Granite Ridge Resources has significantly expanded its onshore oil and gas drilling portfolio through a series of strategic acquisitions in Q2 2024.
The company successfully closed multiple transactions, adding 16.4 net future drilling locations at a total cost of $22.4 million, which includes $5.8 million allocated for anticipated future drilling carries.
These acquisitions span several prolific U.S. basins, further strengthening Granite Ridge’s position in the oil and gas sector.
The “Burgers & Beer” Acquisition
One of the major highlights of Granite Ridge’s recent activity is the acquisition of 51 gross (4.7 net) future drilling locations for $12.6 million, in what the company refers to as the “Burgers & Beer” deal.
This purchase represents a significant investment in future development, with estimated costs for the acquired properties reaching $50 million.
The assets acquired in this deal are located in some of the most productive regions in the United States, including the Midland, Delaware, DJ, Williston, and Appalachian basins.
Focused Capital Allocation in the Midland Basin
Granite Ridge also made targeted investments in the Midland basin, acquiring an inventory of 8 gross (4.1 net) future drilling locations at a cost of $3.4 million.
The estimated future development costs for these assets are projected to be $24 million. This acquisition solidifies Granite Ridge’s presence in the Midland basin, a region known for its rich oil reserves and high production rates.
Strategic Moves in the Delaware Basin
In the Delaware basin, Granite Ridge secured an inventory of 10 gross (7.7 net) drilling locations for $6.4 million.
The company estimates that future development in this area will require $66 million, a reflection of the basin’s potential for significant returns.
As the largest interest owner in these locations, Granite Ridge has the advantage of controlling the development timeline, allowing the company to optimize the value of these assets over time.
Additional Transactions and Strategic Control
In addition to the major acquisitions in the Midland and Delaware basins, Granite Ridge completed other transactions, acquiring 8.7 net future drilling locations for $25 million, which includes $3 million earmarked for future drilling carries.
These acquisitions further enhance Granite Ridge’s portfolio, giving the company a strong foothold across multiple prolific basins in the United States.
Granite Ridge’s Strategic Position
Granite Ridge Resources is a non-operated oil and gas exploration and production company with a significant portfolio of wells and prime acreage across the Permian and four other key unconventional basins in the U.S.
These recent acquisitions reinforce Granite Ridge’s strategy of building a robust and diversified portfolio of drilling assets, ensuring the company’s continued growth and success in the competitive oil and gas industry.
Conclusion
Through these strategic acquisitions, Granite Ridge Resources has effectively positioned itself as a leading player in the onshore oil and gas sector.
By expanding its portfolio with high-quality assets across multiple prolific basins, the company is well-equipped to capitalize on future drilling opportunities, ensuring sustained growth and value creation for its stakeholders.