grnt-20250630

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q


x			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2025


o			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ______ to _______

Commission File Number: 001-41537

___________________________________

GRANITE RIDGE RESOURCES, INC.

( Exact Name of Registrant as Specified in Its Charter )

___________________________________


Delaware						88-2227812
(State or other jurisdiction of incorporation or organization)						(I.R.S. Employer Identification Number)

5217 McKinney Ave, Suite 400 Dallas, TX						75205
(Address of principal executive offices)						(Zip Code)

(214) 396-2850

(Registrant’s telephone number, including area code)

(Former name, former address and former fiscal year, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol

Name of each exchange on which registered

Common Stock, par value $0.0001 per share

GRNT

New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x No o

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes x No o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer

Accelerated filer

Non-accelerated filer

Smaller reporting company

Emerging growth company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes o No x

As of August 4, 2025, there were 131,247,812 shares of our common stock, par value $0.0001, outstanding.

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CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

We are including the following discussion to inform our existing and potential security holders generally of some of the risks and uncertainties that can affect our company and to take advantage of the “safe harbor” protection for forward-looking statements that applicable federal securities law afford.

From time to time, our management or persons acting on our behalf may make "forward-looking statements," within the meaning of Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), to inform existing and potential security holders about our company. All statements other than statements of historical facts included in this Quarterly Report on Form 10-Q (this "Report"), including, without limitation, statements regarding our financial position, operating and financial performance, business strategy, plans and objectives of management for future operations, industry conditions, indebtedness covenant compliance, capital expenditures, production, cash flow, borrowing base under our Credit Agreement (as defined below), our intention or ability to pay or increase dividends on our capital stock, and impairment are forward-looking statements. When used in this Report, forward-looking statements are generally accompanied by terms or phrases such as “estimate,” “project,” “predict,” “believe,” “expect,” “continue,” “anticipate,” “target,” “could,” “plan,” “intend,” “seek,” “goal,” “will,” “should,” “may” or other words and similar expressions that convey the uncertainty of future events or outcomes. Items contemplating or making assumptions about actual or potential future production, sales, market size, collaborations, cash flows, and trends or operating results also constitute such forward-looking statements.

Forward-looking statements involve inherent risks and uncertainties, and important factors (many of which are beyond our company’s control) could cause actual results to differ materially from those set forth in the forward-looking statements, including the following:

•changes in current or future commodity prices and interest rates;

•supply chain disruptions;

•infrastructure constraints and related factors affecting our properties;

•our ability to acquire additional development opportunities and potential or pending acquisition transactions, as well as the effects of such acquisitions on our company’s cash position and levels of indebtedness;

•changes in our reserves estimates or the value thereof;

•operational risks including, but not limited to, the pace of drilling and completions activity on our properties;

•changes in the markets in which Granite Ridge competes;

•geopolitical risk and changes in applicable laws, legislation, or regulations, including those relating to environmental matters;

•cyber-related risks;

•the fact that reserve estimates depend on many assumptions that may turn out to be inaccurate and that any material inaccuracies in reserve estimates or underlying assumptions will materially affect the quantities and present value of our reserves;

•the outcome of any known and unknown litigation and regulatory proceedings;

•limited liquidity and trading of Granite Ridge’s securities;

•acts of war, terrorism or uncertainty regarding the effects and duration of global hostilities, including the Israel-Hamas conflict, the Russia-Ukraine war, continued instability in the Middle East, and any associated armed conflicts or related sanctions which may disrupt commodity prices and create instability in the financial markets;

•market conditions and global, regulatory, technical, and economic factors beyond Granite Ridge’s control, including the potential adverse effects of world health events affecting capital markets, general economic

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conditions, global supply chains, uncertainties with respect to trade policies (including the imposition of tariffs) and Granite Ridge’s business and operations;

•increasing regulatory and investor emphasis on, and attention to, environmental, social, and governance matters;

•our ability to establish and maintain effective internal control over financial reporting; and

•other factors discussed in our Annual Report on Form 10-K for the year ended December 31, 2024 (the "2024 Form 10-K") under “Risk Factors,” as updated by any subsequent Quarterly Reports on Form 10-Q, including this Report, which we file with the United States Securities and Exchange Commission (“SEC”).

We have based any forward-looking statements on our current expectations and assumptions about future events. While our management considers these expectations and assumptions to be reasonable, they are inherently subject to significant business, economic, competitive, regulatory and other risks, contingencies and uncertainties, most of which are difficult to predict and many of which are beyond our control. If one or more of these risks or uncertainties materialize, or if the underlying assumptions prove incorrect, our actual results may vary materially from those expected or projected.

