Granite Ridge Resources, Inc.
For the period ended Sep 30, 2025. Filed Nov 7, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2025 · Filed Nov 7, 2025
GRNT$5.29+13.3%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-06-30; filed 2025-08-07.
0001928446-25-000043
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-09-30; filed 2025-11-07.
0001928446-25-000048
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 113 previous paragraphs and 120 current paragraphs.
72 unchanged; 39 reworded; 8 added; 1 removed; 1 previous and 1 current paragraphs rearranged.
Tables are not compared: 6 previous and 6 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (8)
Current report
Total general and administrative expenses were $7.0 million ($2.38 per Boe) for the three months ended September 30, 2025, an increase of 25% from $5.6 million ($2.41 per Boe) during the same period in 2024. The increase was primarily for expenses related to stock-based compensation and capital market activities.
Current report
Gain/(Loss) on Equity Investments
Current report
On November 5, 2025, the Company and its lenders entered into the Sixth Amendment to Credit Agreement, which amended the Credit Agreement to, among other things, (i) reaffirm the borrowing base and aggregate elected commitment amounts at $375.0 million, (ii) permit the issuance of the 2029 Senior Notes, (iii) extend the maturity date to the earliest to occur of (A) November 5, 2029 or (B) the date that is ninety-one days prior to the stated maturity date of the 2029 Senior Notes if any 2029 Senior Notes remain outstanding on such date, and (iv) adjust the interest payable on (A) SOFR loans to interest at a rate per annum equal to SOFR plus an applicable margin ranging from 275 to 375 basis points, depending on the percentage of the borrowing base utilized and (B) base rate loans to interest at a rate per annum equal to the greatest of: (a) the U.S. prime rate as published by the Wall Street Journal; (b) the federal funds effective rate plus 50 basis points; (c) the adjusted SOFR rate for a one-month interest period plus 100 basis points; and (d) 100 basis points, plus, in the case of any base rate loan, an applicable margin ranging from 175 to 275 basis points, depending on the percentage of the borrowing base utilized.
Current report
On November 5, 2025, the Company and its lenders entered into the Sixth Amendment to Credit Agreement, which amended the Credit Agreement to, among other things, (i) reaffirm the borrowing base and aggregate elected commitment amounts at $375.0 million, (ii) permit the issuance of the 2029 Senior Notes, (iii) extend the maturity date to the earliest to occur of (A) November 5, 2029 or (B) the date that is ninety-one days prior to the stated maturity date of the 2029 Senior Notes if any 2029 Senior Notes remain outstanding on such date, and (iv) adjust the interest payable on (A) SOFR loans to interest at a rate per annum equal to SOFR plus an applicable margin ranging from 275 to 375 basis points, depending on the percentage of the borrowing base utilized and (B) base rate loans to interest at a rate per annum equal to the greatest of: (a) the U.S. prime rate as published by the Wall Street Journal; (b) the federal funds effective rate plus 50 basis points; (c) the adjusted SOFR rate for a one-month interest period plus 100 basis points; and (d) 100 basis points, plus, in the case of any base rate loan, an applicable margin ranging from 175 to 275 basis points, depending on the percentage of the borrowing base utilized.
Current report
On November 5, 2025, the Company, as issuer, completed an issuance of $350.0 million aggregate principal amount of 8.875% senior unsecured notes at 96.0% of par with stated maturity on November 5, 2029 pursuant to a note purchase agreement. The Company used the net proceeds from the issuance of 2029 Senior Notes to repay certain amounts under the Credit Agreement and to pay related fees and expenses. The Note Purchase Agreement allows the ability for the Company to incur up to $100.0 million of increment notes for purposes of acquisition financing, subject to, among other things, the willingness of holders to provide such incremental notes and a pro forma net leverage ratio not greater than 2.00 to 1.00.
Current report
Interest is due to be paid at the end of each quarter, commencing December 31, 2025. In addition, the Company will repay quarterly 2.5% of the original principal amount of the notes issued on the closing date beginning on September 30, 2026. If quarterly scheduled repayments are missed, the coupon increases to 11.875% and the Company is restricted from making any dividend payments until all delinquent scheduled repayments have been fulfilled. On or after May 5, 2027 and on or prior to May 5, 2028, the Company may, at its option, redeem, at any time some or all of the 2029 Senior Notes at 103.0% of par, as set forth in the Note Purchase Agreement, plus accrued and unpaid interest, if any. Any redemption of the 2029 Senior Notes prior to May 5, 2027 is subject to payment of a make-whole amount. After May 5, 2028, the Company may redeem some or all of the Senior Notes at 100.0% of the principal amount thereof plus accrued and unpaid interest, if any. The principal remaining outstanding at the time of maturity is required to be paid in full by the Issuer. The Company is currently evaluating the 2029 Senior Notes and features discussed above for accounting treatment.
