Granite Ridge Resources, Inc. — Third Quarter 2026 Earnings Summary

Financial Performance:

• Reported net loss of $10.1 million ($0.08 per share) for Q3 2026, compared to net income of $14.5 million ($0.11 per share) in Q3 2025.
• Adjusted Net Income (non-GAAP) totaled $22.6 million ($0.17 per diluted share) for Q3 2026, versus $11.8 million ($0.09 per diluted share) in Q3 2025.
• Adjusted EBITDAX (non-GAAP) reached $107.3 million for Q3 2026, an increase from $78.6 million in Q3 2025.
• Oil and natural gas sales were $177.2 million for Q3 2026, up from $112.7 million in Q3 2025.
• Cash flow from operating activities was $87.7 million in Q3 2026, including $8.9 million in working capital changes.
• Operating Cash Flow Before Working Capital Changes (non-GAAP) was $96.6 million for Q3 2026.
• Adjusted Free Cash Flow (non-GAAP) was $13.7 million for Q3 2026.
• Net Debt to Trailing Twelve Months Adjusted EBITDAX (non-GAAP) ratio was 1.3x as of September 30, 2026.
• Total debt outstanding was $471.3 million ($341.3 million in senior unsecured notes and $130.0 million in credit agreement debt) as of September 30, 2026.
• Liquidity totaled $287.4 million, consisting of $244.7 million in borrowing availability and $42.7 million in cash on hand.

Guidance and Future Outlook:

• Updated 2026 guidance for annual production is 34,000–35,000 Boe per day.
• Updated 2026 guidance for oil as a percentage of sales volumes is 51.5%–52.5%.
• Updated 2026 guidance for acquisitions is $45–$55 million.
• Updated 2026 guidance for development capital expenditures is $300–$330 million.
• Updated 2026 guidance for total capital expenditures is $345–$385 million.
• Updated 2026 guidance for lease operating expenses is $9.25–$9.75 per Boe.
• Updated 2026 guidance for production and ad valorem taxes is 6%–7% of total sales.
• Updated 2026 guidance for cash general and administrative expenses is $28–$30 million.
• Management expects adjusted free cash flow to comfortably cover the dividend and grow the business in 2027, driven by production growth and higher oil weighting, without relying on current oil prices.

Business Segments and Product Lines:

• Daily production grew 9% to 34,641 Boe per day in Q3 2026, with 55% oil content.
• Oil production increased 17% to 18,957 barrels per day in Q3 2026.
• Natural gas production remained in line at 94,087 Mcf per day in Q3 2026.
• Placed 9.2 net wells online in Q3 2026.
• Closed 20 acquisitions in the Permian and Appalachian Basins, adding 8.0 net undeveloped locations.
• Announced a new partner, Arete Creek Resources, for the Operated Partnership platform, with the first well spud in October 2026 and one rig expected to run in 2027.
• Had 190 gross (14.6 net) wells in process as of September 30, 2026.

Market and Competitive Landscape:

• Average realized price for oil (excluding derivatives) was $84.41 per Bbl in Q3 2026, compared to $61.62 per Bbl in Q3 2025.
• Average realized price for natural gas (excluding derivatives) was $3.46 per Mcf in Q3 2026, compared to $2.39 per Mcf in Q3 2025.
• Realized price on a Boe basis excluding settled commodity derivatives was $55.60 in Q3 2026, compared to $38.36 in Q3 2025.
• The company maintains a diversified portfolio across six unconventional basins: Permian, Eagle Ford, Bakken, Haynesville, DJ, and Appalachian.

Risks and Challenges:

• Lease operating expenses per Boe increased 17% to $9.43 in Q3 2026 due to higher water cuts, flowback operations, saltwater disposal costs, and related equipment rentals and labor.
• Significant unrealized losses on commodity derivatives impacted reported net income, with a loss of $52.7 million on settled derivatives and $31.8 million in unrealized losses for Q3 2026.
• Forward-looking statements note risks including commodity price fluctuations, supply chain disruptions, infrastructure constraints, operational risks, geopolitical instability, and regulatory changes.

Management Commentary and Tone:

• President and CEO Tyler Farquharson stated that Q3 Adjusted EBITDAX was the highest in the company's history as a public company.
• Management expressed confidence in 2027 prospects, citing the roll-off of lower-priced 2026 hedges and anticipated production growth.
• The tone regarding capital allocation was positive, highlighting the new partnership platform and the authorization of a share repurchase program as methods to return capital to shareholders.

Other Key Points:

• The Board of Directors declared a regular quarterly dividend of $0.11 per share, payable on December 14, 2026, to shareholders of record as of November 27, 2026.
• On November 4, 2026, the Board approved a share repurchase program permitting the repurchase of up to $35.0 million of common stock through December 31, 2027.
• The company paid a dividend of $0.11 per share during Q3 2026.
• Capital expenditures for the quarter totaled $109.9 million, comprising $90.8 million in drilling and completions and $19.0 million in acquisition capital.