grnt-20260331

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q


x			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2026


o			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ______ to _______

Commission File Number: 001-41537

___________________________________

GRANITE RIDGE RESOURCES, INC.

( Exact Name of Registrant as Specified in Its Charter )

___________________________________


Delaware						88-2227812
(State or other jurisdiction of incorporation or organization)						(I.R.S. Employer Identification Number)

5217 McKinney Ave, Suite 400 Dallas, Texas						75205
(Address of principal executive offices)						(Zip Code)

(214) 396-2850

(Registrant’s telephone number, including area code)

(Former name, former address and former fiscal year, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol

Name of each exchange on which registered

Common Stock, par value $0.0001 per share

GRNT

New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x No o

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes x No o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer

Accelerated filer

Non-accelerated filer

Smaller reporting company

Emerging growth company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes o No x

As of May 4, 2026, there were 131,895,990 shares of our common stock, par value $0.0001, outstanding.

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CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

We are including the following discussion to inform our existing and potential security holders generally of some of the risks and uncertainties that can affect our company and to take advantage of the “safe harbor” protection for forward-looking statements that applicable federal securities law afford.

From time to time, our management or persons acting on our behalf may make "forward-looking statements," within the meaning of Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), to inform existing and potential security holders about our company. All statements other than statements of historical facts included in this Quarterly Report on Form 10-Q (this "Report"), including, without limitation, statements regarding our financial position, operating and financial performance, business strategy, plans and objectives of management for future operations, industry conditions, indebtedness covenant compliance, capital expenditures, production, cash flow, borrowing base under our Credit Agreement (as defined below), our intention or ability to pay or increase dividends on our capital stock, and impairment are forward-looking statements. When used in this Report, forward-looking statements are generally accompanied by terms or phrases such as “estimate,” “project,” “predict,” “believe,” “expect,” “continue,” “anticipate,” “target,” “could,” “plan,” “intend,” “seek,” “goal,” “will,” “should,” “may” or other words and similar expressions that convey the uncertainty of future events or outcomes. Items contemplating or making assumptions about actual or potential future production, sales, market size, collaborations, cash flows, and trends or operating results also constitute such forward-looking statements.

Forward-looking statements involve inherent risks and uncertainties, and important factors (many of which are beyond our company’s control) could cause actual results to differ materially from those set forth in the forward-looking statements, including the following:

•changes in current or future commodity prices and interest rates;

•supply chain disruptions;

•infrastructure constraints and related factors affecting our properties;

•our ability to acquire additional development opportunities and potential or pending acquisition transactions, as well as the effects of such acquisitions on our company’s cash position and levels of indebtedness;

•changes in our reserves estimates or the value thereof;

•operational risks including, but not limited to, the pace of drilling and completions activity on our properties;

•changes in the markets in which Granite Ridge competes;

•geopolitical risk and changes in applicable laws, legislation, or regulations, including those relating to environmental matters;

•cyber-related risks;

•the fact that reserve estimates depend on many assumptions that may turn out to be inaccurate and that any material inaccuracies in reserve estimates or underlying assumptions will materially affect the quantities and present value of our reserves;

•the outcome of any known and unknown litigation and regulatory proceedings;

•limited liquidity and trading of Granite Ridge’s securities;

•acts of war, terrorism or uncertainty regarding the effects and duration of global hostilities, including the Israel-Hamas conflict, the Russia-Ukraine war, the conflict in Iran, continued instability in the Middle East, and any associated armed conflicts or related sanctions which may disrupt commodity prices and create instability in the financial markets;

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•market conditions and global, regulatory, technical, and economic factors beyond Granite Ridge’s control, including the potential adverse effects of world health events affecting capital markets, general economic conditions, global supply chains and Granite Ridge’s business and operations;

•increasing regulatory and investor emphasis on, and attention to, environmental, social, and governance matters;

•our ability to establish and maintain effective internal control over financial reporting; and

•other factors discussed in our Annual Report on Form 10-K for the year ended December 31, 2025 (the "2025 Form 10-K") under “Risk Factors,” as updated by any subsequent Quarterly Reports on Form 10-Q, including this Report, which we file with the United States Securities and Exchange Commission (“SEC”).

