Granite Ridge Resources Inc - Class A
Q2 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +2.36%.
Did GRNT Beat Earnings? Q2 2025 Results
Granite Ridge Resources delivered a mixed second quarter for 2025, posting revenue of $109.22 million, a 20.5% year-over-year gain that edged past the $108.12 million consensus estimate by 1.01%, while adjusted earnings per share of $0.11 fell short of the $0.13 analysts had expected, a miss of 15.38%. The shortfall on the bottom line traced directly to weaker realized oil prices, which averaged $61.41 per barrel compared to $77.84 a year ago, compressing margins even as production surged 37% year-over-year to 31,576 Boe per day. GAAP net income climbed sharply to $25.08 million from $5.10 million in the prior-year period, though that improvement was heavily influenced by a $23.93 million gain on commodity derivatives. Looking ahead, management raised full-year 2025 production guidance by 10% at the midpoint to 31,000 to 33,000 Boe per day, citing Permian wells coming online ahead of schedule and stronger-than-expected Utica performance, while lifting total capital expenditure guidance to $400 to $420 million.
- 37% year-over-year production growth to 31,576 Boe per day
- 46% increase in oil production and 28% increase in natural gas production year-over-year
- Strong well performance across multiple basins, particularly robust initial production from Permian Basin wells
- Permian wells coming online ahead of schedule and Utica wells exceeding forecasts
- $23.9 million gain on commodity derivatives versus a loss in the prior year period
- 4.9 net wells turned in-line during the quarter
“Our quarterly results continue to validate our business model, with production and cash flow again exceeding expectations. We allocate capital to the highest risk-adjusted returns across a diverse portfolio of oil and natural gas assets, driving consistent and attractive full-cycle returns. This compounding effect is accelerating our growth momentum.”
Granite Ridge Resources CEO, on the earnings call
Forward Guidance & Outlook
Granite Ridge raised its full-year 2025 production guidance by 10% at the midpoint to 31,000–33,000 Boe per day, representing 28% year-over-year growth, driven by Permian wells coming online ahead of schedule and Utica wells exceeding forecasts. Total capital expenditure guidance was increased to $400–$420 million, with approximately $120 million allocated to acquisitions adding 74 net locations across the Permian Basin (Operated Partnership strategy) and Appalachia leasing strategy. These acquisitions secure three additional years of inventory at an entry cost of approximately $1.7 million per location. Oil is expected to comprise 51%–53% of sales volumes. Lease operating expenses are guided at $6.25–$7.25 per Boe, production and ad valorem taxes at 6%–7% of total sales, development capital expenditures at $280–$300 million, and cash G&A at $25–$27 million.
GRNT YoY Financials
GRNT Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.