GRNT

Granite Ridge Resources’ second quarter saw a positive market response, fueled by operational progress in bringing new wells online and expanding its inventory through targeted acquisitions. Management pointed to their differentiated operated partnership model as a key driver, enabling the company to add high-return opportunities while maintaining capital discipline. CEO Tyler Farquharson highlighted that “every dollar we are putting to work is building towards the free cash flow inflection we have laid out for 2027,” emphasizing that the company’s recent deals and production ramp are aligned with their long-term strategy. Elevated lease operating expenses and continued softness in Permian natural gas prices did present challenges, but the company’s ability to navigate these headwinds and maintain dividend payments demonstrated resilience. Is now the time to buy GRNT? Find out in our full research report (it’s free). Revenue: $149.3 million vs analyst estimates of $141.3 million (36.7% year-on-year growth, 5.7% beat) Adjusted EPS: $0.09 vs analyst estimates of $0.07 (21.6% beat) Adjusted EBITDA: $100.9 million vs analyst estimates of $77.7 million (67.6% margin, 29.8% beat) Operating Margin: 26.1%, up from 19% in the same quarter last year Oil production: up 2.1% year on year Market Capitalization: $674 million While we enjoy listening to the management’s commentary, our favorite part of earnings calls is the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. John Annis (Texas Capital): Asked about the key assumptions behind the 2027 free cash flow outlook and required commodity prices. CEO Tyler Farquharson replied that $65 oil is the baseline, adding, “2027 is in the low $70s right now, so we’ve got some cushion.” John Annis (Texas Capital): Inquired about the flexibility to adjust capital spending if commodity prices change. Farquharson explained the company could quickly accelerate or decelerate activity, pulling forward or delaying inventory depending on market conditions. Jeffrey Grampp (Northland Capital Markets): Questioned whether the transition to free cash flow would cap inventory acquisition. Farquharson responded that while some ceiling exists, current inventory levels are healthy and further additions would be evaluated opportunistically. Jeffrey Grampp (Northland Capital Markets): Asked if the Utica Basin will remain a focus. Farquharson confirmed Utica is the top non-operated investment area, citing strong well performance and continuing deal flow. Phillips Johnston (Capital One): Pressed on the confidence behind guidance for lower lease operating expenses in the second half. CFO Kyle Kettler cited improved cost trends on new wells and the impact of production ramp on fixed cost dilution. Our analysts will be closely monitoring (1) the ramp of new production volumes and resulting impact on margins, (2) sequential reductions in lease operating expenses as recent investments mature, and (3) progress with the Grey Rock share distribution and transition to a fully independent governance structure. The pace of natural gas price recovery and continued success in proprietary deal sourcing will also be key signposts for the strategy. Granite Ridge Resources currently trades at $5.10, up from $4.66 just before the earnings. At this price, is it a buy or sell? The answer lies in our full research report (it’s free for active Edge members). ALSO WORTH WATCHING: Top 5 Momentum Stocks. The best time to own a great stock is when the market is finally noticing it. These aren’t just high-quality businesses. Something is happening with them right now. Elite fundamentals meet near-term momentum — both boxes checked at the same time. Find out which stocks our AI platform is flagging this week. See this week’s Strong Momentum stocks — FREE. Get Our Strong Momentum Stocks for Free HERE. Stocks that have made our list include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+1,154% between June 2020 and June 2025). Find your next big winner with StockStory today.

Interested in Granite Ridge Resources, Inc.? Here are five stocks we like better. Granite Ridge reported stronger second-quarter earnings, with production of 32,044 BOE per day, adjusted EBITDA of $79.6 million and net income of $30 million. The company remains in an investment phase, deploying capital toward production growth and inventory additions ahead of an anticipated free-cash-flow inflection in 2027. Management raised full-year lease operating expense guidance to $8.25–$9.25 per BOE due to Permian water-handling costs and newer-pad expenses, while weak Waha gas pricing pressured realizations. New pipeline capacity and improved basis hedges are expected to support gas sales in the second half of 2026. Granite Ridge’s 2027 framework targets a 10% free-cash-flow yield, high-single-digit production growth, 1.25x leverage and 1.25x dividend coverage at $65 oil. Separately, Grey Rock plans to distribute some Granite Ridge shares to its limited partners, potentially increasing public float and ending Granite Ridge’s controlled-company status. Granite Ridge Resources (NYSE:GRNT) reported second-quarter production of 32,044 barrels of oil equivalent per day, with oil representing 51% of the production mix, as the company continued investing in development and inventory additions ahead of an expected free-cash-flow inflection in 2027. President and Chief Executive Officer Tyler Farquharson said 2026 is expected to be the company’s final year of investing beyond free cash flow. He said capital deployed this year is intended to build a larger production base, improve margins and support sustainable free cash flow next year. → Sandisk Just Delivered a Blowout Quarter—Here's Why the Stock Is Falling “The real story is not the quarter, it’s the trajectory,” Farquharson said. “We are getting closer to that inflection.” Chief Financial Officer Kyle Kettler said oil and natural gas sales totaled $149.3 million during the quarter. GAAP net income was $30 million, or $0.23 per diluted share, compared with $0.19 per share a year earlier. Adjusted net income was $11.1 million, or $0.09 per diluted share. → 4 Oil and Gas ETF Plays as Prices Stay Sky-High Adjusted EBITDA was $79.6 million, up from $75.4 million in the prior-year period. Cash flow from operations totaled $55.6 million, or $69.5 million before working-capital changes. Unhedged realized price: $51.19 per BOE Realized price including settled derivatives: $43.39 per BOE Lease operating expense: $30 million, or $10.27 per BOE Drilling and completions capital: $78.5 million Acquisition capital: $16.7 million Granite Ridge ended the quarter with $44.1 million of cash, $125 million drawn on its revolving credit facility and $350 million of principal outstanding on its 8.875% senior unsecured notes. Net debt was $418 million, and Kettler said leverage stood at approximately 1.4 times. → No Hangover: Revisiting Microsoft One Week After Earnings The company closed 27 transactions during the quarter, primarily in the Permian Basin and Utica region. Including future carry obligations, Granite Ridge committed about $28 million of capital and added 21.9 net undeveloped locations to its inventory. Farquharson said the company’s operated-partnership model provides access to acreage and development opportunities sourced through partners’ leasing operations, local relationships and operator networks. The company seeks to provide capital while retaining influence over development timing and capital allocation, he said. During the first half of 2026, Granite Ridge reviewed 363 opportunities, advanced 84 to underwriting and closed 44 transactions. Its operator partnerships accounted for about 78% of first-half deal capital, according to Farquharson. The company ended the quarter with 175 gross wells, or 14 net wells, in process. Farquharson highlighted work by Admiral Permian Resources, Granite Ridge’s flagship operating partner, on a project involving nine long-lateral