A Business at a Glance
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In this “Business” section, unless otherwise specified or the context otherwise requires, “Granite Ridge,” the “Company,” “we,” “us,” and “our” refer to Granite Ridge Resources, Inc. and its consolidated subsidiaries. The following discussion of our business should be read in conjunction with the accompanying audited consolidated financial statements and related notes included elsewhere in this Annual Report. Granite Ridge is a scaled energy company which aims to provide shareholders with exposure similar to energy private equity through operated partnerships and traditional non-operated assets. We own assets in six prolific unconventional basins across the United States. We aim to deliver a diversified portfolio with best-in-class full cycle returns by investing in a large number of high-graded opportunities developed by proven public and private operators. We focus on success as measured by total shareholder returns, which we seek to balance with a low leverage profile.
| Metric | TTM | FY2024 | FY2023 | FY2022 | FY2021 |
|---|---|---|---|---|---|
| Revenue | 451M | 380M | 394M | 497M | 290M |
| Net Income | 38M | 19M | 81M | 262M | 108M |
| EPS | $0.29 | $0.14 | $0.61 | $1.97 | $0.82 |
| Free Cash Flow | 0 | 276M | 303M | 346M | 181M |
| ROIC | 6.3% | 5.5% | 8.9% | 43.4% | 30.1% |
| Gross Margin | - | - | - | - | - |
| Debt/Equity | 0.47 | 0.32 | 0.16 | 0.00 | 0.00 |
| Dividends/Share | $0.44 | $0.43 | $0.44 | - | - |
| Operating Income | 76M | 59M | 91M | 302M | 143M |
| Operating Margin | 16.8% | 15.6% | 23.0% | 60.7% | 49.4% |
| ROE | 5.9% | 2.9% | 12.1% | 39.5% | 22.8% |
| Shares Outstanding | 131M | 134M | 133M | 133M | 132M |
| Metric | 2021 | 2022 | |||
|---|---|---|---|---|---|
| Income Statement | |||||
| Revenue | 290M | 497M | 394M | 380M | 451M |
| Gross Margin | N/A | N/A | N/A | N/A | N/A |
| R&D | N/A | N/A | N/A | N/A | N/A |
| SG&A | N/A | N/A | N/A | N/A | N/A |
| EBIT | 143M | 302M | 91M | 59M | 76M |
| Op. Margin | 49.4% | 60.7% | 23.0% | 15.6% | 16.8% |
| Net Income | 108M | 262M | 81M | 19M | 38M |
| Net Margin | 37.4% | 52.7% | 20.6% | 4.9% | 8.4% |
| Non-Recurring | 0 | 0 | 26M | 36M | 36M |
| Returns on Capital | |||||
| ROIC | 30.1% | 43.4% | 8.9% | 5.5% | 6.3% |
| ROE | 22.8% | 39.5% | 12.1% | 2.9% | 5.9% |
| ROA | 19.8% | 33.0% | 8.7% | 1.9% | 773.0% |
| Cash Flow | |||||
| Op. Cash Flow | 181M | 346M | 303M | 276M | 300M |
| Free Cash Flow | 181M | 346M | 303M | 276M | 0 |
| Owner Earnings | 87M | 241M | 140M | 97M | 121M |
| CapEx | 0 | 0 | 0 | 0 | 0 |
| Maint. CapEx | 95M | 106M | 161M | 177M | 177M |
| Growth CapEx | N/A | N/A | N/A | N/A | 0 |
| D&A | 95M | 106M | 161M | 177M | 177M |
| CapEx/OCF | N/A | N/A | N/A | N/A | 0.0% |
| Capital Allocation | |||||
| Dividends Paid | 0 | 0 | 59M | 57M | 58M |
| Dividend Yield | N/A | N/A | 8.2% | 7.7% | 7.9% |
| Share Buybacks | 0 | 216K | 35M | 442K | 442K |
| Buyback Yield | N/A | 0.0% | 5.1% | 0.1% | 0.1% |
| Stock-Based Comp | N/A | 0 | 2.2M | 2.3M | 2.3M |
| Debt Repayment | 49M | 72M | 53M | 15M | 15M |
| Balance Sheet | |||||
| Net Debt | 1.1M | 0 | 110M | 205M | 300M |
| Cash & Equiv. | N/A | N/A | N/A | N/A | N/A |
| Long-Term Debt | 1.1M | 0 | 110M | 205M | 205M |
| Debt/Equity | 0.00 | 0.00 | 0.16 | 0.32 | 0.47 |
| Interest Coverage | 60.1 | 151.9 | 17.0 | 3.2 | 3.2 |
| Equity | 475M | 664M | 672M | 635M | 644M |
| Total Assets | 547M | 795M | 927M | 1.0B | 4.9M |
| Total Liabilities | 72M | 131M | 255M | 401M | 485M |
| Intangibles | N/A | N/A | N/A | N/A | N/A |
| Retained Earnings | N/A | 32M | 55M | 16M | 16M |
