Conduit Power Signs Agreements With Diamondback Energy, Granite Ridge Resources To Build, Operate 200 Megawatts Of Natural Gas Power Generation Capacity In Texas

Conduit Power, LLC ("Conduit") has entered into financial agreements with Diamondback Energy, Inc. (NASDAQ:FANG) ("Diamondback") and Granite Ridge Resources (NYSE:GRNT) ("Granite Ridge") related to Conduit's development of 200 megawatts ("200 MWs") of new natural gas power generation assets for the sale of energy and ancillary services to the Electric Reliability Council of Texas ("ERCOT"), Texas's largest power grid operator.

Under the agreements, Conduit will build, own and operate a total of 200 MWs of distributed power generation capacity to be strategically located across ERCOT's Load Zone West in West Texas. The high concentration of intermittent renewable generation combined with increasing load growth is causing an imbalance in power supply and demand within Load Zone West. Conduit's distribution scale power resources can be placed into service quickly and efficiently to increase grid reliability, help stabilize this imbalance, and generate a significant return on invested capital. Diamondback and Granite Ridge will each commit to a fixed capacity payment to Conduit in exchange for a preferred share of power proceeds generated by Conduit.