NEWS RELEASE
Granite Ridge Resources, Inc. Reports Third Quarter 2025 Results and Declares Quarterly Cash Dividend
2025-11-06
DALLAS--(BUSINESS WIRE)-- Granite Ridge Resources, Inc. ("Granite Ridge" or the "Company") (NYSE: GRNT) today reported nancial and operating results for the third quarter of 2025.
Third Quarter 2025 Highlights
unsecured notes at 96.0% of par with a stated maturity of November 5, 2029.
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 de ned herein) measures.
Tyler Farquharson, President and CEO of Granite Ridge, commented, "Granite Ridge delivered another quarter of strong execution and disciplined growth, demonstrating the consistency of our model and the strength of our diversi ed portfolio. Our Operated Partnership platform continues to perform well, highlighted by Admiral Permian Resources and other key partners who are driving operational excellence and capital e ciency across our portfolio.
"Subsequent to quarter end, we further strengthened our balance sheet through proactive re nancing that enhanced our liquidity and extended our nancial runway heading into 2026. These actions re ect our continued commitment to maintaining a conservative capital structure and ensuring the exibility to pursue high-return opportunities while delivering consistent cash returns to shareholders.
"As we look ahead to 2026, Granite Ridge is well positioned to build on this momentum. Our Operated Partnerships provide a repeatable path to growth, our non-operated portfolio continues to generate steady cash ow, and our
nancial strength enables us to create long-term value for shareholders through commodity cycles."
Financial Results
Oil and natural gas sales for the third quarter of 2025 were $112.7 million. Net income was $14.5 million, or $0.11 per diluted share. Excluding non-cash and special items, Adjusted Net Income (non-GAAP) was $11.8 million, or
$0.09 per diluted share.
Adjusted EBITDAX (non-GAAP) for the third quarter of 2025 totaled $78.6 million compared to $75.4 million for the third quarter of 2024. Cash ow from operating activities was $77.8 million, including $4.7 million in working capital changes. Operating Cash Flow Before Working Capital Changes (non-GAAP) was $73.1 million.
Production Results
Third quarter 2025 oil production volumes totaled 16,222 barrels ("Bbls") per day, a 28% increase from the third quarter of 2024. Natural gas production for the third quarter of 2025 totaled 94,217 thousand cubic feet of natural gas ("Mcf") per day, a 25% increase from the third quarter of 2024. The Company's daily production for the third quarter of 2025 grew 27% from the third quarter of the prior year to 31,925 Boe per day.
Oil, Natural Gas and Related Product Sales
The Company's average realized price for oil and natural gas for the third quarter of 2025, excluding the e ect of commodity derivatives, was $61.62 per Bbl and $2.39 per Mcf, respectively, compared to $73.44 per Bbl and $1.24 per Mcf realized in the third quarter of 2024.
Operating Costs
Lease operating expenses were $23.6 million ($8.03 per Boe) for the three months ended September 30, 2025 compared to $13.0 million ($5.62 per Boe) during the same period in 2024. The increase was primarily due to an overall increase in service costs, particularly saltwater disposal costs. Production and ad valorem taxes were $6.6 million for the quarter, or 6% of oil and natural gas sales. During the quarter, general and administrative expenses totaled $7.0 million, or $2.38 per Boe, inclusive of $0.4 million of nonrecurring severance and capital markets expenses and $1.3 million of non-cash stock-based compensation.
Capital Expenditures and Operational Activity
Capital expenditures for the quarter were $80.5 million comprised of $64.0 million of development capital and
$16.5 million of property acquisition costs. The Company closed 17 acquisitions in the Permian and Utica Basins, adding an aggregate inventory of 13.6 net undeveloped locations.
