Granite Ridge Resources (GRNT) Q1 2026 earnings summary

Executive summary

• Achieved 18% year-over-year production growth in Q1 2026, reaching 34,500 BOE/d with oil comprising 48% of the mix.

• Oil and natural gas sales rose to $128.3 million, up 4% year-over-year, driven by higher oil production and stable pricing, partially offset by lower natural gas prices despite increased gas volumes.

• Net loss of $47 million, primarily due to a $60.2–$72 million non-cash derivative loss and $11.2 million impairment, offset by adjusted net income of $3.1 million.

• Strategic focus on capital discipline, operator partnerships, and positioning for sustainable free cash flow and dividend in 2027.

• Lease operating expenses rose sharply, mainly from higher water disposal, equipment rentals, and asset impairment charges.

Financial highlights

• Oil revenues increased to $103.4 million (+13% YoY); natural gas revenues declined to $24.8 million due to a 36% drop in realized prices, despite a 24% production increase.

• Adjusted EBITDAX was $71 million; net cash from operating activities was $58.3 million.

• Lease operating expense (LOE) rose to $9.57/BOE, up 55–83% year-over-year.

• General and administrative expenses were $9.1 million ($2.93/BOE), up year-over-year due to higher stock-based compensation and management fees.

• Dividend paid: $0.11/share, with a 7.7% yield based on last quarter annualized payment.

Outlook and guidance

• 2026 production guidance: 34,000–36,000 BOE/d (50–52% oil), with expectations to meet or exceed midpoint.

• Total capital expenditures projected at $345–$385 million, including $45–$55 million for acquisitions.

• Lease operating expenses expected at $7.75–$8.75/BOE; production taxes at 6–7% of revenue.

• 2026 is expected to be the last year of outspending operating cash flow, with sustainable free cash flow and dividend targeted for 2027.

• ~90% of D&C capital in 2026 allocated to operated partnerships for enhanced execution and margin visibility.