Granite Ridge Resources reports 18% year-over-year production growth but lower natural gas prices and higher costs pressure earnings.
Granite Ridge Resources (NYSE:GRNT) posted first-quarter revenue of $128.3 million, up from higher production of 34,500 barrels of oil equivalent per day, an 18% year-over-year increase. Adjusted EBITDA reached $71 million, though results were weighed down by a 36% drop in realized natural gas prices to $2.55 per Mcf and higher lease operating expenses of $9.57 per BOE.
The company maintained its full-year production guidance but raised capital spending due to increased acquisition activity, primarily in the Permian Basin. Weak Permian natural gas pricing and elevated costs prompted Granite Ridge to revise its full-year LOE guidance upward. Management reiterated expectations for growth in the second half of 2026 and a free cash flow inflection in 2027.
Granite Ridge highlighted its basis hedging strategy and operator partnerships as key supports for its 2027 free cash flow target, despite near-term headwinds.