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Jun 30, 2025
Granite Ridge Q2 2025 Earnings Report
Granite Ridge Resources, Inc. reported strong financial and operating results for the second quarter of 2025, with significant increases in production and net income, and provided an updated outlook for the year.
Key Takeaways
Granite Ridge Resources, Inc. delivered a robust second quarter in 2025, with daily production increasing by 37% year-over-year to 31,576 Boe per day. The company reported a net income of $25.1 million and generated $75.4 million in Adjusted EBITDAX. Capital expenditures were focused on development and strategic acquisitions, and a quarterly cash dividend of $0.11 per share was declared.
Daily production increased by 37% year-over-year to 31,576 Boe per day, with oil production rising 46% and natural gas production rising 28%.
Net income significantly improved to $25.1 million, or $0.19 per diluted share, compared to $5.1 million in the prior year period.
Adjusted EBITDAX reached $75.4 million, demonstrating strong operational cash flow.
The company raised its full-year production guidance by 10% at the midpoint to 31,000-33,000 Boe per day and increased capital expenditure guidance to $400-$420 million to support expanded inventory additions.
Forward Guidance
Granite Ridge has raised its full-year production guidance and increased capital expenditure guidance for 2025, driven by strong well performance and strategic acquisitions.
Positive Outlook
- Full-year production guidance raised by 10% at the midpoint to 31,000-33,000 Boe per day.
- Anticipated 28% year-over-year production growth.
- Increased capital expenditure guidance to $400-$420 million to fund acquisitions and expanded inventory.
- Plans to deploy approximately $120 million in acquisition capital, adding 74 net locations.
- Acquisitions have secured three additional years of inventory at an entry cost of approximately $1.7 million per location.
Challenges Ahead
- Increased capital expenditure guidance implies higher spending than previously planned.
- No specific negative guidance points were highlighted in the report beyond increased capital spending.
- The report does not explicitly state any negative impacts on future profitability or operational efficiency.
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