumptions to be reasonable, they are inherently subject to significant business, economic, competitive, regulatory and other risks, contingencies and uncertainties, most of which are difficult to predict and many of which are beyond Granite Ridge's control. Granite Ridge does not undertake any duty to update or revise any forward-looking statements, except as may be required by the federal securities laws.

#### Use of Non-GAAP Financial Measures
To supplement the presentation of the Company's financial results prepared in accordance with U.S. Generally Accepted Accounting Principles ("GAAP"), this press release contains certain financial measures that are not prepared in accordance with GAAP, including adjusted net income, adjusted earnings per share, adjusted EBITDAX, operating cash flow before working capital changes and free cash flow.

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See "Supplemental Non-GAAP Financial Measures" below for a description and reconciliation of each non-GAAP measure presented in this press release to the most directly comparable financial measure calculated in accordance with GAAP.

**INVESTOR RELATIONS AND MEDIA CONTACT:** IR@GraniteRidge.com – (214) 396-2850

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**Granite Ridge Resources Inc.**

**Consolidated Balance Sheets**

**(Unaudited)**

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| | | |
|:---|:---|:---|
|  | **December 31,** | **December 31,** |
| ***(in thousands, except par value and share data)*** | **2022** | **2021** |
| **ASSETS** |  |  |
| Current assets: |  |  |
| &nbsp;&nbsp;Cash | $50833 | $11854 |
| &nbsp;&nbsp;Revenue receivable | 72287 | 47298 |
| &nbsp;&nbsp;Advances to operators | 8908 | 37817 |
| &nbsp;&nbsp;Prepaid and other expenses | 4203 | 676 |
| &nbsp;&nbsp;Derivative assets - commodity derivatives | 10089 | 434 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total current assets | 146320 | 98079 |
| Property and equipment: |  |  |
| &nbsp;&nbsp;Oil and gas properties, successful efforts method | 1028662 | 727547 |
| &nbsp;&nbsp;Accumulated depletion | (383673) | (278773) |
| &nbsp;&nbsp;&nbsp;&nbsp;Total property and equipment, net | 644989 | 448774 |
| Long-term assets: |  |  |
| &nbsp;&nbsp;Derivative assets - commodity derivatives |  | 31 |
| &nbsp;&nbsp;Other long-term assets | 3468 | 362 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total long-term assets | 3468 | 393 |
| **TOTAL ASSETS** | $794777 | $547246 |
| **LIABILITIES AND EQUITY** |  |  |
| Current liabilities: |  |  |
| &nbsp;&nbsp;Accrued expenses | $62180 | $10321 |
| &nbsp;&nbsp;Other payable | 1523 | 13 |
| &nbsp;&nbsp;Derivative liabilities - commodity derivatives | 431 | 7263 |
| &nbsp;&nbsp;Current portion of long-term debt |  | 50000 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total current liabilities | 64134 | 67597 |
| Long-term liabilities: |  |  |
| &nbsp;&nbsp;Long-term debt |  | 1100 |
| &nbsp;&nbsp;Derivative liabilities - commodity derivatives |  | 657 |
| &nbsp;&nbsp;Derivative liabilities - common stock warrants | 11902 |  |
| &nbsp;&nbsp;Asset retirement obligations  | 4745 | 2962 |
| &nbsp;&nbsp;Deferred tax liability | 91592 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Total long-term liabilities | 108239 | 4719 |
| **TOTAL LIABILITIES** | 172373 | 72316 |
| **EQUITY** |  |  |
| &nbsp;&nbsp;Partnerships' capital |  | 474930 |
| &nbsp;&nbsp;Common stock, $0.0001 par value, 431,000,000 shares authorized, 133,294,897 issued at December 31, 2022. | 13 |  |
| &nbsp;&nbsp;Additional paid-in capital | 590232 |  |
| &nbsp;&nbsp;Retained Earnings | 32388 |  |
| &nbsp;&nbsp;Treasury stock, at cost, 25,920 shares at December 31, 2022 | (229) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Total equity | 622404 | 474930 |
| **TOTAL LIABILITIES AND EQUITY** | $794777 | $547246 |

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**Granite Ridge Resources Inc.**

