HOUSTON--(BUSINESS WIRE)--Conduit Power, LLC ("Conduit") has entered into financial agreements with Diamondback Energy, Inc. (NASDAQ: FANG) ("Diamondback") and Granite Ridge Resources (NYSE: GRNT) ("Granite Ridge†) related to Conduit's development of 200 megawatts ("200 MWs†) of new natural gas power generation assets for the sale of energy and ancillary services to the Electric Reliability Council of Texas ("ERCOT†), Texas's largest power grid operator. Under the agreements, Conduit will build. ...

Investors in Granite Ridge Resources, Inc. (GRNT) need to pay close attention to the stock based on moves in the options market lately. That is because the Jan. 16, 2026 $2.5 Call had some of the highest implied volatility of all equity options today.What is Implied Volatility?Implied volatility shows how much movement the market is expecting in the future. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. I ...

Granite Ridge Resources, Inc. (NYSE:GRNT) is one of the cheap oil stocks under $10 to buy now. With two Hold ratings and no Buys or Sells, Granite Ridge Resources, Inc. (NYSE:GRNT) carries a consensus Hold and an average target of $5.75, roughly 6% above the current $5.42. Freedom Capital Downgrades Granite Ridge (GRNT) to Hold, Cuts PT to $7 On November 13, Freedom Capital Markets shifted its rating on Granite Ridge Resources, Inc. from Buy to Hold. The firm also cut its price target on the shares from ...

Join our community now to receive exclusive research about various companies and other opportunities along with full access to my portfolio of historic research that now includes over 1,000 reports on over 100 companies.Aaron Chow, aka Elephant Analytics has 15+ years of analytical experience and is a top rated analyst on TipRanks. Aaron previously co-founded a mobile gaming company (Absolute Games) that was acquired by PENN Entertainment. He used his analytical and modeling skills to design the in-game eco ...

Financial Data and Key Metrics Changes - Average daily production increased by 27% year over year to 31,900 barrels of oil equivalent per day [4] - Adjusted EBITDA grew by 4% from the prior year period to $78.6 million [4] - Revenue for the third quarter was $112.7 million compared to $94.1 million in the prior year period [13] - Net income was $14.5 million, or $0.11 per diluted share, while adjusted net income was $11.8 million, or $0.09 per diluted share [13] - Operating cash flow before working capital changes totaled $73.1 million [13] - The company ended the quarter with a leverage ratio of 0.9 times, well below the long-term target of less than 1.25 times [4][15] Business Line Data and Key Metrics Changes - Capital expenditures totaled $80.5 million, consisting of $64 million in development and $16.5 million in acquisitions [4] - Approximately 50% of capital spending has been deployed in operator partnerships [5] - Admiral Permian Resources, the largest operator partnership, produced 7,400 BOE per day net to Granite Ridge, representing 23% of total production [8] Market Data and Key Metrics Changes - Oil and gas prices have remained relatively stable over the past 12 months, providing a constructive backdrop for continued disciplined growth [10] - The company expects to maintain production guidance of 31,000-33,000 BOE per day for the full year 2025 [14] Company Strategy and Development Direction - The company aims to scale its operator partnership platform and define its model as publicly traded private equity [5] - The operator partnership model is viewed as the most capital-efficient path to scale, allowing for deliberate, cycle-resilient decisions around capital allocation [8] - The company plans to pursue measured growth with modest outspend if oil prices are above $50, while pivoting to maintenance mode if prices fall below $55 [11] Management's Comments on Operating Environment and Future Outlook - Management is cautious about near-term oil price uncertainty but constructive on the long-term outlook [11] - The company is committed to maintaining flexibility in capital allocation and has a strong balance sheet to operate through cycles [12] - The company is focused on opportunities that clear a 25% full-cycle return hurdle and exceed its cost of capital [10] Other Important Information - The company continues to return cash to shareholders with a quarterly dividend of $0.11 per share, equating to an annualized yield of approximately 8.3% [15] - The company has successfully issued $350 million of senior unsecured notes due 2029 with an 8.875% annual coupon, enhancing its capital structure [5][15] Q&A Session Summary Question: Details on third and fourth partnerships - The partnerships are in aggregation mode, focused on the Permian Basin, with expected development activity in 2026 if successful in inventory aggregation [21][22] Question: CapEx adjustments in a low oil price environment - In a $55 or lower oil price environment, the company would cut CapEx back to $225 million, focusing on acquisitions rather than drilling [23][24] Question: Growth trajectory into 2026 - Production contributions from Petro Legacy are expected to ramp up by mid-year 2026, while Admiral is running two rigs [29] Question: LOE trends for Q4 and 2026 - LOE was higher due to increased saltwater disposal costs, and the company expects to be at the higher end of guidance for 2025 [34] Question: Waha gas pricing and hedging - The company does not currently have basis hedges for Waha exposure but is considering adding them [38] Question: CapEx trends into Q4 - The company expects Q4 CapEx to be around $125 million, primarily due to remaining acquisitions [45] Question: Capital allocation for next year - The company expects a significant oil weighting in capital allocation, with continued success in Appalachia [46]