wells for a large Permian operator. The wells are required to be drilled, completed and producing by the end of 2026, he said. Granite Ridge also continues to pursue traditional non-operated opportunities in the Utica. Farquharson said the company has accumulated nearly 6,000 net acres there over roughly 18 months and has more than 80 wells online in its portfolio with at least a year and a half of production data. Lease operating expense increased from $9.57 per BOE in the first quarter to $10.27 per BOE in the second quarter. Kettler attributed the higher costs primarily to water handling in the Permian and elevated early-life expenses on newer pads. Granite Ridge raised its full-year LOE guidance to a range of $8.25 to $9.25 per BOE. Kettler said the company expects unit costs to improve during the second half as recently completed wells contribute more volumes and fixed costs are spread over a larger production base. Management also cited production shut-ins in high gas-oil-ratio and gas-oriented areas during a period of significantly weak Waha natural-gas pricing as a factor affecting per-unit costs. Kettler said a first-quarter write-off related to an MBC delinquency also affected LOE, but did not affect second-quarter results. Natural gas realizations remained pressured by Waha basis differentials, with the company reporting a realized price of $1.12 per Mcf during the quarter. Gas sales totaled $9.6 million. However, management said new pipeline takeaway capacity has begun to improve Permian gas-market conditions. Farquharson pointed to the Hugh Brinson Pipeline beginning gas movements during the middle of the year, with additional capacity expected to follow. Granite Ridge has hedged its gas basis through the first quarter of 2028, he said. Kettler said that if basis holds near current levels, the company expects gas sales to exceed $30 million in the third quarter before hedge settlements, with a further improvement anticipated in the fourth quarter due to more favorable basis hedges and less hedged volume. For 2026, Granite Ridge expects full-year production to remain within its guidance range but trend toward the lower end because of timing shifts. Production is expected to increase modestly in the third quarter and more significantly in the fourth quarter, with oil comprising about 52% of the mix by year-end. The company expects exit production to approach 40,000 BOE per day. Farquharson said the company’s 2027 outlook is based on $65 per barrel oil and calls for a 10% free-cash-flow yield, dividend coverage of 1.25 times, leverage of roughly 1.25 times and high-single-digit production growth. Kettler added that hedge losses seen in 2026 are expected to diminish in 2027, while improved gas realizations could support revenue. Management said it could reduce an estimated 40% to 50% of its development budget if oil prices were to remain below roughly $65 per barrel, while retaining the ability to accelerate activity if returns justify it. Farquharson said the company estimates maintenance capital at about $250 million and expects more than 75% of 2027 development spending to be directed to operated partnerships. The company also said Grey Rock intends to distribute a portion of its Granite Ridge shares to its limited partners during the third quarter. If completed, the distribution would reduce Grey Rock’s ownership below 50%, ending Granite Ridge’s status as a controlled company. Farquharson said the planned distribution could broaden the shareholder base, increase public float and improve trading liquidity. He said Grey Rock expects the distribution process to occur methodically over approximately six to nine months, though Granite Ridge said the decision and timing remain under Grey Rock’s control. Granite Ridge Resources, Inc operates as a non-operated oil and gas exploration and production company. It owns a portfolio of wells and acreage across the Permian and other unconventional basins in the United States. Granite Ridge Resources, Inc is based in Dallas, Texas. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Granite Ridge Resources Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

This article first appeared on GuruFocus. Release Date: August 07, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Granite Ridge Resources Inc (NYSE:GRNT) reaffirmed that 2026 is the final year of outspend, with a clear path to a free cash flow inflection in 2027, targeting a double-digit free cash flow yield at $65 oil. The operator partnership platform, led by Admiral, continues to deliver proprietary, high-return inventory at entry costs well below marketed deals, adding 21.9 net undeveloped locations in Q2. The company maintains a strong balance sheet with conservative leverage of approximately 1.4 times and ample liquidity, while continuing to pay a quarterly dividend. Permian natural gas takeaway is improving with new pipelines like Huberenson coming online, which is expected to firm Waha basis and significantly boost gas revenues in the second half of 2026. The company has built-in capital flexibility, able to cut 40-50% of development budget if oil falls below $65, or accelerate activity if conditions warrant, protecting the base business and dividend. The planned distribution of shares by Gray Rock is viewed positively, as it will broaden the shareholder base, increase public float and trading liquidity, and transition the company to a fully independent governance structure. Lease operating expense (LOE) ran above plan for the second consecutive quarter, driven by water handling costs in the Permian and higher early-life costs on newer pads, leading to increased full-year LOE guidance. Permian natural gas realizations remained soft due to record-low Waha basis weakness, with Q2 gas sales of only $9.6 million, though this is expected to improve. 2026 production volumes are expected to trend towards the lower end of the guidance range due to shifts in timing, pushing a larger positive impact into Q1 2027. The company is still investing ahead of free cash flow in 2026, with Q3 expected to be the heaviest spending quarter of the year, which could pressure near-term cash flow. The Gray Rock share distribution, while positive long-term, could create near-term overhang and selling pressure on the stock as shares are methodically distributed to limited partners over the next six to nine months. Warning! GuruFocus has detected 8 Warning Signs with GRNT. Is GRNT fairly valued? Test your thesis with our free DCF calculator. Q: What are the most important assumptions underlying the 2027 free cash flow inflection, and what commodity prices are needed to generate the double-digit free cash flow yield outlined in the presentation?A: Tyler Farquharson (President and CEO) stated that the plan is based on $65 oil, noting current 2027 strip prices are in the low $70s, providing cushion. At $65 oil, the company expects to deliver a 10% free cash flow yield, 1.25x dividend coverage, leverage in the 1.25x range, and high single-digit production growth. Kyle Kettler (CFO) added that substantial hedge losses in 2026 are expected to disappear in 2027, and the Waha basis differential, which was rough in the first half, is subsiding and expected to remain stable, expanding gas revenues. Q: How quickly and to what extent can you flex activity levels up or down within the operated portfolio if commodity prices move materially higher or lower?A: Tyler Farquharson (President and CEO) explained that the company can flex very quickly. On the upside, they have additional inventory scheduled for out-years that can be pulled forward, potentially adding a rig. On the downside, they have ample capacity to reduce inventory and spend below the $250 million maintenance capital level for 2027. This flexibility is a key advantage, especially given current commodity price volatility. Q: With the transition to free cash flow expected next year, how will that affect the inventory capture