Granite Ridge Resources Stock Price, News & Analysis

Granite Ridge Resources, Inc. (NYSE: GRNT) is an energy company focused on crude petroleum and natural gas extraction in the United States. According to the company’s public disclosures, Granite Ridge describes itself as a scaled energy business that aims to give shareholders exposure similar to energy private equity through a mix of operated partnerships and traditional non-operated oil and gas assets. The company also states that it generates most of its revenue from oil.

Granite Ridge invests in a diversified portfolio of oil and natural gas production and acreage across multiple unconventional basins. In its press releases, the company notes that it owns assets in six prolific unconventional basins across the United States, with a particular emphasis on the Permian Basin and other high-activity regions. The company also highlights a portfolio that combines operated partnership interests with non-operated working interests alongside public and private operators.

Business model and investment approach

Granite Ridge describes its strategy as providing exposure similar to energy private equity. In its public communications, the company explains that it seeks to invest in a large number of high-graded development projects sourced and executed by proven public and private operators. Through its operated partnership platform and traditional non-operated positions, Granite Ridge allocates capital across oil and natural gas projects that it underwrites for attractive full-cycle returns.

The company’s releases emphasize that it aims to deliver a diversified portfolio with strong full-cycle returns by participating in drilling and completion activity and by acquiring additional working interests and undeveloped locations. Granite Ridge reports that it uses both development capital expenditures and acquisition capital to capture drilling opportunities in basins such as the Permian, Utica, Eagle Ford, Bakken, Haynesville, DJ, and Appalachian plays.

Asset base and basins

In multiple earnings announcements, Granite Ridge states that it owns assets in six prolific unconventional basins across the United States. Operational tables in these releases reference activity and wells in the Permian, Eagle Ford, Bakken, Haynesville, DJ, and Appalachian basins. The company reports turning wells in-line and closing acquisitions in the Permian and Utica (Appalachian) basins, and it highlights strong initial production from recently completed wells in the Permian.

Granite Ridge’s disclosures show that it participates in a large number of gross wells with a smaller net working interest, reflecting its non-operated and partnership-oriented model. The company also reports that it maintains an inventory of wells in process and undeveloped locations acquired through its capital programs.

Operated partnerships and non-operated assets

Granite Ridge’s public statements describe two primary channels for its investments: an Operated Partnership platform and traditional non-operated assets. The Operated Partnership platform is referenced as a key contributor to performance, particularly in the Permian Basin, where the company works with partners such as Admiral Permian Resources and other operators that it characterizes as key partners. Traditional non-operated investments are described as a diversified portfolio of interests where Granite Ridge participates alongside proven operators without serving as the operator of record.

Across these channels, the company highlights that it allocates capital to what it views as high-quality drilling opportunities and that it evaluates projects based on full-cycle returns. Public guidance tables and commentary indicate that Granite Ridge uses development capital expenditures to fund drilling and completion activities and acquisition capital to add additional undeveloped locations and interests.

Capital structure and financial profile

Granite Ridge’s earnings releases and SEC filings provide detail on its balance sheet, liquidity, and use of debt. The company reports using a revolving credit agreement with a borrowing base that has been amended and increased over time, and it has also disclosed the issuance of senior unsecured notes with a stated maturity in the future. Liquidity discussions in the company’s press releases reference a combination of cash on hand and available borrowing capacity under its credit facility.

The company describes a focus on maintaining what it calls a low leverage profile and a conservative capital structure. It also discloses the use of commodity derivatives as part of a strategy to manage exposure to oil and natural gas price fluctuations. Non-GAAP measures such as Adjusted EBITDAX, Adjusted Net Income, Operating Cash Flow Before Working Capital Changes, and Net Debt are discussed in detail in its financial communications, with reconciliations provided in its filings and press releases.