Company Performance & Strategy - Granite Ridge aims to be the leading public investment platform for energy development in the United States, targeting 25% full-cycle returns and mid-teens annual growth[7] - The company's Q3 2025 production reached 31,925 Boe/d, with 51% oil and 49% gas[3] - Granite Ridge has achieved a 47% CAGR growth since 2017 while maintaining leverage below 10x Net Debt/Adjusted EBITDAX[31] - The company declared a quarterly dividend of $011 per share[89] Market Trends & Opportunities - The U S rig count is down approximately 30% since its peak, indicating industry under-investment in new supply[8, 9] - US Frac Spread Count is down approximately 45% compared to pre-COVID levels, potentially impairing future production growth[10, 11] - US shale productivity has peaked, requiring more capital for less output due to depleted Tier 1 inventory[17] - Private equity fundraising in US natural resources has declined by approximately 70%, creating an opportunity for Granite Ridge[40, 41] Capital Allocation & Investment - Granite Ridge has invested over $18 billion in the past 10 years, navigating multiple downturns[35] - The company expects to close over 50 deals in 2025, expanding inventory by over 74 net locations[73] - Non-Op investments account for 35% of the company's 2025 estimated capital allocation, while Operated Partnerships represent 65%[81]

Revenue and Sales Performance - For the three months ended September 30, 2025, total revenues increased by 20% to $112.67 million compared to $94.08 million in the same period of 2024[155]. - Oil sales for the three months ended September 30, 2025, were $91.96 million, an increase of 8% from $85.50 million in 2024, driven by a 28% increase in production[155]. - Natural gas revenues surged by 142% to $20.71 million for the three months ended September 30, 2025, compared to $8.57 million in 2024, due to a 93% increase in realized prices[155]. - For the nine months ended September 30, 2025, total revenues increased by 26% to $344.82 million compared to $273.72 million in 2024[156]. Pricing and Market Conditions - Average NYMEX oil pricing for the three months ended September 30, 2025, was $65.78 per barrel, which is 14% lower than the $76.43 per barrel in the same period of 2024[150]. - Average realized oil price per barrel after reflecting settled derivatives was $61.64 for the three months ended September 30, 2025, down from $73.99 in 2024[150]. - Average NYMEX natural gas pricing for the three months ended September 30, 2025, was $3.03 per Mcf, a 44% increase from $2.11 per Mcf in 2024[151]. - The oil price differential to the NYMEX benchmark price was a discount of $(4.16) per barrel for the three months ended September 30, 2025, compared to $(2.99) per barrel in 2024[144]. Production and Operational Metrics - The number of net producing wells increased from 195.88 on September 30, 2024, to 235.27 on September 30, 2025, reflecting successful drilling and acquisitions[157]. Operating Expenses - Operating expenses for the three months ended September 30, 2025, were $92.08 million, up from $74.11 million in 2024, reflecting increased lease operating expenses and depletion[153]. - Lease operating expenses for Q3 2025 were $23.6 million ($8.03 per Boe), an 81% increase from $13.0 million ($5.62 per Boe) in Q3 2024[158]. - For the nine months ended September 30, 2025, lease operating expenses totaled $60.0 million ($7.10 per Boe), a 42% increase from $42.2 million ($6.40 per Boe) in the same period of 2024[159]. - Production taxes for Q3 2025 were $5.4 million ($1.83 per Boe), slightly up from $5.3 million ($2.29 per Boe) in Q3 2024, representing 5% of oil and natural gas sales for both periods[160]. - Total general and administrative expenses for Q3 2025 were $7.0 million ($2.38 per Boe), a 25% increase from $5.6 million ($2.41 per Boe) in Q3 2024[166]. Financial Performance - The company recorded a gain on equity investments of $0.5 million for Q3 2025, compared to a loss of $18.3 million in Q3 2024[171]. - Net cash provided by operating activities for the nine months ended September 30, 2025 was $231.9 million, an increase from $207.5 million in the same period of 2024[183]. - Net cash used in investing activities for the nine months ended September 30, 2025 was $280.8 million, primarily due to $233.1 million in capital expenditures and $57.0 million in acquisitions[187]. Debt and Liquidity - As of September 30, 2025, the company had $300.0 million of debt outstanding under its Credit Agreement and $86.5 million of liquidity[175]. - Interest expense for Q3 2025 was $6.1 million, an increase from $4.8 million in Q3 2024, primarily due to a higher average outstanding balance on the revolving credit facility[169]. - As of September 30, 2025, the Company had outstanding borrowings of $300.0 million and $0.3 million of letters of credit, with availability of $74.7 million under the Credit Agreement[191]. - The borrowing base was increased from $325.0 million to $375.0 million on April 29, 2025, and reaffirmed on November 5, 2025[194][200]. - The Company had total indebtedness of $300.0 million under the Credit Agreement as of September 30, 2025, with a potential $3.0 million increase in annual interest expense for a 1% rise in interest rates[219]. Capital Expenditures and Future Plans - The Company issued $350.0 million of 8.875% senior unsecured notes on November 5, 2025, at 96.0% of par, with a maturity date of November 5, 2029[201]. - For 2025, the Company is budgeting approximately $400 million to $420 million in total planned capital expenditures, including $120 million for acquisitions of oil and natural gas properties[206]. - The Company plans to fund capital expenditures with cash generated from operations and, if necessary, borrowings under the Credit Agreement[206]. Compliance and Financial Covenants - The Credit Agreement includes financial covenants requiring a leverage ratio not greater than 3.00 to 1.00 and a current ratio of not less than 1.00 to 1.00[198]. - As of September 30, 2025, the Company was in compliance with all covenants required by the Credit Agreement[199].

