Merger ENPC.U

Grey Rock Investment Partners and Executive Network Partnering Corporation Announce Business Combination to Form Publicly Traded Granite Ridge Resources

, SPAC Research

Grey Rock Investment Partners, a Dallas-based investment firm, and Executive Network Partnering Corporation (NYSE: ENPC), announced today that they have entered into a definitive agreement to complete a $1.3 billion business combination resulting in the formation of publicly traded Granite Ridge Resources, Inc.

Formation of Granite Ridge creates a scaled, non-operated oil and gas exploration and production company with an unlevered balance sheet and immediate free cash flow generation.

Company anticipate 2022 estimated EBITDA of approximately $425 million and strong free cash flow of more than $240 million.

Grey Rock will not receive any cash proceeds as part of this transaction and will roll all of its equity into the pro forma company.

Assuming no redemptions paid from ENPC cash in trust, gross proceeds of approximately $414 million held in the trust account will be transferred to Granite Ridge in connection with the transaction for growth capital purposes, including future acquisitions.

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 shall have the opportunity to jointly participate in investment opportunities for upstream oil and gas assets, with 75% of any future transactions allocated to Granite Ridge and 25% of any future transactions allocated to oil and gas funds managed by Grey Rock.

Evercore is acting as exclusive financial and capital markets advisor to Grey Rock and Stephens Inc. is acting as financial advisor to ENPC. Holland & Knight is acting as legal counsel to Grey Rock and Kirkland & Ellis is acting as legal counsel to ENPC.

Subject to approval by the ENPC stockholders and customary regulatory requirements, Granite Ridge intends to be listed on the NYSE under the ticker symbol “GRNT” upon closing, which is expected to occur later this year.

Granite Ridge will be led by chief executive officer Luke Brandenberg and chief financial officer Tyler Farquharson.

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