Core Viewpoint - Granite Ridge Resources reported strong Q2 2025 results with GAAP revenue exceeding analyst estimates, but non-GAAP EPS fell short of expectations due to increased operating costs and a lower well count [1][6][14] Financial Performance - GAAP revenue for Q2 2025 was $109.2 million, surpassing the estimate of $107.3 million, and reflecting a year-over-year increase of 20.4% from $90.7 million in Q2 2024 [2][6] - Non-GAAP EPS was $0.11, missing the forecast of $0.12 and down 15.4% from $0.13 in Q2 2024 [2][6] - Adjusted EBITDAX rose to $75.4 million, a 10.4% increase year-over-year [2] - Net income increased significantly to $25.1 million, up 392.2% from $5.1 million in Q2 2024 [2][7] - Operating cash flow before working capital changes was $69.5 million, a 7.3% increase from $64.8 million in Q2 2024 [2] Production and Operations - The company achieved record production growth, with output reaching 31,576 barrels of oil equivalent per day, a 37% increase from the prior year [5] - Oil production grew by 46% to 16,009 barrels per day, while natural gas production increased by 28% [5] - The company placed 4.9 net wells online during the quarter, with a total of 44 gross wells in the Permian Basin [5][9] - Granite Ridge's asset acquisitions during the quarter added 5.5 net undeveloped locations, extending its drilling runway by an estimated three years [5] Strategic Focus - The company operates in six major U.S. basins, emphasizing geographic and product mix diversification to provide stability [3] - Recent efforts have prioritized expanding inventory in the Permian Basin, which now accounts for approximately 69% of total proved reserves [4] - Risk management through commodity price hedging and conservative leverage is a key strategy to control cash flow volatility [4][11] Cost Management - Lease operating expenses increased to $7.00 per barrel of oil equivalent, up from $6.50 in Q2 2024, primarily due to rising service costs [6][12] - General and administrative expenses were impacted by $2.8 million in nonrecurring costs [12] Capital Allocation and Guidance - The company maintained its quarterly dividend at $0.11 per share, signaling a focus on returning capital to shareholders [13][16] - Management raised full-year 2025 production guidance to 31,000–33,000 barrels of oil equivalent per day, reflecting a 10% increase at the midpoint from previous estimates [14] - The updated capital expenditure plan for 2025 is set at $400–$420 million, focusing on both development and acquisition spending [14]