Granite Ridge Resources (GRNT) AI Stock Analysis

• Market Cap: $690.36M
• Dividend Yield: 8.37%
• Average Volume (3M): 592.95K
• Price to Earnings (P/E): 21.4
• Beta (1Y): 0.89
• Revenue Growth: 9.54%
• EPS Growth: -42.85%
• Country: US
• Employees: 3
• Sector: Energy
• Sector Strength: 42
• Industry: Oil & Gas Exploration & Production
• EPS (TTM): 0.11
• Shares Outstanding: 131,247,820
• 10 Day Avg. Volume: 613,568
• 30 Day Avg. Volume: 592,951
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.58
• Enterprise Value/Revenue: 2.52
• Enterprise Value/Gross Profit: 5.43
• Enterprise Value/Ebitda: 4.22
• 1Y Price Target: $6.58
• Price Target Upside: 25.10% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 4

• Rating: 67 Neutral
• Price Target: $6.00 ▲(14.07% Upside)

Granite Ridge Resources' overall stock score is driven by strong financial performance and a positive outlook from the latest earnings call. The company's robust cash flow and strategic growth initiatives are significant strengths. However, technical analysis suggests caution due to mixed signals, and the valuation indicates potential overvaluation. The attractive dividend yield provides a buffer for investors.

Positive Factors

Earnings

Higher oil production is expected to positively impact the company's earnings estimates.

Guidance

The 2025 guidance beats on capex with inline oil production.

Negative Factors

Free Cash Flow

Despite a strong growth outlook, the company is expected to generate negative free cash flow.

Natural Gas Realizations

There is a concern about weak natural gas realizations affecting the company's performance.

Operating Costs

Operating costs came in higher than expected between $6.25 - $7.25/boe.

Granite Ridge Resources Business Overview & Revenue Model

Company Description

Granite Ridge Resources, Inc. manages private funds with interests in areas of the Midland, Delaware, Bakken, Eagle Ford, DJ, and Haynesville play. It invests in oil and gas exploration and production. The company is based in Dallas, Texas.

How the Company Makes Money

Granite Ridge Resources generates revenue through the extraction and sale of oil and natural gas. The company acquires and develops oil and gas properties, often investing in exploration activities to discover new reserves. Once these resources are extracted, they are sold on the open market, where prices can fluctuate based on global supply and demand dynamics. Key revenue streams for Granite Ridge Resources include the sale of crude oil, natural gas, and related products. The company may also engage in strategic partnerships and joint ventures to enhance its exploration and production capabilities, which can contribute to its earnings. Additionally, efficient management of operational costs and investments in technology to improve extraction methods can impact the company's profitability.

Granite Ridge Resources Financial Statement Overview

Summary

Granite Ridge Resources exhibits solid financial health with strong operational efficiency and cash flow generation. While revenue and gross profit margins are strong, net profitability remains a concern due to high non-operating expenses. The balance sheet is stable with manageable leverage, but declining return on equity suggests profitability issues. Overall, the company is well-positioned in terms of cash flow, but needs to address profitability challenges to enhance financial performance.

Income Statement

Granite Ridge Resources shows a strong gross profit margin of 48.4% TTM, indicating effective cost management. However, the net profit margin is relatively low at 3.0% TTM, suggesting challenges in controlling non-operating expenses. Revenue growth is positive, with a 9.0% increase from 2024 to TTM, but historical volatility is noted with a decline in 2022. The EBIT margin is moderate at 19.9% TTM, while the EBITDA margin is robust at 53.4% TTM, reflecting strong operational efficiency.

Balance Sheet

The company maintains a healthy equity ratio of 58.1% TTM, indicating a strong capital structure. The debt-to-equity ratio is 0.40 TTM, showing manageable leverage. However, the return on equity has decreased significantly to 2.0% TTM from 29.6% in 2022, highlighting potential profitability challenges. Overall, the balance sheet reflects stability but with declining returns.

