DALLAS--(BUSINESS WIRE)--March 05, 2026--
Granite Ridge Resources, Inc. (NYSE: GRNT) ("Granite Ridge" or the "Company") today reported financial and operating results for the fourth quarter and full-year 2025 and provided initial guidance for 2026.
Fourth Quarter 2025 Highlights
-- Increased total production by 27% to 35,120 Boe/day (49% oil) including
a 17% increase in oil production
-- Reported net loss of $25.1 million, or $(0.19) per share, and Adjusted
Net Income (non-GAAP) of $1.5 million, or $0.01 Adjusted Earnings Per
Diluted Share (non-GAAP)
-- Generated Adjusted EBITDAX (non-GAAP) of $69.5 million
-- Invested $127.5 million of capital, placing online 67 gross (10.50 net)
wells
-- Declared a dividend of $0.11 per share
-- Ended the year with total liquidity of $339.5 million and Net Debt to
Adjusted EBITDAX of 1.2x
See "Supplemental Non-GAAP Financial Measures" below for descriptions of the above non-GAAP measures as well as a reconciliation of these measures to the associated GAAP (as defined herein) measures.
Tyler Farquharson, President and CEO of Granite Ridge, commented, "Granite Ridge continued its evolution in 2025 from a traditional non-operated production company to a capital allocator focused on controlled, short-cycle development through Operated Partnerships. This strategic shift has resulted in greater control over development timing, and increased deal flow and exposure to high-quality resource in the Permian Basin. We have executed over fifty of these transactions and added approximately 100 net locations since the program began in 2023.
"For the year, we grew production 28% to an average of 32,000 Boe per day while investing $279 million in development capital. Our strategy remains straightforward: underwrite projects to 25% full-cycle returns at strip pricing, compound production and cash flow growth, and protect downside through disciplined leverage.
"In 2025, we added 331 gross, 77.2 net, locations for $122 million across both the Operated Partnership and non-operated portfolio. In the Permian Basin, we acquired 59.3 Operated Partnership net wells at $1.4 million per location. By underwriting transactions on a unit-by-unit basis at strip pricing, we moderate commodity price volatility and avoid execution and valuation risk associated with large-format acquisitions.
"Our 2026 guidance reflects the benefits of increased scale. Production growth is moderating and development capital expenditures align closely with expected cash flow.
"We remain committed to disciplined capital allocation, operational execution through our partners, and returning capital to shareholders. The scalability and resilience of our platform position Granite Ridge to generate durable shareholder value through disciplined growth and capital returns across commodity cycles."
Financial Results
Net loss for the quarter was $25.1 million, or $(0.19) per share of common stock. Excluding non-cash and special items, Adjusted Net Income (non-GAAP) was $1.5 million for the quarter, or $0.01 per diluted share of common stock. Adjusted EBITDAX (non-GAAP) and cash flow from operating activities for the quarter totaled $69.5 million and $64.5 million, respectively.
Net income for the year was $24.4 million or $0.18 per diluted share of common stock. Excluding non-cash and special items, Adjusted Net Income (non-GAAP) was $56.2 million or $0.43 per diluted share of common stock. Adjusted EBITDAX (non-GAAP) and cash flow from operating activities for the year totaled $315.0 million and $296.4 million, respectively.
Production Results
Total production for the quarter increased 27% from the prior year quarter to 35,120 Boe per day (49% oil), including a 17% increase in oil production to 17,152 barrels ("Bbls") per day. Natural gas production for the quarter totaled 107,804 thousand cubic feet of natural gas ("Mcf") per day.
Total production for the year increased 28% to 31,984 Boe per day (50% oil), including a 31% increase in oil production to 16,041 Bbls per day. Natural gas production for the year totaled 95,649 Mcf per day.
Oil, Natural Gas and Related Product Sales
During the quarter, NYMEX West Texas Intermediate ("WTI") crude oil averaged $59.64 per Bbl, and NYMEX natural gas at Henry Hub averaged $3.75 per Mcf. The Company's average realized price for oil and natural gas, excluding the effect of commodity derivatives, was $55.49 per Bbl (a $4.15 differential to WTI) and $1.81 per Mcf (a 48% realization of Henry Hub), respectively.
Operating Costs
Lease operating expenses were $24.9 million for the quarter, or $7.72 per Boe, a 29% increase on a per unit basis compared to the prior year quarter. Production and ad valorem taxes were $6.2 million for the quarter, or 5.9% of oil and natural gas sales. During the quarter general and administrative ("G&A") costs totaled $8.0 million, inclusive of $1.4 million of non-cash stock-based compensation.
Lease operating expenses were $84.9 million for the year, or $7.27 per Boe, an 16% increase on a per unit basis compared to the prior year. Production and ad valorem taxes were $27.6 million for the year, or 6.1% of oil and natural gas sales. G&A costs for the year totaled $31.0 million, inclusive of $3.8 million of non-cash stock-based compensation.
Capital Expenditures and Operational Activity
Capital expenditures for the quarter were $127.5 million comprised of $66.4 million of drilling and completion ("D&C") capital and $61.1 million of property acquisition costs. Total 2025 capital expenditures were $401.0 million comprised of $279.0 million of D&C capital and $122.0 million of property acquisition costs.
The table below provides capital expenditures incurred for oil and natural gas producing activities for the periods indicated:
Three Months Ended Year Ended
December 31, December 31,
---------------------- ------------------
(in thousands) 2025 2024 2025 2024
------------ -------- -------- --------
Property acquisition
costs:
Proved $ 606 $ 612 $ 14,754 $ 3,436
Unproved 60,445 9,207 107,239 60,721
Development costs 66,400 83,522 278,993 290,283
-------- ------- ------- -------
Total costs
incurred for oil
and natural gas
properties $ 127,451 $ 93,341 $400,986 $354,440
======== ======= ======= =======
The table below provides a summary of gross and net wells completed and put on production for the three months and year ended December 31, 2025:
Three Months Ended Twelve Months Ended
December 31, 2025 December 31, 2025
-------------------- ---------------------
Gross Net Gross Net
---------- -------- ----------- --------
Permian 35 7.5 148 31.8
Eagle Ford -- -- 7 0.5
Bakken 4 0.1 14 0.3
Haynesville 2 0.7 14 1.9
DJ 7 0.8 79 1.4
Appalachian 19 1.4 60 2.5
---------- -------- ----------- --------
Total 67 10.5 322 38.4
========== ======== =========== ========
On December 31, 2025, the Company had 137 gross (12.18 net) wells for which drilling was either in-progress or were pending completion.
Liquidity and Capital Resources
As of December 31, 2025, Granite Ridge had $350.0 million of principal debt outstanding on 8.875% senior unsecured notes and $50.0 million of debt outstanding under our senior secured revolving credit agreement (as amended, the "Credit Agreement"). We had $339.5 million of liquidity as of December 31, 2025, consisting of $324.7 million of committed borrowing availability under the Credit Agreement and $14.8 million of cash on hand.
2025 Proved Reserves
As of December 31, 2025, Granite Ridge's estimated proved reserves totaled 62,347 MBoe, compared to 54,315 MBoe as of December 31, 2024. The Company's proved reserves are approximately 49% oil and 51% natural gas. Proved developed reserves totaled 47,525 MBoe, or 76% of total proved reserves. The table below provides a summary of changes in total proved reserves for the year ended December 31, 2025, as well as the proved developed reserves balance at the beginning and end of the year.
Oil Natural Gas
(MBbl) (MMcf) MBoe
------- ----------- ----------
Proved developed and undeveloped
reserves at December 31, 2024 28,187 156,769 54,315
Revisions of previous estimates (3,089) 13,494 (840)
Extensions and discoveries 5,727 37,612 11,996
Acquisition of reserves 5,603 17,680 8,550
Production (5,855) (34,912) (11,674)
------ ---------- -------
Proved developed and undeveloped
reserves at December 31, 2025 30,573 190,643 62,347
------ ---------- -------
Oil Natural Gas
(MBbl) (MMcf) MBoe
------- ----------- ------
Proved developed reserves:
December 31, 2024 19,269 118,103 38,953
December 31, 2025 21,498 156,161 47,525
Proved undeveloped reserves:
December 31, 2024 8,918 38,666 15,362
December 31, 2025 9,075 34,482 14,822
2026 Guidance
The Company's initial 2026 guidance anticipates approximately 34,000 to 36,000 Boe per day of production for 2026, an increase at the midpoint of approximately 9% from 2025.
The following table summarizes the Company's operational and financial guidance for 2026.