**Consolidated Statements of Operations**

**(Unaudited)**

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months ended December 31,** | **Three Months ended December 31,** | **Year ended December 31,** | **Year ended December 31,** |
| ***(in thousands, except per share data)*** | **2022** | **2021** | **2022** | **2021** |
| **REVENUES** |  |  |  |  |
| &nbsp;&nbsp;Oil, natural gas and related product sales | $116335 | $79557 | $497417 | $290193 |
| **EXPENSES** |  |  |  |  |
| &nbsp;&nbsp;Lease operating expenses | 14420 | 8559 | 44678 | 26333 |
| &nbsp;&nbsp;Production and ad valorem taxes | 9848 | 5137 | 30619 | 18066 |
| &nbsp;&nbsp;Depletion and accretion expense | 21656 | 22221 | 105752 | 94661 |
| &nbsp;&nbsp;Impairments of long-lived assets |  |  |  |  |
| &nbsp;&nbsp;General and administrative | 6476 | 1937 | 14223 | 10179 |
| &nbsp;&nbsp;Gain on disposal of oil and natural gas properties |  | (313) |  | (2279) |
| &nbsp;&nbsp;&nbsp;&nbsp;Total operating costs and expenses | 52400 | 37541 | 195272 | 146960 |
| &nbsp;&nbsp;&nbsp;&nbsp;Net operating income | 63935 | 42016 | 302145 | 143233 |
| **OTHER INCOME (EXPENSE)** |  |  |  |  |
| &nbsp;&nbsp;Gain (loss) on derivatives - commodity derivatives | 5463 | 1271 | (25324) | (32389) |
| &nbsp;&nbsp;Interest expense | (285) | (732) | (1989) | (2385) |
| &nbsp;&nbsp;Gain on derivatives - common stock warrants | 362 |  | 362 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Total other income (expense) | 5540 | 539 | (26951) | (34774) |
| **INCOME BEFORE INCOME TAXES** | 69475 | 42555 | 275194 | 108459 |
| &nbsp;&nbsp;&nbsp;&nbsp;Income tax expense | 12850 |  | 12850 |  |
| **NET INCOME** | $56625 | $42555 | $262344 | $108459 |
| **NET INCOME PER SHARE:**  |  |  |  |  |
| &nbsp;&nbsp;Basic  | $0.43 | $0.32 | $1.97 | $0.82 |
| &nbsp;&nbsp;Diluted | $0.43 | $0.32 | $1.97 | $0.82 |
| **WEIGHTED-AVERAGE NUMBER OF SHARES OUTSTANDING:** |  |  |  |  |
| &nbsp;&nbsp;Basic  | 132920 | 132923 | 132923 | 132923 |
| &nbsp;&nbsp;Diluted | 133071 | 132923 | 133074 | 132923 |

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**Granite Ridge Resources Inc.**