The table below provides the costs incurred for oil and natural gas producing activities for the periods indicated:
Three Months Ended September
30,
Nine Months Ended September
30,
(in thousands) 2025 2024 2025 2024
Property acquisition costs: Proved | $ | 807 $ | - | $ 14,148 | $ | 2,824 |
Unproved | 15,704 | 32,919 | 46,794 | 51,515 | ||
Development costs | 64,006 | 77,171 | 212,593 | 206,761 | ||
Total costs incurred for oil and natural gas properties | $ | 80,517 $ | 110,090 | $ 273,535 | $ | 261,100 |
The Company had 9.3 net wells turned in-line ("TIL") during the third quarter of 2025, compared to 5.2 net wells TIL in the third quarter of 2024. Granite Ridge saw strong well performance across multiple basins, highlighted by robust initial production from recently TIL wells in the Permian Basin.
The table below provides a summary of gross and net wells completed and TIL for the three and nine months ended September 30, 2025:
Three Months Ended September 30,
2025
Nine Months Ended September 30,
2025
Gross Net Gross Net
Permian | 25 | 7.3 | 113 | 24.3 |
Eagle Ford | 5 | 0.5 | 7 | 0.5 |
Bakken | 0 | 0.0 | 10 | 0.2 |
Haynesville | 12 | 1.2 | 12 | 1.2 |
DJ | 6 | 0.2 | 72 | 0.6 |
Appalachian | 11 | 0.1 | 41 | 1.1 |
Total | 59 | 9.3 | 255 | 27.9 |
At September 30, 2025, the Company had 108 gross (11.3 net) wells in process.
Liquidity and Capital Resources
As of September 30, 2025, Granite Ridge had $300.0 million of debt outstanding under its existing Credit Agreement and $86.5 million of liquidity, consisting of $74.7 million of committed borrowing availability and $11.8 million of cash on hand.
On November 5, 2025, the Company, as issuer, completed an issuance of $350.0 million aggregate principal amount of 8.875% senior unsecured notes at 96.0% of par with stated maturity on November 5, 2029 (the "2029 Senior Notes") pursuant to a note purchase agreement. The 2029 Senior Notes were purchased by a group of institutional accounts, including funds managed by EOC Partners Advisors L.P. The Company used the net proceeds from issuance of the 2029 Senior Notes to repay certain amounts under the Credit Agreement and to pay related fees and expenses.
On November 5, 2025, the Company and its lenders entered into the Sixth Amendment to Credit Agreement, which amended the Credit Agreement to, among other things:
Commodity Derivatives Update
The Company's commodity derivatives strategy is intended to manage its exposure to commodity price
uctuations. Please see the table under "Derivatives Information" below for detailed information about Granite Ridge's current derivatives positions.
2025 Guidance
The following table summarizes the Company's operational and nancial guidance for 2025.
Annual production (Boe per day) | 31,000 - 33,000 |
Oil as a % of sales volumes | 51% - 53% |
Acquisitions ($ in millions) | $120 - $120 |
Development capital expenditures ($ in millions) | $280 - $300 |
Total capital expenditures ($ in millions) | $400 - $420 |
Lease operating expenses (per Boe) | $6.25 - $7.25 |
Production and ad valorem taxes (as a % of total sales) | 6% - 7% |
Cash general and administrative expense ($ in millions) Conference Call | $25 - $27 |
Granite Ridge will host a conference call on November 7, 2025, at 10:00 AM CT (11:00 AM ET) to discuss its third quarter 2025 results. A brief Q&A session for security analysts will immediately follow the discussion. The telephone number and passcode to access the conference call are provided below:
Dial-in: (888) 660-6093
Intl. dial-in: (929) 203-0844
Participant Passcode: 4127559
To access the live webcast visit Granite Ridge's website at https://www.graniteridge.com. Alternatively, an audio replay will be available through November 21, 2025. To access the audio replay, dial (800) 770-2030 and enter con rmation code 4127559.
