DALLAS & BOSTON–(BUSINESS WIRE)–Grey Rock Investment Partners, a Dallas-based investment firm, and Executive Network Partnering Corporation(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’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.
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/