**Consolidated Statements of Cash Flows**

**(Unaudited)**

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| | | |
|:---|:---|:---|
|  | **Year Ended December,** | **Year Ended December,** |
| ***(in thousands)*** | **2022** | **2021** |
| **Operating activities:** |  |  |
| Net income | $262344 | $108459 |
| Adjustments to reconcile net income to net cash provided by operating activities: |  |  |
| &nbsp;&nbsp;Depletion and accretion expense | 105752 | 94661 |
| &nbsp;&nbsp;Impairments of long-lived assets |  |  |
| &nbsp;&nbsp;Loss on derivatives - commodity derivatives | 25324 | 32389 |
| &nbsp;&nbsp;Net cash payments on derivatives  | (42437) | (25219) |
| &nbsp;&nbsp;Gain on disposal of oil and gas properties |  | (2279) |
| &nbsp;&nbsp;Amortization of loan origination costs | 159 | 48 |
| &nbsp;&nbsp;Gain on derivatives - common stock warrants | (362) |  |
| &nbsp;&nbsp;Deferred income taxes | 12850 |  |
| &nbsp;&nbsp;Increase (decrease) in cash attributable to changes in operating assets and liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Revenue receivable | (24989) | (28603) |
| &nbsp;&nbsp;&nbsp;&nbsp;Accrued expenses | 9838 | 1840 |
| &nbsp;&nbsp;&nbsp;&nbsp;Prepaid and other expenses | (2095) | (125) |
| &nbsp;&nbsp;&nbsp;&nbsp;Other payable | 5 | 10 |
| **Net cash provided by operating activities** | 346389 | 181181 |
| **Investing activities:** |  |  |
| &nbsp;&nbsp;Additions to oil and natural gas properties | (185497) | (136077) |
| &nbsp;&nbsp;Acquisition of oil and natural gas properties | (49191) | (83209) |
| &nbsp;&nbsp;Deposit on acquisition | (1899) |  |
| &nbsp;&nbsp;Refund of advances to operators | 1180 | 3819 |
| &nbsp;&nbsp;Proceeds from the disposal of oil and natural gas properties | 4845 | 29443 |
| **Net cash used in investing activities** | (230562) | (186024) |
| **Financing activities:** |  |  |
| &nbsp;&nbsp;Proceeds from borrowing on credit facilities | 21000 | 62000 |
| &nbsp;&nbsp;Repayments of borrowing on credit facilities | (72100) | (49400) |
| &nbsp;&nbsp;Cash distributions |  | (51091) |
| &nbsp;&nbsp;Cash contributions |  | 46980 |
| &nbsp;&nbsp;Deferred financing costs | (3237) |  |
| &nbsp;&nbsp;Payment of expenses related to formation of Granite Ridge Resources, Inc. | (18456) |  |
| &nbsp;&nbsp;Purchase of treasury shares | (216) |  |
| &nbsp;&nbsp;Payment of dividends | (10664) |  |
| &nbsp;&nbsp;Proceeds from issuance of common stock | 6825 |  |
| **Net cash (used in) provided by financing activities** | (76848) | 8489 |
| **Net increase in cash and restricted cash** | 38979 | 3646 |
| Cash and restricted cash at beginning of year | 12154 | 8508 |
| **Cash and restricted cash at end of year** | $51133 | $12154 |
| **Supplemental disclosure of non-cash investing activities:** |  |  |
| &nbsp;&nbsp;Oil and natural gas property development costs in accrued expenses | $48187 | $6251 |
| &nbsp;&nbsp;Advances to operators applied to development of oil and natural gas properties | $103535 | $48387 |
| **Cash and Restricted cash:** |  |  |
| &nbsp;&nbsp;Cash | $50833 | $11854 |
| &nbsp;&nbsp;Restricted cash included in other long-term assets  | 300 | 300 |
| &nbsp;&nbsp;**Cash and restricted cash** | $51133 | $12154 |

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**Granite Ridge Resources Inc.**

**Summary Production and Price Data**

The following table sets forth summary information concerning production and operating data for the periods indicated:

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three months ended December 31,**  | **Three months ended December 31,**  | **Year Ended December 31,** | **Year Ended December 31,** |
|  | **2022** | **2021** | **2022** | **2021** |
| **Net Sales (in thousands):** |  |  |  |  |
| &nbsp;&nbsp;Oil sales | $87074 | $55879 | $338163 | $215250 |
| &nbsp;&nbsp;Natural gas and related product sales | 29261 | 23678 | 159254 | 74943 |
| &nbsp;&nbsp;Revenues | 116335 | 79557 | 497417 | 290193 |
| **Net Production:** |  |  |  |  |
| &nbsp;&nbsp;Oil (MBbl) | 1045 | 812 | 3656 | 3413 |
| &nbsp;&nbsp;Natural gas (MMcf) | 5891 | 3511 | 21351 | 14861 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total (MBoe)<sup>(1)</sup> | 2027 | 1397 | 7215 | 5890 |
| **Average Daily Production:** |  |  |  |  |
| &nbsp;&nbsp;Oil (Bbl) | 11359 | 8826 | 10016 | 9351 |
| &nbsp;&nbsp;Natural gas (Mcf) | 64033 | 38163 | 58496 | 40715 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total (Boe)<sup>(1)</sup> | 22031 | 15187 | 19765 | 16137 |
| **Average Sales Prices:** |  |  |  |  |
| &nbsp;&nbsp;Oil (per Bbl) | $83.32 | $68.82 | $92.50 | $63.07 |
| &nbsp;&nbsp;Effect of loss on settled oil derivatives on average price (per Bbl) | (0.51) | (13.39) | (6.48) | (5.58) |
| &nbsp;&nbsp;Oil net of settled oil derivatives (per Bbl) | 82.81 | 55.43 | 86.02 | 57.49 |
| &nbsp;&nbsp;Natural gas and related product sales (per Mcf) | 4.97 | 6.74 | 7.46 | 5.04 |
| &nbsp;&nbsp;Effect of loss on settled natural gas derivatives on average price (per Mcf) | (0.32) | (0.17) | (0.88) | (0.42) |
| &nbsp;&nbsp;Natural gas and related product sales net of settled natural gas derivatives (per Mcf) | 4.65 | 6.57 | 6.58 | 4.62 |
| &nbsp;&nbsp;Realized price on a Boe basis excluding settled commodity derivatives | 57.39 | 56.95 | 68.94 | 49.27 |
| &nbsp;&nbsp;Effect of loss on settled commodity derivatives on average price (per Boe) | (1.20) | (8.21) | (5.88) | (4.28) |
| &nbsp;&nbsp;Realized price on a Boe basis including settled commodity derivatives  | 56.19 | 48.74 | 63.06 | 44.99 |
| **Operating Expenses (in thousands):** |  |  |  |  |
| &nbsp;&nbsp;Lease operating expenses | $14420 | $8559 | $44678 | $26333 |
| &nbsp;&nbsp;Production and ad valorem taxes | 9848 | 5137 | 30619 | 18066 |
| &nbsp;&nbsp;Depletion and accretion expense | 21656 | 22221 | 105752 | 94661 |
| &nbsp;&nbsp;General and administrative | 6476 | 1937 | 14223 | 10179 |
| **Costs and Expenses (per Boe):** |  |  |  |  |
| &nbsp;&nbsp;Lease operating expenses | $7.11 | $6.13 | $6.19 | $4.47 |
| &nbsp;&nbsp;Production and ad valorem taxes | 4.86 | 3.68 | 4.24 | 3.07 |
| &nbsp;&nbsp;Depletion and accretion expense | 10.68 | 15.91 | 14.66 | 16.07 |
| &nbsp;&nbsp;General and administrative | 3.19 | 1.39 | 1.97 | 1.73 |
| **Net Producing Wells at Period-End:** | 132.88 | 108.64 | 132.88 | 108.64 |

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&nbsp;&nbsp;&nbsp;&nbsp;(1) Natural gas is converted to Boe using the ratio of one barrel of oil to six Mcf of natural gas.

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**Granite Ridge Resources Inc.**

**Derivatives Information**

The table below provides data associated with the Company's derivatives at December 31, 2022, for the periods indicated:

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **First Quarter** | **Second Quarter** | **Third Quarter** | **Fourth Quarter** | **Total** |
| **Producer 3-way (oil)** |  |  |  |  |  |
| **2023** |  |  |  |  |  |
| &nbsp;&nbsp;Volume (Bbl) | 431160 | 340263 | 228659 | 208488 | 1208570 |
| &nbsp;&nbsp;Weighted-average sub-floor price ($/Bbl) | $57.22 | $62.22 | $60.42 | $60.43 | $59.79 |
| &nbsp;&nbsp;Weighted-average floor price ($/Bbl) | $70.62 | $77.89 | $79.25 | $80.00 | $75.92 |
| &nbsp;&nbsp;Weighted-average ceiling price ($/Bbl) | $96.04 | $99.23 | $100.61 | $101.92 | $98.82 |
| **Producer 3-way (natural gas)** |  |  |  |  |  |
| **2023** |  |  |  |  |  |
| &nbsp;&nbsp;Volume (Mcf) | 2634993 |  |  |  | 2634993 |
| &nbsp;&nbsp;Weighted-average sub-floor price ($/Mcf) | $4.41 | $— | $— | $— | $4.41 |
| &nbsp;&nbsp;Weighted-average floor price ($/Mcf) | $5.51 | $— | $— | $— | $5.51 |
| &nbsp;&nbsp;Weighted-average ceiling price ($/Mcf) | $11.28 | $— | $— | $— | $11.28 |
| **Collar (natural gas)** |  |  |  |  |  |
| **2023** |  |  |  |  |  |
| &nbsp;&nbsp;Volume (Mcf) | 774634 | 3051421 | 2530000 | 2070000 | 8426055 |
| &nbsp;&nbsp;Weighted-average floor price ($/Mcf) | $5.96 | $4.12 | $4.25 | $4.50 | $4.42 |
| &nbsp;&nbsp;Weighted-average ceiling price ($/Mcf) | $9.15 | $5.63 | $5.90 | $6.35 | $6.21 |

