Earnings

Granite Ridge Posts Record Adjusted EBITDAX and a GAAP Loss

The Tip Desk · November 11, 2026 · 3 min read

Adjusted EBITDAX reached $107.3 million in the third quarter as oil and natural gas sales were $177.2 million and daily production rose 9% to 34,641 Boe/d.

Granite Ridge Resources, Inc. (GRNT) reported Adjusted EBITDAX of $107.3 million for the third quarter of 2026, a record for the company as a public issuer, after $79.6 million in the second quarter and $71.0 million in the first quarter.

Oil and natural gas sales were $177.2 million, up from $112.7 million a year earlier. Daily production rose 9% to 34,641 barrels of oil equivalent per day, 55% oil, from 31,925 Boe/d in the year-ago quarter, after 1% growth in the second quarter. Oil volumes increased 17% to 18,957 barrels per day. Natural gas production was 94,087 thousand cubic feet per day, in line with 94,217 Mcf/d a year earlier.

GAAP results swung to a net loss of $10.1 million, or $0.08 a share, from net income of $14.5 million, or $0.11 a share, a year earlier. The company excluded non-cash and special items to report Adjusted Net Income of $22.6 million, or $0.17 a share. Average realized oil prices excluding derivatives were $84.41 a barrel and natural gas $3.46 a Mcf, versus $61.62 a barrel and $2.39 a Mcf in the year-ago quarter.

Lease operating expenses were $30.1 million, or $9.43 a Boe, a 17% increase on a per-unit basis versus $8.03 a Boe a year earlier. The company attributed the rise to higher saltwater disposal costs from water cuts and flowback, plus equipment rentals and contract labor. Production and ad valorem taxes were $10.3 million, or 6% of oil and natural gas sales. General and administrative expenses were $10.2 million, or $3.21 a Boe, including $1.5 million of non-cash stock-based compensation.

Capital expenditures were $109.9 million, including $90.8 million of drilling and completions and $19.0 million of acquisitions. The company closed 20 acquisitions, adding 8.0 net undeveloped locations, and placed 9.2 net wells online, versus 9.3 net wells a year earlier. At September 30, it had 190 gross (14.6 net) wells in process.

Cash flow from operating activities was $87.7 million, including $8.9 million of working-capital changes. Operating cash flow before working-capital changes was $96.6 million and Adjusted Free Cash Flow was $13.7 million. Net debt to trailing-twelve-months Adjusted EBITDAX was 1.3x. Liquidity was $287.4 million, consisting of $244.7 million of committed borrowing availability and $42.7 million of cash.

President and Chief Executive Officer Tyler Farquharson said the company expects 2027 to build on the record quarter through the roll-off of lower-priced 2026 hedges, anticipated production growth and a higher oil weighting, and that at current strip prices it expects adjusted free cash flow to cover the dividend and grow the business. The company announced Arete Creek Resources as a new partner to its Operated Partnership platform. Arete Creek spud its first well under the partnership in October and is expected to run one rig in 2027.

The board declared a regular quarterly dividend of $0.11 a share payable December 14, 2026. On November 4, 2026, it approved a share-repurchase program of up to $35.0 million through December 31, 2027. Updated 2026 guidance calls for annual production of 34,000 to 35,000 Boe/d, oil at 51.5% to 52.5% of sales volumes, acquisitions of $45 million to $55 million, development capital of $300 million to $330 million, total capital of $345 million to $385 million, lease operating expenses of $9.25 to $9.75 a Boe, production and ad valorem taxes of 6% to 7% of sales, and cash general and administrative expense of $28 million to $30 million.

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