strategy, and does it put a ceiling on capital you're willing to deploy?A: Tyler Farquharson (President and CEO) acknowledged there is somewhat of a ceiling, but noted the strategy has been very successful, adding inventory at a 2-to-1 rate versus development. The company currently has 5-6 years of inventory, which is a good level, and they don't want to warehouse too much on the balance sheet. He noted acquisition spending was over $125 million in 2025, will be about $50 million in 2026, and expects a similar level in 2027. Q: Can you talk about the runway for continued opportunities in the Utica, which seems to be backstopping the operator partnership model?A: Tyler Farquharson (President and CEO) confirmed the Utica is the number one spot for traditional non-op spending. The company has built close to 6,000 net acres over the past 18 months and continues to see lots of deal flow, with four separate closings in Q2. They now have over 80 wells online with at least 1.5 years of data, and well performance and economics look great. The company expects continued success and spending in this area. Q: What gives you confidence that unit LOE costs will moderate in the second half, and which region drove the elevated costs in the first half?A: Kyle Kettler (CFO) acknowledged elevated costs, having increased guidance by $1.50 per BOE (over 20%). However, they are working closely with operating partners and already seeing LOE per BOE coming down. Additionally, there was a denominator effect in the first half due to Waha going significantly negative, causing shut-ins in high GOR and gas-oriented areas. These two factors give confidence that costs will come off sequentially in the second half. Q: Can you provide any details on the third and fourth operator partnerships and when we might learn more about them?A: Tyler Farquharson (President and CEO) said they will likely share more information later this year. Both partnerships are Permian-focused. Team 3 is an emerging play, geo-led team doing appraisal work on a nice acreage block, with results expected later this year. Team 4, added in Q4 2025, is an inventory aggregation development play team similar to Admiral, focused mainly on the Midland Basin. Team 4 is ahead of schedule on inventory capture, and they hope to provide information on development plans for 2027 later this year. Q: If the free cash flow inflection plays out next year, how will you prioritize that free cash flow?A: Tyler Farquharson (President and CEO) outlined the priorities: first, maintain the dividend (paid every quarter since going public, 14 quarters now); second, maintain the balance sheet at roughly 1.25x leverage, the long-term target; and third, beyond that, look to expand the business through opportunistic, market-based inventory acquisitions or accelerate development activity depending on commodity prices. Q: As you progress the operated partnerships, how much of the 2027 CapEx envelope is for third-party versus the controlled piece?A: Tyler Farquharson (President and CEO) stated that it will probably be north of 75% going into operator partnerships next year. In the most recent quarter, about 93% of development capital went into operator partners, with the balance in traditional non-op and Utica. While it may not be as high as 93%, it will certainly be higher than 75% in 2027. Q: Can you share any thoughts on the Grey Rock distribution in kind, including cost basis and ability to support the stock?A: Tyler Farquharson (President and CEO) explained this is a Grey Rock partnership decision, with their fund life ending in the next 6-9 months. The distribution will be methodical over that period. The company views it positively as it increases daily trading volume, liquidity, and removes the overhang. Grey Rock has distributed shares before (a large distribution in 2023), and about 40% of the remaining fund has already been distributed. While he didn't know the exact cost basis, he noted it is a low number given the funds have been very successful. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Management characterizes 2026 as the final year of investing ahead of free cash flow, with current capital deployment specifically building the production base for a 2027 inflection. The Operated Partnership platform serves as the primary growth engine, utilizing partners like Admiral Permian to source off-market deals that avoid competitive auction pricing. Strategic advantage is derived from a hybrid model that captures operator-level economics and development control without the full overhead of a standalone operating structure. Production growth is being driven by high-graded deal flow, including complex projects like a 9-well long-lateral development for a large Permian operator that required aggressive execution timelines. Management maintains a strict 12% conversion rate on deal flow, reviewing 363 opportunities but only closing 44 to ensure all additions meet a 25% full-cycle return threshold at the strip. Operational headwinds in the quarter included elevated lease operating expenses (LOE) due to water handling in the Permian and higher costs associated with early-life pads. Natural gas realizations were impacted by record Waha Basis weakness, though management expects recovery as new takeaway capacity like the Hugh Brinson pipeline ramps up. The 2027 free cash flow inflection is predicated on $65 oil, assuming high single-digit production growth and a 10% free cash flow yield. Management expects a significant step-up in production volumes during the fourth quarter of 2026, providing a positive carry-over effect into early 2027. Financial modeling for 2027 assumes the roll-off of substantial 2026 hedge losses and a stabilization of gas revenues as Permian takeaway capacity improves. The development program is designed for flexibility, with the ability to reduce the budget by 40% to 50% if oil falls below $65 while still protecting the dividend. Inventory strategy aims to maintain a 5-to-6-year runway, avoiding the balance sheet burden of warehousing long-dated drilling inventory. Full-year LOE guidance was revised upward to $8.25-$9.25 per BOE to reflect Permian water handling costs and non-recurring MVC delinquency write-offs from the first quarter. Grey Rock intends to distribute a portion of its shares to limited partners, which will likely result in Granite Ridge losing its 'controlled company' status and increasing public float. The company maintains a conservative leverage target of approximately 1.25x as it transitions toward self-funded growth. Basis hedges are in place through Q1 2028 to mitigate downside risk from regional natural gas price volatility. Management confirmed the 10% free cash flow yield target is based on $65 oil, providing a cushion against current strip prices in the low $70s. The inflection will also be aided by the expiration of hedge losses and improved Waha Basis differentials. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Activity can be increased quickly by pulling forward scheduled inventory, though slowing down is more complex. The company has the capacity to pull spending below the $250 million maintenance capital level if macro conditions warrant. The Utica remains the primary focus for traditional non-operated spending, with roughly 6,000 net acres accumulated over 18 months. Management continues to see robust deal flow in the region, noting that well performance and productivity have met expectations. Team 4 is focused on Midland Basin inventory aggregation and is currently ahead of schedule regarding inventory capture. Team 3 is conducting appraisal work on an emerging Permian play, with results expected later in 2026. The distribution is expected to be a methodical process over 6 to 9 months as the fund reaches its end-of-life. Management views this as a positive for broadening the shareholder base and removing the trading overhang, despite the low cost-basis of the shares being distributed.