Current report
The 2029 Senior Notes includes certain covenants, which, among other things, requires the maintenance of (i) a net leverage ratio not greater than 3.25 to 1.00 and (ii) asset coverage ratio greater than or equal to (A) for each Fiscal Quarter ending prior to December 31, 2026, 1.25 to 1.00 and (B) for each Fiscal Quarter ending on or after December 31, 2026, 1.50 to 1.00. The 2029 Senior Notes also contain a total leverage ratio and asset coverage ratio basket for Restricted Payments (as defined in the 2029 Senior Notes), which permits Restricted Payments in the form of cash distributions so long as, subject to certain other conditions, the leverage ratio, after giving pro forma effect to such Restricted Payments, cannot exceed 1.75 to 1.00, and the asset coverage ratio, after giving effect to such Restricted Payments, must be greater than or equal to 1.50 to 1.00. Upon issuance of the 2029 Senior Notes, the Company must maintain a minimum hedging requirement included within the Senior Notes for oil and natural gas based on our proved developed producing projected volumes for each commodity on a rolling 18-month basis.
Current report
The Senior Notes are general unsecured obligations ranking equally in right of payment with all other senior unsecured indebtedness of the Company and are senior in right of payment to all existing and future subordinated indebtedness of the Company. The Note Purchase Agreement contains customary terms and covenants, including limitations on the Company’s ability to incur additional secured and unsecured indebtedness.
Removed paragraphs (1)
Previous report
Loss on Equity Investments
Reworded paragraphs (39)
Previous wording
Our oil price differential to the NYMEX benchmark price during the three months ended June 30, 2025 and 2024 was a discount of $(3.16) per barrel and $(3.97) per barrel, respectively. For the six months ended June 30, 2025 and 2024, our oil price differential to the NYMEX benchmark price was a discount of $(3.01) per barrel and $(1.68) per barrel, respectively.
Current wording
Our oil price differential to the NYMEX benchmark price during the three months ended September 30, 2025 and 2024 was a discount of $(4.16) per barrel and $(2.99) per barrel, respectively. For the nine months ended September 30,
Previous wording
Our natural gas price differential to the average NYMEX price during the three months ended June 30, 2025 and 2024 was a discount of $(0.87) per Mcf and $(0.09) per Mcf, respectively. For the six months ended June 30, 2025 and 2024, our natural gas price differential to the average NYMEX price was a discount of $(0.55) per Mcf and $(0.20) per Mcf, respectively.
Current wording
Our natural gas price differential to the average NYMEX price during the three months ended September 30, 2025 and 2024 was a discount of $(0.64) per Mcf and $(0.87) per Mcf, respectively. For the nine months ended September 30, 2025 and 2024, our natural gas price differential to the average NYMEX price was a discount of $(0.59) per Mcf and $(0.43) per Mcf, respectively.
Previous wording
Prices for various quantities of oil and natural gas that we produce significantly impact our revenues and cash flows. The following table lists average NYMEX spot prices for oil and natural gas for the three and six months ended June 30, 2025 and 2024.
Current wording
Prices for various quantities of oil and natural gas that we produce significantly impact our revenues and cash flows. The following table lists average NYMEX spot prices for oil and natural gas for the three and nine months ended September 30, 2025 and 2024.
Previous wording
For the three months ended June 30, 2025, the average NYMEX oil pricing was $64.57 per barrel of oil, or 21% lower than the average NYMEX price per barrel for the three months ended June 30, 2024. Our settled derivatives increased our realized oil price per barrel by $0.49 for the three months ended June 30, 2025 and decreased our realized oil price per barrel by $0.38 for the three months ended June 30, 2024. For the three months ended June 30, 2025, our average realized oil price per barrel after reflecting settled derivatives was $61.90 compared to $77.46 for the three months ended June 30, 2024. For the six months ended June 30, 2025, the average NYMEX oil pricing was $68.12 per barrel of oil, or 15% lower than the average NYMEX price per barrel for the six months ended June 30, 2024. Our settled derivatives increased our realized oil price per barrel by $0.23 for the six months ended June 30, 2025 and decreased our realized oil price per barrel by $0.14 for the six months ended June 30, 2024. For the six months ended June 30, 2025, our average realized oil price per barrel after reflecting settled derivatives was $65.34 compared to $77.87 for the six months ended June 30, 2024.