2026 Guidance
---------------
Annual production (Boe per day) 34,000 - 36,000
Oil production (% of total production) 50% - 52%
Acquisitions ($ in millions) $20 - $30
Development capital expenditures ($ in millions) $300 - $330
Total capital expenditures ($ in millions) $320 - $360
Lease operating expenses (per Boe) $6.75 - $7.75
Production and ad valorem taxes (% of total revenue) 6% - 7%
Cash general and administrative expense ($ in millions) $25 - $27
Conference Call
Granite Ridge will host a webcast and conference call on Friday, March 6, 2026, at 10:00 AM central time to discuss its fourth quarter and full-year 2025 financial and operating results. A brief Q&A session for security analysts will immediately follow the discussion.
The details are as follows:
When: Friday, March 6, 2026, at 10:00 a.m. CT
Where: https://ir.graniteridge.com
Webcast: To access the webcast, please go to this
link: Registration Link
Dial-in / Q&A Participation: If you would like to access the call by
phone or to participate in the Q&A, please
register here: Q&A Registration Link. You
will be provided with dial-in details. To
avoid delays, we encourage participants to
dial into the conference fifteen minutes
ahead of the scheduled start time.
Upcoming Investor Events
Granite Ridge management will also be participating in the following upcoming investor event:
-- Piper Sandler Energy Conference - March 17, 2026
Any investor presentations to be used for such events will be posted prior to the respective event on Granite Ridge's website. Information on Granite Ridge's website does not constitute a portion of, and is not incorporated by reference into this press release.
About Granite Ridge
Granite Ridge is a scaled energy company which aims to provide shareholders with exposure similar to energy private equity through operated partnerships and traditional non-operated assets. We own assets in six prolific unconventional basins across the United States. We aim to deliver a diversified portfolio with best-in-class full cycle returns by investing in a large number of high-graded deals developed by proven public and private operators. We focus on success as measured by total shareholder returns, which we seek to balance with a low leverage profile. For more information, visit Granite Ridge's website at www.graniteridge.com.
Forward-Looking Statements and Cautionary Statements
This press release contains forward-looking statements regarding future events and future results that are subject to the safe harbors created under the Securities Act of 1933, as amended, and the Securities Exchange Act of 1934, as amended. All statements other than statements of historical facts included in this press release regarding, without limitation, Granite Ridge's 2026 outlook, financial position, operating and financial performance, business strategy, plans and objectives of management for future operations, industry conditions, and indebtedness covenant compliance are forward-looking statements. When used in this release, forward-looking statements are generally accompanied by terms or phrases such as "estimate," "project," "predict," "believe," "expect, " "continue," "anticipate," "target," "could," "plan," "intend," "seek," "goal," "will," "should," "may" or other words and similar expressions that convey the uncertainty of future events or outcomes. Items contemplating or making assumptions about actual or potential future production and sales, market size, collaborations, cash flows, and trends or operating results also constitute such forward-looking statements.
Forward-looking statements involve inherent risks and uncertainties, and important factors (many of which are beyond Granite Ridge's control) that could cause actual results to differ materially from those set forth in the forward-looking statements, including the following: changes in Granite Ridge's strategy, future operations, financial position, estimated revenues and losses, projected costs, prospects and plans, changes in current or future commodity prices and interest rates, supply chain disruptions, infrastructure constraints and related factors affecting our properties, ability to acquire additional development opportunities and potential or pending acquisition transactions, as well as the effects of such acquisitions on the Company's cash position and levels of indebtedness, changes in reserves estimates or the value thereof, operational risks including, but not limited to, the pace of drilling and completions activity on our properties, changes in the markets in which Granite Ridge competes, geopolitical risk and changes in applicable laws, legislation, or regulations, including those relating to environmental matters, cyber-related risks, the fact that reserve estimates depend on many assumptions that may turn out to be inaccurate and that any material inaccuracies in reserve estimates or underlying assumptions will materially affect the quantities and present value of the Granite Ridge's reserves, the outcome of any known and unknown litigation and regulatory proceedings, limited liquidity and trading of Granite Ridge's securities, acts of war, terrorism or uncertainty regarding the effects and duration of global hostilities, including the Israel-Hamas conflict, the Russia-Ukraine war, the joint U.S.-Israel strikes on Iran, continued instability in the Middle East, and any associated armed conflicts or related sanctions which may disrupt commodity prices and create instability in the financial markets, and market conditions and global, regulatory, technical, and economic factors beyond Granite Ridge's control, including the potential adverse effects of world health events, affecting capital markets, general economic conditions, global supply chains and Granite Ridge's business and operations, increasing regulatory and investor emphasis on, and attention to, environmental, social and governance matters, Granite Ridge's ability to establish and maintain effective internal control over financial reporting, and the other risks described under the heading "Item 1A. Risk Factors" in Granite Ridge's Annual Report on Form 10-K for the year ended December 31, 2025 to be filed with the Securities and Exchange Commission ("SEC"), as updated by any subsequent Quarterly Reports on Form 10-Q, which Granite Ridge files with the SEC.
Granite Ridge has based these forward-looking statements on its current expectations and assumptions about future events. While management considers these expectations and assumptions to be reasonable, they are inherently subject to significant business, economic, competitive, regulatory and other risks, contingencies and uncertainties, most of which are difficult to predict and many of which are beyond Granite Ridge's control. If one or more of these risks or uncertainties materialize, or if the underlying assumptions prove incorrect, our actual results may vary materially from those expected or projected. Granite Ridge does not undertake any duty to update or revise any forward-looking statements, except as may be required by the federal securities laws.
Use of Non-GAAP Financial Measures
To supplement the presentation of the Company's financial results prepared in accordance with U.S. Generally Accepted Accounting Principles ("GAAP"), this press release contains certain financial measures that are not prepared in accordance with GAAP, including Adjusted Net Income, Adjusted Earnings Per Share, Adjusted EBITDAX, and Net Debt.
See "Supplemental Non-GAAP Financial Measures" below for a description and reconciliation of each non-GAAP measure presented in this press release to the most directly comparable financial measure calculated in accordance with GAAP.
Granite Ridge Resources, Inc.
Consolidated Balance Sheets
(Unaudited)
December 31,
--------------------------
(in thousands, except par value and share
data) 2025 2024
--------- ---------
ASSETS
Current assets:
Cash $ 14,846 $ 9,419
Revenue receivable 74,166 69,692
Advances to operators 2,682 19,959
Prepaid and other current assets 2,251 3,831
Derivative assets - commodity
derivatives 13,978 537
Equity investments 10,960 31,783
--------- ---------
Total current assets 118,883 135,221
--------- ---------
Property and equipment:
Oil and gas properties, successful
efforts method 1,897,388 1,540,021
Accumulated depletion (857,832) (643,051)
--------- ---------
Total property and equipment, net 1,039,556 896,970
--------- ---------
Long-term assets:
Derivative assets - commodity
derivatives 3,743 --
Other long-term assets 5,889 4,288
--------- ---------
Total long-term assets 9,632 4,288
--------- ---------
Total assets $1,168,071 $1,036,479
========= =========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable and accrued
liabilities $ 76,847 $ 99,440
Current portion of long-term debt 17,500 --
Other liabilities 810 546
Derivative liabilities - commodity
derivatives 24 1,822
--------- ---------
Total current liabilities 95,181 101,808
--------- ---------
Long-term liabilities:
Long-term debt, net 367,832 205,000
Derivative liabilities - commodity
derivatives -- 3,679
Asset retirement obligations 11,968 10,693
Deferred tax liability 87,330 79,946
--------- ---------
Total long-term liabilities 467,130 299,318
--------- ---------
Total liabilities 562,311 401,126
--------- ---------
Stockholders' Equity:
Common stock, $0.0001 par value,
431,000,000 shares authorized,
136,941,978 and 136,417,677 issued at
December 31, 2025 and 2024,
respectively 14 14
Additional paid-in capital 659,228 655,472
Retained earnings (17,286) 16,047
Treasury stock, at cost, 5,686,711 and
5,683,921 shares at December 31, 2025
and 2024, respectively (36,196) (36,180)
--------- ---------
Total stockholders' equity 605,760 635,353
--------- ---------
Total liabilities and stockholders' equity $1,168,071 $1,036,479
========= =========
Granite Ridge Resources, Inc.