DALLAS, August 06, 2026--(BUSINESS WIRE)--Granite Ridge Resources, Inc. ("Granite Ridge" or the "Company") (NYSE: GRNT) today reported financial and operating results for the second quarter of 2026. Second Quarter 2026 Highlights Grew daily production 1% to 32,044 barrels of oil equivalent ("Boe") per day (51% oil), from 31,576 Boe per day for the second quarter of 2025. Reported net income of $30.0 million, or $0.23 per diluted share, versus $25.1 million, or $0.19 per diluted share, for the prior year period. Adjusted Net Income (non-GAAP) totaled $11.1 million, or $0.09 Adjusted Earnings Per Diluted Share (non-GAAP). Generated $79.6 million of Adjusted EBITDAX (non-GAAP). Invested $78.5 million in drilling and completions capital expenditures and $16.7 million in acquisition capital to capture high quality drilling opportunities. Placed 7.2 net wells online. Paid dividend of $0.11 per share of common stock. Net Debt to Trailing Twelve Months Adjusted EBITDAX (non-GAAP) of 1.4x. Subsequent to quarter end, the Company’s Board of Directors declared a regular quarterly dividend of $0.11 per share payable on September 14, 2026 to shareholders of record as of August 28, 2026. Future declarations of dividends are subject to approval by the Board of Directors. See "Supplemental Non-GAAP Financial Measures" below for descriptions of the above non-GAAP measures as well as a reconciliation of these measures to the associated GAAP (as defined herein) measures. Tyler Farquharson, President and CEO of Granite Ridge, commented, "2026 is the final year in which we expect to invest ahead of cash flow, and our second quarter activity advanced the plan we have laid out to reach a free cash flow inflection in 2027. During the quarter we brought new wells online, added high-return inventory, and maintained a conservative balance sheet and our quarterly dividend. "Our Operated Partnership platform remains our principal differentiator. Through Admiral Permian Resources, and through the additional partnerships we are developing, we fund development on acreage sourced through our partners' operating relationships rather than through broadly marketed packages, adding inventory at attractive entry costs while retaining control of our capital. We underwrite every opportunity to a full-cycle return above 25% at strip pricing, and in the first half of 2026 we replaced inventory faster than we developed it. "Our strategy does not depend on a higher commodity price environment; our underwriting discipline and hedge program are designed to protect cash flow across a range of outcomes. We remain focused on executing toward our 2027 framework of durable growth, a double-digit free cash flow yield, and a well-covered dividend." Financial Results Oil and natural gas sales for the second quarter of 2026 were $149.3 million. Net income was $30.0 million, or $0.23 per diluted share. Excluding non-cash and special items, Adjusted Net Income (non-GAAP) was $11.1 million, or $0.09 per diluted share. Adjusted EBITDAX (non-GAAP) for the second quarter of 2026 totaled $79.6 million compared to $75.4 million for the second quarter of 2025. Cash flow from operating activities was $55.6 million, including $14.0 million in working capital changes. Operating Cash Flow Before Working Capital Changes (non-GAAP) was $69.5 million. Production Results Second quarter 2026 oil production volumes totaled 16,341 barrels ("Bbls") per day, a 2% increase from the second quarter of 2025. Natural gas production for the second quarter of 2026 totaled 94,220 thousand cubic feet of natural gas ("Mcf") per day, a 1% increase from the second quarter of 2025. The Company’s daily production for the second quarter of 2026 grew 1% from the second quarter of the prior year to 32,044 Boe per day. Oil, Natural Gas and Related Product Sales The Company’s average realized price for oil and natural gas for the second quarter of 2026, excluding the effect of commodity derivatives, was $93.93 per Bbl and $1.12 per Mcf, respectively, compared to $61.41 per Bbl and $2.32 per Mcf realized in the second quarter of 2025. Operating Costs Lease operating expenses were $30.0 million in the second quarter of 2026, or $10.27 per Boe, a 47% increase on a per unit basis compared to the second quarter of 2025 as a result of increased saltwater disposal costs as a result of higher water cuts and flowback operations, surface equipment rentals, and contract labor. Production and ad valorem taxes were $9.3 million for the quarter, or 6% of oil and natural gas sales. During the quarter, general and administrative expenses totaled $9.2 million, or $3.14 per Boe, inclusive of $1.3 million of non-cash stock-based compensation. Capital Expenditures and Operational Activity Capital expenditures for the quarter were $95.2 million comprised of $78.5 million of drilling and completions capital and $16.7 million of property acquisition costs. The Company closed 27 acquisitions primarily in the Permian and Appalachian Basins, adding an aggregate inventory of 21.9 net undeveloped locations. The table below provides the costs incurred for oil and natural gas producing activities for the periods indicated: The Company had 7.2 net wells turned in-line ("TIL") during the second quarter of 2026, compared to 4.9 net wells TIL in the second quarter of 2025. The table below provides a summary of gross and net wells completed and TIL for the three and six months ended June 30, 2026: At June 30, 2026, the Company had 175 gross (14.0 net) wells in process. Liquidity and Capital Resources As of June 30, 2026, Granite Ridge had $350.0 million of principal debt outstanding on 8.875% senior unsecured notes and $125.0 million of debt outstanding under our senior secured revolving credit agreement (as amended, the "Credit Agreement"). The Company had $293.8 million of liquidity, consisting of $249.7 million of committed borrowing availability under the Credit Agreement and $44.1 million of cash on hand. Commodity Derivatives Update The Company’s commodity derivatives strategy is intended to manage its exposure to commodity price fluctuations. Please see the table under "Derivatives Information" below for detailed information about Granite Ridge’s current derivatives positions. 2026 Guidance The following table summarizes the Company’s operational and financial guidance for 2026. Grey Rock Distribution Grey Rock Investment Partners, which beneficially owns approximately 50% of Granite Ridge's outstanding common stock, has informed the Company that it intends to distribute a portion of its shares to the limited partners of one of its affiliated funds in the third quarter of 2026, representing the first of multiple expected tranches. The distribution is expected to be an in-kind distribution of existing shares by Grey Rock to its limited partners. It is not an underwritten offering, the Company is not issuing any shares, and the Company will not receive any proceeds. The size, timing and completion of any distribution are at Grey Rock's discretion, and no assurance can be given that any distribution will occur as described. If distributions reduce Grey Rock's beneficial ownership to less than 50% of the Company's voting power, Granite Ridge will transition to governance as a non-controlled company under NYSE listing standards, including a majority-independent Board and independent compensation and nominating and corporate governance committees. The Company will complete that transition within the periods those standards provide. A distribution would not alter the Company's Master Services Agreement with Grey Rock, the opportunity-sharing arrangements thereunder, or the agreements