Reserve engineering is a process of estimating underground accumulations of natural gas and oil that cannot be measured in an exact manner. The accuracy of any reserve estimate depends on the quality of available data, the interpretation of such data, and the price and cost assumptions made by reservoir engineers. In addition, the results of drilling, testing and production activities, or changes in commodity prices, may justify revisions of estimates that were made previously. If significant, such revisions would change the schedule of any further production and development drilling. Accordingly, reserve estimates may differ significantly from the quantities of natural gas and oil that are ultimately recovered.

Readers are urged not to place undue reliance on these forward-looking statements, which speak only as of the date of this Report. We assume no obligation to update any forward-looking statements in order to reflect any event or circumstance that may arise after the date of this Report, other than as may be required by applicable law or regulation. Readers are urged to carefully review and consider the various disclosures made by us in our reports filed with the SEC which attempt to advise interested parties of the risks and factors that may affect our business, financial condition, results of operations and cash flows. If one or more of these risks or uncertainties materialize, or if the underlying assumptions prove incorrect, our actual results may vary materially from those expected or projected.

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TABLE OF CONTENTS


		PAGE
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS		2
PART I – FINANCIAL INFORMATION		5
Item 1.	Financial Statements	5
	Condensed Consolidated Balance Sheets	5
	Condensed Consolidated Statements of Operations	6
	Condensed Consolidated Statements of Changes in Equity	7
	Condensed Consolidated Statements of Cash Flows	8
	Notes to Condensed Consolidated Financial Statements	9
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	23
Item 3.	Quantitative and Qualitative Disclosures about Market Risk	33
Item 4.	Controls and Procedures	34
PART II – OTHER INFORMATION		34
Item 1.	Legal Proceedings	34
Item 1A.	Risk Factors	34
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	35
Item 3.	Defaults Upon Senior Securities	35
Item 4.	Mine Safety Disclosures	35
Item 5.	Other Information	35
Item 6.	Exhibits	35
Signatures		36

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PART I – FINANCIAL INFORMATION

Item 1. Financial Statements

GRANITE RIDGE RESOURCES, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

Unaudited


(in thousands, except par value and share data)	June 30, 2025		December 31, 2024
ASSETS
Current assets:
Cash	$	3,743	$	9,419
Revenue receivable	76,647		69,692
Advances to operators	8,326		19,959
Prepaid and other current assets	2,298		3,831
Derivative assets - commodity derivatives	6,924		537
Equity investments	11,026		31,783
Total current assets	108,964		135,221
Property and equipment:
Oil and gas properties, successful efforts method	1,733,681		1,540,021
Accumulated depletion	(744,463)		(643,051)
Total property and equipment, net	989,218		896,970
Long-term assets:
Derivative assets - commodity derivatives	2,844		—
Other long-term assets	3,937		4,288
Total long-term assets	6,781		4,288
Total assets	$	1,104,963	$	1,036,479
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable and accrued liabilities	$	78,406	$	99,440
Derivative liabilities - commodity derivatives	3,053		1,822
Other liabilities	1,015		546
Total current liabilities	82,474		101,808
Long-term liabilities:
Long-term debt	275,000		205,000
Derivative liabilities - commodity derivatives	3,469		3,679
Asset retirement obligations	11,333		10,693
Deferred tax liability	90,221		79,946
Total long-term liabilities	380,023		299,318
Total liabilities	462,497		401,126
Stockholders' Equity:
Common stock, $0.0001 par value, 431,000,000 shares authorized, 136,951,676 and 136,417,677 issued at June 30, 2025 and December 31, 2024, respectively	14		14
Additional paid-in capital	656,520		655,472
Retained earnings	22,128		16,047
Treasury stock, at cost, 5,686,711 and 5,683,921 shares at June 30, 2025 and December 31, 2024, respectively	(36,196)		(36,180)
Total stockholders' equity	642,466		635,353
Total liabilities and stockholders' equity	$	1,104,963	$	1,036,479

The accompanying notes are an integral part to these condensed consolidated financial statements.