Current wording
For the three months ended September 30, 2025, the average NYMEX oil pricing was $65.78 per barrel of oil, or 14% lower than the average NYMEX price per barrel for the three months ended September 30, 2024. Our settled derivatives increased our realized oil price per barrel by $0.02 for the three months ended September 30, 2025 and increased our realized oil price per barrel by $0.55 for the three months ended September 30, 2024. For the three months ended September 30, 2025, our average realized oil price per barrel after reflecting settled derivatives was $61.64 compared to $73.99 for the three months ended September 30, 2024. For the nine months ended September 30, 2025, the average NYMEX oil pricing was $67.31 per barrel of oil, or 14% lower than the average NYMEX price per barrel for the nine months ended September 30, 2024. Our settled derivatives increased our realized oil price per barrel by $0.16 for the nine months ended September 30, 2025 and increased our realized oil price per barrel by $0.11 for the nine months ended September 30, 2024. For the nine months ended September 30, 2025, our average realized oil price per barrel after reflecting settled derivatives was $64.05 compared to $76.42 for the nine months ended September 30, 2024.
Previous wording
For the three months ended June 30, 2025, the average NYMEX natural gas pricing was $3.19 per Mcf, or 54% higher than the average NYMEX price per Mcf for the three months ended June 30, 2024. Our settled derivatives increased our realized natural gas price per Mcf by $0.03 for the three months ended June 30, 2025 and increased our realized natural gas price per Mcf by $0.65 for the three months ended June 30, 2024. For the three months ended June 30, 2025, our average realized natural gas price per Mcf after reflecting settled derivatives was $2.35 compared to $2.63 for the three months ended June 30, 2024. For the six months ended June 30, 2025, the average NYMEX natural gas pricing was $3.66 per Mcf, or 73% higher than the average NYMEX price per Mcf for the six months ended June 30, 2024. Our settled derivatives increased our realized natural gas price per Mcf by $0.01 for the six months ended June 30, 2025 and increased our realized natural gas price per Mcf by $0.50 for the six months ended June 30, 2024. For the six months ended June 30, 2025, our average realized natural gas price per Mcf after reflecting settled derivatives was $3.12 compared to $2.41 for the six months ended June 30, 2024.
Current wording
For the three months ended September 30, 2025, the average NYMEX natural gas pricing was $3.03 per Mcf, or 44% higher than the average NYMEX price per Mcf for the three months ended September 30, 2024. Our settled derivatives increased our realized natural gas price per Mcf by $0.20 for the three months ended September 30, 2025 and increased our realized natural gas price per Mcf by $0.74 for the three months ended September 30, 2024. For the three months ended September 30, 2025, our average realized natural gas price per Mcf after reflecting settled derivatives was $2.59 compared to $1.98 for the three months ended September 30, 2024. For the nine months ended September 30, 2025, the average NYMEX natural gas pricing was $3.45 per Mcf, or 64% higher than the average NYMEX price per Mcf for the nine months ended September 30, 2024. Our settled derivatives increased our realized natural gas price per Mcf by $0.08 for the nine months ended September 30, 2025 and increased our realized natural gas price per Mcf by $0.58 for the nine months ended September 30, 2024. For the nine months ended September 30, 2025, our average realized natural gas price per Mcf after reflecting settled derivatives was $2.94 compared to $2.26 for the nine months ended September 30, 2024.
Previous wording
Our revenues vary from year to year primarily due to changes in realized commodity prices and production volumes. Our oil and natural gas sales for the three months ended June 30, 2025 increased 20% from the same period in 2024. Oil revenues for the three months ended June 30, 2025 increased by 15% compared to the same period in 2024, driven by a 46% increase in production, partially offset by a 21% decrease in realized prices, excluding the effect of settled commodity derivatives. Natural gas revenues increased by 50% for the three months ended June 30, 2025 compared to 2024, driven by a 17% increase in realized natural gas prices, excluding the effect of settled commodity derivatives, and a 28% increase in production.
