Granite Ridge Resources Hits Operational Highs in Q1 2026, Sees Bright Future Ahead
Granite Ridge Resources, a leading energy company, has released its first quarter earnings report for 2026, showcasing strong operational execution and a promising future outlook. The company delivered 18% production growth year-over-year to 34.5 thousand barrels of oil equivalent per day, with adjusted EBITDA reaching $71 million.
Speaking on the conference call, Tyler Farquharson, President and Chief Executive Officer, highlighted the company's ability to execute its strategy effectively, positioning itself for continued growth in the back half of 2026. "We delivered strong operational execution in the first quarter," he said, adding that the company is "well-positioned" for future growth.
Oil and natural gas sales totaled $128.3 million, a $5.3 million increase over the same period in 2025, driven by an 11% production increase in oil revenues. However, natural gas revenues declined due to negative Waha pricing in the Permian region, which resulted in a 36% decline in realized gas prices.
To mitigate this impact, Granite Ridge Resources has implemented an active hedging program, securing basis swaps that cover nearly 70% of its total Permian gas production by early 2027. This strategic move is expected to provide stability and protection against negative pricing fluctuations.
Lease operating expense (LOE) was a notable area of discussion on the conference call, with LOE coming in at $9.57 per BOE, above the company's prior guide. However, management views this as a near-term outlier rather than a change in their cost trajectory, expecting LOE to trend lower as 2026 volumes come online.
The forward curve has improved dramatically, bolstering economics on near-term development opportunities and providing Granite Ridge Resources with access to high-quality inventory that would otherwise be inaccessible. This positions the company for continued growth and capital allocation efficiency in the future.
Overall, Granite Ridge Resources' Q1 2026 performance demonstrates its ability to execute effectively, manage risks, and capitalize on opportunities. With a promising outlook ahead, investors are likely to remain optimistic about the company's prospects.
