Granite Ridge Resources, Inc
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Range $9 – $11
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About the company
Granite Ridge Resources, Inc. oversees private investment funds, strategically directing capital towards prominent oil and natural gas formations such as the Midland, Delaware, Bakken, Eagle Ford, DJ, and Haynesville. Its core business involves the exploration and production of hydrocarbon resources.
- CEO
- Tyler S. Farquharson
- IPO
- 2020
- Employees
- 6
- HQ
- Dallas, TX, US
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Similar companies
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- Market Cap
- $677.29M
- P/E
- -24.45
- Fwd P/E
- 11.54
- PEG
- 0.11
- P/S
- 1.37
- P/B
- 1.19
- EV/EBITDA
- 7.36
- Div Yield
- 8.57%
- Gross Margin
- 27.39%
- Op Margin
- 18.78%
- Net Margin
- -5.56%
- ROE
- -4.68%
- ROIC
- 6.50%
Latest fiscal year · YoY change
- Revenue
- $450.31M+18.5%
- Gross Profit
- $122.15M+1.8%
- Op Income
- $91.14M
- Net Income
- $24.35M+29.8%
- EPS
- $0.18+28.6%
- OCF Growth
- +7.5%
- FCF Growth
- -72.4%
- 52W High
- $6.14
- 52W Low
- $4.18
- 50D MA
- $4.72
- 200D MA
- $5.05
- Beta
- 0.17
- RSI (14)
- 60
- Avg Volume
- 909.38K
Earnings call summaries
Pick a quarter — each call distilled into takeaways, results, and a bull vs bear read.
Granite Ridge said 2026 is still the final outspend year before a 2027 free cash flow inflection, with higher volumes, improving gas realizations, and strong inventory additions supporting the plan.· August 7, 2026
- Production was 32,044 BOE/d, with 51% oil, and Adjusted EBITDAX was $79.6 million.
- Net income was $30 million, or $0.23 per diluted share, versus $0.19 a year ago; Adjusted EBITDAX rose from $75.4 million a year ago.
- LOE came in above plan again at $30 million, or $10.27 per BOE, so full-year LOE guidance was raised to $8.25 to $9.25 per BOE.
- The company closed 27 transactions for $28 million including future carry obligations and added 21.9 net undeveloped locations.
- Management reiterated that 2026 is the last planned outspend year and that 2027 should bring free cash flow inflection, aided by lower hedged losses and better Waha basis.
Oil and natural gas sales were $149.3 million. GAAP net income was $30 million, or $0.23 per diluted share, compared with $0.19 a year ago. Adjusted net income was $11.1 million, or $0.09 per diluted share. Adjusted EBITDAX was $79.6 million, up from $75.4 million a year ago. Cash flow from operations was $55.6 million, or $69.5 million before working capital changes. Production was 32,044 BOE/d, 51% oil. LOE was $30 million, or $10.27 per BOE, versus $9.57 per BOE in Q1; first-half LOE was $9.91 per BOE. G&A was $9.2 million, or $3.14 per BOE, and production and ad valorem taxes were $9.3 million, or 6% of sales. The company invested $78.5 million in drilling and completions capital and $16.7 million of acquisition capital, with total committed capital of about $28 million including roughly $11 million of expected carry. It ended the quarter with $44.1 million of cash, $125 million drawn on the revolver, $350 million of senior unsecured notes outstanding, and net debt of $418 million, with leverage at approximately 1.4x. For the second half, management expects production to step up modestly in Q3 and more meaningfully in Q4, with oil around 52% of the mix, and said full-year volumes should land toward the lower end of guidance due to timing shifts. On gas, management said Q2 was likely the low point, with Q3 gas sales expected to be north of $30 million before hedged settlements if basis holds where it is today. Full-year LOE guidance was raised to $8.25 to $9.25 per BOE.
Tyler Farquharson framed the quarter as another step toward Granite Ridge’s 2027 free cash flow inflection, saying every dollar invested in 2026 is building toward that outcome. He emphasized the Operated Partnership model as the company’s core advantage because it combines proprietary sourcing, control over capital and timing, and access to high-return inventory that does not come through auction. His tone was confident but disciplined, stressing that the company can flex spending up or down depending on commodity prices while still protecting the dividend and balance sheet.