Upcoming Investor Events
Granite Ridge management will be participating in the following upcoming investor events:
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 proli c unconventional basins across the United States. We aim to deliver a diversi ed 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 pro le. For more information, visit Granite Ridge's website at https://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 release regarding, without limitation, Granite Ridge's 2025 outlook, nancial position, operating and nancial performance, business strategy, plans and objectives of management for future operations, industry conditions, indebtedness covenant compliance, capital expenditures, production and cash ows 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, 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 di er materially from those set forth in the forward-looking statements, including the following: changes in Granite Ridge's strategy, future operations, nancial 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
a ecting our properties, ability to acquire additional development opportunities and potential or pending acquisition transactions, as well as the e ects 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 a ect the quantities and present value of 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 e ects and duration of global hostilities, including the Israel-Hamas
con ict, the Russia-Ukraine war, continued instability in the Middle East, and any associated armed con icts or related sanctions which may disrupt commodity prices and create instability in the nancial markets, and market conditions and global, regulatory, technical, and economic factors beyond Granite Ridge's control, including the
potential adverse e ects of world health events, a ecting capital markets, general economic conditions, global supply chains, uncertainties with respect to trade policies (including the imposition of tari s) and Granite Ridge's business and operations, increasing regulatory and investor emphasis on, and attention to, environmental, social and governance matters, our ability to establish and maintain e ective internal control over nancial 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, 2024 led with the Securities and Exchange Commission ("SEC"), as updated by any subsequent Quarterly Reports on Form 10-Q that Granite Ridge les 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 signi cant business, economic, competitive, regulatory and other risks, contingencies and uncertainties, most of which are di cult 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 nancial results prepared in accordance with U.S. Generally Accepted Accounting Principles ("GAAP"), this press release contains certain nancial measures that are not prepared in accordance with GAAP, including Adjusted Net Income, Adjusted Earnings Per Share, Adjusted EBITDAX, Trailing Twelve Months Adjusted EBITDAX, Operating Cash Flow Before Working Capital Changes, 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 nancial measure calculated in accordance with GAAP.
Granite Ridge Resources, Inc.
Condensed Consolidated Balance Sheets (Unaudited)
(in thousands, except par value and share data) September 30,
2025 December 31, 2024
ASSETS | ||||
Current assets: | ||||
Cash | $ | 11,832 $ | 9,419 | |
Revenue receivable | 74,669 | 69,692 | ||
Advances to operators | 2,786 | 19,959 | ||
Prepaid and other current assets 1,131 3,831
Derivative assets - commodity derivatives 6,809 537
Equity investments 11,574 31,783
Common stock, $0.0001 par value, 431,000,000 shares authorized, 136,937,989 and
136,417,677 issued at September 30, 2025 and December 31, 2024, respectively
14
14
Property and equipment:
Accumulated depletion
(800,177)
(643,051)
Long-term assets:
Other long-term assets
3,516
4,288
Total assets
$
1,128,540 $
1,036,479
Current liabilities:
Derivative liabilities - commodity derivatives
426
1,822
Total current liabilities
76,963
101,808
Long-term debt
300,000
205,000
Asset retirement obligations 11,511 10,693
Total long-term liabilities
407,685
299,318
Stockholders' Equity:
Additional paid-in capital
657,859
655,472
Treasury stock, at cost, 5,686,711 and 5,683,921 shares at September 30, 2025 and
December 31, 2024, respectively
(36,196)
(36,180)
Total liabilities and stockholders' equity
$
1,128,540 $
1,036,479
Accounts payable and accrued liabilities $ 75,413 $ 99,440
Derivative assets - commodity derivatives 1,373 -
Total stockholders' equity 643,892 635,353
Retained earnings 22,215 16,047
Total liabilities 484,648 401,126
Deferred tax liability 95,119 79,946
Derivative liabilities - commodity derivatives 1,055 3,679
Long-term liabilities:
Other liabilities 1,124 546
LIABILITIES AND STOCKHOLDERS' EQUITY
Total long-term assets 4,889 4,288
Total property and equipment, net 1,014,850 896,970
Oil and gas properties, successful e orts method 1,815,027 1,540,021
Total current assets 108,801 135,221
Granite Ridge Resources, Inc.
