Granite Ridge Resources Inc - Class A
Q4 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +0.54%.
Did GRNT Beat Earnings? Q4 2025 Results
Granite Ridge Resources delivered a sharply disappointing fourth quarter, missing Wall Street expectations on both the top and bottom lines as falling commodity prices overwhelmed strong production growth. The Houston-based non-operator posted adjusted EPS of just $0.01 for Q4 2025, a 90.00% shortfall versus the $0.10 consensus estimate, while revenue of $105.48 million came in 12.41% below the $120.43 million analysts had expected, roughly flat with the year-ago period at a -0.8% decline. The central culprit was a steep drop in realized oil prices to $55.49 per barrel from $65.53 a year ago, compounded by a 29% rise in per-unit lease operating expenses and $44.65 million in asset impairment charges that drove a GAAP net loss of $25.06 million for the quarter. Shares fell more than 6% following the release, though insider buying provided a note of confidence from within. Looking ahead, management guided 2026 production of 34,000 to 36,000 Boe per day with capital expenditures trimmed to $320 to $360 million, signaling a deliberate pivot toward capital discipline over growth.
- 27% increase in total production to 35,120 Boe/day in Q4 2025
- 17% increase in oil production to 17,152 Bbls/day in Q4
- Operated Partnership program driving increased Permian Basin exposure
- 67 gross (10.50 net) wells placed online during Q4
- Lower realized oil prices ($55.49/Bbl vs $65.53/Bbl year-ago quarter)
- 29% increase in per-unit lease operating expenses
“Granite Ridge continued its evolution in 2025 from a traditional non-operated production company to a capital allocator focused on controlled, short-cycle development through Operated Partnerships. This strategic shift has resulted in greater control over development timing, and increased deal flow and exposure to high-quality resource in the Permian Basin.”
Granite Ridge Resources CEO, on the earnings call
Forward Guidance & Outlook
Granite Ridge's 2026 guidance calls for production of 34,000-36,000 Boe/day (approximately 9% growth at the midpoint versus 2025), with oil comprising 50%-52% of total production. Total capital expenditures are expected at $320-$360 million, consisting of $300-$330 million in development capital and $20-$30 million in acquisitions. Lease operating expenses are guided at $6.75-$7.75 per Boe, production and ad valorem taxes at 6%-7% of revenue, and cash G&A at $25-$27 million. Management noted that production growth is moderating and development capital expenditures are aligning more closely with expected cash flow.
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Figures from SEC filings and company reports. Not investment advice.