Current wording
Our revenues vary from year to year primarily due to changes in realized commodity prices and production volumes. Our oil and natural gas sales for the three months ended September 30, 2025 increased 20% from the same period in 2024. Oil revenues for the three months ended September 30, 2025 increased by 8% compared to the same period in 2024, driven by a 28% increase in production, partially offset by a 16% decrease in realized prices, excluding the effect of settled commodity derivatives. Natural gas revenues increased by 142% for the three months ended September 30, 2025 compared to 2024, driven by a 93% increase in realized natural gas prices, excluding the effect of settled commodity derivatives, and a 25% increase in production.
Previous wording
Our oil and natural gas sales for the six months ended June 30, 2025 increased 29% from the same period in 2024. Oil revenues for the first half of 2025 increased by 18% compared to the same period in 2024, driven by a 42% increase in production, partially offset by a 17% decrease in realized prices, excluding the effect of settled commodity derivatives. Natural gas revenues increased by 93% for the first half of 2025 compared to 2024 as a result of a 63% increase in realized natural gas prices, excluding the effect of settled commodity derivatives, and an 18% increase in production.
Current wording
Our oil and natural gas sales for the nine months ended September 30, 2025 increased 26% from the same period in 2024. Oil revenues increased by 14% compared to the same period in 2024, driven by a 37% increase in production, partially offset by a 16% decrease in realized prices, excluding the effect of settled commodity derivatives. Natural gas revenues increased by 105% compared to the same period in 2024 as a result of a 70% increase in realized natural gas prices, excluding the effect of settled commodity derivatives, and a 20% increase in production.
Previous wording
Production from oil and gas properties increased as a result of drilling success and the acquisition of additional net revenue interests. The number of wells we participated in increased from 191.94 net wells on June 30, 2024 to 227.42 net wells on June 30, 2025.
Current wording
Production from oil and gas properties increased as a result of drilling success and the acquisition of additional net revenue interests. The number of wells we participated in increased from 195.88 net wells on September 30, 2024 to 235.27 net wells on September 30, 2025.
Previous wording
Lease operating expenses were $20.1 million ($7.00 per Boe) for the three months ended June 30, 2025, an increase of 47% from $13.7 million ($6.50 per Boe) during the same period in 2024. The increase was primarily due to an increase in well count due to acquisitions and additional wells successfully drilled and completed, resulting in an increase in saltwater disposal costs of $1.9 million, or 58%, and an overall increase in service costs.
Current wording
Lease operating expenses were $23.6 million ($8.03 per Boe) for the three months ended September 30, 2025, an increase of 81% from $13.0 million ($5.62 per Boe) during the same period in 2024. The increase was primarily due to an increase in well count due to acquisitions and additional wells successfully drilled and completed, resulting in an increase in saltwater disposal costs of $2.8 million, or 83%, and an overall increase in service costs.
Previous wording
Lease operating expenses were $36.4 million ($6.60 per Boe) for the six months ended June 30, 2025, an increase of 25% from $29.1 million ($6.82 per Boe) during the same period in 2024. The increase was primarily due to an increase in production as a result of increased well count, resulting in increased saltwater disposal costs, facilities costs and an overall increase in cost of services.
Current wording
Lease operating expenses were $60.0 million ($7.10 per Boe) for the nine months ended September 30, 2025, an increase of 42% from $42.2 million ($6.40 per Boe) during the same period in 2024. The increase was primarily due to an increase in production as a result of increased well count, resulting in increased saltwater disposal costs, facilities costs and an overall increase in cost of services.
Previous wording
We generally pay production taxes based on realized oil and natural gas sales. Production taxes were $5.3 million ($1.86 per Boe) for the three months ended June 30, 2025 compared to $5.4 million ($2.59 per Boe) during the same period in 2024. As a percentage of oil and natural gas sales, our production taxes were 5% and 6% during the three months ended June 30, 2025 and 2024, respectively.
Current wording
We generally pay production taxes based on realized oil and natural gas sales. Production taxes were $5.4 million ($1.83 per Boe) for the three months ended September 30, 2025 compared to $5.3 million ($2.29 per Boe) during the same period in 2024. As a percentage of oil and natural gas sales, our production taxes were 5% and 6% during the three months ended September 30, 2025 and 2024, respectively.