Condensed Consolidated Statements of Operations (Unaudited)
Three Months Ended September 30, Nine Months Ended September 30,
(in thousands, except per share
data) 2025 2024 2025 2024
Revenues: | ||||||||
Oil and natural gas sales | $ | 112,671 | $ | 94,075 | $ | 344,821 | $ | 273,723 |
Operating costs and expenses: | ||||||||
Lease operating expenses | 23,596 | 13,026 | 59,954 | 42,174 | ||||
Production and ad valorem taxes | 6,551 | 6,345 | 21,356 | 18,975 | ||||
Depletion and accretion expense | 55,947 | 44,149 | 157,804 | 126,682 | ||||
Impairments of unproved properties | - | - | - | 732 | ||||
General and administrative | 6,988 | 5,590 | 22,968 | 18,705 | ||||
Other, net | - | 283 | (120) | 283 | ||||
Total operating costs and expenses | 93,082 | 69,393 | 261,962 | 207,551 | ||||
Net operating income | 19,589 | 24,682 | 82,859 | 66,172 | ||||
Other income (expense): | ||||||||
Gain on derivatives - commodity derivatives | 5,224 | 11,841 | 14,292 | 7,895 | ||||
Interest expense, net | (6,069) | (4,820) | (16,998) | (13,797) | ||||
Gain (loss) on equity investments | 548 | (18,320) | (15,218) | (19,315) | ||||
Other income (loss) | - | 1 | (93) | 271 | ||||
Total other income (expense) | (297) | (11,298) | (18,017) | (24,946) | ||||
Income before income taxes | 19,292 | 13,384 | 64,842 | 41,226 | ||||
Income tax expense | 4,769 | 4,330 | 15,426 | 10,845 | ||||
Net income | $ | 14,523 | $ | 9,054 | $ | 49,416 | $ | 30,381 |
Net income per share: | ||||||||
Basic | $ | 0.11 | $ | 0.07 | $ | 0.38 | $ | 0.23 |
Diluted | $ | 0.11 | $ | 0.07 | $ | 0.38 | $ | 0.23 |
Weighted-average number of shares outstanding: | ||||||||
Basic | 130,472 | 130,204 | 130,426 | 130,182 | ||||
Diluted | 130,506 | 130,242 | 130,500 | 130,219 | ||||
Granite Ridge Resources, Inc.
Condensed Consolidated Statements of Cash Flows (Unaudited)
Nine Months Ended September
30,
(in thousands) | 2025 | 2024 |
Operating activities: | ||
Net income | $ 49,416 | $ 30,381 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depletion and accretion expense | 157,804 | 126,682 |
Impairments of unproved properties | - | 732 |
Unrealized (gain) loss on derivatives - commodity derivatives | (11,666) | 4,494 |
Stock-based compensation | 2,387 | 1,683 |
Amortization of deferred nancing costs | 1,222 | 3,162 |
Loss on equity investments | 15,218 | 19,415 |
Deferred income taxes | 15,173 | 10,733 |
Other | (266) | (145) |
Increase (decrease) in cash attributable to changes in operating assets and liabilities: | ||
Revenue receivable | (4,978) | 14,429 |
Other receivable | 317 | (18) |
Accounts payable and accrued liabilities | 5,797 | (3,240) |
Prepaid and other current assets | 1,497 | (859) |
Other liabilities | (7) | 87 |
Net cash provided by operating activities | 231,914 | 207,536 |
Investing activities: | ||
Capital expenditures for oil and natural gas properties | (233,135) | (193,376) |
Acquisition of oil and natural gas properties | (57,048) | (51,994) |
Proceeds from sale of equity investments | 4,991 | 3,362 |
Proceeds from sale of oil and natural gas properties | 175 | 3,064 |
Refund of advances to operators | 4,230 | 5,314 |
Net cash used in investing activities | (280,787) | (233,630) |
Financing activities: | ||
Proceeds from borrowing on credit facilities | 135,000 | 85,000 |
Repayments of borrowing on credit facilities | (40,000) | - |
