Granite Ridge Resources (GRNT) AI Stock Analysis

• Market Cap: $698.83M
• Dividend Yield: 8.26%
• Average Volume (3M): 836.57K
• Price to Earnings (P/E): 57.1
• Beta (1Y): 0.82
• Revenue Growth: 5.67%
• EPS Growth: -79.53%
• Country: US
• Employees: 3
• Sector: Energy
• Sector Strength: 51
• Industry: Oil & Gas Exploration & Production
• EPS (TTM): 0.22
• Shares Outstanding: 131,113,070
• 10 Day Avg. Volume: 548,858
• 30 Day Avg. Volume: 836,570
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $6.77
• Price Target Upside: 27.02% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 66 Neutral
• Price Target: $5.50 ▲(3.19%Upside)

Granite Ridge Resources scores moderately due to solid financial health and strong earnings call highlights, including significant production increases and a robust hedging position. However, technical indicators show bearish trends, and the high P/E ratio suggests overvaluation. The attractive dividend yield provides a positive offset to valuation concerns.

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.

Production

4Q24 sees stronger than expected production.

Negative Factors

Equity Overhang

There is an equity overhang concern due to Grey Rock owning approximately 50% of the company.

Free Cash Flow

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

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 strong operational efficiency and cash flow generation, with a healthy gross profit margin and robust free cash flow. However, profitability is a concern due to declining net income margins and low return on equity. The balance sheet is stable with moderate leverage.

Income Statement

Granite Ridge Resources shows a mixed performance on its income statement. The TTM gross profit margin stands at 48.4%, indicating strong cost management. However, the net profit margin for the TTM is only 3%, reflecting challenges in converting revenues into net income. Revenue growth was inconsistent, with a recent TTM increase from the previous annual report. EBIT and EBITDA margins are healthy at 19.9% and 53.4%, respectively, but net income has significantly declined from previous years.

Balance Sheet

The balance sheet displays a moderate level of leverage with a debt-to-equity ratio of 0.40 in TTM, which is manageable but increased compared to previous years. The equity ratio is strong at 58.1%, indicating a solid equity base relative to total assets. Return on equity (ROE) is low at 1.95% in TTM, reflecting weak profitability in relation to shareholder equity.

Cash Flow

The cash flow statement reveals robust operating cash flow, with an impressive operating cash flow to net income ratio of 33.7. Free cash flow has significantly improved to $128.5 million in TTM, demonstrating effective management of capital expenditures. Free cash flow to net income ratio is strong, indicating that the company can generate cash beyond its earnings.

Breakdown
Income Statement
Total Revenue
Gross Profit
EBITDA
Net Income
Balance Sheet
Total Assets
Cash, Cash Equivalents and Short-Term Investments
Total Debt
Total Liabilities
Stockholders Equity
Cash Flow
Free Cash Flow
Operating Cash Flow
Investing Cash Flow
Financing Cash Flow

Granite Ridge Resources Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 5.33
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• 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 5.33 is below the 20-day moving average (MA) of 5.68, below the 50-day MA of 5.80, and below the 200-day MA of 5.76, indicating a bearish trend. The MACD of -0.19 indicates Positive momentum. The RSI at 36.70 is Neutral, neither overbought nor oversold. The STOCH value of 37.96 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
REPX	79 Outperform	$617.31M	6.00	20.43%	5.42%	1.25%	-5.58%
VTS	71 Outperform	$937.54M	31.18	4.24%	8.73%	4.15%	3.91%
INR	66 Neutral	$857.75M	―		―	―	―
GRNT	66 Neutral	$698.83M	57.13	1.86%	8.26%	5.67%	-79.53%
VTLE	59 Neutral	$720.31M	2.02	-4.61%	―	16.77%	-113.49%
Sector *	52 Neutral	C$2.98B	-1.53	-3.48%	6.50%	3.05%	-49.39%
TXO	―	$845.32M	38.46	2.97%	15.39%	―	―

Granite Ridge Resources Corporate Events

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.

Granite Ridge Resources Reports Strong Q1 2025 Results

On May 8, 2025, Granite Ridge Resources reported its first quarter 2025 financial and operational results, highlighting a 23% increase in daily production compared to the previous year. The company achieved a net income of $9.8 million and declared a quarterly cash dividend of $0.11 per share. Despite a decrease in net income from the prior year, Granite Ridge’s adjusted EBITDAX grew to $91.4 million, driven by strong well performance and strategic capital investments. The company also increased its borrowing base to $375 million, enhancing its liquidity position. Granite Ridge remains focused on disciplined capital allocation and is well-prepared to capitalize on market opportunities with a robust hedge book covering 75% of its production through 2026.