We have based any forward-looking statements on our current expectations and assumptions about future events. While our management considers these expectations and assumptions to be reasonable, they are inherently subject to significant business, economic, competitive, regulatory and other risks, contingencies and uncertainties, most of which are difficult to predict and many of which are beyond our control. If one or more of these risks or uncertainties materialize, or if the underlying assumptions prove incorrect, our actual results may vary materially from those expected or projected.

Reserve engineering is a process of estimating underground accumulations of natural gas and oil that cannot be measured in an exact manner. The accuracy of any reserve estimate depends on the quality of available data, the interpretation of such data, and the price and cost assumptions made by reservoir engineers. In addition, the results of drilling, testing and production activities, or changes in commodity prices, may justify revisions of estimates that were made previously. If significant, such revisions would change the schedule of any further production and development drilling. Accordingly, reserve estimates may differ significantly from the quantities of natural gas and oil that are ultimately recovered.

Readers are urged not to place undue reliance on these forward-looking statements, which speak only as of the date of this Report. We assume no obligation to update any forward-looking statements in order to reflect any event or circumstance that may arise after the date of this Report, other than as may be required by applicable law or regulation. Readers are urged to carefully review and consider the various disclosures made by us in our reports filed with the SEC which attempt to advise interested parties of the risks and factors that may affect our business, financial condition, results of operations and cash flows. If one or more of these risks or uncertainties materialize, or if the underlying assumptions prove incorrect, our actual results may vary materially from those expected or projected.

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TABLE OF CONTENTS


		PAGE
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS		2
PART I – FINANCIAL INFORMATION		5
Item 1.	Financial Statements	5
	Condensed Consolidated Balance Sheets	5
	Condensed Consolidated Statements of Operations	6
	Condensed Consolidated Statements of Changes in Stockholders' Equity	7
	Condensed Consolidated Statements of Cash Flows	8
	Notes to Condensed Consolidated Financial Statements	9
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	27
Item 3.	Quantitative and Qualitative Disclosures about Market Risk	36
Item 4.	Controls and Procedures	37
PART II – OTHER INFORMATION		38
Item 1.	Legal Proceedings	38
Item 1A.	Risk Factors	38
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	38
Item 3.	Defaults Upon Senior Securities	38
Item 4.	Mine Safety Disclosures	38
Item 5.	Other Information	38
Item 6.	Exhibits	39
Signatures		40

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PART I – FINANCIAL INFORMATION

Item 1. Financial Statements

GRANITE RIDGE RESOURCES, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

Unaudited


(in thousands, except par value and share data)	March 31, 2026		December 31, 2025
ASSETS
Current assets:
Cash	$	30,056	$	14,846
Revenue receivable	90,809		74,166
Advances to operators	2,500		2,682
Prepaid and other current assets	1,400		2,251
Derivative assets - commodity derivatives	1,706		13,978
Equity investments	17,635		10,960
Total current assets	144,106		118,883
Property and equipment:
Oil and gas properties, successful efforts method	1,953,601		1,897,388
Accumulated depletion	(912,560)		(857,832)
Total property and equipment, net	1,041,041		1,039,556
Long-term assets:
Derivative assets - commodity derivatives	3,221		3,743
Other long-term assets	5,505		5,889
Total long-term assets	8,726		9,632
Total assets	$	1,193,873	$	1,168,071
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable and accrued liabilities	$	80,178	$	76,847
Current portion of long-term debt	26,250		17,500
Derivative liabilities - commodity derivatives	42,255		24
Other liabilities	7,043		810
Total current liabilities	155,726		95,181
Long-term liabilities:
Long-term debt, net	400,022		367,832
Derivative liabilities - commodity derivatives	5,159		—
Asset retirement obligations	12,320		11,968
Deferred tax liability	73,682		87,330
Other long-term payables	1,328		—
Total long-term liabilities	492,511		467,130
Total liabilities	648,237		562,311
Stockholders' equity:
Common stock, $0.0001 par value, 431,000,000 shares authorized, 137,601,731 and 136,941,978 issued at March 31, 2026 and December 31, 2025, respectively	14		14
Additional paid-in capital	660,626		659,228
Retained earnings (accumulated deficit)	(78,778)		(17,286)
Treasury stock, at cost, 5,692,412 and 5,686,711 shares at March 31, 2026 and December 31, 2025, respectively	(36,226)		(36,196)
Total stockholders' equity	545,636		605,760
Total liabilities and stockholders' equity	$	1,193,873	$	1,168,071