Deferred nancing costs | (450) | (3,004) |
Purchase of treasury shares | (16) | (418) |
Payment of dividends | (43,248) | (43,112) |
Net cash provided by nancing activities | 51,286 | 38,466 |
Net change in cash and restricted cash | 2,413 | 12,372 |
Cash and restricted cash at beginning of period | 9,419 | 10,730 |
Cash and restricted cash at end of period | $ 11,832 | $ 23,102 |
Supplemental disclosure of non-cash investing activities: | ||
Change in accrued capital expenditures included in accounts payable and accrued liabilities | $ (13,575) | $ 40,003 |
Advances to operators applied to development of oil and natural gas properties | $ 115,868 | $ 80,320 |
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 September
Net Sales (in thousands): | ||||||||
Oil sales | $ | 91,960 | $ | 85,503 | $ | 273,269 | $ | 238,761 |
Natural gas and related product sales | 20,711 | 8,572 | 71,552 | 34,962 | ||||
Total revenues Net Production: | $ | 112,671 | $ | 94,075 | $ | 344,821 | $ | 273,723 |
Oil (MBbl) | 1,492 | 1,164 | 4,277 | 3,129 | ||||
Natural gas (MMcf) | 8,668 | 6,912 | 24,994 | 20,758 | ||||
Total (MBoe)(1) | 2,937 | 2,316 | 8,443 | 6,589 | ||||
Average Daily Production: | ||||||||
30, Nine Months Ended September 30, 2025 2024 2025 2024
Oil (Bbl) | 16,222 | 12,655 | 15,666 | 11,420 | ||||
Natural gas (Mcf) | 94,217 | 75,133 | 91,554 | 75,758 | ||||
Total (Boe)(1) Average Sales Prices: | 31,925 | 25,177 | 30,925 | 24,046 | ||||
Oil (per Bbl) | $ | 61.62 | $ | 73.44 | $ | 63.89 | $ | 76.31 |
E ect of gain on settled oil derivatives on average price (per Bbl) | 0.02 | 0.55 | 0.16 | 0.11 | ||||
Oil net of settled oil derivatives (per Bbl)(2) | $ | 61.64 | $ | 73.99 | $ | 64.05 | $ | 76.42 |
Natural gas sales (per Mcf) | $ | 2.39 | $ | 1.24 | $ | 2.86 | $ | 1.68 |
E ect of gain on settled natural gas derivatives on average price (per Mcf) | 0.20 | 0.74 | 0.08 | 0.58 | ||||
Natural gas sales net of settled natural gas derivatives (per Mcf)(2) | $ | 2.59 | $ | 1.98 | $ | 2.94 | $ | 2.26 |
Realized price on a Boe basis excluding settled commodity derivatives | $ | 38.36 | $ | 40.61 | $ | 40.84 | $ | 41.54 |
E ect of gain on settled commodity derivatives on average price (per Boe) | 0.60 | 2.47 | 0.31 | 1.88 | ||||
Realized price on a Boe basis including settled commodity derivatives(2) | $ | 38.96 | $ | 43.08 | $ | 41.15 | $ | 43.42 |
Operating Expenses (in thousands): | ||||||||
Lease operating expenses | $ | 23,596 | $ | 13,026 | $ | 59,954 | $ | 42,174 |
Production and ad valorem taxes | 6,551 | 6,345 | 21,356 | 18,975 | ||||
Depletion and accretion expense | 55,947 | 44,149 | 157,804 | 126,682 | ||||
General and administrative | 6,988 | 5,590 | 22,968 | 18,705 | ||||
Costs and Expenses (per Boe): | ||||||||
Lease operating expenses | $ | 8.03 | $ | 5.62 | $ | 7.10 | $ | 6.40 |
Production and ad valorem taxes | $ | 2.23 | $ | 2.74 | $ | 2.53 | $ | 2.88 |
Depletion and accretion | $ | 19.05 | $ | 19.06 | $ | 18.69 | $ | 19.23 |
General and administrative | $ | 2.38 | $ | 2.41 | $ | 2.72 | $ | 2.84 |
Net Producing Wells at Period-End: | 235.27 | 195.88 | 235.27 | 195.88 | ||||
Natural gas is converted to Boe using the ratio of one barrel of oil to six Mcf of natural gas.
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 re ect 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 derivatives at November 6, 2025, for the periods indicated: