Granite Ridge Resources Stock Earnings Reports

Granite Ridge Resources reported strong 2025 operational growth driven by a strategic shift to operated partnerships in the Permian Basin. Key metrics: production up ~27–28% YoY to ~32–35.1k BOE/d (Q4 average 35.1k BOE/d), adjusted EBITDAX of ~$70M in Q4 and $315M for FY2025, and full-year CapEx of $401M (Q4 CapEx $127.5M). The company maintained a $0.11 quarterly dividend and exited 2025 with $350M of 2029 senior notes outstanding, $50M drawn on the revolver, $339.5M liquidity, and net debt/EBITDAX ~1.2x. Strategy highlights include concentrated capital allocation to operated Permian partners (Admiral and three other teams), a repeatable unit-by-unit acquisition approach (107 transactions in 2025 for $122M), and focus on short-cycle projects underwritten to strip pricing targeting ~25% full-cycle returns. 2026 guidance: production ~34k–36k BOE/d (midpoint ~35k, ~9% growth vs. 2025), development CapEx ~$300M–$330M (total CapEx $320M–$360M including $20M–$30M of acquisitions), LOE guidance $6.75–$7.75/BOE, cash G&A $25M–$27M, and modest outspend expected at current strip. Management frames 2026 as a transition year to moderate growth and better align development capital with cash flow, with the expectation of achieving free cash flow from operations in 2027 at current strip pricing. They have added oil hedges following recent geopolitical events and executed a Conduit Power partnership (with Diamondback and Conduit Power) to improve Permian gas realizations by an estimated $1–$2/Mcf for contracted volumes. Balance-sheet discipline remains a focus (target leverage ~1.0–1.25x) while preserving optionality for further inventory capture through operator partnerships.