Granite Ridge Resources (GRNT) Posts Record EBITDAX and Beats Q3 2026 Estimates

Granite Ridge Resources reported adjusted EPS of $0.17 for Q3 2026, clearing the $0.1225 consensus estimate by nearly 39%. Revenue of $177.2 million ran 10.3% ahead of the $160.6 million expectation and was up 57% from the same quarter a year earlier, driven by sharply higher realized commodity prices and a 17% jump in oil production to 18,957 barrels per day.

Adjusted EBITDAX of $107.3 million was the highest the company has recorded since going public, compared with $78.6 million in Q3 2025. Net operating income climbed to $59.3 million from $19.6 million in the prior-year period. On a GAAP basis, however, the company reported a net loss, reflecting a $31.8 million unrealized commodity derivatives loss and a $5.5 million valuation allowance charge.

The strong cash generation gives the $0.11 quarterly dividend a wide margin of safety, and the board added another return-of-capital tool by authorizing a $35 million share repurchase program running through the end of 2027. CEO Tyler Farquharson pointed to 2027 as a potential inflection point, noting that the roll-off of lower-priced 2026 hedges, production growth, and a higher oil weighting are expected to support adjusted free cash flow well above the dividend without requiring any improvement in oil prices from current strip levels.

Granite Ridge also announced a new Operated Partnership with Arete Creek Resources, a Midland Basin operator whose team has drilled more than 200 horizontal wells across five prior Permian ventures. Arete Creek spud its first well under the partnership in October 2026 and is expected to run one rig in 2027, expanding the company's exposure to the Permian Basin alongside its flagship Admiral Permian partnership.

Updated 2026 guidance calls for annual production of 34,000 to 35,000 Boe per day with oil representing between 51.5% and 52.5% of sales volumes. Total capital expenditures are guided to $345 to $385 million, with development spending in the $300 to $330 million range. Those figures frame how aggressively the company is investing its record cash flows ahead of what management expects will be a more favorable hedging backdrop in 2027.