Granite Ridge Resources, Inc. (GRNT) · Nov 5, 2026 · Earnings
Beat — Adjusted EPS $0.17 vs ~$0.13 consensus; revenue $177.2M vs ~$153.0M
Granite Ridge’s third-quarter earnings beat consensus, with production growth and record Adjusted EBITDAX offset by rising costs and tighter 2026 output guidance.
Granite Ridge is building a diversified U.S. oil-and-gas platform around non-operated assets and controlled operated partnerships, with exposure across six basins and a push to add more internally sourced drilling opportunities. The quarter cleared the published earnings bar by a wide margin. Adjusted diluted EPS was $0.17 versus a published consensus of roughly $0.13, while revenue reached $177.2 million versus roughly $153.0 million expected. That was driven by higher oil prices and 9% year-over-year production growth, not just accounting adjustments.
| Q3 2026 | Q3 2025 | Consensus | |
|---|---|---|---|
| Revenue (Income Statement) | $177.2M (+57%) | $112.7M | ~$153.0M |
| Adjusted EPS (Adjusted Net Income reconciliation) | $0.17 | $0.09 | ~$0.13 |
| Adjusted EBITDAX (Adjusted EBITDAX reconciliation) | $107.3M (+36%) | $78.6M | |
| Daily production (Production and operating data) | 34,641 Boe (+9%) | 31,925 Boe | |
| Adjusted free cash flow (Adjusted free cash flow reconciliation) | $13.7M | $4.5M |
The underlying operating trend is improving, but the earnings quality is not clean. Oil production rose 17% and oil represented more of the mix, while reported Adjusted EBITDAX reached a company record. However, lease operating expense per Boe jumped 17% to $9.43 because of higher water-handling, equipment-rental and labor costs. The company also absorbed a $52.7 million quarterly derivative loss, leaving GAAP net income negative despite the adjusted profit.
The 2026 outlook is being tightened rather than broadly raised. Compared with the prior Q2 framework of 34,000–36,000 Boe per day and 50%–52% oil, the new guidance narrows production to 34,000–35,000 Boe per day while lifting the oil mix to 51.5%–52.5%. Capital spending remains $345 million–$385 million, so the update points to better mix and execution within a similar investment envelope—not a step-change in total growth expectations.
The capital-return story gains another tool, but not another commitment. Granite Ridge maintained the $0.11 quarterly dividend and authorized a $35 million repurchase program through December 31, 2027. That is supportive of shareholder returns, but the buyback is discretionary and comes alongside $416.6 million of net debt and only $13.7 million of quarterly adjusted free cash flow, so it does not yet change the company’s capital-allocation profile.
A new operated partnership adds strategic upside, but the payoff is still ahead. Arete Creek Resources has begun its first well with Granite Ridge and is expected to run one rig in 2027. This expands the partnership model and could improve future oil-weighted growth, but it contributes little to the reported quarter because drilling has only just started.
Bottom line: Granite Ridge delivered a clear earnings and revenue beat with better oil-led operating momentum, but the narrower production guide and rising field costs keep this from being a clean upside reset. The business is advancing, though the quarter strengthens the existing story more than it rewrites it.
Q3 earnings call and Arete Creek 2027 drilling update, November 6
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