Granite Ridge Resources (GRNT) Q3 2026 Earnings Report

The call was strongly positive overall. Management highlighted accelerating production and oil volumes, record adjusted EBITDAX, positive adjusted free cash flow, recovering gas realizations, improved leverage, expanding operator partnerships, and a clear path toward 2027 cash-flow funding. The main challenges were the GAAP loss from commodity derivatives, still-high LOE, increased LOE and G&A guidance, lower gas and overall production guidance, and development capital expected at the high end of the range, but these issues were outweighed by the operating and financial improvements discussed.

For 2026, the company expects production of 34 thousand to 35 thousand BOE per day, oil volumes in line with the mid midpoint of our original guidance, a higher oil mix of 51.5% to 52.5%, LOE of $9.25 to $9.75 per BOE, and cash G&A of $28 million to $30 million; fourth-quarter oil volumes are expected to be higher than in the third quarter, with oil growing faster than gas, while development capital expenditures are expected to be modestly higher as well, putting the company at the high end of its guidance range for 2026. For 2027, the company is targeting just about 10% production growth year on year, with a little bit extra weighting on the oil side, expects adjusted free cash flow to fund the dividend and the rest of its capital allocation priorities, and expects 2027 EBITDAX well in excess of the third quarter annualized EBITDAX, but is not providing 2027 guidance today and expects to do that with fourth quarter results. The company also authorized repurchases of up to $35 million of common stock through year end 2027, pays a $0.11 dividend per share every quarter, requires acquisitions and operator partnership wells to clear a full cycle return above 25% at the strip, and expects RedTalon Creek Resources to run a rig during 2027.