The accompanying notes are an integral part of these condensed consolidated financial statements.

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GRANITE RIDGE RESOURCES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

Unaudited


	Three Months Ended March 31,
(in thousands, except per share data)	2026		2025
Revenues:
Oil and natural gas sales	$	128,264	$	122,931
Operating costs and expenses:
Lease operating expenses	29,679		16,240
Production and ad valorem taxes	8,236		8,368
Depletion and accretion expense	54,979		48,445
Impairments of long-lived assets	11,174		—
General and administrative	9,080		7,463
Other, net	267		(120)
Total operating costs and expenses	113,415		80,396
Net operating income	14,849		42,535
Other income (expense):
Loss on derivatives - commodity derivatives	(72,027)		(14,857)
Interest expense, net	(10,319)		(5,015)
Gain (loss) on equity investments	6,675		(9,971)
Other income	158		—
Total other income (expense)	(75,513)		(29,843)
Income (loss) before income taxes	(60,664)		12,692
Income tax expense (benefit)	(13,633)		2,880
Net income (loss)	$	(47,031)	$	9,812

Net income (loss) per share:
Basic	$	(0.36)	$	0.07
Diluted	$	(0.36)	$	0.07
Weighted-average number of shares outstanding:
Basic	130,620		130,336
Diluted	130,620		130,401

The accompanying notes are an integral part of these condensed consolidated financial statements.

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GRANITE RIDGE RESOURCES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY

Unaudited


Three Months Ended March 31, 2026
	Common Stock Issued			Additional Paid-in Capital		Retained Earnings (Accumulated Deficit)		Treasury Stock			Total Stockholders' Equity
(in thousands)	Shares	Amount						Shares	Amount
As of January 1, 2026	136,942	$	14	$	659,228	$	(17,286)	(5,687)	$	(36,196)	$	605,760
Common stock issued related to stock-based compensation	660	—		—		—		—	—		—
Stock-based compensation expense	—	—		1,398		—		—	—		1,398
Purchase of treasury stock	—	—		—		—		(5)	(30)		(30)
Common stock dividend declared ($0.11 per share)	—	—		—		(14,461)		—	—		(14,461)
Net loss	—	—		—		(47,031)		—	—		(47,031)
As of March 31, 2026	137,602	$	14	$	660,626	$	(78,778)	(5,692)	$	(36,226)	$	545,636


Three Months Ended March 31, 2025
	Common Stock Issued			Additional Paid-in Capital		Retained Earnings		Treasury Stock			Total Stockholders' Equity
(in thousands)	Shares	Amount						Shares	Amount
As of January 1, 2025	136,418	14		655,472		16,047		(5,684)	(36,180)		635,353
Common stock issued related to stock-based compensation	413	—		—		—		—	—		—
Forfeitures of restricted stock	(7)	—		—		—		—	—		—
Stock-based compensation expense	—	—		653		—		—	—		653
Purchase of treasury stock	—	—		—		—		(3)	(16)		(16)
Common stock dividend declared ($0.11 per share)	—	—		—		(14,389)		—	—		(14,389)
Net income	—	—		—		9,812		—	—		9,812
As of March 31, 2025	136,824	$	14	$	656,125	$	11,470	(5,687)	$	(36,196)	$	631,413

The accompanying notes are an integral part of these condensed consolidated financial statements.

