Granite Ridge’s Free Cash Flow Turnaround | Business and Finance News

Granite Ridge Resources is poised to exit 2026 as the final year of strategic investment, aiming for sustainable free cash flow in 2027. This quarter delivered strong results: 32,044 barrels of oil equivalent per day (51% oil), $79.6M in Adjusted EBITDAX, and new wells online—all while preserving its dividend and balance sheet. Their Operated Partnership model gives them a competitive edge, securing low-cost acreage and control over development pace. They closed 27 deals worth $28M, adding 21.9 net undeveloped locations. While OPEX rose slightly due to water handling and early pad costs, and gas prices remained soft from Waha Basis weakness, new pipeline capacity and hedging strategies are set to boost performance later this year. Production targets 40,000 BOE/day by year-end, supported by falling per-unit costs and stronger gas realizations. A major governance shift looms as Grey Rock plans to distribute shares, reducing its stake below 50% and transitioning Granite Ridge to full independence. With every deal underwritten for over 25% full-cycle returns, the company’s hedge strategy and flexible spending cap—up to 50% reduction—ensure resilience in volatile markets, protecting both cash flow and dividends. Listen in comfort:Get a discount on a Soli Pillow: http://solipillow.com/discount/dnn. Advertise on DNN:[email protected] This is an automated, high-level news summary based on public reporting.Report issues to [email protected]. View sources & latest updates:https://sources.thednn.ai/c6444ae33cebf422