Cash Flow

Granite Ridge Resources demonstrates strong cash flow management with a significant operating cash flow to net income ratio of 33.7 TTM, indicating robust cash generation relative to earnings. Free cash flow has improved substantially to $128.5 million TTM from negative figures in previous years, showcasing effective capital expenditure management. The free cash flow to net income ratio is 10.4 TTM, reflecting healthy cash flow relative to earnings.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	432.53M	380.03M	394.07M	497.42M	290.19M	81.10M
Gross Profit	201.00M	120.03M	145.18M	422.12M	151.13M	60.04M
EBITDA	258.95M	219.97M	271.56M	382.94M	205.50M	62.94M
Net Income	32.33M	18.76M	81.10M	262.34M	108.46M	-23.93M
Balance Sheet
Total Assets	6.78M	1.04B	927.10M	794.78M	17.00M	40.78M
Cash, Cash Equivalents and Short-Term Investments	3.74M	41.20M	60.86M	50.83M	11.85M	1.29M
Total Debt	275.00M	205.00M	110.00M	0.00	51.10M	6.40M
Total Liabilities	462.50M	401.13M	255.46M	172.37M	2.02M	7.57M
Stockholders Equity	642.47M	635.35M	671.64M	622.40M	474.93M	404.12M
Cash Flow
Free Cash Flow	328.24M	-71.26M	-56.33M	111.70M	-213.81M	-50.58M
Operating Cash Flow	429.87M	275.73M	302.87M	346.39M	5.47M	66.81M
Investing Cash Flow	-511.30M	-310.77M	-356.68M	-230.56M	21.28M	-116.74M
Financing Cash Flow	74.45M	33.72M	13.41M	-76.85M	8.49M	52.07M

Granite Ridge Resources Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 5.26
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GRNT, the sentiment is Negative. The current price of 5.26 is above the 20-day moving average (MA) of 5.19, below the 50-day MA of 5.68, and below the 200-day MA of 5.72, indicating a neutral trend. The MACD of -0.10 indicates Negative momentum. The RSI at 47.11 is Neutral, neither overbought nor oversold. The STOCH value of 75.32 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GRNT.

Granite Ridge Resources Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VTS	74 Outperform	$976.92M	24.31	6.49%	8.60%	3.96%	29.26%
REPX	72 Outperform	$589.63M	5.92	18.30%	5.68%	-4.93%	-7.56%
GRNT	67 Neutral	$690.36M	21.44	4.90%	8.37%	9.54%	-42.85%
INR	66 Neutral	$824.27M	―		―	―	―
Sector *	65 Neutral	$14.86B	7.07	2.76%	5.52%	4.66%	-61.61%
VTLE	49 Neutral	$592.87M	2.02	-30.17%	―	5.26%	-309.56%
TXO	―	$768.08M	45.26	1.92%	16.05%	―	―

Granite Ridge Resources Corporate Events

Granite Ridge Resources Reports 37% Production Increase

On August 7, 2025, Granite Ridge Resources reported a 37% increase in daily production to 31,576 barrels of oil equivalent per day for the second quarter of 2025, compared to the same period in 2024. The company announced a net income of $25.1 million and declared a quarterly dividend of $0.11 per share. The company raised its full-year production guidance by 10% and increased capital expenditure guidance to support expanded inventory additions, indicating strong operational performance and strategic growth initiatives.

The most recent analyst rating on (GRNT) stock is a Buy with a $8.80 price target. To see the full list of analyst forecasts on Granite Ridge Resources stock, see the GRNT Stock Forecast page.

Granite Ridge Resources Announces New CEO Appointment

On June 11, 2025, Granite Ridge Resources announced the resignation of Luke Brandenberg as President and CEO, with Tyler Farquharson stepping into the role on June 12, 2025. The company also promoted Kim Weimer to Interim CFO and Chief Accounting Officer. The board is actively seeking a permanent CFO with the help of an executive search firm. This leadership transition is not related to the company’s performance, and Granite Ridge reaffirmed its 2025 operational and financial guidance. The company is confident in Farquharson’s ability to drive long-term value for shareholders, leveraging his extensive industry experience and strategic vision.

The most recent analyst rating on (GRNT) stock is a Buy with a $8.80 price target. To see the full list of analyst forecasts on Granite Ridge Resources stock, see the GRNT Stock Forecast page.

Granite Ridge Resources Elects New Directors at Annual Meeting

On May 23, 2025, Granite Ridge Resources, Inc. held its Annual Meeting of Stockholders, where shareholders elected Griffin Perry and Amanda Coussens as Class III directors for terms expiring in 2028. Additionally, the shareholders ratified the appointment of Forvis Mazars LLP as the company’s independent registered public accounting firm for the year ending December 31, 2025.

The most recent analyst rating on (GRNT) stock is a Buy with a $8.80 price target. To see the full list of analyst forecasts on Granite Ridge Resources stock, see the GRNT Stock Forecast page.