Kyle Kettler focused on the financials, citing $149.3 million of oil and gas sales, $79.6 million of Adjusted EBITDAX, and $55.6 million of operating cash flow. He highlighted LOE pressure at $10.27 per BOE in the quarter and said guidance was increased to $8.25 to $9.25 per BOE for the year, while also noting that per-unit costs should improve as new volumes ramp and as operational issues around Waha and early-life pads ease. He also reviewed capital deployment, including $78.5 million of D&C spend, $16.7 million of acquisition capital, $44.1 million of cash, $418 million of net debt, and leverage of about 1.4x, underscoring that the balance sheet still gives the company flexibility.
Analysts pressed on what underpins the 2027 free cash flow inflection and what oil price is needed; management said the framework assumes about $65 oil, with Tyler citing a path to a 10% free cash flow yield, 1.25x dividend coverage, leverage around 1.25x, and high-single-digit production growth. Questions also focused on how quickly operated activity can flex and how inventory capture changes once free cash flow arrives; management said upside activity can be accelerated quickly by pulling forward inventory or adding a rig, while downside spend can be reduced below maintenance capital if needed. Analysts asked about LOE and the impact of first-quarter MVC write-offs, and management said Q1 had the write-off while Q2 did not, with the higher LOE driven by water handling, early-life costs, and denominator effects from shut-ins tied to weak Waha pricing.
The company believes its operated partnership engine is still delivering proprietary, high-return inventory at attractive entry prices, and it said the sourcing funnel and conversion rates remained strong in the first half. Management also pointed to improving gas takeaway, hedges through Q1 2028, and a growing production base that should support a 2027 free cash flow step-up while preserving the dividend.
The main near-term headwinds were higher-than-planned LOE and weak Permian gas realizations from Waha basis weakness, with management acknowledging Q2 was likely the low point but not declaring the problem solved. The company also expects 2026 to remain an outspend year, and it noted that full-year volumes may end toward the lower end of guidance due to timing shifts. Grey Rock’s share distribution could add selling pressure in the near term, even though management described it as a positive for liquidity and float.
AI summary of the company's earnings call · Paraphrased · Not investment advice
- Free Float
- 49.6%
- Shares Outstanding
- 131.90M
- Float Shares
- 65.39M
of shares held by institutions
157 13F filers
Buy/sell ratio 0.00. Sells can include pre-scheduled 10b5-1 plan sales, not just discretionary selling.
Top institutional holders
Largest 13F positions, with quarter-over-quarter change.
| Holder | Shares | Δ Quarter |
|---|---|---|
| Grey Rock Energy Management, LLC | 55.27M | 0 |
| Hamilton Lane Advisors LLC | 6.76M | ▼ 625.26K |
| Utah Retirement Systems | 5.24M | 0 |
| Blackrock, Inc. | 4.97M | ▲ 258.47K |
| Vanguard Group Inc | 4.62M | ▲ 146.63K |
| Dimensional Fund Advisors LP | 3.94M | ▲ 630.66K |
| American Century Companies Inc | 3.11M | ▲ 115.69K |
| Vanguard Capital Management LLC | 3.08M | ▼ 2.60K |
| Georgetown University | 3.08M | ▼ 104.11K |
| Geode Capital Management, LLC | 1.60M | ▲ 92.33K |
| Aqr Capital Management LLC | 1.53M | ▲ 508.05K |
| State Street Corp | 1.20M | ▲ 126.19K |
Held by 148 ETFs
Biggest fund positions in GRNT by dollar value.
Recent insider transactions
Who's buying, who's selling, and how much.
| Date | Insider | Type | Shares |
|---|---|---|---|
| Aug 13, 26 | Everard Michele J | buy | 1,000 |
| Aug 13, 26 | MCCARTNEY JOHN | buy | 2,000 |
| Jun 30, 26 | Miller Matthew Reade | other | 4,252 |
| Jun 12, 26 | Miller Matthew Reade | buy | 696 |
| Jun 10, 26 | MCCARTNEY JOHN | buy | 4,000 |
| Jun 9, 26 | Miller Matthew Reade | buy | 10,600 |
| May 27, 26 | Kettler Ronald Kyle | buy | 6,000 |
| May 21, 26 | MCCARTNEY JOHN | buy | 4,000 |
| May 19, 26 | MCCARTNEY JOHN | buy | 3,000 |
| May 18, 26 | Perry Griffin | buy | 100,000 |
A “Sell” may be a pre-scheduled 10b5-1 plan sale rather than a discretionary decision — read insider selling with that in mind.
Our GRNT coverage
Recent articles, reports, and earnings notes.
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