- Granite Ridge is listed on the NYSE under the ticker symbol
“GRNT”
- Granite Ridge is a scaled, non-operated oil and gas exploration
and production company with an unlevered balance sheet and
immediate free cash flow generation
- Granite Ridge initial enterprise value of $1.2 billion is
underpinned by an anticipated 4.9% annual dividend yield and an
attractive entry valuation multiple for investors
- Management team, sponsor economics and governance are highly
aligned with public stockholders
Grey Rock Investment Partners (“Grey Rock”), a Dallas-based
investment firm, and Executive Network Partnering Corporation
("ENPC") (NYSE: ENPC), a special purpose acquisition entity,
announced today that they have successfully closed the previously
announced business combination resulting in the formation of
publicly traded Granite Ridge Resources, Inc. (“Granite Ridge”).
Granite Ridge’s common stock and warrants are expected to begin
trading on the NYSE under the ticker symbols “GRNT” and “GRNT WS”,
respectively, on October 25, 2022. Granite Ridge is led by
President and Chief Executive Officer Luke Brandenberg and Chief
Financial Officer Tyler Farquharson.
“The creation of Granite Ridge is a springboard for growth and a
compelling opportunity for investors, driven by the increasing
demand for traditional energy,” said Paul Ryan, Chairman of ENPC
and former Speaker of the U.S. House of Representatives.
“Underpinned by a high-quality asset base, attractive growth
profile, and strong balance sheet, I am confident that Granite
Ridge will continue to be a testament to our philosophy of matching
accomplished executives and great assets, with the proper capital
structure to maximize results and value creation.”
“I am honored to lead Granite Ridge as we enter the public
market and seize the opportunities created by today’s energy
environment,” said Luke Brandenberg, Granite Ridge President and
Chief Executive Officer. “As capital continues to dry up for
natural resources coupled with a world increasingly reliant on U.S.
energy production, we will maintain a strategic approach focusing
on non-operated working interests and joint ventures, partnering
with experienced operators in the most prolific basins, and
leveraging real-time data to build a diversified asset base that
creates healthy, risk-adjusted returns while generating substantial
value for our stockholders.”
Transaction Details
As a result of the business combination, Granite Ridge owns the
non-operated working interests previously held by Grey Rock’s Fund
I, Fund II and Fund III portfolios, and such Grey Rock funds and/or
their limited partners own equity in Granite Ridge.
Going forward, the Grey Rock team will help manage the Granite
Ridge oil and gas assets through a long-term services agreement,
providing technical, legal, commercial, acquisition and divestment,
and back-office support. Granite Ridge and Grey Rock have agreed
that during the term of the services agreement, Granite Ridge and
any additional oil and gas-focused funds managed by Grey Rock or
its affiliates will have the opportunity to jointly participate in
investment opportunities for upstream non-operated oil and gas
assets, with 75% of any such future transactions allocated to
Granite Ridge and 25% of any such future transactions allocated to
oil and gas-focused funds managed by Grey Rock or its
affiliates.
Pro Forma Equity Value and Anticipated Dividend Yield
The table below sets forth the pro forma equity value and
anticipated dividend yield based on the closing price of ENPC’s
Class A common stock as of October 24, 2022:
Pro
Forma Equity Value and Anticipated Dividend Yield (Thousands Except
Share Price)
Total Shares Outstanding1
132,923
(x) Share Price (Market Close
10/24/2022)2
$9.25
Pro Forma Equity Value
$1,229,541
Initial Anticipated Annual
Dividend
$60,000
Implied Annual Dividend Yield
4.9%
Debt Drawn at Close
$-
1. Excludes impact of 10.35 million public
warrants and 371,518 shares held by SPAC sponsor subject to certain
vesting and forfeiture conditions.
2. Share price is based on ENPC Class A
common stock.
Advisors
Evercore acted as exclusive financial and capital markets
advisor to Grey Rock. Stephens Inc. acted as financial advisor and
Capital One Securities acted as capital markets advisor to ENPC.
Holland & Knight LLP acted as legal counsel to Grey Rock and
Kirkland & Ellis LLP acted as legal counsel to ENPC.
About Grey Rock Investment Partners
Grey Rock Investment Partners is a Dallas-based private equity
firm that manages private funds with interests in core areas of the
Midland, Delaware, Bakken, Eagle Ford, DJ, and Haynesville plays.