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**Granite Ridge Resources Inc.**

**Supplemental Non-GAAP Financial Measures**

The Company reports its financial results in accordance with the GAAP. However, the Company believes certain non-GAAP performance measures may provide financial statement users with additional meaningful comparisons between current results, the results of its peers and the results of prior periods. In addition, the Company believes these measures are used by analysts and others in the valuation, rating and investment recommendations of companies within the oil and natural gas exploration and production industry. See the reconciliations throughout this release of GAAP financial measures to non-GAAP financial measures for the periods indicated.

#### Reconciliation of Net Income to Adjusted EBITDAX
Adjusted EBITDAX (as defined below) is presented herein and reconciled from the GAAP measure of net income because of its wide acceptance by the investment community as a financial indicator.

The Company defines adjusted EBITDAX as net income, before (1) exploration and abandonments, (2) depletion and accretion expense, (3) (gain) loss on derivatives – commodity derivatives, (4) net cash payments on derivatives, (5) gain on disposal of oil and natural gas properties, (6) interest expense (7) gain on derivatives – common stock warrants and (8) income tax expense. Adjusted EBITDAX is not a measure of net income or cash flows as determined by GAAP.

The Company's adjusted EBITDAX measure provides additional information that may be used to better understand the Company's operations. Adjusted EBITDAX is one of several metrics that the Company uses as a supplemental financial measurement in the evaluation of its business and should not be considered as an alternative to, or more meaningful than, net income as an indicator of operating performance. Certain items excluded from adjusted EBITDAX are significant components in understanding and assessing a company's financial performance, such as a company's cost of capital and tax structure, as well as the historic cost of depreciable and depletable assets. Adjusted EBITDAX, as used by the Company, may not be comparable to similarly titled measures reported by other companies. The Company believes that adjusted EBITDAX is a widely followed measure of operating performance and is one of many metrics used by the Company's management team and by other users of the Company's consolidated financial statements. For example, adjusted EBITDAX can be used to assess the Company's operating performance and return on capital in comparison to other independent exploration and production companies without regard to financial or capital structure, and to assess the financial performance of the Company's assets and the Company without regard to capital structure or historical cost basis.

The following table provides a reconciliation of the GAAP measure of net income to adjusted EBITDAX for the periods indicated:

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended December 31,** | **Three Months Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
| ***(in thousands)*** | **2022** | **2021** | **2022** | **2021** |
| **Net income** | $56625 | $42555 | $262344 | $108459 |
| &nbsp;&nbsp;Interest expense | 285 | 732 | 1989 | 2385 |
| &nbsp;&nbsp;Income tax expense | 12850 |  | 12850 |  |
| &nbsp;&nbsp;Exploration and abandonments |  |  |  |  |
| &nbsp;&nbsp;Depletion and accretion expense | 21656 | 22221 | 105752 | 94661 |
| &nbsp;&nbsp;Gain on disposal of oil and natural gas properties |  | (313) |  | (2279) |
| (Gain) loss on derivatives - commodity derivatives | (5463) | (1271) | 25324 | 32389 |
| &nbsp;&nbsp;Net cash payments on derivatives | (2431) | (11469) | (42437) | (25219) |
| &nbsp;&nbsp;Gain on derivatives - common stock warrants | (362) |  | (362) |  |
| **Adjusted EBITDAX** | $83160 | $52455 | $365460 | $210396 |

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#### Reconciliation of Net Cash Provided by Operating Activities to Operating Cash Flow Before Working Capital Changes and to Free Cash Flow
The Company provides Operating Cash Flow ("OCF") before working capital changes, which is a non-GAAP financial measure. OCF before working capital changes represents net cash provided by operating activities as determined under GAAP without regard to changes in operating assets and liabilities. The Company believes OCF before working capital changes is an accepted measure of an oil and natural gas company's ability to generate cash used to fund development

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and acquisition activities and service debt or pay dividends. Additionally, the Company provides free cash flow, which is a non-GAAP financial measure. Free cash flow is cash flow from operating activities before changes in working capital in excess of exploration and development costs incurred. The Company believes that free cash flow is useful to investors as it provides measures to compare cash from operating activities and exploration and development costs across periods on a consistent basis.

