Granite Ridge Q1 results miss estimates on higher costs, impairment

Granite Ridge Resources

07/05/2026 22:14

Overview

U.S. energy producer's Q1 adjusted EPS, net income and EBITDA missed analyst expectations

Company posted net loss due to non-cash hedge losses and asset impairment

Granite Ridge maintained quarterly dividend at $0.11 per share

Outlook

Granite Ridge sees 2026 annual production at 34,000-36,000 Boe per day

Company expects 2026 oil production to be 50%-52% of total output

Granite Ridge forecasts 2026 capital expenditures at $345-$385 mln

Result Drivers

HEDGE LOSSES AND IMPAIRMENT - Net loss driven by $60.2 mln non-cash mark-to-market loss on hedge portfolio and $11.2 mln impairment

HIGHER OPERATING COSTS - Lease operating expenses rose 55% per Boe due to increased saltwater disposal, flowback operations, equipment rentals, contract labor, and nonrecurring minimum volume commitment delinquencies

PERMIAN WELL PERFORMANCE - Strong initial production from recently turned-in-line wells in the Permian Basin supported production growth

Company press release: ID:nBw6Ctd8Wa

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Oil and Natural Gas Sales
$128.3 mln
Q1 Adjusted EPS
Miss
$0.02
$0.12 (5 Analysts)
Q1 Adjusted Net Income
Miss
$3.1 mln
$19.53 mln (3 Analysts)
Q1 Adjusted EBITDA
Miss
$71 mln
$90.94 mln (5 Analysts)
Q1 Adjusted Free Cash Flow
$58.3 mln
Q1 Dividend
$0.11


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", 4 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the oil & gas exploration and production peer group is "buy"

Wall Street's median 12-month price target for Granite Ridge Resources Inc is $6.50, about 14% above its May 6 closing price of $5.70

The stock recently traded at 8 times the next 12-month earnings vs. a P/E of 11 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)