With a focus on lower and mid-market non-operated working
interests, Grey Rock builds positions with low breakeven costs to
provide investors with attractive risk-adjusted returns. Grey Rock
was founded and is led by three managing directors: Matt Miller,
Griffin Perry, and Kirk Lazarine. For more information, visit
www.grey-rock.com
About Executive Network Partnering Corporation
Executive Network Partnering Corporation (NYSE: ENPC) was formed
as a partnership among Paul Ryan, as Chairman, who served as the
54th Speaker of the U.S. House of Representatives and currently
serves as a Partner at Solamere Capital; Alex Dunn, as CEO, who has
served in various senior operating roles at several businesses
where he helped grow shareholder value, most recently as President
of Vivint SmartHome (NYSE: VVNT); and Solamere Capital, a private
equity firm anchored by its network of leading business executives,
including former chief executive officers of S&P 500 companies.
ENPC was established for the purpose of identifying a company to
partner with in order to effectuate a merger, share exchange, asset
acquisition, share purchase, reorganization or similar partnering
transaction with one or more businesses. For more information,
visit https://www.enpc.co/
Forward-Looking Statements
This news release includes certain statements that may
constitute “forward-looking statements” within the meaning of the
“safe harbor” provisions of the Private Securities Litigation
Reform Act of 1995. Forward-looking statements include, but are not
limited to, statements that refer to projections, forecasts or
other characterizations of future events or circumstances,
including any underlying assumptions. The words “anticipate,”
“believe,” “continue,” “could,” “estimate,” “expect,” “intends,”
“may,” “might,” “plan,” “possible,” “potential,” “predict,”
“project,” “should,” “would” and similar expressions may identify
forward-looking statements, but the absence of these words does not
mean that a statement is not forward-looking. Forward-looking
statements may include, for example, statements about the benefits
of the proposed business combination; the future financial
performance of Granite Ridge; anticipated dividends to be paid by
Granite Ridge, Granite Ridge’s strategy, future operations,
financial position, estimated revenues and losses, projected costs,
prospects, plans and objectives of management. These
forward-looking statements are based on information available as of
the date of this news release, and current expectations, forecasts
and assumptions, and involve a number of judgments, risks and
uncertainties. Accordingly, forward-looking statements should not
be relied upon as representing Granite Ridge’s views as of any
subsequent date, and Granite Ridge does not undertake any
obligation to update forward-looking statements to reflect events
or circumstances after the date they were made, whether as a result
of new information, future events or otherwise, except as may be
required under applicable securities laws. You should not place
undue reliance on these forward-looking statements. As a result of
a number of known and unknown risks and uncertainties, Granite
Ridge’s actual results or performance may be materially different
from those expressed or implied by these forward-looking
statements. Some factors that could cause actual results to differ
include: (i) the ability to recognize the anticipated benefits of
the business combination; (ii) Granite Ridge’s financial
performance following the business combination; (iii) changes in
Granite Ridge’s strategy, future operations, financial position,
estimated revenues and losses, projected costs, prospects and
plans; (iv) changes in current or future commodity prices and
interest rates; (v) expansion plans and opportunities; (vi)
operational risks; (vii) changes in the markets in which Granite
Ridge competes; (viii) geopolitical risk and changes in applicable
laws or regulations, including those relating to environmental
matters; (ix) the fact that reserve estimates depend on many
assumptions that may turn out to be inaccurate; (x) the outcome of
any known and unknown litigation and regulatory proceedings; (xi)
limited liquidity and trading of Granite Ridge’s securities; (xii)
market conditions and global and economic factors beyond Granite
Ridge’s control, including the potential adverse effects of the
COVID-19 pandemic, or another major disease, on capital markets,
general economic conditions, global supply chains and Granite
Ridge’s business; (xiii) legal and contractual restrictions on
Granite Ridge’s ability to declare and issue dividends; and (xiv)
other factors and risks identified in the final prospectus of
Granite Ridge relating to the business combination, including those
under “Risk Factors” therein and other filings made or to be made
by Granite Ridge with the Securities and Exchange Commission.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20221024006009/en/
Investor and Media Contact: IR@GraniteRidge.com –
214.396.2850
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