These non-GAAP measures should not be considered as alternatives to, or more meaningful than, net cash provided by operating activities as indicators of operating performance.

The following tables provide a reconciliation from the GAAP measure of net cash provided by operating activities to OCF before working capital changes and to free cash flow:

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended December 31,** | **Three Months Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
| ***(in thousands)*** | **2022** | **2021** | **2022** | **2021** |
| **Net cash provided by operating activities** | $95032 | $50528 | $346389 | $181181 |
| &nbsp;&nbsp;Changes in cash due to changes in operating assets and liabilities: |  |  |  |  |
| &nbsp;&nbsp;Revenue receivable | (2528) | 1942 | 24989 | 28603 |
| &nbsp;&nbsp;Accrued expenses | (4906) | (357) | (9838) | (1840) |
| &nbsp;&nbsp;Prepaid and other expenses | (4608) | (371) | 2095 | 125 |
| &nbsp;&nbsp;Other payable | (18) | (9) | (5) | (10) |
| **Total working capital changes** | (12060) | 1205 | 17241 | 26878 |
| **Operating cash flow before working capital changes** | 82972 | 51733 | 363630 | 208059 |
| &nbsp;&nbsp;Development costs | 91741 | 37068 | 256664 | 103918 |
| **Free cash flow** | $(8769) | $14665 | $106966 | $104141 |

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#### Reconciliation of Net Income to Adjusted Net Income and Adjusted Earnings per Share
The Company's presentation of adjusted net income and adjusted earnings per share that exclude the effect of certain items are non-GAAP financial measures. Adjusted net income and adjusted earnings per share represent earnings and diluted earnings per share determined under GAAP without regard to certain non-cash and special items. The Company believes these measures provide useful information to analysts and investors for analysis of its operating results on a recurring, comparable basis from period to period. Adjusted net income and adjusted earnings per share should not be considered in isolation or as a substitute for earnings or diluted earnings per share as determined in accordance with GAAP and may not be comparable to other similarly titled measures of other companies.

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The following table provides a reconciliation from the GAAP measure of net income to adjusted net income, both in total and on a per diluted share basis, for the periods indicated:

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended December 31,** | **Three Months Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
| ***(in thousands, except share data)*** | **2022** | **2021** | **2022** | **2021** |
| **Net income** | $56625 | $42555 | $262344 | $108459 |
| &nbsp;&nbsp;Gain on disposal of oil and natural gas properties |  | (313) |  | (2279) |
| (Gain) loss on derivatives - commodity derivatives | (5463) | (1271) | 25324 | 32389 |
| &nbsp;&nbsp;Net cash payments on derivatives | (2431) | (11469) | (42437) | (25219) |
| &nbsp;&nbsp;Gain on derivatives - common stock warrants | (362) |  | (362) |  |
| &nbsp;&nbsp;Tax impact on above adjustments | 2325 |  | 2325 |  |
| **Adjusted net income** | $50694 | $29502 | $247194 | $113350 |
| **Earnings per diluted share - as reported** | $0.43 | $0.32 | $1.97 | $0.82 |
| &nbsp;&nbsp;Gain on disposal of oil and natural gas properties |  | (0.00) |  | (0.02) |
| (Gain) loss on derivatives - commodity derivatives | (0.05) | (0.01) | 0.19 | 0.24 |
| &nbsp;&nbsp;Net cash payments on derivatives | (0.02) | (0.09) | (0.32) | (0.19) |
| &nbsp;&nbsp;Gain on derivatives - common stock warrants |  |  |  |  |
| &nbsp;&nbsp;Tax impact on above adjustments | 0.02 |  | 0.02 |  |
| **Adjusted earnings per diluted share** | $0.38 | $0.22 | $1.86 | $0.85 |
| **Adjusted earnings per share:** |  |  |  |  |
| &nbsp;&nbsp;Basic earnings | $0.38 | $0.22 | $1.86 | $0.85 |
| &nbsp;&nbsp;Diluted earnings | 0.38 | 0.22 | 1.86 | 0.85 |

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