Previous wording
Production taxes were $11.9 million ($2.16 per Boe) for the six months ended June 30, 2025 compared to $9.7 million ($2.28 per Boe) during the same period in 2024. As a percentage of oil and natural gas sales, our production taxes were 5% during both the six months ended June 30, 2025 and 2024.
Current wording
Production taxes were $17.3 million ($2.05 per Boe) for the nine months ended September 30, 2025 compared to $15.0 million ($2.28 per Boe) during the same period in 2024. As a percentage of oil and natural gas sales, our production taxes were 5% during both the nine months ended September 30, 2025 and 2024.
Previous wording
Ad valorem taxes were $1.1 million and $2.9 million for the three and six months ended June 30, 2025, respectively, compared to $1.4 million and $2.9 million during the same periods in 2024.
Current wording
Ad valorem taxes were $1.2 million and $4.1 million for thethree and nine months ended September 30, 2025, respectively, compared to $1.0 million and $3.9 million during the same periods in 2024.
Previous wording
Depletion and accretion was $53.4 million ($18.59 per Boe) for the three months ended June 30, 2025, an increase of 28% from $41.6 million ($19.78 per Boe) during the same period in 2024. The increase in depletion and accretion expense was primarily due to the increase in depletion expense resulting from the increase in production.
Current wording
Depletion and accretion was $55.9 million ($19.05 per Boe) for the three months ended September 30, 2025, an increase of 27% from $44.1 million ($19.06 per Boe) during the same period in 2024. The increase in depletion and accretion expense was primarily due to the increase in depletion expense resulting from the increase in production.
Previous wording
Depletion and accretion was $101.9 million ($18.50 per Boe) for the six months ended June 30, 2025, an increase of 23% from $82.5 million ($19.32 per Boe) during the same period in 2024. The increase in depletion and accretion expense was primarily due to the increase in production.
Current wording
Depletion and accretion was $157.8 million ($18.69 per Boe) for the nine months ended September 30, 2025, an increase of 25% from $126.7 million ($19.23 per Boe) during the same period in 2024. The increase in depletion and accretion expense was primarily due to the increase in production.
Previous wording
No impairment of unproved properties was recorded for the three months ended June 30, 2025 and 2024. In the first quarter of 2024, we recognized impairment expense of $0.7 million on unproved properties in the Permian Basin as the operator of those properties no longer intends to drill certain locations. During the six months ended June 30, 2025 no impairment of unproved properties was recorded.
Current wording
No impairment of unproved properties was recorded for the three months ended September 30, 2025 and 2024. In the first quarter of 2024, we recognized impairment expense of $0.7 million on unproved properties in the Permian Basin as the operator of those properties no longer intends to drill certain locations. During the nine months ended September 30, 2025 no impairment of unproved properties was recorded.
Previous wording
The following table provides components of our general and administrative expenses for the three and six months ended June 30, 2025 and 2024:
Current wording
The following table provides components of our general and administrative expenses for the three and nine months ended September 30, 2025 and 2024:
Previous wording
Total general and administrative expenses were $8.5 million ($2.96 per Boe) for the three months ended June 30, 2025, an increase of 29% from $6.6 million ($3.15 per Boe) during the same period in 2024. The increase was primarily due to severance expense incurred during the period as a result of a management transition as well as expenses related to capital market activities.
Current wording
Total general and administrative expenses were $23.0 million ($2.72 per Boe) for the nine months ended September 30, 2025, an increase of 23% from $18.7 million ($2.84 per Boe) during the same period in 2024. The increase was primarily due to severance expense incurred during the period as a result of a management transition as well as expenses related to capital market activities.
Previous wording
The following table sets forth the gain (loss) on derivatives for the three and six months ended June 30, 2025 and 2024:
Current wording
The following table sets forth the gain (loss) on derivatives for the three and nine months ended September 30, 2025 and 2024:
Previous wording
Interest expense was $5.9 million for the three months ended June 30, 2025 compared to $5.8 million for the three months ended June 30, 2024. The increase in interest expense during the three months ended June 30, 2025 as compared to 2024 was primarily due to a higher average outstanding balance on the revolving credit facility, partially offset by a decrease in interest rates during 2025.
Current wording
Interest expense was $6.1 million for the three months ended September 30, 2025 compared to $4.8 million for the three months ended September 30, 2024. The increase in interest expense during the three months ended September 30, 2025 as compared to 2024 was primarily due to a higher average outstanding balance on the revolving credit facility, partially offset by a decrease in interest rates during 2025.
Previous wording
Interest expense was $10.9 million for the six months ended June 30, 2025 compared to $9.0 million for the six months ended June 30, 2024. The increase in interest expense during the six months ended June 30, 2025 as compared to 2024 was primarily due to a higher average outstanding balance on the revolving credit facility during 2025.
Current wording
Interest expense was $17.0 million for the nine months ended September 30, 2025 compared to $13.8 million for the nine months ended September 30, 2024. The increase in interest expense during the nine months ended September 30, 2025 as compared to 2024 was primarily due to a higher average outstanding balance on the revolving credit facility, partially offset by a decrease in interest rates during 2025.
Previous wording
We recorded a loss on equity investments of $5.8 million for the three months ended June 30, 2025. During the second quarter of 2025, the Company divested 342,636 shares of Vital Energy’s common stock and realized a loss on sale of $10.5 million. This was partially offset by an unrealized gain of $4.7 million from the change in fair value of the common stock of Vital Energy during the period. We recorded an unrealized loss of $8.8 million for the three months ended June 30, 2024 from the change in fair value of the common and preferred stock of Vital Energy.
Current wording
We recorded a gain on equity investments of $0.5 million for the three months ended September 30, 2025 compared to a loss of $18.3 million for the three months ended September 30, 2024 resulting from the change in fair value of the common and preferred stock of Vital Energy.
Previous wording
We recorded a loss on equity investments of $15.8 million for the six months ended June 30, 2025. The loss is a result of a $10.5 million realized loss on sale of Vital Energy’s common stock and an unrealized loss of $5.2 million from the change in fair value of the common stock of Vital Energy. We recorded an unrealized loss of $1.0 million for the six months ended June 30, 2024 from the change in fair value of the common and preferred stock of Vital Energy.
Current wording
We recorded a loss on equity investments of $15.2 million for the nine months ended September 30, 2025. The loss is a result of a $10.5 million realized loss on sale of Vital Energy’s common stock and an unrealized loss of $4.7 million from the change in fair value of the common stock of Vital Energy. We recorded a loss of $19.3 million for the nine months ended September 30, 2024 from the change in fair value of the common and preferred stock of Vital Energy.
Previous wording
We recorded income tax expense of $7.8 million and $10.7 million for the three and six months ended June 30, 2025 compared to $1.7 million and $6.5 million for the three and six months ended June 30, 2024. The effective income tax rate differs from the statutory rate primarily due to the impact of certain discrete items and state income taxes.
Current wording
We recorded income tax expense of $4.8 million and$15.4 million for the three and nine months ended September 30, 2025 compared to $4.3 million and $10.8 million for the three and nine months ended September 30, 2024. The effective income tax rate differs from the statutory rate primarily due to the impact of certain discrete items and state income taxes.
Previous wording
As of June 30, 2025, we had $275.0 million of debt outstanding under our Credit Agreement. We had $103.4 million of liquidity as of June 30, 2025, consisting of $99.7 million of committed borrowing availability under the Credit Agreement and $3.7 million of cash on hand.
Current wording
As of September 30, 2025, we had $300.0 million of debt outstanding under our Credit Agreement. We had $86.5 million of liquidity as of September 30, 2025, consisting of $74.7 million of committed borrowing availability under the Credit Agreement and $11.8 million of cash on hand.
Previous wording
We paid dividends of $14.4 million, or $0.11 per share, and $28.8 million, or $0.22 per share during the three and six months ended June 30, 2025, respectively. For the three and six months ended June 30, 2024, the Company paid dividends of $14.4 million, or $0.11 per share, and $28.7 million, or $0.22 per share, respectively.
Current wording
We paid dividends of $14.4 million, or $0.11 per share, and $43.2 million, or $0.33 per share during the three and nine months ended September 30, 2025, respectively. For the three and nine months ended September 30, 2024, the Company paid dividends of $14.4 million, or $0.11 per share, and $43.1 million, or $0.33 per share, respectively.
Previous wording
The following table summarizes our changes in cash and restricted cash for the six months ended June 30, 2025 and 2024:
Current wording
The following table summarizes our changes in cash and restricted cash for the nine months ended September 30, 2025 and 2024:
Previous wording
The $21.3 million increase in operating cash flows during the six months ended June 30, 2025 as compared to the same period in 2024 was primarily due to the increase in oil and natural gas sales during the six months ended June 30, 2025 as compared to the same period in 2024.
Current wording
The $24.4 million increase in operating cash flows during the nine months ended September 30, 2025 as compared to the same period in 2024 was primarily due to the increase in oil and natural gas sales during the nine months ended September 30, 2025 as compared to the same period in 2024.
Previous wording
Our net cash provided by operating activities included a reduction of $2.0 million and a benefit of $6.4 million for the six months ended June 30, 2025 and 2024, respectively, associated with changes in working capital items. Changes in working capital items adjust for the timing of receipts and payments of actual cash.
Current wording
Our net cash provided by operating activities included a benefit of $2.6 million and a benefit of $10.4 million for the nine months ended September 30, 2025 and 2024, respectively, associated with changes in working capital items. Changes in working capital items adjust for the timing of receipts and payments of actual cash.
Previous wording
For the six months ended June 30, 2025, our net cash used in investing activities was $200.5 million, which consisted primarily of $164.5 million of capital expenditures for development of oil and natural gas properties and $44.9 million of acquisitions of oil and natural gas properties.
Current wording
For the nine months ended September 30, 2025, our net cash used in investing activities was $280.8 million, which consisted primarily of $233.1 million of capital expenditures for development of oil and natural gas properties and $57.0 million of acquisitions of oil and natural gas properties.
Previous wording
For the six months ended June 30, 2024, our net cash used in investing activities was $152.6 million, which consisted primarily of $135.9 million of capital expenditures for development of oil and natural gas properties and $20.9 million of acquisitions of oil and natural gas properties.
Current wording
For the nine months ended September 30, 2024, our net cash used in investing activities was $233.6 million, which consisted primarily of $193.4 million of capital expenditures for development of oil and natural gas properties and $52.0 million of acquisitions of oil and natural gas properties.
Previous wording
For the six months ended June 30, 2025, our net cash provided by financing activities was $40.7 million, primarily due to $70.0 million of net borrowings under our Credit Agreement, partially offset $28.8 million of dividends paid on our common stock.
Current wording
For the nine months ended September 30, 2025, our net cash provided by financing activities was $51.3 million, primarily due to $95.0 million of net borrowings under our Credit Agreement, partially offset by $43.2 million of dividends paid on our common stock.
Previous wording
For the six months ended June 30, 2024, our net cash provided by financing activities was $22.8 million, primarily due to $55.0 million of borrowings under our Credit Agreement, partially offset by $28.7 million of dividends paid on our common stock and $0.4 million of common stock repurchases.
Current wording
For the nine months ended September 30, 2024, our net cash provided by financing activities was $38.5 million, primarily due to $85.0 million of borrowings under our Credit Agreement, partially offset by $43.1 million of dividends paid on our common stock and $3.0 million of deferred financing costs.
Previous wording
At June 30, 2025, the Company had outstanding borrowings of $275.0 million and $0.3 million of letters of credit issued and outstanding under the Credit Agreement, resulting in availability of $99.7 million. The Credit Agreement is guaranteed by the restricted subsidiaries of Granite Ridge and is secured by a first priority mortgage and security interest in substantially all of the Company’s and its restricted subsidiaries’ assets.
Current wording
At September 30, 2025, the Company had outstanding borrowings of $300.0 million and $0.3 million of letters of credit issued and outstanding under the Credit Agreement, resulting in availability of $74.7 million. The Credit Agreement is guaranteed by the restricted subsidiaries of Granite Ridge and is secured by a first priority mortgage and security interest in substantially all of the Company’s and its restricted subsidiaries’ assets.
Previous wording
Borrowings under the Credit Agreement may be base rate loans or secured overnight financing rate (“SOFR”) loans. Interest is payable quarterly for base rate loans and at the end of the applicable interest period for SOFR loans. SOFR loans bear interest at SOFR plus an applicable margin ranging from 300 to 400 basis points, depending on the percentage of the borrowing base utilized, plus an additional 10, 15 or 20 basis point credit spread adjustment for a one, three or six month interest period, respectively. Base rate loans bear interest at a rate per annum equal to the greatest of: (i) the U.S. prime rate as published by the Wall Street Journal; (ii) the federal funds effective rate plus 50 basis points; and (iii) the adjusted SOFR rate for a one-month interest period plus 100 basis points, plus, in the case of this clause (iii) an additional 10 basis point credit spread adjustment, plus, in the case of any base rate loan, an applicable margin ranging from 200 to 300 basis points, depending on the percentage of the borrowing base utilized.
