Granite Ridge Resources(GRNT) - 2025 Q4 - Annual Results

Financial Performance - Granite Ridge reported a net loss of $25.1 million for Q4 2025, equating to $(0.19) per share, while Adjusted Net Income was $1.5 million or $0.01 per diluted share[8]. - Net income for the year ended December 31, 2025, was $24.353 million, a 29.5% increase from $18.759 million in 2024[40]. - The company reported a net loss of $25.063 million for Q4 2025, compared to a loss of $11.622 million in Q4 2024, but net income for the year was $24.353 million, up from $18.759 million[51]. - Adjusted Net Income for the year ended December 31, 2025, is $56,221,000, compared to $73,776,000 for the year ended December 31, 2024[57]. - Adjusted Earnings Per Diluted Share for the year ended December 31, 2025, is $0.43, compared to $0.57 for the year ended December 31, 2024[57]. Production and Operations - Total production for Q4 2025 increased by 27% year-over-year to 35,120 Boe per day, with oil comprising 49% of the total production[11]. - For the full year 2025, production grew by 28% to an average of 31,984 Boe per day, with oil production increasing by 31% to 16,041 Bbls per day[12]. - The initial guidance for 2026 anticipates production of approximately 34,000 to 36,000 Boe per day, representing a 9% increase at the midpoint compared to 2025[22]. - Average daily oil production increased to 17,152 Bbl in Q4 2025 from 14,717 Bbl in Q4 2024, and natural gas production rose to 107,804 Mcf from 78,104 Mcf[42]. - The total number of net producing wells at period-end was 244.74, an increase from 202.40 in the previous year[42]. Financial Position - The company ended 2025 with total liquidity of $339.5 million, consisting of $324.7 million in committed borrowing availability and $14.8 million in cash[19]. - Granite Ridge's total assets increased to $1.168 billion as of December 31, 2025, compared to $1.036 billion in 2024, marking a growth of 12.7%[36]. - Long-term debt rose to $367.832 million in 2025 from $205 million in 2024, indicating a significant increase of 79.3%[36]. - Granite Ridge's total liabilities increased to $562.311 million in 2025 from $401.126 million in 2024, a rise of 40.2%[36]. - The company had a net debt of $370.486 million as of December 31, 2025, with a current portion of long-term debt at $17.500 million and long-term debt net at $367.832 million[53]. Revenue and Expenses - Total revenues for the year ended December 31, 2025, reached $450.306 million, up 18.4% from $380.030 million in 2024[38]. - Granite Ridge reported oil and natural gas sales of $105.485 million for Q4 2025, a slight decrease from $106.307 million in Q4 2024[38]. - Operating costs and expenses increased to $141.924 million in Q4 2025, compared to $113.223 million in Q4 2024, reflecting a rise of 25.4%[38]. - Operating expenses for Q4 2025 totaled $142.739 million, an increase from $115.849 million in Q4 2024, with lease operating expenses rising to $24.949 million from $15.287 million[42]. - The company reported a net cash provided by operating activities of $296.414 million for the year ended December 31, 2025, compared to $275.733 million in 2024, reflecting a growth of 7.5%[40]. Capital Expenditures - Granite Ridge's capital expenditures for 2025 totaled $401 million, including $279 million for drilling and completion and $122 million for property acquisitions[16]. - The company reported capital expenditures for oil and natural gas properties of $300.768 million in 2025, compared to $285.796 million in 2024, an increase of 5.2%[40]. - The company added 331 gross locations in 2025, with 59.3 Operated Partnership net wells acquired at an average cost of $1.4 million per location[6]. Market and Pricing - The average realized price for oil in Q4 2025 was $55.49 per Bbl, down from $65.53 per Bbl in Q4 2024, while natural gas realized price was $1.81 per Mcf, down from $2.45 per Mcf[42]. - Oil sales in Q4 2025 were $87.563 million, down from $88.730 million in Q4 2024, while natural gas sales increased to $17.922 million from $17.577 million[42]. Impairments and Adjustments - The company reported impairments of long-lived assets of $44.654 million for Q4 2025, compared to $35.637 million in Q4 2024[51]. - Impairments of long-lived assets amounted to $44,654,000 for the year ended December 31, 2025[57]. - Unrealized loss on commodity derivatives was $(22,662,000) for the year ended December 31, 2025[57]. - Tax impact on adjustments for the year ended December 31, 2025, was $(9,215,000)[57]. - The company incurred nonrecurring general and administrative expenses of $1,757,000 related to severance costs for the year ended December 31, 2025[57]. Adjusted Metrics - Adjusted EBITDAX for Q4 2025 was $69.5 million, while for the full year it totaled $315 million[9]. - Adjusted EBITDAX for Q4 2025 was $69.498 million, compared to $82.633 million in Q4 2024, while for the year it rose to $314.961 million from $290.845 million[51]. - The company believes that Adjusted Net Income and Adjusted Earnings Per Share provide useful information for analysis on a recurring basis[56]. - Adjusted Net Income for the three months ended December 31, 2024, was $22,697,000[57].