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GRANITE RIDGE RESOURCES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

Unaudited


	Three Months Ended June 30,				Six Months Ended June 30,
(in thousands, except per share data)	2025		2024		2025		2024
Revenues:
Oil and natural gas sales	$	109,219	$	90,652	$	232,150	$	179,648
Operating costs and expenses:
Lease operating expenses	20,118		13,669		36,358		29,148
Production and ad valorem taxes	6,437		6,881		14,805		12,630
Depletion and accretion expense	53,412		41,592		101,857		82,533
Impairments of unproved properties	—		—		—		732
General and administrative	8,517		6,623		15,980		13,115
Other, net	—		—		(120)		—
Total operating costs and expenses	88,484		68,765		168,880		138,158
Net operating income	20,735		21,887		63,270		41,490
Other income (expense):
Gain (loss) on derivatives - commodity derivatives	23,925		(785)		9,068		(3,946)
Interest expense, net	(5,914)		(5,817)		(10,929)		(8,977)
Loss on equity investments	(5,795)		(8,774)		(15,766)		(995)
Other income (loss)	(93)		268		(93)		270
Total other income (expense)	12,123		(15,108)		(17,720)		(13,648)
Income before income taxes	32,858		6,779		45,550		27,842
Income tax expense	7,777		1,678		10,657		6,515
Net income	$	25,081	$	5,101	$	34,893	$	21,327

Net income per share:
Basic	$	0.19	$	0.04	$	0.27	$	0.16
Diluted	$	0.19	$	0.04	$	0.27	$	0.16
Weighted-average number of shares outstanding:
Basic	130,469		130,204		130,403		130,170
Diluted	130,588		130,251		130,496		130,207

The accompanying notes are an integral part to these condensed consolidated financial statements.

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GRANITE RIDGE RESOURCES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

Unaudited


Three and Six Months Ended June 30, 2025
	Common Stock Issued			Additional Paid-in Capital		Retained Earnings		Treasury Stock			Total Stockholders' Equity
(in thousands)	Shares	Amount						Shares	Amount
As of January 1, 2025	136,418	$	14	$	655,472	$	16,047	(5,684)	$	(36,180)	$	635,353
Grants of restricted stock	413	—		—		—		—	—		—
Forfeitures of restricted stock	(7)	—		—		—		—	—		—
Stock-based compensation	—	—		653		—		—	—		653
Purchase of treasury stock	—	—		—		—		(3)	(16)		(16)
Common stock dividend declared ($0.11 per share)	—	—		—		(14,389)		—	—		(14,389)
Net income	—	—		—		9,812		—	—		9,812
As of March 31, 2025	136,824	$	14	$	656,125	$	11,470	(5,687)	$	(36,196)	$	631,413
Grants of restricted stock	218	—		—		—		—	—		—

Forfeitures of restricted stock	(90)	—		—		—		—	—		—

Stock-based compensation	—	—		395		—		—	—		395

Common stock dividend declared ($0.11 per share)	—	—		—		(14,423)		—	—		(14,423)
Net income	—	—		—		25,081		—	—		25,081
As of June 30, 2025	136,952	$	14	$	656,520	$	22,128	(5,687)	$	(36,196)	$	642,466


Three and Six Months Ended June 30, 2024
	Common Stock Issued			Additional Paid-in Capital		Retained Earnings		Treasury Stock			Total Stockholders' Equity
(in thousands)	Shares	Amount						Shares	Amount
As of January 1, 2024	136,041	$	14	$	653,174	$	54,782	(5,678)	$	(36,325)	$	671,645
Grants of restricted stock	383	—		—		—		—	—		—
Stock-based compensation	—	—		512		—		—	—		512
Purchase of treasury stock	—	—		—		—		(2)	(17)		(17)
Common stock dividend declared ($0.11 per share)	—	—		—		(14,349)		—	—		(14,349)
Net income	—	—		—		16,227		—	—		16,227
As of March 31, 2024	136,424	$	14	$	653,686	$	56,660	(5,680)	$	(36,342)	$	674,018
Stock-based compensation	—	—		583		—		—	—		583
Common stock dividend declared ($0.11 per share)	—	—		—		(14,381)		—	—		(14,381)
Net income	—	—		—		5,101		—	—		5,101
As of June 30, 2024	136,424	$	14	$	654,269	$	47,380	(5,680)	$	(36,342)	$	665,321

The accompanying notes are an integral part to these condensed consolidated financial statements.

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GRANITE RIDGE RESOURCES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

Unaudited


	Six Months Ended June 30,
(in thousands)	2025		2024
Operating activities:
Net income	$	34,893	$	21,327
Adjustments to reconcile net income to net cash provided by operating activities:
Depletion and accretion expense	101,857		82,533
Impairments of unproved properties	—		732
Unrealized (gain) loss on derivatives - commodity derivatives	(8,210)		10,605
Stock-based compensation	1,048		1,095
Amortization of deferred financing costs	800		2,811
Loss on equity investments	15,766		995
Deferred income taxes	10,275		6,403
Other	(258)		(71)
Increase (decrease) in cash attributable to changes in operating assets and liabilities:
Revenue receivable	(6,956)		5,685
Other receivable	118		530
Accounts payable and accrued liabilities	3,202