Granite Ridge Resources Reports $47M Net Loss in Q1 2026 Despite Revenue Growth

Granite Ridge Resources, Inc. reported a net loss of $47.0 million for the first quarter of 2026, a significant decline from a net income of $9.8 million in the same period of 2025. The company's revenues from oil and natural gas sales increased to $128.3 million, up 4% from $122.9 million year-over-year. This growth was primarily driven by a 13% increase in oil revenues, which rose to $103.4 million, attributed to an 11% increase in production. However, natural gas revenues fell by 20% to $24.8 million, largely due to a 36% decrease in realized natural gas prices.

The company's operating costs and expenses surged to $113.4 million, compared to $80.4 million in the prior year, reflecting a 41% increase. This rise was influenced by higher lease operating expenses, which jumped 83% to $29.7 million, and the recognition of an $11.2 million impairment on unproved properties in the Permian Basin. Additionally, general and administrative expenses rose by 22% to $9.1 million, driven by increased stock-based compensation and management fees.

Granite Ridge's total assets increased to $1.19 billion as of March 31, 2026, up from $1.17 billion at the end of 2025. The company’s current liabilities also rose significantly to $155.7 million, primarily due to an increase in the current portion of long-term debt, which grew to $26.3 million. The total long-term debt reached $400.0 million, reflecting the issuance of $350.0 million in senior unsecured notes in November 2025. The company maintained a liquidity position of $314.8 million, consisting of cash and available borrowing capacity under its credit agreement.

In terms of operational metrics, Granite Ridge reported an increase in the number of net producing wells from 211.6 to 245.6 year-over-year. The company’s average daily production of oil and natural gas also rose, with oil production averaging 16,433 barrels per day, up from 14,752 barrels per day in the previous year. Looking ahead, Granite Ridge plans to allocate between $345 million and $385 million for capital expenditures in 2026, focusing on the development and acquisition of oil and natural gas properties. The company remains committed to balancing shareholder returns with a low leverage profile, despite the challenges posed by fluctuating commodity prices and operational costs.