governing the Company's Operated Partnerships. For information regarding Grey Rock's ownership and intentions, investors should refer to its filings under Section 13(d) of the Exchange Act. Conference Call Granite Ridge will host a conference call on August 7, 2026, at 10:00 a.m. CT (11:00 a.m. ET) to discuss its second quarter 2026 results. A Q&A session for security analysts will immediately follow the discussion. The details are as follows: Upcoming Investor Events Granite Ridge management will be participating in the following upcoming investor events: Enercom Denver - The Energy Investment Conference (Denver, CO) - August 18-19, 2026 Pickering Energy Partners - PEP Energy Conference (Austin, TX) - September 28-30, 2026 Any investor presentations to be used for such events will be posted prior to the respective event on Granite Ridge’s website. Information on Granite Ridge’s website does not constitute a portion of, and is not incorporated by reference into this press release. About Granite Ridge Granite Ridge is a scaled energy company which aims to provide shareholders with exposure similar to energy private equity through operated partnerships and traditional non-operated assets. We own assets in six prolific unconventional basins across the United States. We aim to deliver a diversified portfolio with best-in-class full cycle returns by investing in a large number of high-graded deals developed by proven public and private operators. We focus on success as measured by total shareholder returns, which we seek to balance with a low leverage profile. For more information, visit Granite Ridge’s website at www.graniteridge.com. Forward-Looking Statements and Cautionary Statements This press release contains forward-looking statements regarding future events and future results that are subject to the safe harbors created under the Securities Act of 1933, as amended, and the Securities Exchange Act of 1934, as amended. All statements other than statements of historical facts included in this release regarding, without limitation, Granite Ridge’s 2026 outlook, financial position, operating and financial performance, business strategy, plans and objectives of management for future operations, industry conditions, indebtedness covenant compliance, capital expenditures, production, cash flows and the Grey Rock distribution are forward-looking statements. When used in this release, forward-looking statements are generally accompanied by terms or phrases such as "estimate," "project," "predict," "believe," "expect," "continue," "anticipate," "target," "could," "plan," "intend," "seek," "goal," "will," "should," "may" or other words and similar expressions that convey the uncertainty of future events or outcomes. Items contemplating or making assumptions about actual or potential future production and sales, market size, collaborations, and trends or operating results also constitute such forward-looking statements. Forward-looking statements involve inherent risks and uncertainties, and important factors (many of which are beyond Granite Ridge’s control) that could cause actual results to differ materially from those set forth in the forward-looking statements, including the following: changes in Granite Ridge’s strategy, future operations, financial position, estimated revenues and losses, projected costs, prospects and plans, changes in current or future commodity prices and interest rates, supply chain disruptions, infrastructure constraints and related factors affecting our properties, ability to acquire additional development opportunities and potential or pending acquisition transactions, as well as the effects of such acquisitions on the Company’s cash position and levels of indebtedness, changes in reserves estimates or the value thereof, operational risks including, but not limited to, the pace of drilling and completions activity on our properties, changes in the markets in which Granite Ridge competes, geopolitical risk and changes in applicable laws, legislation, or regulations, including those relating to environmental matters, cyber-related risks, the fact that reserve estimates depend on many assumptions that may turn out to be inaccurate and that any material inaccuracies in reserve estimates or underlying assumptions will materially affect the quantities and present value of Granite Ridge’s reserves, the outcome of any known and unknown litigation and regulatory proceedings, limited liquidity and trading of Granite Ridge’s securities, acts of war, terrorism or uncertainty regarding the effects and duration of global hostilities, including the Israel-Hamas conflict, the Russia-Ukraine war, the conflict in Iran, continued instability in the Middle East, and any associated armed conflicts or related sanctions which may disrupt commodity prices and create instability in the financial markets, and market conditions and global, regulatory, technical, and economic factors beyond Granite Ridge’s control, including the potential adverse effects of world health events, affecting capital markets, general economic conditions, global supply chains, uncertainties with respect to trade policies (including the imposition of tariffs) and Granite Ridge’s business and operations, increasing regulatory and investor emphasis on, and attention to, environmental, social and governance matters, our ability to establish and maintain effective internal control over financial reporting, and the other risks described under the heading "Item 1A. Risk Factors" in Granite Ridge’s Annual Report on Form 10-K for the year ended December 31, 2025 filed with the Securities and Exchange Commission ("SEC"), as updated by any subsequent Quarterly Reports on Form 10-Q that Granite Ridge files with the SEC. Granite Ridge has based these forward-looking statements on its current expectations and assumptions about future events. While management considers these expectations and assumptions to be reasonable, they are inherently subject to significant business, economic, competitive, regulatory and other risks, contingencies and uncertainties, most of which are difficult to predict and many of which are beyond Granite Ridge’s control. If one or more of these risks or uncertainties materialize, or if the underlying assumptions prove incorrect, our actual results may vary materially from those expected or projected. Granite Ridge does not undertake any duty to update or revise any forward-looking statements, except as may be required by the federal securities laws. Use of Non-GAAP Financial Measures To supplement the presentation of the Company’s financial results prepared in accordance with U.S. Generally Accepted Accounting Principles ("GAAP"), this press release contains certain financial measures that are not prepared in accordance with GAAP, including Adjusted Net Income, Adjusted Earnings Per Share, Adjusted EBITDAX, Trailing Twelve Months Adjusted EBITDAX, Operating Cash Flow Before Working Capital Changes, and Net Debt. See "Supplemental Non-GAAP Financial Measures" below for a description and reconciliation of each non-GAAP measure presented in this press release to the most directly comparable financial measure calculated in accordance with GAAP. Granite Ridge Resources, Inc. Supplemental Non-GAAP Financial Measures The Company reports its financial results in accordance with GAAP. However, the Company believes certain non-GAAP performance measures may provide financial statement users with additional meaningful comparisons between current results, the results of its peers and the results of prior periods. In addition, the Company believes these measures are used by analysts and