Granite Ridge Resources Inc - Class A
Q1 2026 Earnings
Market Reaction
S&P 500 over the same 30 days: −1.65%.
Did GRNT Beat Earnings? Q1 2026 Results
Granite Ridge Resources delivered a sharply disappointing first quarter, with adjusted earnings of just $0.02 per diluted share falling 77.78% short of the $0.09 consensus estimate, while revenue of $128.26 million missed expectations by 4.36% despite growing 17.4% year over year. The headline numbers, however, were overwhelmed by a $60.19 million non-cash unrealized mark-to-market loss on the company's commodity hedge portfolio, which helped drive a GAAP net loss of $47.03 million compared to net income of $9.81 million in Q1 2025. Operational momentum was genuine, with daily production climbing 18% year over year to 34,467 Boe per day, though Adjusted EBITDAX fell to $70.98 million from $91.40 million as weak natural gas pricing and a 55% surge in per-unit lease operating expenses pressured margins. BofA maintained a Neutral rating while nudging its price target to $5.50, reflecting the mixed underlying picture. Management guided for 2026 production of 34,000 to 36,000 Boe per day and capital expenditures of $345 to $385 million, framing the company as approaching a free cash flow inflection point in 2027.
- Daily production grew 18% year-over-year to 34,467 Boe per day
- Oil production volumes increased 11% to 16,433 Bbls per day
- Natural gas production increased 24% to 108,200 Mcf per day
- Strong well performance across multiple basins, particularly robust initial production from recently TIL wells in the Permian Basin
- Oil realized price slightly higher at $69.94/Bbl vs $69.18/Bbl year-over-year
- Natural gas realized price declined to $2.55/Mcf from $3.97/Mcf year-over-year
“We believe our first quarter demonstrated the capability of our asset base. Well performance across multiple basins exceeded our internal forecasts, highlighted by robust initial production from recently turned-in-line wells in the Permian, a direct validation of the high-graded drilling inventory our Operated Partnership program is designed to capture.”
Granite Ridge Resources CEO, on the earnings call
Forward Guidance & Outlook
Granite Ridge revised its 2026 guidance: annual production of 34,000–36,000 Boe per day (50%–52% oil), total capital expenditures of $345–$385 million (development capex $300–$330 million, acquisitions $45–$55 million), lease operating expenses of $7.75–$8.75 per Boe, production and ad valorem taxes of 6%–7% of total revenue, and cash G&A of $25–$27 million. CEO Tyler Farquharson noted the company is approaching an inflection point where development capital aligns more closely with cash flow, positioning it for meaningful free cash flow generation over coming years, supported by low leverage, a robust hedge book, and ample liquidity.
GRNT YoY Financials
GRNT Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.