Okay. Let's see. Have to be smarter than the microphone. I don't see an on button. Do you? Testing, there we go. All right. Okay, welcome back. Hopefully, you're not in a food coma like the rest of us. The next company to present is Granite Ridge Resources, a Dallas-based public energy company with diversified oil and natural gas portfolio in six of the major unconventional basins in the U.S. Granite Ridge invests through operated partnerships in traditional non-operated assets, partnering with established public and private operators. Here to present for Granite Ridge is Kyle Kettler, CFO. Please help me welcome Kyle to the podium.
Hey, good afternoon, everybody. Can you hear me okay? Let me tell you what we do, how we do it, and where we're headed. Granite Ridge, as mentioned, is a publicly traded company. We invest in upstream oil and natural gas assets, targeting a 25% asset rate of return. How we do that is through operated partners. Traditionally, or since inception, Granite Ridge was a straight-up non-operated working interest business, and is--
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They're in the Delaware Basin. You've got New Mexico and then into the Texas part, and a little bit on the shelf. It's been a success story. The returns, you can see in the middle, have been very good. And we look at them on an individual basis, kind of thinking about it like a portfolio company, and we're looking at their J-curve and where we stand there. And we're pretty proud to say that over the near term here at least, we'll be cash flow positive with them specifically. So that's been a big, nice set of returns working with Admiral over the last several years. How they do it and why it's different.
This is not just Admiral, this is all of our operator partners combined. But I'll go to the bottom left at first. On average, we're buying locations at $1.4 million per location, and the comparison there is pretty attractive. You can see over time, pulling data from Enverus, where the general market has been well above $1.4 million. And I know you've probably seen the recent announcements out of a couple of the bigger companies on what they've paid for Delaware Basin acreage. So we really like the entry point we're getting here.
The next question is, okay, if you're getting that kind of entry point, how attractive are the economics? We pulled together 238 gross locations, 88 net. The D&C cost on those locations on average, and this is with facilities, and this is right out of our reserve database, this isn't leading edge information, is about 900 bucks a foot. Well productivity is 56 bbl a foot on average, which range from 45 up to 60 in 10,000 ft laterals. So we think that's really attractive rate of return type property. And if you take the net locations times the D&C times the number of feet, that's $800 million of development spending we've got in inventory that'll take us over the next many years.
Here's a look at overall investment from Granite Ridge. This includes both the traditional operated partnership model and the traditional non-op model. Spent over $2 billion basically since inception. That inception is the private funds of Grey Rock that contributed their assets into Granite Ridge in 2022 when it went public. On the right-hand side, you can see the deal count, if you will, the things that we are looking at and the average entry cost. It's oscillated over time.
Lately, it's been closer to that, as I mentioned, $1.4 million on average over the last couple of years. Where we stand on growth. The compounded growth since 2023 has been 13%. It's been a pretty good run. Going forward, we think that'll come down a little bit, but not a lot. We think with where we are in scale, we can continue to grow at the high single digit rate, bring our leverage profile where we want it, get to cash flow positive, and still grow the business.
Here's a look comparing us to other peers. Cash flow return on invested capital. We see it with a good production growth rate being a fairly high cash flow return on capital. We do it, as I mentioned earlier, we do it without making really large scale acquisitions. We try to keep the acquisition or inventory purchase in check relative to our size. Most peers will go out and buy bigger things. We try to do it smaller. We try to do it in more frequency. We think overall that keeps our return profile in a tighter band. So far with these four partners, it's been very repeatable.
Guidance. Where we are on guidance, we're looking at single digit growth, keeping our mix of oil and natural gas about the same, about 50/50. Development spending and acquisitions in the high $300 million range. We think that that grows our business, we think that replaces our inventory, and we think that grows the company. As you can see from the graphic on the right-hand side, the operated partnerships are where the capital's going.
We'll spend some on acquisitions, and that's in a nutshell where the business is headed. It's pretty exciting. This is a slide that's new to us, and this is something we really want to make sure people understand about this business. It's been built up over the last several years. We think we're at a point where we're big enough. I know as a public company, being roughly a $1 billion enterprise value doesn't sound big enough, but it was a critical mass to we want to flip the business from growth mode, outspending cash flow to cash flow positive, and we're targeting that in 2027.
The metrics that we're targeting for that year are a free cash flow yield of greater than 10%, a dividend coverage of 1.25x or greater, and still maintaining production growth all in. We think that'll make for an attractive rate of return. Hopefully, that'll get investors interested, and we can comp out relatively easier to the peers out there. Here's a look at our valuation multiple relative to peers. We're trading at 2.7x . The mid caps are at 3.4x. The Permian players are at 4x.
The raw idea is keep growing the business, keep getting good rates of return, get the cash flow profile similar to what other companies are doing, and watch this enterprise value rerate. There are a couple things that'll help us do that. As I mentioned, free cash flow positive is helpful. I think as people begin to understand the operated partnership relationship we have and how that helps us control what we're doing, we've got one of them that's very public and out there. We have another one that we've publicly discussed.
They're still in the growth phase. That's PetroLegacy . We have two others we haven't disclosed because they're still in the building phase. They are active in development, but they're still building their position, and we don't want to give that away quite yet. I think as the market begins to understand this is what we have in the legacy business of traditional non-op is an asset that we have, but it's right now not the focal point of our capital spending. That'll help. There's one final wrinkle here. As I mentioned, Grey Rock private equity firm created Granite Ridge Resources.
They created it by contributing assets. One of the Grey Rock funds, when the assets were contributed, took back Granite Ridge stock. That stock has not been distributed to the LPs yet. On our earnings call here a couple of weeks ago, we outlined an understanding from Grey Rock of what that's going to look like over the next six to nine, to 12 months. What we think that does is it puts more stock out on the market, will help our float. From a governance perspective, I think it's investor friendly.
We go from a controlled company to a non-controlled company as well. We're hoping those factors taken together can really help out where the public markets see our stock. Insiders are buying. We get windows to buy in. The insiders have been pretty active buying. I think we've all bought into the story and believe it wholeheartedly. I think what I'd like to leave you guys with is we'd love to talk to you about what we're seeing and what we're doing. We've given you an overview here. We've got a number of board members that are highly economically tied to our business, and they continue to want to be a part of it.