others in the valuation, rating and investment recommendations of companies within the oil and natural gas exploration and production industry. See the reconciliations throughout this release of GAAP financial measures to non-GAAP financial measures for the periods indicated. Reconciliation of Net Income (Loss) to Adjusted EBITDAX Adjusted EBITDAX is presented herein and reconciled from the GAAP measure of net income (loss) because of its wide acceptance by the investment community as a financial indicator. The Company defines Adjusted EBITDAX as net income (loss) before depletion and accretion expense, unrealized (gain) loss on derivatives – commodity derivatives, interest expense, net, non-cash stock-based compensation, income tax expense (benefit), impairment of unproved properties, impairments of long-lived assets, (gain) loss on equity investments, and other, net. Adjusted EBITDAX is not a measure of net income or cash flows as determined by GAAP. The Company’s Adjusted EBITDAX measure provides additional information that may be used to better understand the Company’s operations. Adjusted EBITDAX is one of several metrics that the Company uses as a supplemental financial measurement in the evaluation of its business and should not be considered in isolation or as an alternative to, or more meaningful than, net income (loss) as an indicator of operating performance. Certain items excluded from Adjusted EBITDAX are significant components in understanding and assessing a company’s financial performance, such as a company’s cost of capital and tax structure, as well as the historic cost of depreciable and depletable assets. Adjusted EBITDAX, as used by the Company, may not be comparable to similarly titled measures reported by other companies. The Company believes that Adjusted EBITDAX is a widely followed measure of operating performance and is one of many metrics used by the Company’s management team and by other users of the Company’s consolidated financial statements. For example, Adjusted EBITDAX can be used to assess the Company’s operating performance and return on capital in comparison to other independent exploration and production companies without regard to financial or capital structure, and to assess the financial performance of the Company’s assets and the Company without regard to capital structure or historical cost basis. The following table provides a reconciliation of the GAAP measure of net income (loss) to Adjusted EBITDAX for the periods indicated: The Company defines Trailing Twelve Months Adjusted EBITDAX as the accumulation of the prior twelve months Adjusted EBITDAX. Adjusted EBITDAX for each of the quarters ended September 30, 2025, December 31, 2025, March 31, 2026, and June 30, 2026 were previously reported in an earnings release relating to the applicable quarter, and the reconciliation of net income to Adjusted EBITDAX for each quarter is included in the applicable earnings release. The following table provides a reconciliation of the GAAP measure of net income to Trailing Twelve Months Adjusted EBITDAX for the period indicated: Reconciliation of Debt to Net Debt The Company provides Net Debt, which is a non-GAAP financial measure. The Company defines Net Debt as current portion of long-term debt, plus long-term debt, net, less cash as of the balance sheet date. The Company’s Net Debt to Trailing Twelve Months Adjusted EBITDAX provides investors with insight into the Company’s leverage as of the measurement date. The following table provides a reconciliation from the GAAP measure of Debt to Net Debt and Net Debt to Trailing Twelve Months Adjusted EBITDAX ratio: Reconciliation of Net Income (Loss) to Adjusted Net Income and Adjusted Earnings Per Share The Company provides Adjusted Net Income and Adjusted Earnings Per Share, which are non-GAAP financial measures. Adjusted Net Income and Adjusted Earnings Per Share represent earnings and diluted earnings (loss) per share determined under GAAP without regard to certain non-cash and nonrecurring items. The Company defines Adjusted Net Income as net income as determined under GAAP excluding impairments of long-lived assets, unrealized (gain) loss on derivatives - commodity derivatives, (gain) loss on equity investments, certain nonrecurring general and administrative expenses and tax impact on above adjustments. The Company defines Adjusted Earnings Per Share as Adjusted Net Income divided by weighted average number of diluted shares of common stock outstanding. The Company believes these measures provide useful information to analysts and investors for analysis of its operating results on a recurring, comparable basis from period to period. Adjusted Net Income and Adjusted Earnings Per Share should not be considered in isolation or as a substitute for earnings or diluted earnings per share as determined in accordance with GAAP and may not be comparable to other similarly titled measures of other companies. The following table provides a reconciliation from the GAAP measure of net income (loss) to Adjusted Net Income, both in total and on a per diluted share basis, for the periods indicated: Reconciliation of Net Cash Provided by Operating Activities to Operating Cash Flow Before Working Capital Changes The Company provides Operating Cash Flow ("OCF") Before Working Capital Changes, which is a non-GAAP financial measure. The Company defines OCF Before Working Capital Changes as net cash provided by operating activities as determined under GAAP excluding changes in operating assets and liabilities such as: changes in cash due to changes in operating assets and liabilities, revenue receivable, accounts payable and accrued liabilities, prepaid and other current assets, and other liabilities and long-term payables. The Company believes OCF Before Working Capital Changes is an accepted measure of an oil and natural gas company’s ability to generate cash used to fund development and acquisition activities and service debt or pay dividends. This non-GAAP measure should not be considered as an alternative to, or more meaningful than, net cash provided by operating activities as an indicator of operating performance. The following table provides a reconciliation from the GAAP measure of net cash provided by operating activities to OCF Before Working Capital Changes: View source version on businesswire.com: https://www.businesswire.com/news/home/20260806871317/en/ Contacts For more information, please contact: James MastersInvestor [email protected]

Granite Ridge Resources, Inc. (GRNT) came out with quarterly earnings of $0.09 per share, beating the Zacks Consensus Estimate of $0.06 per share. This compares to earnings of $0.11 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +50.00%. A quarter ago, it was expected that this company would post earnings of $0.09 per share when it actually produced earnings of $0.02, delivering a surprise of -77.78%. Over the last four quarters, the company has surpassed consensus EPS estimates just once. Granite Ridge Resources, Inc., which belongs to the Zacks Oil and Gas - Exploration and Production - United States industry, posted revenues of $149.27 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 6.47%. This compares to year-ago revenues of $109.22 million. The company has topped consensus revenue estimates just once over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Granite Ridge Resources, Inc. shares have lost about 1.5% since the beginning of the year versus the S&P 500's gain of 12.8%. While Granite Ridge Resources, Inc. has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Granite Ridge Resources, Inc. was unfavorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #5 (Strong Sell) for the stock. So, the shares are expected to underperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.17 on $155.6 million in revenues for the coming quarter and $0.42 on $579.6 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Oil and Gas - Exploration and Production - United States is currently in the bottom 13% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Infinity Natural Resources (INR), another stock in the same industry, has yet to report results for the quarter ended June 2026. The results are expected to be released on August 10. This company is expected to post quarterly earnings of $0.86 per share in its upcoming report, which represents a year-over-year change of -27.1%. The consensus EPS estimate for the quarter has been revised 2.4% higher over the last 30 days to the current level. Infinity Natural Resources' revenues are expected to be $165.37 million, up 122% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Granite Ridge Resources, Inc. (GRNT) : Free Stock Analysis Report Infinity Natural Resources Inc. (INR) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Granite Ridge Resources, Inc. (GRNT) is expected to deliver a year-over-year decline in earnings on higher revenues when it reports results for the quarter ended June 2026. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price. The earnings report, which is expected to be released on August 6, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower. While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise. This company is expected to post quarterly earnings of $0.06 per share in its upcoming report, which represents a year-over-year change of -45.5%. Revenues are expected to be $140.2 million, up 28.4% from the year-ago quarter. The consensus EPS estimate for the quarter has been revised 2.94% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period. Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts. Price, Consensus and EPS Surprise Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core. The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier. Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only. A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP. Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell). For Granite Ridge Resources, Inc., the Most Accurate Estimate is the same as the Zacks Consensus Estimate, suggesting that there are no recent analyst views which differ from what have been considered to derive the consensus estimate. This has resulted in an Earnings ESP of 0%. On the other hand, the stock currently carries a Zacks Rank of #5. So, this combination makes it difficult to conclusively predict that Granite Ridge Resources, Inc. will beat the consensus EPS estimate. While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number. For the last reported quarter, it was expected that Granite Ridge Resources, Inc. would post earnings of $0.09 per share when it actually produced earnings of $0.02, delivering a surprise of -77.78%. The company has not been able to beat consensus EPS estimates in any of the last four quarters. An earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss. That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported. Granite Ridge Resources, Inc. doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release. Another stock from the Zacks Oil and Gas - Exploration and Production - United States industry, SM Energy (SM), is soon expected to post earnings of $1.93 per share for the quarter ended June 2026. This estimate indicates a year-over-year change of +28.7%. Revenues for the quarter are expected to be $2.01 billion, up 153.2% from the year-ago quarter. The consensus EPS estimate for SM Energy has been revised 19% lower over the last 30 days to the current level. However, a higher Most Accurate Estimate has resulted in an Earnings ESP of +0.44%. When combined with a Zacks Rank of #3 (Hold), this Earnings ESP indicates that SM Energy will most likely beat the consensus EPS estimate. The company beat consensus EPS estimates in each of the trailing four quarters. Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Granite Ridge Resources, Inc. (GRNT) : Free Stock Analysis Report SM Energy Company (SM) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Granite Ridge Resources trades at $4.86 per share and has stayed right on track with the overall market, gaining 5.5% over the last six months. At the same time, the S&P 500 has returned 8.6%. Is there a buying opportunity in Granite Ridge Resources, or does it present a risk to your portfolio? See what our analysts have to say in our full research report, it’s free. We’re cautious about Granite Ridge Resources. Here are three reasons you should be careful with GRNT, plus one stock we’d rather own. Cyclical sectors like Energy often flatter weaker operators during favorable price environments, but a longer-term lens separates those from businesses that can consistently perform across market cycles. Unfortunately, Granite Ridge Resources’s 8.7% annualized revenue growth over the last four years was mediocre. This was below our standard for the energy upstream and integrated energy sector. The size of the revenue base is a way to assess topline, and it tells an investor whether an Energy producer has crossed the line between being a more vulnerable commodity taker and a durable operating platform. Scaled businesses tend to produce and generate revenue from many wells, pads, takeaway routes, and geographies, not just a single field or drilling program. Granite Ridge Resources’s $455.6 million of revenue in the last year is pretty small for the industry, suggesting the company hasn’t hit a level of diversification where investors can sleep easy at night. Adjusted EBITDA margin is an important measure of profitability for the sector and accounts for the gross margins and operating costs mentioned previously. Unlike operating margin, it is not distorted by accounting conventions around reserves, drilling costs, and assumptions on commodity consumption from the well or basin. Adjusted EBITDA highlights the economic reality of how much cash the rock produces before the capital structure (debt service) and the drilling budget (capex) are considered. Analyzing the trend in its profitability, Granite Ridge Resources’s EBITDA margin decreased by 33.2 percentage points over the last year. Even though its historical margin was healthy, shareholders will want to see Granite Ridge Resources become more profitable in the future. Its EBITDA margin for the trailing 12 months was 65.6%. Granite Ridge Resources isn’t a terrible business, but it doesn’t pass our quality test. That said, the stock currently trades at 9.4× forward P/E (or $4.86 per share). While this valuation is optically cheap, the potential downside is big given its shaky fundamentals. We’re pretty confident there are more exciting stocks to buy at the moment. Let us point you toward one of our all-time favorite software stocks. ALSO WORTH WATCHING: Top 5 Momentum Stocks. The best time to own a great stock is when the market is finally noticing it. These aren’t just high-quality businesses. Something is happening with them right now. Elite fundamentals meet near-term momentum — both boxes checked at the same time. Find out which stocks our AI platform is flagging this week. See this week’s Strong Momentum stocks — FREE. Get Our Strong Momentum Stocks for Free HERE. Stocks that have made our list include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+271% between June 2020 and June 2025). Find your next big winner with StockStory today.