Consolidated Statements of Operations
(Unaudited)
Three Months Ended Year Ended December
December 31, 31,
-------------------- ----------------------
(in thousands,
except per share
data) 2025 2024 2025 2024
------- ------- ------- -------
Revenues:
Oil and natural
gas sales $105,485 $106,307 $450,306 $380,030
------- ------- ------- -------
Operating costs and
expenses:
Lease operating
expenses 24,949 15,287 84,903 57,461
Production and
ad valorem
taxes 6,198 7,032 27,554 26,007
Depletion and
accretion
expense 57,897 49,847 215,701 176,529
Impairments of
long-lived
assets 44,654 35,637 44,654 36,369
General and
administrative 8,041 5,944 31,009 24,649
Other, net 185 (524) 65 (241)
------- ------- ------- -------
Total operating
costs and
expenses 141,924 113,223 403,886 320,774
------- ------- ------- -------
Net operating
income (loss) (36,439) (6,916) 46,420 59,256
------- ------- ------- -------
Other income
(expense):
Gain (loss) on
derivatives -
commodity
derivatives 12,829 (8,803) 27,121 (908)
Interest
expense, net (8,502) (4,673) (25,500) (18,470)
Gain (loss) on
equity
investments (615) 4,132 (15,833) (15,183)
Other income
(expense) (1) -- (94) 271
------- ------- ------- -------
Total other
income
(expense) 3,711 (9,344) (14,306) (34,290)
------- ------- ------- -------
Income (loss)
before income
taxes (32,728) (16,260) 32,114 24,966
Income tax
expense
(benefit) (7,665) (4,638) 7,761 6,207
------- ------- ------- -------
Net income (loss) $(25,063) $(11,622) $ 24,353 $ 18,759
======= ======= ======= =======
Net income (loss)
per share:
Basic $ (0.19) $ (0.09) $ 0.18 $ 0.14
Diluted $ (0.19) $ (0.09) $ 0.18 $ 0.14
Weighted-average
number of shares
outstanding:
Basic 130,476 130,210 130,439 130,189
Diluted 130,476 130,210 130,501 130,227
Granite Ridge Resources, Inc.
Consolidated Statements of Cash Flows
(Unaudited)
Year Ended December 31,
-----------------------------
(in thousands) 2025 2024
--------- ---------
Operating activities:
Net income $ 24,353 $ 18,759
Adjustments to reconcile net income to
net cash provided by operating
activities:
Depletion and accretion expense 215,701 176,529
Impairments of long-lived assets 44,654 36,369
Unrealized (gain) loss on derivatives
- commodity derivatives (22,662) 17,271
Stock-based compensation 3,756 2,298
Amortization of deferred financing
costs and original issue discount 2,208 3,540
(Gain) loss on equity investments 15,833 15,183
Deferred income taxes 7,383 5,958
Other (359) (1,034)
Increase (decrease) in cash
attributable to changes in operating
assets and liabilities:
Revenue receivable (4,449) 3,288
Accounts payable and accrued
liabilities 9,561 (1,153)
Prepaid and other current assets 693 (1,228)
Other liabilities (258) (47)
--------- ---------
Net cash provided by operating activities 296,414 275,733
Investing activities:
Capital expenditures for oil and
natural gas properties (300,768) (285,796)
Acquisition of oil and natural gas
properties (118,491) (61,197)
Deposit on acquisition -- (887)
Refund of advances to operators 4,285 19,655
Proceeds from the disposal of oil and
natural gas properties 175 13,995
Proceeds from the sale of equity
investments 4,991 3,462
--------- ---------
Net cash used in investing activities (409,808) (310,768)
Financing activities:
Proceeds from borrowing on credit
facilities 190,000 110,000
Repayments of borrowing on credit
facilities (345,000) (15,000)
Proceeds from senior notes, net of
discount 336,000 --
Deferred financing costs (4,477) (3,340)
Purchase of treasury shares (16) (442)
Payment of dividends (57,686) (57,494)
--------- ---------
Net cash provided by financing activities 118,821 33,724
Net change in cash 5,427 (1,311)
Cash at beginning of year 9,419 10,730
--------- ---------
Cash at end of year $ 14,846 $ 9,419
========= =========
Supplemental disclosure of cash flow
information:
Cash paid during the year for
interest, net of capitalized
interest $ (24,748) $ (14,472)
Cash paid during the year for income
taxes, net of refunds $ (549) $ (197)
Supplemental disclosure of non-cash
investing activities:
Change in accrued capital
expenditures included in accounts
payable and accrued liabilities $ (10,900) $ 36,736
Advances to operators applied to
development of oil and natural gas
properties $ 150,692 $ 121,922
Granite Ridge Resources, Inc.
Summary Production and Price Data
The following table sets forth summary information concerning production and operating data for the periods indicated:
Three Months Ended December 31, Year Ended December 31,
---------------------------------------------------- ----------------------------------------------------
2025 2024 2025 2024
------------------------- ------------------------- ------------------------- -------------------------
Net Sales (in
thousands):
Oil sales $ 87,563 $ 88,730 $ 360,832 $ 327,491
Natural gas
sales 17,922 17,577 89,474 52,539
------------------------ ------------------------ ------------------------ ------------------------
Total
revenues 105,485 106,307 450,306 380,030
Net Production:
Oil (MBbl) 1,578 1,354 5,855 4,483
Natural gas
(MMcf) 9,918 7,186 34,912 27,944
------------------------ ------------------------ ------------------------ ------------------------
Total
(MBoe)(1) 3,231 2,552 11,674 9,140
Average Daily
Production:
Oil (Bbl) 17,152 14,717 16,041 12,248
Natural gas
(Mcf) 107,804 78,104 95,649 76,350
------------------------ ------------------------ ------------------------ ------------------------
Total
(Boe)(1) 35,120 27,734 31,984 24,973
Average Sales
Prices:
Oil (per Bbl) $ 55.49 $ 65.53 $ 61.63 $ 73.06
Effect of gain
on settled oil
derivatives on
average price
(per Bbl) 0.60 0.85 0.28 0.34
------------------------ ------------------------ ------------------------ ------------------------
Oil net of
settled oil
derivatives
(per Bbl) (2) 56.09 66.38 61.91 73.40
Natural gas
sales (per
Mcf) 1.81 2.45 2.56 1.88
Effect of gain
on settled
natural gas
derivatives on
average price
(per Mcf) 0.09 0.39 0.08 0.53
------------------------ ------------------------ ------------------------ ------------------------
Natural gas
sales net of
settled
natural gas
derivatives
(per Mcf) (2) 1.90 2.84 2.64 2.41
Realized price
on a Boe basis
excluding
settled
commodity
derivatives 32.65 41.66 38.57 41.58
Effect of gain
on settled
commodity
derivatives on
average price
(per Boe) 0.57 1.56 0.38 1.79
------------------------ ------------------------ ------------------------ ------------------------
Realized price
on a Boe basis
including
settled
commodity
derivatives
(2) 33.22 43.22 38.95 43.37
Operating Expenses
(in thousands):
Lease operating
expenses $ 24,949 $ 15,287 $ 84,903 $ 57,461
Production and
ad valorem
taxes 6,198 7,032 27,554 26,007
Depletion and
accretion
expense 57,897 49,847 215,701 176,529
Impairments of
long-lived
assets 44,654 35,637 44,654 36,369
General and
administrative 8,041 5,944 31,009 24,649
Costs and Expenses
(per Boe):
Lease operating
expenses $ 7.72 $ 5.99 $ 7.27 $ 6.29
Production and
ad valorem
taxes 1.92 2.76 2.36 2.85
Depletion and
accretion 17.92 19.53 18.48 19.31
Impairments of
long-lived
assets 13.82 13.96 3.83 3.98
General and
administrative 2.49 2.33 2.66 2.70
Net Producing Wells
at Period-End: 244.74 202.40 244.74 202.40
(1) Natural gas is converted to Boe using the ratio of one barrel of oil to six Mcf of natural gas.
(2) The presentation of realized prices including settled commodity derivatives is a result of including the net cash receipts
from (payments on) commodity derivatives to realized pricing. This presentation of average prices with derivatives is a means
by which to reflect the actual cash performance of our commodity derivatives for the respective periods and presents oil and
natural gas prices with derivatives in a manner consistent with the presentation generally used by the investment community.
-------------------------------------------------------------------------------------------------------------------------------
Granite Ridge Resources, Inc.
Derivatives Information
The table below provides data associated with the Company's current derivatives, for the periods
indicated:
2026 2027 2028
----------------------------------------------------------- ----------- ----------
First Second Third Fourth
Quarter Quarter Quarter Quarter Total Total Total
---------- ---------- ---------- ---------- ----------- ----------- ----------
Collars (oil)
Volume (Bbl) 733,085 1,049,430 909,612 795,038 3,487,165 961,153 --
Weighted-average
floor price
($/Bbl) $ 58.73 $ 61.32 $ 60.53 $ 59.97 $ 60.26 $ 52.50 $ --
Weighted-average
ceiling price
($/Bbl) $ 70.11 $ 70.65 $ 69.93 $ 68.53 $ 69.87 $ 74.24 $ --
Swaps (oil)
Volume (Bbl) 134,684 95,082 73,484 53,974 357,224 452,936 --
Weighted-average
price ($/Bbl) $ 60.41 $ 60.33 $ 60.27 $ 60.24 $ 60.33 $ 60.21 $ --
Collars (natural
gas)
Volume (Mcf) 6,804,503 1,851,019 1,727,756 3,868,320 14,251,598 6,099,088 2,211,640
Weighted-average
floor price
($/Mcf) $ 3.62 $ 3.25 $ 3.25 $ 3.66 $ 3.54 $ 3.89 $ 3.60
Weighted-average
ceiling price
($/Mcf) $ 4.55 $ 4.00 $ 4.00 $ 4.44 $ 4.38 $ 4.97 $ 4.73
Swaps (natural
gas)
Volume (Mcf) -- 4,546,849 3,961,363 1,222,218 9,730,430 9,323,814 --
Weighted-average
price ($/Mcf) $ -- $ 3.73 $ 3.73 $ 3.73 $ 3.73 $ 3.60 $ --
Swaps (Platts
IFERC Waha)
Volume (Mcf) -- -- -- -- -- 2,540,087 $ --
Weighted-average
price ($/Mcf) $ -- $ -- $ -- $ -- $ -- $ (1.08) $ --
Granite Ridge Resources, Inc.
Supplemental Non-GAAP Financial Measures
The Company reports its financial results in accordance with GAAP. However, the Company believes certain non-GAAP performance measures may provide financial statement users with additional meaningful comparisons between current results, the results of its peers and the results of prior periods. In addition, the Company believes these measures are used by analysts and others in the valuation, rating and investment recommendations of companies within the oil and natural gas exploration and production industry. See the reconciliations throughout this release of GAAP financial measures to non-GAAP financial measures for the periods indicated.
Reconciliation of Net Income to Adjusted EBITDAX
Adjusted EBITDAX is presented herein and reconciled from the GAAP measure of net income because of its wide acceptance by the investment community as a financial indicator.
The Company defines Adjusted EBITDAX as net income before depletion and accretion expense, unrealized (gain) loss on derivatives -- commodity derivatives, interest expense, non-cash stock-based compensation, income tax expense, impairment of long-lived assets, (gain) loss on equity investments and other, net. Adjusted EBITDAX is not a measure of net income or cash flows as determined by GAAP.
The Company's Adjusted EBITDAX measure provides additional information that may be used to better understand the Company's operations. Adjusted EBITDAX is one of several metrics that the Company uses as a supplemental financial measurement in the evaluation of its business and should not be considered in isolation or as an alternative to, or more meaningful than, net income as an indicator of operating performance. Certain items excluded from Adjusted EBITDAX are significant components in understanding and assessing a company's financial performance, such as a company's cost of capital and tax structure, as well as the historic cost of depreciable and depletable assets. Adjusted EBITDAX, as used by the Company, may not be comparable to similarly titled measures reported by other companies. The Company believes that Adjusted EBITDAX is a widely followed measure of operating performance and is one of many metrics used by the Company's management team and by other users of the Company's consolidated financial statements. For example, Adjusted EBITDAX can be used to assess the Company's operating performance and return on capital in comparison to other independent exploration and production companies without regard to financial or capital structure, and to assess the financial performance of the Company's assets and the Company without regard to capital structure or historical cost basis.
The following table provides a reconciliation of the GAAP measure of net income to Adjusted EBITDAX for the periods indicated:
Three Months Ended Year Ended December
December 31, 31,
-------------------- ----------------------
(in thousands) 2025 2024 2025 2024
------- ------- ------- -------
Net income (loss) $(25,063) $(11,622) $ 24,353 $ 18,759
Interest
expense,
net 8,502 4,673 25,500 18,470
Income tax
expense
(benefit) (7,665) (4,638) 7,761 6,207
Other, net 185 (524) 65 (241)
Depletion and
accretion
expense 57,897 49,847 215,701 176,529
Non-cash
stock-based
compensation 1,369 615 3,756 2,298
Impairments
of
long-lived
assets 44,654 35,637 44,654 36,369
Unrealized
(gain) loss
on
derivatives
- commodity
derivatives (10,996) 12,777 (22,662) 17,271
(Gain) loss
on equity
investments 615 (4,132) 15,833 15,183
------- ------- ------- -------
Adjusted EBITDAX $ 69,498 $ 82,633 $314,961 $290,845
======= ======= ======= =======
Reconciliation of Debt to Net Debt
The Company provides Net Debt, which is a non-GAAP financial measure. The Company defines Net Debt as current portion of long-term debt, long-term debt, net, less cash as of the balance sheet date. The Company's Net Debt to Adjusted EBITDAX provides investors with insight into the Company's leverage as of the measurement date.
The following table provides a reconciliation from the GAAP measure of Debt to Net Debt and Net Debt to Adjusted EBITDAX ratio:
December 31,
(in thousands except for ratio) 2025
Current portion of long-term debt $ 17,500
Long-term debt, net 367,832
Cash (14,846)
---------
Net Debt $ 370,486
=========
Net Debt to Adjusted EBITDAX ratio 1.2
Reconciliation of Net Income to Adjusted Net Income and Adjusted Earnings Per Share
The Company provides Adjusted Net Income and Adjusted Earnings Per Share, which are non-GAAP financial measures. Adjusted Net Income and Adjusted Earnings Per Share represent earnings and diluted earnings per share determined under GAAP without regard to certain non-cash and nonrecurring items. The Company defines Adjusted Net Income as net income as determined under GAAP excluding impairments of long-lived assets, unrealized (gain) loss on derivatives - commodity derivatives, (gain) loss on equity investments, deferred finance cost amortization acceleration, nonrecurring general and administrative expenses - severance costs, nonrecurring general and administrative expenses - capital markets transaction costs, and tax impact on above adjustments.
The Company defines Adjusted Earnings Per Share as Adjusted Net Income divided by weighted average number of diluted shares of common stock outstanding.
The Company believes these measures provide useful information to analysts and investors for analysis of its operating results on a recurring, comparable basis from period to period. Adjusted Net Income and Adjusted Earnings Per Share should not be considered in isolation or as a substitute for earnings or diluted earnings per share as determined in accordance with GAAP and may not be comparable to other similarly titled measures of other companies.
The following table provides a reconciliation from the GAAP measure of net income to Adjusted Net Income, both in total and on a per diluted share basis, for the periods indicated:
Three Months Ended Year Ended December
December 31, 31,
-------------------- ----------------------
(in thousands,
except share data) 2025 2024 2025 2024
------- ------- ------- -------
Net income (loss) $(25,063) $(11,622) $ 24,353 $ 18,759
Impairments of
long-lived
assets 44,654 35,637 44,654 36,369
Unrealized
(gain) loss on
derivatives -
commodity
derivatives (10,996) 12,777 (22,662) 17,271
(Gain) loss on
equity
investments 615 (4,132) 15,833 15,183
Deferred
finance cost
amortization
acceleration -- -- -- 2,167
Nonrecurring
general and
administrative
expenses -
severance
costs -- -- 1,757 --
Nonrecurring
general and
administrative
expenses -
capital
markets
transaction
costs (11) -- 1,501 --
Tax impact on
above
adjustments
(a) (7,685) (9,963) (9,215) (15,973)
------- ------- ------- -------
Adjusted Net Income $ 1,514 $ 22,697 $ 56,221 $ 73,776
======= ======= ======= =======
Earnings per
diluted share - as
reported $ (0.19) $ (0.09) $ 0.18 $ 0.14
Impairments of
long-lived
assets 0.34 0.27 0.34 0.28
Unrealized
(gain) loss on
derivatives -
commodity
derivatives (0.08) 0.10 (0.17) 0.13
(Gain) loss on
equity
investments -- (0.03) 0.12 0.12
Deferred
finance cost
amortization
acceleration -- -- -- 0.02
Nonrecurring
general and
administrative
expenses -
severance
costs -- -- 0.01 --
Nonrecurring
general and
administrative
expenses -
capital markets
transaction
costs -- -- 0.01 --
Tax impact on
above
adjustments
(a) (0.06) (0.08) (0.06) (0.12)
------- ------- ------- -------
Adjusted Earnings
Per Diluted Share $ 0.01 $ 0.17 $ 0.43 $ 0.57
======= ======= ======= =======
Adjusted earnings
per share:
Basic earnings $ 0.01 $ 0.17 $ 0.43 $ 0.57
Diluted
earnings $ 0.01 $ 0.17 $ 0.43 $ 0.57
------------------- ------- ------- ------- -------
(a) Estimated using statutory tax rate in effect for the period.
-----------------------------------------------------------------
View source version on businesswire.com: https://www.businesswire.com/news/home/20260305081975/en/
CONTACT:
INVESTOR RELATIONS AND MEDIA CONTACT: IR@GraniteRidge.com -- (214) 396-2850
(END) Dow Jones Newswires
DALLAS--(BUSINESS WIRE)--March 05, 2026--
Granite Ridge Resources, Inc. (NYSE: GRNT) ("Granite Ridge" or the "Company") today reported financial and operating results for the fourth quarter and full-year 2025 and provided initial guidance for 2026.
Fourth Quarter 2025 Highlights
-- Increased total production by 27% to 35,120 Boe/day (49% oil) including
a 17% increase in oil production
-- Reported net loss of $25.1 million, or $(0.19) per share, and Adjusted
Net Income (non-GAAP) of $1.5 million, or $0.01 Adjusted Earnings Per
Diluted Share (non-GAAP)
-- Generated Adjusted EBITDAX (non-GAAP) of $69.5 million
-- Invested $127.5 million of capital, placing online 67 gross (10.50 net)
wells
-- Declared a dividend of $0.11 per share
-- Ended the year with total liquidity of $339.5 million and Net Debt to
Adjusted EBITDAX of 1.2x
See "Supplemental Non-GAAP Financial Measures" below for descriptions of the above non-GAAP measures as well as a reconciliation of these measures to the associated GAAP (as defined herein) measures.
Tyler Farquharson, President and CEO of Granite Ridge, commented, "Granite Ridge continued its evolution in 2025 from a traditional non-operated production company to a capital allocator focused on controlled, short-cycle development through Operated Partnerships. This strategic shift has resulted in greater control over development timing, and increased deal flow and exposure to high-quality resource in the Permian Basin. We have executed over fifty of these transactions and added approximately 100 net locations since the program began in 2023.
"For the year, we grew production 28% to an average of 32,000 Boe per day while investing $279 million in development capital. Our strategy remains straightforward: underwrite projects to 25% full-cycle returns at strip pricing, compound production and cash flow growth, and protect downside through disciplined leverage.
"In 2025, we added 331 gross, 77.2 net, locations for $122 million across both the Operated Partnership and non-operated portfolio. In the Permian Basin, we acquired 59.3 Operated Partnership net wells at $1.4 million per location. By underwriting transactions on a unit-by-unit basis at strip pricing, we moderate commodity price volatility and avoid execution and valuation risk associated with large-format acquisitions.
"Our 2026 guidance reflects the benefits of increased scale. Production growth is moderating and development capital expenditures align closely with expected cash flow.
"We remain committed to disciplined capital allocation, operational execution through our partners, and returning capital to shareholders. The scalability and resilience of our platform position Granite Ridge to generate durable shareholder value through disciplined growth and capital returns across commodity cycles."
Financial Results
Net loss for the quarter was $25.1 million, or $(0.19) per share of common stock. Excluding non-cash and special items, Adjusted Net Income (non-GAAP) was $1.5 million for the quarter, or $0.01 per diluted share of common stock. Adjusted EBITDAX (non-GAAP) and cash flow from operating activities for the quarter totaled $69.5 million and $64.5 million, respectively.
Net income for the year was $24.4 million or $0.18 per diluted share of common stock. Excluding non-cash and special items, Adjusted Net Income (non-GAAP) was $56.2 million or $0.43 per diluted share of common stock. Adjusted EBITDAX (non-GAAP) and cash flow from operating activities for the year totaled $315.0 million and $296.4 million, respectively.
Production Results
Total production for the quarter increased 27% from the prior year quarter to 35,120 Boe per day (49% oil), including a 17% increase in oil production to 17,152 barrels ("Bbls") per day. Natural gas production for the quarter totaled 107,804 thousand cubic feet of natural gas ("Mcf") per day.
Total production for the year increased 28% to 31,984 Boe per day (50% oil), including a 31% increase in oil production to 16,041 Bbls per day. Natural gas production for the year totaled 95,649 Mcf per day.
Oil, Natural Gas and Related Product Sales
During the quarter, NYMEX West Texas Intermediate ("WTI") crude oil averaged $59.64 per Bbl, and NYMEX natural gas at Henry Hub averaged $3.75 per Mcf. The Company's average realized price for oil and natural gas, excluding the effect of commodity derivatives, was $55.49 per Bbl (a $4.15 differential to WTI) and $1.81 per Mcf (a 48% realization of Henry Hub), respectively.
Operating Costs
Lease operating expenses were $24.9 million for the quarter, or $7.72 per Boe, a 29% increase on a per unit basis compared to the prior year quarter. Production and ad valorem taxes were $6.2 million for the quarter, or 5.9% of oil and natural gas sales. During the quarter general and administrative ("G&A") costs totaled $8.0 million, inclusive of $1.4 million of non-cash stock-based compensation.
Lease operating expenses were $84.9 million for the year, or $7.27 per Boe, an 16% increase on a per unit basis compared to the prior year. Production and ad valorem taxes were $27.6 million for the year, or 6.1% of oil and natural gas sales. G&A costs for the year totaled $31.0 million, inclusive of $3.8 million of non-cash stock-based compensation.
Capital Expenditures and Operational Activity
Capital expenditures for the quarter were $127.5 million comprised of $66.4 million of drilling and completion ("D&C") capital and $61.1 million of property acquisition costs. Total 2025 capital expenditures were $401.0 million comprised of $279.0 million of D&C capital and $122.0 million of property acquisition costs.
The table below provides capital expenditures incurred for oil and natural gas producing activities for the periods indicated:
Three Months Ended Year Ended
December 31, December 31,
---------------------- ------------------
(in thousands) 2025 2024 2025 2024
------------ -------- -------- --------
Property acquisition
costs:
Proved $ 606 $ 612 $ 14,754 $ 3,436
Unproved 60,445 9,207 107,239 60,721
Development costs 66,400 83,522 278,993 290,283
-------- ------- ------- -------
Total costs
incurred for oil
and natural gas
properties $ 127,451 $ 93,341 $400,986 $354,440
======== ======= ======= =======
The table below provides a summary of gross and net wells completed and put on production for the three months and year ended December 31, 2025:
Three Months Ended Twelve Months Ended
December 31, 2025 December 31, 2025
-------------------- ---------------------
Gross Net Gross Net
---------- -------- ----------- --------
Permian 35 7.5 148 31.8
Eagle Ford -- -- 7 0.5
Bakken 4 0.1 14 0.3
Haynesville 2 0.7 14 1.9
DJ 7 0.8 79 1.4
Appalachian 19 1.4 60 2.5
---------- -------- ----------- --------
Total 67 10.5 322 38.4
========== ======== =========== ========
On December 31, 2025, the Company had 137 gross (12.18 net) wells for which drilling was either in-progress or were pending completion.
Liquidity and Capital Resources
As of December 31, 2025, Granite Ridge had $350.0 million of principal debt outstanding on 8.875% senior unsecured notes and $50.0 million of debt outstanding under our senior secured revolving credit agreement (as amended, the "Credit Agreement"). We had $339.5 million of liquidity as of December 31, 2025, consisting of $324.7 million of committed borrowing availability under the Credit Agreement and $14.8 million of cash on hand.
2025 Proved Reserves
As of December 31, 2025, Granite Ridge's estimated proved reserves totaled 62,347 MBoe, compared to 54,315 MBoe as of December 31, 2024. The Company's proved reserves are approximately 49% oil and 51% natural gas. Proved developed reserves totaled 47,525 MBoe, or 76% of total proved reserves. The table below provides a summary of changes in total proved reserves for the year ended December 31, 2025, as well as the proved developed reserves balance at the beginning and end of the year.
Oil Natural Gas
(MBbl) (MMcf) MBoe
------- ----------- ----------
Proved developed and undeveloped
reserves at December 31, 2024 28,187 156,769 54,315
Revisions of previous estimates (3,089) 13,494 (840)
Extensions and discoveries 5,727 37,612 11,996
Acquisition of reserves 5,603 17,680 8,550
Production (5,855) (34,912) (11,674)
------ ---------- -------
Proved developed and undeveloped
reserves at December 31, 2025 30,573 190,643 62,347
------ ---------- -------
Oil Natural Gas
(MBbl) (MMcf) MBoe
------- ----------- ------
Proved developed reserves:
December 31, 2024 19,269 118,103 38,953
December 31, 2025 21,498 156,161 47,525
Proved undeveloped reserves:
December 31, 2024 8,918 38,666 15,362
December 31, 2025 9,075 34,482 14,822
2026 Guidance
The Company's initial 2026 guidance anticipates approximately 34,000 to 36,000 Boe per day of production for 2026, an increase at the midpoint of approximately 9% from 2025.
The following table summarizes the Company's operational and financial guidance for 2026.
2026 Guidance
---------------
Annual production (Boe per day) 34,000 - 36,000
Oil production (% of total production) 50% - 52%
Acquisitions ($ in millions) $20 - $30
Development capital expenditures ($ in millions) $300 - $330
Total capital expenditures ($ in millions) $320 - $360
Lease operating expenses (per Boe) $6.75 - $7.75
Production and ad valorem taxes (% of total revenue) 6% - 7%
Cash general and administrative expense ($ in millions) $25 - $27
Conference Call
Granite Ridge will host a webcast and conference call on Friday, March 6, 2026, at 10:00 AM central time to discuss its fourth quarter and full-year 2025 financial and operating results. A brief Q&A session for security analysts will immediately follow the discussion.
The details are as follows:
When: Friday, March 6, 2026, at 10:00 a.m. CT
Where: https://ir.graniteridge.com
Webcast: To access the webcast, please go to this
link: Registration Link
Dial-in / Q&A Participation: If you would like to access the call by
phone or to participate in the Q&A, please
register here: Q&A Registration Link. You
will be provided with dial-in details. To
avoid delays, we encourage participants to
dial into the conference fifteen minutes
ahead of the scheduled start time.
Upcoming Investor Events
Granite Ridge management will also be participating in the following upcoming investor event:
-- Piper Sandler Energy Conference - March 17, 2026
Any investor presentations to be used for such events will be posted prior to the respective event on Granite Ridge's website. Information on Granite Ridge's website does not constitute a portion of, and is not incorporated by reference into this press release.
About Granite Ridge
Granite Ridge is a scaled energy company which aims to provide shareholders with exposure similar to energy private equity through operated partnerships and traditional non-operated assets. We own assets in six prolific unconventional basins across the United States. We aim to deliver a diversified portfolio with best-in-class full cycle returns by investing in a large number of high-graded deals developed by proven public and private operators. We focus on success as measured by total shareholder returns, which we seek to balance with a low leverage profile. For more information, visit Granite Ridge's website at www.graniteridge.com.
Forward-Looking Statements and Cautionary Statements
This press release contains forward-looking statements regarding future events and future results that are subject to the safe harbors created under the Securities Act of 1933, as amended, and the Securities Exchange Act of 1934, as amended. All statements other than statements of historical facts included in this press release regarding, without limitation, Granite Ridge's 2026 outlook, financial position, operating and financial performance, business strategy, plans and objectives of management for future operations, industry conditions, and indebtedness covenant compliance are forward-looking statements. When used in this release, forward-looking statements are generally accompanied by terms or phrases such as "estimate," "project," "predict," "believe," "expect, " "continue," "anticipate," "target," "could," "plan," "intend," "seek," "goal," "will," "should," "may" or other words and similar expressions that convey the uncertainty of future events or outcomes. Items contemplating or making assumptions about actual or potential future production and sales, market size, collaborations, cash flows, and trends or operating results also constitute such forward-looking statements.
Forward-looking statements involve inherent risks and uncertainties, and important factors (many of which are beyond Granite Ridge's control) that could cause actual results to differ materially from those set forth in the forward-looking statements, including the following: changes in Granite Ridge's strategy, future operations, financial position, estimated revenues and losses, projected costs, prospects and plans, changes in current or future commodity prices and interest rates, supply chain disruptions, infrastructure constraints and related factors affecting our properties, ability to acquire additional development opportunities and potential or pending acquisition transactions, as well as the effects of such acquisitions on the Company's cash position and levels of indebtedness, changes in reserves estimates or the value thereof, operational risks including, but not limited to, the pace of drilling and completions activity on our properties, changes in the markets in which Granite Ridge competes, geopolitical risk and changes in applicable laws, legislation, or regulations, including those relating to environmental matters, cyber-related risks, the fact that reserve estimates depend on many assumptions that may turn out to be inaccurate and that any material inaccuracies in reserve estimates or underlying assumptions will materially affect the quantities and present value of the Granite Ridge's reserves, the outcome of any known and unknown litigation and regulatory proceedings, limited liquidity and trading of Granite Ridge's securities, acts of war, terrorism or uncertainty regarding the effects and duration of global hostilities, including the Israel-Hamas conflict, the Russia-Ukraine war, the joint U.S.-Israel strikes on Iran, continued instability in the Middle East, and any associated armed conflicts or related sanctions which may disrupt commodity prices and create instability in the financial markets, and market conditions and global, regulatory, technical, and economic factors beyond Granite Ridge's control, including the potential adverse effects of world health events, affecting capital markets, general economic conditions, global supply chains and Granite Ridge's business and operations, increasing regulatory and investor emphasis on, and attention to, environmental, social and governance matters, Granite Ridge's ability to establish and maintain effective internal control over financial reporting, and the other risks described under the heading "Item 1A. Risk Factors" in Granite Ridge's Annual Report on Form 10-K for the year ended December 31, 2025 to be filed with the Securities and Exchange Commission ("SEC"), as updated by any subsequent Quarterly Reports on Form 10-Q, which Granite Ridge files with the SEC.
Granite Ridge has based these forward-looking statements on its current expectations and assumptions about future events. While management considers these expectations and assumptions to be reasonable, they are inherently subject to significant business, economic, competitive, regulatory and other risks, contingencies and uncertainties, most of which are difficult to predict and many of which are beyond Granite Ridge's control. If one or more of these risks or uncertainties materialize, or if the underlying assumptions prove incorrect, our actual results may vary materially from those expected or projected. Granite Ridge does not undertake any duty to update or revise any forward-looking statements, except as may be required by the federal securities laws.
Use of Non-GAAP Financial Measures
To supplement the presentation of the Company's financial results prepared in accordance with U.S. Generally Accepted Accounting Principles ("GAAP"), this press release contains certain financial measures that are not prepared in accordance with GAAP, including Adjusted Net Income, Adjusted Earnings Per Share, Adjusted EBITDAX, and Net Debt.
See "Supplemental Non-GAAP Financial Measures" below for a description and reconciliation of each non-GAAP measure presented in this press release to the most directly comparable financial measure calculated in accordance with GAAP.
Granite Ridge Resources, Inc.
Consolidated Balance Sheets
(Unaudited)
December 31,
--------------------------
(in thousands, except par value and share
data) 2025 2024
--------- ---------
ASSETS
Current assets:
Cash $ 14,846 $ 9,419
Revenue receivable 74,166 69,692
Advances to operators 2,682 19,959
Prepaid and other current assets 2,251 3,831
Derivative assets - commodity
derivatives 13,978 537
Equity investments 10,960 31,783
--------- ---------
Total current assets 118,883 135,221
--------- ---------
Property and equipment:
Oil and gas properties, successful
efforts method 1,897,388 1,540,021
Accumulated depletion (857,832) (643,051)
--------- ---------
Total property and equipment, net 1,039,556 896,970
--------- ---------
Long-term assets:
Derivative assets - commodity
derivatives 3,743 --
Other long-term assets 5,889 4,288
--------- ---------
Total long-term assets 9,632 4,288
--------- ---------
Total assets $1,168,071 $1,036,479
========= =========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable and accrued
liabilities $ 76,847 $ 99,440
Current portion of long-term debt 17,500 --
Other liabilities 810 546
Derivative liabilities - commodity
derivatives 24 1,822
--------- ---------
Total current liabilities 95,181 101,808
--------- ---------
Long-term liabilities:
Long-term debt, net 367,832 205,000
Derivative liabilities - commodity
derivatives -- 3,679
Asset retirement obligations 11,968 10,693
Deferred tax liability 87,330 79,946
--------- ---------
Total long-term liabilities 467,130 299,318
--------- ---------
Total liabilities 562,311 401,126
--------- ---------
Stockholders' Equity:
Common stock, $0.0001 par value,
431,000,000 shares authorized,
136,941,978 and 136,417,677 issued at
December 31, 2025 and 2024,
respectively 14 14
Additional paid-in capital 659,228 655,472
Retained earnings (17,286) 16,047
Treasury stock, at cost, 5,686,711 and
5,683,921 shares at December 31, 2025
and 2024, respectively (36,196) (36,180)
--------- ---------
Total stockholders' equity 605,760 635,353
--------- ---------
Total liabilities and stockholders' equity $1,168,071 $1,036,479
========= =========
Granite Ridge Resources, Inc.
Consolidated Statements of Operations
(Unaudited)
Three Months Ended Year Ended December
December 31, 31,
-------------------- ----------------------
(in thousands,
except per share
data) 2025 2024 2025 2024
------- ------- ------- -------
Revenues:
Oil and natural
gas sales $105,485 $106,307 $450,306 $380,030
------- ------- ------- -------
Operating costs and
expenses:
Lease operating
expenses 24,949 15,287 84,903 57,461
Production and
ad valorem
taxes 6,198 7,032 27,554 26,007
Depletion and
accretion
expense 57,897 49,847 215,701 176,529
Impairments of
long-lived
assets 44,654 35,637 44,654 36,369
General and
administrative 8,041 5,944 31,009 24,649
Other, net 185 (524) 65 (241)
------- ------- ------- -------
Total operating
costs and
expenses 141,924 113,223 403,886 320,774
------- ------- ------- -------
Net operating
income (loss) (36,439) (6,916) 46,420 59,256
------- ------- ------- -------
Other income
(expense):
Gain (loss) on
derivatives -
commodity
derivatives 12,829 (8,803) 27,121 (908)
Interest
expense, net (8,502) (4,673) (25,500) (18,470)
Gain (loss) on
equity
investments (615) 4,132 (15,833) (15,183)
Other income
(expense) (1) -- (94) 271
------- ------- ------- -------
Total other
income
(expense) 3,711 (9,344) (14,306) (34,290)
------- ------- ------- -------
Income (loss)
before income
taxes (32,728) (16,260) 32,114 24,966
Income tax
expense
(benefit) (7,665) (4,638) 7,761 6,207
------- ------- ------- -------
Net income (loss) $(25,063) $(11,622) $ 24,353 $ 18,759
======= ======= ======= =======
Net income (loss)
per share:
Basic $ (0.19) $ (0.09) $ 0.18 $ 0.14
Diluted $ (0.19) $ (0.09) $ 0.18 $ 0.14
Weighted-average
number of shares
outstanding:
Basic 130,476 130,210 130,439 130,189
Diluted 130,476 130,210 130,501 130,227
Granite Ridge Resources, Inc.
Consolidated Statements of Cash Flows
(Unaudited)
Year Ended December 31,
-----------------------------
(in thousands) 2025 2024
--------- ---------
Operating activities:
Net income $ 24,353 $ 18,759
Adjustments to reconcile net income to
net cash provided by operating
activities:
Depletion and accretion expense 215,701 176,529
Impairments of long-lived assets 44,654 36,369
Unrealized (gain) loss on derivatives
- commodity derivatives (22,662) 17,271
Stock-based compensation 3,756 2,298
Amortization of deferred financing
costs and original issue discount 2,208 3,540
(Gain) loss on equity investments 15,833 15,183
Deferred income taxes 7,383 5,958
Other (359) (1,034)
Increase (decrease) in cash
attributable to changes in operating
assets and liabilities:
Revenue receivable (4,449) 3,288
Accounts payable and accrued
liabilities 9,561 (1,153)
Prepaid and other current assets 693 (1,228)
Other liabilities (258) (47)
--------- ---------
Net cash provided by operating activities 296,414 275,733
Investing activities:
Capital expenditures for oil and
natural gas properties (300,768) (285,796)
Acquisition of oil and natural gas
properties (118,491) (61,197)
Deposit on acquisition -- (887)
Refund of advances to operators 4,285 19,655
Proceeds from the disposal of oil and
natural gas properties 175 13,995
Proceeds from the sale of equity
investments 4,991 3,462
--------- ---------
Net cash used in investing activities (409,808) (310,768)
Financing activities:
Proceeds from borrowing on credit
facilities 190,000 110,000
Repayments of borrowing on credit
facilities (345,000) (15,000)
Proceeds from senior notes, net of
discount 336,000 --
Deferred financing costs (4,477) (3,340)
Purchase of treasury shares (16) (442)
Payment of dividends (57,686) (57,494)
--------- ---------
Net cash provided by financing activities 118,821 33,724
Net change in cash 5,427 (1,311)
Cash at beginning of year 9,419 10,730
--------- ---------
Cash at end of year $ 14,846 $ 9,419
========= =========
Supplemental disclosure of cash flow
information:
Cash paid during the year for
interest, net of capitalized
interest $ (24,748) $ (14,472)
Cash paid during the year for income
taxes, net of refunds $ (549) $ (197)
Supplemental disclosure of non-cash
investing activities:
Change in accrued capital
expenditures included in accounts
payable and accrued liabilities $ (10,900) $ 36,736
Advances to operators applied to
development of oil and natural gas
properties $ 150,692 $ 121,922
Granite Ridge Resources, Inc.
Summary Production and Price Data
The following table sets forth summary information concerning production and operating data for the periods indicated:
Three Months Ended December 31, Year Ended December 31,
---------------------------------------------------- ----------------------------------------------------
2025 2024 2025 2024
------------------------- ------------------------- ------------------------- -------------------------
Net Sales (in
thousands):
Oil sales $ 87,563 $ 88,730 $ 360,832 $ 327,491
Natural gas
sales 17,922 17,577 89,474 52,539
------------------------ ------------------------ ------------------------ ------------------------
Total
revenues 105,485 106,307 450,306 380,030
Net Production:
Oil (MBbl) 1,578 1,354 5,855 4,483
Natural gas
(MMcf) 9,918 7,186 34,912 27,944
------------------------ ------------------------ ------------------------ ------------------------
Total
(MBoe)(1) 3,231 2,552 11,674 9,140
Average Daily
Production:
Oil (Bbl) 17,152 14,717 16,041 12,248
Natural gas
(Mcf) 107,804 78,104 95,649 76,350
------------------------ ------------------------ ------------------------ ------------------------
Total
(Boe)(1) 35,120 27,734 31,984 24,973
Average Sales
Prices:
Oil (per Bbl) $ 55.49 $ 65.53 $ 61.63 $ 73.06
Effect of gain
on settled oil
derivatives on
average price
(per Bbl) 0.60 0.85 0.28 0.34
------------------------ ------------------------ ------------------------ ------------------------
Oil net of
settled oil
derivatives
(per Bbl) (2) 56.09 66.38 61.91 73.40
Natural gas
sales (per
Mcf) 1.81 2.45 2.56 1.88
Effect of gain
on settled
natural gas
derivatives on
average price
(per Mcf) 0.09 0.39 0.08 0.53
------------------------ ------------------------ ------------------------ ------------------------
Natural gas
sales net of
settled
natural gas
derivatives
(per Mcf) (2) 1.90 2.84 2.64 2.41
Realized price
on a Boe basis
excluding
settled
commodity
derivatives 32.65 41.66 38.57 41.58
Effect of gain
on settled
commodity
derivatives on
average price
(per Boe) 0.57 1.56 0.38 1.79
------------------------ ------------------------ ------------------------ ------------------------
Realized price
on a Boe basis
including
settled
commodity
derivatives
(2) 33.22 43.22 38.95 43.37
Operating Expenses
(in thousands):
Lease operating
expenses $ 24,949 $ 15,287 $ 84,903 $ 57,461
Production and
ad valorem
taxes 6,198 7,032 27,554 26,007
Depletion and
accretion
expense 57,897 49,847 215,701 176,529
Impairments of
long-lived
assets 44,654 35,637 44,654 36,369
General and
administrative 8,041 5,944 31,009 24,649
Costs and Expenses
(per Boe):
Lease operating
expenses $ 7.72 $ 5.99 $ 7.27 $ 6.29
Production and
ad valorem
taxes 1.92 2.76 2.36 2.85
Depletion and
accretion 17.92 19.53 18.48 19.31
Impairments of
long-lived
assets 13.82 13.96 3.83 3.98
General and
administrative 2.49 2.33 2.66 2.70
Net Producing Wells
at Period-End: 244.74 202.40 244.74 202.40
(1) Natural gas is converted to Boe using the ratio of one barrel of oil to six Mcf of natural gas.
(2) The presentation of realized prices including settled commodity derivatives is a result of including the net cash receipts
from (payments on) commodity derivatives to realized pricing. This presentation of average prices with derivatives is a means
by which to reflect the actual cash performance of our commodity derivatives for the respective periods and presents oil and
natural gas prices with derivatives in a manner consistent with the presentation generally used by the investment community.
-------------------------------------------------------------------------------------------------------------------------------
Granite Ridge Resources, Inc.
Derivatives Information
The table below provides data associated with the Company's current derivatives, for the periods
indicated:
2026 2027 2028
----------------------------------------------------------- ----------- ----------
First Second Third Fourth
Quarter Quarter Quarter Quarter Total Total Total
---------- ---------- ---------- ---------- ----------- ----------- ----------
Collars (oil)
Volume (Bbl) 733,085 1,049,430 909,612 795,038 3,487,165 961,153 --
Weighted-average
floor price
($/Bbl) $ 58.73 $ 61.32 $ 60.53 $ 59.97 $ 60.26 $ 52.50 $ --
Weighted-average
ceiling price
($/Bbl) $ 70.11 $ 70.65 $ 69.93 $ 68.53 $ 69.87 $ 74.24 $ --
Swaps (oil)
Volume (Bbl) 134,684 95,082 73,484 53,974 357,224 452,936 --
Weighted-average
price ($/Bbl) $ 60.41 $ 60.33 $ 60.27 $ 60.24 $ 60.33 $ 60.21 $ --
Collars (natural
gas)
Volume (Mcf) 6,804,503 1,851,019 1,727,756 3,868,320 14,251,598 6,099,088 2,211,640
Weighted-average
floor price
($/Mcf) $ 3.62 $ 3.25 $ 3.25 $ 3.66 $ 3.54 $ 3.89 $ 3.60
Weighted-average
ceiling price
($/Mcf) $ 4.55 $ 4.00 $ 4.00 $ 4.44 $ 4.38 $ 4.97 $ 4.73
Swaps (natural
gas)
Volume (Mcf) -- 4,546,849 3,961,363 1,222,218 9,730,430 9,323,814 --
Weighted-average
price ($/Mcf) $ -- $ 3.73 $ 3.73 $ 3.73 $ 3.73 $ 3.60 $ --
Swaps (Platts
IFERC Waha)
Volume (Mcf) -- -- -- -- -- 2,540,087 $ --
Weighted-average
price ($/Mcf) $ -- $ -- $ -- $ -- $ -- $ (1.08) $ --
Granite Ridge Resources, Inc.
Supplemental Non-GAAP Financial Measures
The Company reports its financial results in accordance with GAAP. However, the Company believes certain non-GAAP performance measures may provide financial statement users with additional meaningful comparisons between current results, the results of its peers and the results of prior periods. In addition, the Company believes these measures are used by analysts and others in the valuation, rating and investment recommendations of companies within the oil and natural gas exploration and production industry. See the reconciliations throughout this release of GAAP financial measures to non-GAAP financial measures for the periods indicated.
Reconciliation of Net Income to Adjusted EBITDAX
Adjusted EBITDAX is presented herein and reconciled from the GAAP measure of net income because of its wide acceptance by the investment community as a financial indicator.
The Company defines Adjusted EBITDAX as net income before depletion and accretion expense, unrealized (gain) loss on derivatives -- commodity derivatives, interest expense, non-cash stock-based compensation, income tax expense, impairment of long-lived assets, (gain) loss on equity investments and other, net. Adjusted EBITDAX is not a measure of net income or cash flows as determined by GAAP.
The Company's Adjusted EBITDAX measure provides additional information that may be used to better understand the Company's operations. Adjusted EBITDAX is one of several metrics that the Company uses as a supplemental financial measurement in the evaluation of its business and should not be considered in isolation or as an alternative to, or more meaningful than, net income as an indicator of operating performance. Certain items excluded from Adjusted EBITDAX are significant components in understanding and assessing a company's financial performance, such as a company's cost of capital and tax structure, as well as the historic cost of depreciable and depletable assets. Adjusted EBITDAX, as used by the Company, may not be comparable to similarly titled measures reported by other companies. The Company believes that Adjusted EBITDAX is a widely followed measure of operating performance and is one of many metrics used by the Company's management team and by other users of the Company's consolidated financial statements. For example, Adjusted EBITDAX can be used to assess the Company's operating performance and return on capital in comparison to other independent exploration and production companies without regard to financial or capital structure, and to assess the financial performance of the Company's assets and the Company without regard to capital structure or historical cost basis.
The following table provides a reconciliation of the GAAP measure of net income to Adjusted EBITDAX for the periods indicated:
Three Months Ended Year Ended December
December 31, 31,
-------------------- ----------------------
(in thousands) 2025 2024 2025 2024
------- ------- ------- -------
Net income (loss) $(25,063) $(11,622) $ 24,353 $ 18,759
Interest
expense,
net 8,502 4,673 25,500 18,470
Income tax
expense
(benefit) (7,665) (4,638) 7,761 6,207
Other, net 185 (524) 65 (241)
Depletion and
accretion
expense 57,897 49,847 215,701 176,529
Non-cash
stock-based
compensation 1,369 615 3,756 2,298
Impairments
of
long-lived
assets 44,654 35,637 44,654 36,369
Unrealized
(gain) loss
on
derivatives
- commodity
derivatives (10,996) 12,777 (22,662) 17,271
(Gain) loss
on equity
investments 615 (4,132) 15,833 15,183
------- ------- ------- -------
Adjusted EBITDAX $ 69,498 $ 82,633 $314,961 $290,845
======= ======= ======= =======
Reconciliation of Debt to Net Debt
The Company provides Net Debt, which is a non-GAAP financial measure. The Company defines Net Debt as current portion of long-term debt, long-term debt, net, less cash as of the balance sheet date. The Company's Net Debt to Adjusted EBITDAX provides investors with insight into the Company's leverage as of the measurement date.
The following table provides a reconciliation from the GAAP measure of Debt to Net Debt and Net Debt to Adjusted EBITDAX ratio:
December 31,
(in thousands except for ratio) 2025
Current portion of long-term debt $ 17,500
Long-term debt, net 367,832
Cash (14,846)
---------
Net Debt $ 370,486
=========
Net Debt to Adjusted EBITDAX ratio 1.2
Reconciliation of Net Income to Adjusted Net Income and Adjusted Earnings Per Share
The Company provides Adjusted Net Income and Adjusted Earnings Per Share, which are non-GAAP financial measures. Adjusted Net Income and Adjusted Earnings Per Share represent earnings and diluted earnings per share determined under GAAP without regard to certain non-cash and nonrecurring items. The Company defines Adjusted Net Income as net income as determined under GAAP excluding impairments of long-lived assets, unrealized (gain) loss on derivatives - commodity derivatives, (gain) loss on equity investments, deferred finance cost amortization acceleration, nonrecurring general and administrative expenses - severance costs, nonrecurring general and administrative expenses - capital markets transaction costs, and tax impact on above adjustments.
The Company defines Adjusted Earnings Per Share as Adjusted Net Income divided by weighted average number of diluted shares of common stock outstanding.
The Company believes these measures provide useful information to analysts and investors for analysis of its operating results on a recurring, comparable basis from period to period. Adjusted Net Income and Adjusted Earnings Per Share should not be considered in isolation or as a substitute for earnings or diluted earnings per share as determined in accordance with GAAP and may not be comparable to other similarly titled measures of other companies.
The following table provides a reconciliation from the GAAP measure of net income to Adjusted Net Income, both in total and on a per diluted share basis, for the periods indicated:
Three Months Ended Year Ended December
December 31, 31,
-------------------- ----------------------
(in thousands,
except share data) 2025 2024 2025 2024
------- ------- ------- -------
Net income (loss) $(25,063) $(11,622) $ 24,353 $ 18,759
Impairments of
long-lived
assets 44,654 35,637 44,654 36,369
Unrealized
(gain) loss on
derivatives -
commodity
derivatives (10,996) 12,777 (22,662) 17,271
(Gain) loss on
equity
investments 615 (4,132) 15,833 15,183
Deferred
finance cost
amortization
acceleration -- -- -- 2,167
Nonrecurring
general and
administrative
expenses -
severance
costs -- -- 1,757 --
Nonrecurring
general and
administrative
expenses -
capital
markets
transaction
costs (11) -- 1,501 --
Tax impact on
above
adjustments
(a) (7,685) (9,963) (9,215) (15,973)
------- ------- ------- -------
Adjusted Net Income $ 1,514 $ 22,697 $ 56,221 $ 73,776
======= ======= ======= =======
Earnings per
diluted share - as
reported $ (0.19) $ (0.09) $ 0.18 $ 0.14
Impairments of
long-lived
assets 0.34 0.27 0.34 0.28
Unrealized
(gain) loss on
derivatives -
commodity
derivatives (0.08) 0.10 (0.17) 0.13
(Gain) loss on
equity
investments -- (0.03) 0.12 0.12
Deferred
finance cost
amortization
acceleration -- -- -- 0.02
Nonrecurring
general and
administrative
expenses -
severance
costs -- -- 0.01 --
Nonrecurring
general and
administrative
expenses -
capital markets
transaction
costs -- -- 0.01 --
Tax impact on
above
adjustments
(a) (0.06) (0.08) (0.06) (0.12)
------- ------- ------- -------
Adjusted Earnings
Per Diluted Share $ 0.01 $ 0.17 $ 0.43 $ 0.57
======= ======= ======= =======
Adjusted earnings
per share:
Basic earnings $ 0.01 $ 0.17 $ 0.43 $ 0.57
Diluted
earnings $ 0.01 $ 0.17 $ 0.43 $ 0.57
------------------- ------- ------- ------- -------
(a) Estimated using statutory tax rate in effect for the period.
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CONTACT:
INVESTOR RELATIONS AND MEDIA CONTACT: IR@GraniteRidge.com -- (214) 396-2850
(END) Dow Jones Newswires
March 05, 2026 16:19 ET (21:19 GMT)