Granite Ridge Resources (GRNT) AI Stock Analysis

• Market Cap: $822.08M
• Dividend Yield: 7.02%
• Average Volume (3M): 783.30K
• Price to Earnings (P/E): 67.2
• Beta (1Y): 0.80
• Revenue Growth: 5.67%
• EPS Growth: -79.53%
• Country: US
• Employees: 3
• Sector: Energy
• Sector Strength: 53
• Industry: Oil & Gas Exploration & Production
• EPS (TTM): 0.22
• Shares Outstanding: 131,113,070
• 10 Day Avg. Volume: 1,383,126
• 30 Day Avg. Volume: 783,301
• PEG Ratio: <0.01
• Price to Book (P/B): 1.93
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 10.75
• Enterprise Value/Market Cap: 0.00
• Enterprise Value/Revenue: 0.00
• Enterprise Value/Gross Profit: 0.00
• Enterprise Value/Ebitda: 0.00
• 1Y Price Target: $5.75
• Price Target Upside: -8.29% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 2

• Rating: 66 Neutral
• Price Target: $7.00 ▲(11.64%Upside)

Granite Ridge Resources exhibits strong operational efficiency and cash flow, supported by strategic hedging. However, high P/E ratio and overbought technical indicators suggest caution. Despite declining oil prices and potential debt increase, the company's robust financial strategies provide stability.

Positive Factors

Financial Guidance

The 2025 guidance beats on capex with inline oil production.

Production Levels

4Q24 sees stronger than expected production.

Negative Factors

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.

Ownership Structure

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

Granite Ridge Resources Business Overview & Revenue Model

Company Description

Granite Ridge Resources (GRNT) is a company operating within the energy sector, primarily focusing on the exploration and production of oil and natural gas. The company is involved in identifying, acquiring, and managing energy resources across various geographical locations, with an emphasis on optimizing production and maximizing resource recovery. Granite Ridge Resources leverages advanced technology and industry expertise to deliver reliable and efficient energy solutions.

How the Company Makes Money

Granite Ridge Resources generates revenue primarily through the sale of crude oil and natural gas. The company explores and develops oil and gas reserves, extracting these resources to sell them in the commodities market. Key revenue streams include the direct sale of oil and gas products to refineries and other energy companies. Additionally, Granite Ridge Resources may engage in strategic partnerships and joint ventures to enhance its exploration and production capabilities, thus potentially increasing its revenue. The company's earnings are significantly influenced by factors such as global oil and gas prices, production volumes, and operational efficiency.

Granite Ridge Resources Financial Statement Overview

Summary

Granite Ridge Resources exhibits strong operational efficiency and cash flow generation, but profitability remains a concern with declining net income margins. The balance sheet is stable with reasonable leverage, but the company should focus on improving its profitability to enhance shareholder returns. The overall financial health is moderate, with good cash flow prospects but challenges in sustaining profitability.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	413.96M	380.03M	394.07M	470.52M	273.09M	81.10M
Gross Profit	200.26M	120.03M	145.18M	422.12M	245.79M	60.04M
EBITDA	220.95M	219.97M	271.56M	382.94M	203.23M	62.94M
Net Income	12.35M	18.76M	81.10M	262.34M	3.77M	-25.77M
Balance Sheet
Total Assets	1.09B	1.06B	927.10M	794.78M	17.00M	40.78M
Cash, Cash Equivalents and Short-Term Investments	37.92M	41.20M	60.86M	50.83M	740.35K	1.29M
Total Debt	250.00M	205.00M	110.00M	0.00	1.10M	6.40M
Total Liabilities	456.02M	401.13M	255.46M	172.37M	2.02M	7.57M
Stockholders Equity	631.41M	635.35M	671.64M	622.40M	14.97M	33.21M
Cash Flow
Free Cash Flow	128.51M	-71.26M	-56.33M	111.70M	-213.81M	-50.58M
Operating Cash Flow	416.01M	275.73M	302.87M	346.39M	5.47M	66.81M
Investing Cash Flow	-492.34M	-310.77M	-356.68M	-230.56M	21.28M	-116.74M
Financing Cash Flow	74.47M	33.72M	13.41M	-76.85M	-27.30M	52.07M

Granite Ridge Resources Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 6.27
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 Positive. The current price of 6.27 is above the 20-day moving average (MA) of 6.18, above the 50-day MA of 5.63, and above the 200-day MA of 5.79, indicating a bullish trend. The MACD of 0.21 indicates Positive momentum. The RSI at 58.49 is Neutral, neither overbought nor oversold. The STOCH value of 30.43 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GRNT.

Granite Ridge Resources Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
REPX	77 Outperform	$596.38M	5.80	20.43%	5.61%	1.25%	-5.58%
Sector *	68 Neutral	$15.14B	9.95	6.38%	5.21%	4.16%	-67.19%
GRNT	66 Neutral	$822.08M	67.20	1.86%	7.02%	5.67%	-79.53%
VTLE	59 Neutral	$659.83M	2.02	-4.61%	―	16.77%	-113.49%
DK	51 Neutral	$1.40B	―	-151.69%	4.41%	-29.23%	-931.43%
NBR	51 Neutral	$489.20M	―	-44.00%	―	-0.94%	-19.18%

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.