Granite Ridge Resources (GRNT) Q2 2026 earnings summary

Executive summary

• Q2 2026 production increased 1% year-over-year to 32,044 Boe/d (51% oil), with net income rising to $30.0 million ($0.23/share) and adjusted EBITDAX reaching $79.6 million.

• Revenue for Q2 2026 rose 37% year-over-year to $149.3 million, driven by higher oil prices and modest production growth.

• Operated partnership platform and capital discipline drove growth, with over 90% of capex focused on high-return inventory and sustainable free cash flow targeted for 2027.

• Grey Rock intends to distribute shares, reducing its ownership below 50% and transitioning governance to a fully independent board.

• The company reincorporated from Delaware to Texas in August 2026.

Financial highlights

• Q2 2026 oil and gas sales were $149.3 million, with oil revenues up 56% and natural gas revenues down 51% year-over-year.

• Adjusted EBITDAX was $79.6 million (+12% quarter-over-quarter); adjusted net income was $11.1 million ($0.09/share).

• Lease operating expenses rose to $30.0 million ($10.27/Boe), up 47–49% year-over-year, with full-year guidance increased to $8.25–$9.25/Boe.

• Net debt at quarter-end was $418 million, with a leverage ratio of 1.4x.

• Cash flow from operations was $55.6 million ($69.5 million before working capital changes); liquidity at quarter-end was $293.8 million.

Outlook and guidance

• 2026 is the final year of outspend, with a free cash flow inflection expected in 2027 as new production comes online and margins widen.

• 2026 production guidance: 34,000–36,000 Boe/d, with oil at 50–52% of volumes; capex projected at $345–$385 million, including $45–$55 million for acquisitions.

• 2027 targets: double-digit free cash flow yield, >1.25x dividend coverage, leverage at 1.25x, and 8–10% annual production growth at $65–$70 oil.

• Per unit LOE expected to improve as new volumes dilute fixed costs; production and ad valorem taxes guided at 6–7% of sales.

• Management expects to fund capital needs with cash flow and credit facility availability.