Granite Ridge Reports Higher Profits Amid Rising Costs
On August 6, Granite Ridge Resources (NYSE:GRNT) reported second-quarter results showing increased production and the initiation of a new quarterly dividend. Net income rose to $30 million from $25.1 million in the prior year period, with adjusted EBITDAX increasing to $79.6 million compared to $75.4 million last year. The company added 7.2 net wells during the quarter and acquired 27 properties across key basins like Permian and Appalachian, expanding its inventory significantly. Despite these gains, operating costs rose sharply—lease operating expenses increased by 47% per barrel to $10.27 due to higher disposal fees, water cuts, and labor costs. Additionally, capital spending of $95.2 million exceeded cash from operations ($55.6 million), signaling continued reinvestment ahead of free cash flow generation expected in 2027. The company also faces a governance shift as Grey Rock Investment Partners plans to distribute its stake starting Q3 2026, potentially triggering non-controlled status under NYSE rules if ownership drops below 50%. Institutional interest has grown with more hedge funds holding shares and short interest at 8.59% of float.
Topics: acquisitions dividend announcement oil and gas production growth