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Sep 30, 2025
Granite Ridge Q3 2025 Earnings Report
Granite Ridge Resources, Inc. reported strong financial and operating results for the third quarter of 2025, demonstrating consistent execution and disciplined growth.
Key Takeaways
Granite Ridge Resources delivered a robust third quarter in 2025, marked by significant production growth, increased net income, and strategic capital investments. The company grew daily production by 27% year-over-year to 31,925 Boe per day and reported a net income of $14.5 million. Strategic refinancing efforts post-quarter-end further strengthened its balance sheet, positioning the company for continued growth and shareholder returns.
Daily production increased by 27% year-over-year to 31,925 barrels of oil equivalent per day, with oil comprising 51% of the total.
Net income rose to $14.5 million, or $0.11 per diluted share, compared to $9.1 million in the prior year, while Adjusted EBITDAX reached $78.6 million.
The company invested $64.0 million in development capital expenditures and $16.5 million in acquisition capital, bringing 9.3 net wells online.
A quarterly cash dividend of $0.11 per share was declared, and the company maintained a healthy Net Debt to Trailing Twelve Months Adjusted EBITDAX ratio of 0.9x.
Forward Guidance
Granite Ridge Resources anticipates continued strong performance in 2025, with projected annual production between 31,000 and 33,000 Boe per day and oil comprising 51% to 53% of sales volumes. The company plans significant capital expenditures, focusing on both development and acquisitions, while managing operating costs and taxes within specified ranges.
Positive Outlook
- Annual production is projected to be strong, ranging from 31,000 to 33,000 Boe per day.
- Oil is expected to remain a significant component of sales volumes, estimated at 51% to 53%.
- The company plans substantial investment in acquisitions, with a target of $120 million.
- Development capital expenditures are guided between $280 million and $300 million, indicating continued growth focus.
- Total capital expenditures are projected to be between $400 million and $420 million, reflecting robust investment in the business.
Challenges Ahead
- Lease operating expenses are expected to be between $6.25 and $7.25 per Boe, which could impact profitability.
- Production and ad valorem taxes are projected to be 6% to 7% of total sales, representing a notable cost.
Historical Earnings Impact
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