Grey Rock to list some oil, gas assets via $1.3 bln blank-check deal

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REUTERS/Mohsin Raza

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May 16 (Reuters) - Private equity firm Grey Rock Investment Partners will separate some of its oil and gas assets to form an independent company, which will go public through a $1.3 billion merger with a blank-check firm backed by former U.S. House Speaker Paul Ryan, the companies said on Monday.

The new firm, Granite Ridge Resources Inc, will get $414 million in gross proceeds from cash held by the special purpose acquisition company Executive Network Partnering Corporation (ENPC.N).

Dallas-based Grey Rock will contribute oil and gas assets currently held in its Fund I, Fund II, and Fund III portfolios to Granite Ridge in exchange for equity, the companies said.

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The companies estimate that Granite Ridge will produce 20.5 thousand barrels of oil equivalent per day, post earnings before interest, taxes, depreciation, and amortization of about $425 million and free cash flow of more than $240 million in 2022.

Granite Ridge will be listed on the New York Stock Exchange under the ticker "GRNT" after the deal closes later this year, the companies said.

Sanctions on Russia, a major producer of oil, following its invasion of Ukraine have worsened supply chain snarls and led to a jump in prices of oil, benefiting companies in the sector that drawn investor interest.

Grey Rock is co-founded by Griffin Perry, son of former U.S. energy secretary Rick Perry.

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Reporting by Niket Nishant in Bengaluru; Editing by Vinay Dwivedi

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