| Working Capital | 30M | 82M | 89M | 33M | 33M |
| Current Assets | 98M | 146M | 152M | 135M | 135M |
| Current Liabilities | 68M | 64M | 62M | 102M | 102M |
| Per Share Data | |||||
| EPS | 0.82 | 1.97 | 0.61 | 0.14 | 0.29 |
| Owner EPS | 0.65 | 1.81 | 1.05 | 0.72 | 0.92 |
| Book Value | 3.59 | 4.99 | 5.05 | 4.74 | 4.91 |
| Cash Flow/Share | 1.37 | 2.60 | 2.28 | 2.06 | 1.63 |
| Dividends/Share | N/A | N/A | 0.44 | 0.43 | 0.44 |
| Shares Out. | 132.3M | 133.2M | 132.9M | 134.0M | 131.3M |
| Valuation | |||||
| P/E Ratio | 9.6 | 3.4 | 8.6 | 39.5 | 19.2 |
| P/FCF | 5.7 | 2.6 | 2.3 | 2.7 | N/A |
| EV/EBIT | 7.2 | 3.0 | 8.9 | 16.0 | 13.6 |
| Price/Book | 2.2 | 1.4 | 1.0 | 1.2 | 1.1 |
| Price/Sales | 3.6 | 2.1 | 1.8 | 2.0 | 1.6 |
| FCF Yield | 17.5% | 38.5% | 43.6% | 37.2% | N/A |
| Market Cap | 1.0B | 900M | 694M | 741M | 732M |
| Avg. Price | 7.84 | 7.77 | 5.40 | 5.55 | 5.58 |
| Year-End Price | 7.84 | 6.76 | 5.22 | 5.53 | 5.58 |
Granite Ridge Resources, Inc. passes 4 of 9 quality checks, suggesting mixed fundamentals.
Granite Ridge Resources, Inc. trades at 39.9x trailing earnings, compared to its 15-year median P/E of 9.1x, suggesting it is currently Expensive relative to its historical range. On a free-cash-flow basis, the stock trades at 2.7x vs a median of 2.6x. The company's 5-year average ROIC is 22.0%. Total shareholder yield (dividends) is 7.9%. At current prices, the estimated annualized return to fair value is +10.0%.
Granite Ridge Resources, Inc. (GRNT) has a current P/E ratio of 39.9, compared to its historical median P/E of 9.1. The stock is currently considered Expensive based on its historical valuation range.
Granite Ridge Resources, Inc. (GRNT) has a 5-year average return on invested capital (ROIC) of 22.0%. This indicates strong capital allocation and a potential competitive advantage.
Granite Ridge Resources, Inc. (GRNT) has a market capitalization of $732M. It is classified as a small-cap stock.
Yes, Granite Ridge Resources, Inc. (GRNT) pays a dividend with a trailing twelve-month yield of 7.87%. The company also returns capital through share buybacks, with a buyback yield of 0.06%.
Based on historical P/E analysis, Granite Ridge Resources, Inc. (GRNT) appears expensive. The current P/E of 39.9 is 340% above its historical median of 9.1. The estimated fair value CAGR (P/E method) is -17.9%.
Granite Ridge Resources, Inc. (GRNT) operates in the Crude Petroleum & Natural Gas industry, within the Energy sector.
Granite Ridge Resources, Inc. (GRNT) reported annual revenue of $380 million in its most recent fiscal year, based on SEC EDGAR filings.
Granite Ridge Resources, Inc. (GRNT) has a net profit margin of 4.9%. This is a modest margin.
Granite Ridge Resources, Inc. (GRNT) generated $276 million in free cash flow in its most recent fiscal year. Positive free cash flow supports dividends, buybacks, and debt reduction.
Granite Ridge Resources, Inc. (GRNT) has a debt-to-equity ratio of 0.32. This indicates a conservatively financed balance sheet.
Granite Ridge Resources, Inc. (GRNT) reported earnings per share (EPS) of $0.14 in its most recent fiscal year.
Granite Ridge Resources, Inc. (GRNT) has a return on equity (ROE) of 2.9%. This indicates moderate shareholder returns.
The Ledger Terminal provides 4 years of financial data for Granite Ridge Resources, Inc. (GRNT), sourced directly from SEC EDGAR filings. This includes income statements, balance sheets, cash flow statements, and key financial ratios.
Granite Ridge Resources, Inc. (GRNT) has a book value per share of $4.74, based on its most recent annual SEC filing.