Financial Performance - Oil and natural gas sales for Q3 2025 were $112.7 million, with net income of $14.5 million, or $0.11 per diluted share, compared to $9.1 million, or $0.07 per diluted share in Q3 2024[5][8] - Adjusted EBITDAX for Q3 2025 totaled $78.6 million, up from $75.4 million in Q3 2024, while cash flow from operating activities was $77.8 million[6][8] - Net income for the nine months ended September 30, 2025, was $49,416,000, compared to $30,381,000 for the same period in 2024, reflecting a growth of 62.7%[33] - The company’s net income for Q3 2025 was $14.523 million, a 60.5% increase from $9.054 million in Q3 2024[44] - Adjusted Net Income for the nine months ended September 30, 2025, was $54,695,000, up from $50,946,000 in the same period of 2024, reflecting a 3.7% growth[50] - Earnings per diluted share for Q3 2025 was $0.11, up from $0.07 in Q3 2024, marking a 57.1% increase[50] - Adjusted Earnings Per Diluted Share for the nine months ended September 30, 2025, was $0.42, compared to $0.39 in 2024, reflecting a 7.7% growth[50] Production and Sales - Daily oil production volumes increased by 28% to 16,222 barrels per day, and natural gas production rose by 25% to 94,217 thousand cubic feet per day[7][8] - Oil and natural gas sales for the three months ended September 30, 2025, were $112,671,000, a 19.8% increase from $94,075,000 in the same period of 2024[31] - Oil sales amounted to $91.960 million in Q3 2025, up 7.4% from $85.503 million in Q3 2024[35] - Natural gas and related product sales surged to $20.711 million, a significant increase of 142.5% compared to $8.572 million in Q3 2024[35] - The company reported a total production of 2,937 MBoe in Q3 2025, an increase of 26.8% from 2,316 MBoe in Q3 2024[35] Expenses and Liabilities - Lease operating expenses were $23.6 million, or $8.03 per barrel of oil equivalent, compared to $13.0 million, or $5.62 per barrel of oil equivalent in the same period last year[10][8] - Operating expenses for Q3 2025 totaled $93.081 million, up from $69.060 million in Q3 2024, indicating a 34.8% increase[35] - Total current liabilities decreased to $76,963,000 as of September 30, 2025, down from $101,808,000 at December 31, 2024, a reduction of approximately 24.4%[29] - Long-term debt increased to $300,000,000 as of September 30, 2025, from $205,000,000 at December 31, 2024, representing a rise of 46.3%[29] Investments and Capital Expenditures - The company invested $64.0 million in development capital expenditures and $16.5 million in acquisition capital, closing 17 acquisitions in the Permian and Utica Basins[11][8] - Capital expenditures for oil and natural gas properties amounted to $233,135,000 for the nine months ended September 30, 2025, compared to $193,376,000 in 2024, indicating an increase of 20.6%[33] - The company has provided 2025 guidance for annual production between 31,000 and 33,000 barrels of oil equivalent per day, with total capital expenditures expected to be between $400 million and $420 million[17][8] Shareholder Returns - The company declared a quarterly dividend of $0.11 per share, payable on December 15, 2025[8][4] Other Financial Metrics - The gain on derivatives for the three months ended September 30, 2025, was $5,224,000, compared to $11,841,000 in the same period of 2024, a decrease of 55.8%[31] - The company reported a net cash provided by operating activities of $231,914,000 for the nine months ended September 30, 2025, compared to $207,536,000 in 2024, an increase of 11.7%[33] - The company’s net debt as of September 30, 2025, was $288.168 million, with a net debt to trailing twelve months Adjusted EBITDAX ratio of 0.9[46][47] - The total working capital changes for Q3 2025 resulted in a decrease of $4,663,000, compared to a decrease of $3,987,000 in Q3 2024[53] - The company incurred nonrecurring general and administrative expenses of $1,757,000 related to severance costs in the nine months ended September 30, 2025[50] - The tax impact on adjustments for the nine months ended September 30, 2025, was a negative $1,542,000, compared to a negative $6,143,000 in 2024[50]

