Overview

• U.S. energy firm's Q4 production rose 27% yr/yr, but adjusted EPS missed expectations

• Company provided 2026 guidance with moderate production growth and aligned capital expenditures

Outlook

• Granite Ridge projects 2026 production at 34,000 - 36,000 Boe per day

• Company expects 2026 development capital expenditures of $300 - $330 mln

• Granite Ridge anticipates 2026 lease operating expenses of $6.75 - $7.75 per Boe

Result Drivers

• PRODUCTION INCREASE - Total production increased by 27% to 35,120 Boe/day, driven by a 17% rise in oil production

• HIGH OPERATING COSTS - Lease operating expenses rose 29% per unit compared to the prior year quarter, impacting financial performance

Company press release: ID:nBw6plsdza

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", 4 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the oil & gas exploration and production peer group is "buy"

• Wall Street's median 12-month price target for Granite Ridge Resources Inc is $6.50, about 23.6% above its March 4 closing price of $5.26

• The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 11 three months ago

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