Granite Ridge Resources’ first quarter was met with a negative market reaction as both revenue and non-GAAP earnings per share missed Wall Street expectations. Management attributed the underperformance primarily to weak realized oil and natural gas prices in the Permian Basin, with CEO Tyler Parkinson stating that “service costs—primarily saltwater disposal—increased, a dynamic that is structural in the basin.” The company’s ongoing strategic shift toward operated partnerships helped drive double-digit oil production growth, but higher operating expenses and pricing headwinds weighed on overall profitability. Is now the time to buy GRNT? Find out in our full research report (it’s free). Revenue: $128.3 million vs analyst estimates of $129.5 million (4.3% year-on-year growth, 0.9% miss) Adjusted EPS: $0.02 vs analyst expectations of $0.11 (81% miss) Adjusted EBITDA: $71 million vs analyst estimates of $87.74 million (55.4% margin, 19.1% miss) Operating Margin: 11.6%, down from 34.6% in the same quarter last year Oil production: up 11.4% year on year Market Capitalization: $680.6 million While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. Phillips Johnston (Capital One) asked about the drivers behind the weak realized oil and gas prices, especially the impact of Waha basis for gas. CFO Kyle Kettler explained that negative differentials were modeled into future plans and are expected to improve slightly later in the year. Phillips Johnston (Capital One) inquired about the planned well count and production mix for 2026. Kettler confirmed 29 net wells are planned, with a tilt back toward oil and more Permian activity as the year progresses. Derek Whitfield (Texas Capital) questioned whether the move toward free cash flow in 2027 is driven by leverage targets or opportunity set. CEO Tyler Parkinson clarified that leverage discipline is the main driver, with capital allocation designed for a $60 oil environment. Jerry Giroux (Stephens) asked about the future use of free cash flow—whether it would be returned to shareholders or retained. Parkinson noted it is “TBD,” emphasizing flexibility and a focus on making the best decision based on circumstances at the time. Noah Hungness (Bank of America) asked about the current opportunity for inventory additions and market competitiveness. Parkinson indicated that operator teams continue to find attractive opportunities, particularly in the Permian and Utica Shale, and the deal flow remains robust. In the upcoming quarters, the StockStory team will be watching (1) the pace and efficiency of operated partnership project execution, (2) trends in realized oil and gas prices, especially in the Permian Basin, and (3) Granite Ridge Resources’ ability to moderate capital spending while sustaining production growth. The evolution of service costs and the company’s progress toward free cash flow will also be critical signposts. Granite Ridge Resources currently trades at $5.26, down from $5.60 just before the earnings. At this price, is it a buy or sell? See for yourself in our full research report (it’s free for active Edge members). ONE MORE THING: Top 6 Stocks for This Week. This market is separating quality stocks from expensive ones fast. AI taking down whole sectors with no warning. In a rotation this fast, you need more than a list of good companies. Our AI system flagged Palantir before it ran 1,662%. AppLovin before it ran 753%. Nvidia before it ran 1,178%. Each week it produces 6 new names that pass the same tests. Get Our Top 6 Stocks for Free HERE. Stocks that have made our list include now familiar names such as Nvidia (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today.

Looking back on mixed or offshore upstream E&P stocks’ Q1 earnings, we examine this quarter’s best and worst performers, including Granite Ridge Resources (NYSE:GRNT) and its peers. This category includes smaller or niche E&P companies operating in specialized basins, geographies, or resource types outside major classifications. These firms may target unconventional resources, frontier regions, or specific commodity niches. Tailwinds include potential for outsized returns from successful exploration, acquisition opportunities during industry downturns, and specialized expertise commanding premium valuations. Headwinds include higher operational and geological risks, limited scale reducing negotiating power and cost efficiencies, and constrained capital market access during challenging commodity environments. Regulatory risks and ESG concerns may disproportionately affect smaller operators with fewer resources for compliance. The 21 mixed or offshore upstream E&P stocks we track reported a satisfactory Q1. As a group, revenues missed analysts’ consensus estimates by 5%. While some mixed or offshore upstream E&P stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 3.7% since the latest earnings results. Operating without drilling rigs or field crews of its own, Granite Ridge Resources (NYSE:GRNT) owns interests in oil and natural gas wells across six major US shale basins. Granite Ridge Resources reported revenues of $128.3 million, up 4.3% year on year. This print fell short of analysts’ expectations by 0.9%. Overall, it was a disappointing quarter for the company with a significant miss of analysts’ EBITDA and EPS estimates. The stock is down 6.2% since reporting and currently trades at $5.26. Read our full report on Granite Ridge Resources here, it’s free. Operating in water depths reaching 12,000 feet below the surface, Seadrill (NYSE:SDRL) owns and operates drillships and semi-submersible rigs that drill oil and gas wells in deepwater offshore locations. Seadrill reported revenues of $358 million, up 6.9% year on year, outperforming analysts’ expectations by 7.2%. The business had an incredible quarter with a beat of analysts’ EPS and EBITDA estimates. The market seems happy with the results as the stock is up 5.2% since reporting. It currently trades at $50.85. Is now the time to buy Seadrill? Access our full analysis of the earnings results here, it’s free. Taking a hands-off approach to energy production, Vitesse Energy (NYSE:VTS) owns non-operated stakes in oil and natural gas wells primarily in North Dakota and Montana's Williston Basin. Vitesse Energy reported revenues of $67.41 million, up 1.9% year on year, falling short of analysts’ expectations by 6.8%. It was a disappointing quarter as it posted a significant miss of analysts’ EBITDA and EPS estimates. As expected, the stock is down 5.6% since the results and currently trades at $18.02. Read our full analysis of Vitesse Energy’s results here. Operating in three continents with a history stretching back to 1954, APA Corporation (NASDAQ:APA) explores for, develops, and produces crude oil, natural gas, and natural gas liquids in the U.S., Egypt, and the U.K. North Sea. APA Corporation reported revenues of $2.14 billion, flat year on year. This print topped analysts’ expectations by 3%. It was an exceptional quarter as it also produced a beat of analysts’ EPS and EBITDA estimates. The stock is down 4.1% since reporting and currently trades at $36.75. Read our full, actionable report on APA Corporation here, it’s free. Operating over 600,000 net acres primarily in two distinct South Texas regions, Magnolia Oil & Gas (NYSE:MGY) drills and produces oil, natural gas, and natural gas liquids from South Texas formations. Magnolia Oil & Gas reported revenues of $358.5 million, up 2.3% year on year. This number surpassed analysts’ expectations by 1.9%. Aside from that, it was a mixed quarter as it also produced a beat of analysts’ EPS estimates but a miss of analysts’ EBITDA estimates. The stock is flat since reporting and currently trades at $28.70. Read our full, actionable report on Magnolia Oil & Gas here, it’s free. Late in 2025 into early 2026, there was hand wringing around artificial intelligence. For software companies, the fear was that AI would erode pricing power and compress margins as new tools made it easier to replicate what once required expensive enterprise platforms. Crypto investors had their own version of the same anxiety: if AI agents could trade, allocate capital, and manage wallets autonomously, what exactly was the long-term value of today’s crypto infrastructure? These concerns triggered a noticeable rotation away from these sectors and into safer havens. But markets rarely dwell on one narrative for long. Spring 2026 came, and the focus shifted abruptly from technological disruption to geopolitical risk. The US’ conflict with Iran became the dominant driver of market psychology, and when geopolitics takes center stage, the script changes quickly. Investors stop debating growth rates and start worrying about oil supply, inflation, and global stability. Want to invest in winners with rock-solid fundamentals? Check out our Hidden Gem Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate. StockStory’s analyst team — all seasoned professional investors — uses quantitative analysis and automation to deliver market-beating insights faster and with higher quality.