Dividend and shareholder return focus

Granite Ridge regularly announces a quarterly cash dividend in its news releases. The company states that it focuses on success as measured by total shareholder returns and that it seeks to balance growth with a low leverage profile and cash returns to shareholders. Dividend declarations are described as subject to approval by the Board of Directors, and the company has repeatedly highlighted the role of its dividend within its overall capital allocation framework.

In its public commentary, Granite Ridge notes that it aims to generate sustainable, full-cycle risk-adjusted returns for investors. The company also states that it seeks to create what it describes as a rewarding experience for its team and to deliver reliable energy solutions safely and responsibly.

Relationship with Grey Rock and management services

Granite Ridge’s SEC filings indicate that it has a Management Services Agreement with Grey Rock Administration, LLC, which was originally dated in 2022 and later amended. An 8-K filing describes Amendment No. 1 to this agreement, which extends the initial term and adjusts the services fee and related provisions. The filing notes that, aside from the specified changes, the material terms of the existing agreement remain unchanged.

The same 8-K filing also describes a transaction involving Granite Ridge Ventures, LLC, a wholly owned subsidiary of Granite Ridge Resources, and Conduit Bravo LLC, an affiliate of Conduit Power, LLC. The transaction is documented under an ISDA Master Agreement and related documents and involves a power capacity commitment arrangement, with the full text of the transaction documents to be filed as exhibits to a future Form 10-K.

Participation in power generation-related arrangements

A Business Wire release describes Granite Ridge as a financial partner in Conduit Power’s development of distributed natural gas power generation assets in the Electric Reliability Council of Texas (ERCOT) market. According to that release, Conduit Power plans to build, own, and operate 200 megawatts of distributed natural gas power generation capacity in ERCOT’s Load Zone West, and Granite Ridge has agreed, along with another energy company, to commit to a fixed capacity payment in exchange for a preferred share of power proceeds generated by Conduit.

In that announcement, Granite Ridge’s President and CEO is quoted as stating that the arrangement allows the company’s shareholders to participate in enhanced well-level economics through power sales and to support new power generation capacity for the ERCOT grid. This disclosure illustrates how Granite Ridge may participate in energy-related arrangements that are adjacent to its core oil and natural gas extraction activities.

Regulatory filings and public company status

Granite Ridge files periodic and current reports with the U.S. Securities and Exchange Commission, including Forms 10-K, 10-Q, and 8-K. The company’s 8-K filings referenced in the input describe the release of quarterly results, updated guidance, investor presentations, and material agreements. These filings also indicate that Granite Ridge is an emerging growth company under applicable SEC definitions.

The company’s shares trade on the New York Stock Exchange under the ticker symbol GRNT. Its SEC filings list it as a Delaware corporation with principal offices in Dallas, Texas. As a public company, Granite Ridge provides detailed financial statements, reserve information, and operational metrics in its annual and quarterly reports.

Risk management and derivatives

Granite Ridge’s earnings releases describe a commodity derivatives strategy intended to manage exposure to fluctuations in oil and natural gas prices. The company discloses derivative assets and liabilities on its balance sheet and reports gains and losses on commodity derivatives in its statements of operations. It also references a hedge book that covers a portion of its production for a multiyear period, with more detailed information provided in derivatives tables within its financial communications.

By using derivatives, Granite Ridge seeks to provide more predictable cash flows from its oil and natural gas sales, which can support its capital program and dividend payments. The company’s disclosures emphasize that detailed information about its derivative positions is available in accompanying tables and filings.

Summary

In summary, Granite Ridge Resources, Inc. is a publicly traded energy company engaged in crude petroleum and natural gas extraction through a combination of operated partnerships and non-operated interests across multiple unconventional basins in the United States. It positions itself as offering shareholders exposure similar to energy private equity, with a focus on diversified assets, full-cycle returns, and total shareholder returns. The company reports on its operations, financial results, reserves, and capital structure through regular press releases and SEC filings, and it participates in energy-related arrangements such as capacity commitments with power generation partners.