Current wording
Borrowings under the Credit Agreement may be base rate loans or secured overnight financing rate (“SOFR”) loans. Interest is payable quarterly for base rate loans and at the end of the applicable interest period for SOFR loans. SOFR loans bear interest at a rate per annum equal to SOFR plus an applicable margin ranging from 300 to 400 basis points, depending on the percentage of the borrowing base utilized, plus an additional 10 basis point credit spread adjustment. Base rate loans bear interest at a rate per annum equal to the greatest of: (i) the U.S. prime rate as published by the Wall Street Journal; (ii) the federal funds effective rate plus 50 basis points; (iii) the adjusted SOFR rate for a one-month interest period plus 100 basis points; and (iv) 100 basis points plus, in the case of any base rate loan, an applicable margin ranging from 200 to 300 basis points, depending on the percentage of the borrowing base utilized.
Previous wording
Our contractual obligations include long-term debt, cash interest expense on debt, derivative liabilities, asset retirement obligations and an annual service fee to the Manager. Since December 31, 2024, there have been no material changes in our contractual obligations, other than the $70.0 million increase in long-term debt due to borrowings under the Credit Agreement.
Current wording
Our contractual obligations include long-term debt, cash interest expense on debt, derivative liabilities, asset retirement obligations and an annual service fee to the Manager. Since December 31, 2024, there have been no material changes in our contractual obligations, other than the $95.0 million increase in long-term debt due to borrowings under the Credit Agreement.
Previous wording
For 2025, we are budgeting for approximately $400 million to $420 million in total planned capital expenditures, including approximately $120 million of acquisitions of oil and natural gas properties. Our costs incurred on oil and natural gas properties, excluding acquisitions, during the three months ended June 30, 2025 and 2024 totaled $77.2 million and $67.0 million, respectively, and $148.6 million and $129.6 million during the six months ended June 30, 2025 and 2024, respectively. Our capital expenditures for the six months ended June 30, 2025 were primarily funded with cash flows from operations and borrowings under the Credit Agreement. We expect to fund planned capital expenditures with cash generated from operations and, if required, borrowings under our Credit Agreement.
Current wording
For 2025, we are budgeting for approximately $400 million to $420 million in total planned capital expenditures, including approximately $120 million of acquisitions of oil and natural gas properties. Our costs incurred on oil and natural gas properties, excluding acquisitions, during the three months ended September 30, 2025 and 2024 totaled $64.0 million and $77.2 million, respectively, and $212.6 million and $206.8 million during the nine months ended September 30, 2025 and 2024, respectively. Our capital expenditures for the nine months ended September 30, 2025 were primarily funded with cash flows from operations and borrowings under the Credit Agreement. We expect to fund planned capital expenditures with cash generated from operations and, if required, borrowings under our Credit Agreement.
Previous wording
The following table reflects our expenditures for acquisitions of proved and unproved properties for the three and six months ended June 30, 2025 and 2024:
Current wording
The following table reflects our expenditures for acquisitions of proved and unproved properties for the three and nine months ended September 30, 2025 and 2024:
Previous wording
There have been no material changes in our critical accounting policies and procedures during the six months ended June 30, 2025. See our disclosure of critical accounting policies in “Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations” and “Item 8. Financial Statements and Supplementary Data” of our 2024 Form 10-K.
Current wording
There have been no material changes in our critical accounting policies and procedures during the nine months ended September 30, 2025. See our disclosure of critical accounting policies in “Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations” and “Item 8. Financial Statements and Supplementary Data” of our 2024 Form 10-K.
Rearranged current paragraphs (1)
Current report — wording carried from elsewhere
2025 and 2024, our oil price differential to the NYMEX benchmark price was a discount of $(3.42) per barrel and $(2.27) per barrel, respectively.
Rearranged previous paragraphs (1)
Previous report — wording carried elsewhere
Total general and administrative expenses were $16.0 million ($2.90 per Boe) for the six months ended June 30, 2025, an increase of 22% from $13.1 million ($3.07 per Boe) during the same period in 2024. The increase was primarily due to severance expense incurred during the period as a result of a management transition as well as expenses related to capital market activities.