Core Insights - Granite Ridge Resources, Inc. reported strong financial and operational results for Q3 2025, highlighting disciplined growth and operational excellence across its diversified portfolio [4][6][7]. Financial Performance - Daily production increased by 27% to 31,925 barrels of oil equivalent (Boe) per day, with oil comprising 51% of the total production [7][10]. - Net income for the quarter was $14.5 million, or $0.11 per diluted share, compared to $9.1 million, or $0.07 per diluted share, in the same period last year [7][8]. - Adjusted Net Income (non-GAAP) was $11.8 million, or $0.09 per diluted share [7][8]. - Adjusted EBITDAX (non-GAAP) totaled $78.6 million, up from $75.4 million in Q3 2024 [9][48]. - Oil and natural gas sales reached $112.7 million for the quarter [8][39]. Production and Operational Highlights - Oil production volumes averaged 16,222 barrels per day, a 28% increase from Q3 2024, while natural gas production totaled 94,217 thousand cubic feet per day, a 25% increase [10][39]. - The company placed 9.3 net wells online during the quarter, compared to 5.2 net wells in Q3 2024 [13][39]. - Capital expenditures for the quarter were $80.5 million, with $64.0 million allocated to development and $16.5 million to acquisitions [13][39]. Cost and Expenses - Lease operating expenses were $23.6 million, or $8.03 per Boe, compared to $13.0 million, or $5.62 per Boe, in the same period last year [12][39]. - General and administrative expenses totaled $7.0 million, or $2.38 per Boe, including nonrecurring severance and stock-based compensation [12][39]. Liquidity and Capital Resources - As of September 30, 2025, the company had $300.0 million in debt and $86.5 million in liquidity [16][17]. - The company issued $350.0 million in senior unsecured notes with a maturity date of November 5, 2029, to enhance liquidity and repay existing debt [17][18]. Future Outlook - The company is well-positioned for growth in 2026, with a focus on operational partnerships and a strong non-operated portfolio [5][6]. - Guidance for 2025 includes annual production of 31,000 - 33,000 Boe per day and total capital expenditures of $400 - $420 million [20].

Core Insights - Granite Ridge Resources, Inc. will report its third quarter 2025 financial and operating results on November 6, 2025, after market close, followed by a conference call on November 7, 2025 [1][2] Financial Performance - In the second quarter of 2025, Granite Ridge achieved a 37% increase in daily production, reaching 31,576 barrels of oil equivalent (Boe) per day, with 51% being oil, compared to 23,106 Boe per day in the second quarter of 2024 [5] - The company reported a net income of $25.1 million, or $0.19 per diluted share, for the second quarter of 2025, a significant increase from $5.1 million, or $0.04 per diluted share, in the same period last year [5] Company Overview - Granite Ridge is a scaled energy company focused on providing shareholders with exposure similar to energy private equity through operated partnerships and traditional non-operated assets, owning assets in six prolific unconventional basins across the United States [3] - The company aims 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, focusing on total shareholder returns while maintaining a low leverage profile [3]