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GRANITE RIDGE RESOURCES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

Unaudited


	Three Months Ended March 31,
(in thousands)	2026		2025
Operating activities:
Net income (loss)	$	(47,031)	$	9,812
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depletion and accretion expense	54,979		48,445
Impairments of long-lived assets	11,174		—
Unrealized loss on derivatives - commodity derivatives	60,185		14,744
Stock-based compensation expense	1,398		653
Amortization of deferred financing costs and original issue discount	1,324		378
(Gain) loss on equity investments	(6,675)		9,971
Deferred income taxes	(13,647)		2,870
Other	(5)		(161)
Increase (decrease) in cash attributable to changes in operating assets and liabilities:
Revenue receivable	(16,643)		(11,053)
Accounts payable and accrued liabilities	4,948		1,213
Prepaid and other current assets	851		(810)
Other liabilities and long-term payables	7,490		29
Net cash provided by operating activities	58,348		76,091
Investing activities:
Capital expenditures for oil and natural gas properties	(60,378)		(66,728)
Acquisition of oil and natural gas properties	(9,496)		(34,692)
Refund of advances to operators	—		1,303
Proceeds from sale of oil and natural gas properties	1,227		120
Net cash used in investing activities	(68,647)		(99,997)
Financing activities:
Proceeds from borrowing on credit facilities	40,000		45,000
Purchase of treasury shares	(30)		(16)
Payment of dividends	(14,461)		(14,389)
Net cash provided by financing activities	25,509		30,595

Net change in cash	15,210		6,689
Cash at beginning of period	14,846		9,419
Cash at end of period	$	30,056	$	16,108

Supplemental disclosure of non-cash investing activities:
Change in accrued capital expenditures included in accounts payable and accrued liabilities	$	(4,546)	$	14,118
Advances to operators applied to development of oil and natural gas properties	$	40,131	$	18,200

The accompanying notes are an integral part of these condensed consolidated financial statements.

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GRANITE RIDGE RESOURCES, INC.

Notes to Condensed Consolidated Financial Statements

1. Nature of Operations

Granite Ridge Resources, Inc. (together with its consolidated subsidiaries, “Granite Ridge” or the “Company”), a Delaware corporation, 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 in multiple basins throughout North America.

2. Summary of Significant Accounting Policies

A complete discussion of the Company’s significant accounting policies is included in the 2025 Form 10-K.

Interim Financial Statements, Basis of Presentation, Consolidation, and Significant Estimates

The condensed consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The accompanying condensed consolidated financial statements include the accounts of the Company and all of its wholly owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation.

The accompanying condensed consolidated financial statements of the Company have not been audited by the Company’s independent registered public accounting firm, except that the condensed consolidated balance sheet at December 31, 2025 is derived from audited consolidated financial statements. In the opinion of management, the accompanying condensed consolidated financial statements reflect all adjustments necessary to present fairly the Company’s condensed consolidated financial statements. All such adjustments are of a normal, recurring nature.

The preparation of the condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Significant estimates of reserves are used to determine depletion and to conduct impairment analysis. Estimating reserves is inherently uncertain, including the projection of future rates of production and the timing of development expenditures. Additional significant estimates include, but are not limited to, fair value of derivative financial instruments, fair value of equity investments, fair value of business combinations, asset retirement obligations, revenue receivable and income taxes. Actual results could differ from those estimates. The results for interim periods are not necessarily indicative of annual results.

Certain disclosures have been condensed in, or omitted from, these condensed consolidated financial statements. Accordingly, these notes to the condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes included in the Company’s 2025 Form 10-K.

Certain reclassifications have been made to prior period amounts to conform to the current period presentation.

Segment Reporting

The Company operates in one reporting segment, which is oil and natural gas development, exploration and production. All of the Company's operations are conducted in the geographic area of the United States. The reporting segment generates revenue through the sale of oil and natural gas. The Company’s chief operating decision maker (“CODM”), who is the Company’s Chief Executive Officer, manages operations on a consolidated basis for purposes of evaluating operational performance and allocating resources. Net income, as reported within the Company’s condensed consolidated statements of operations, is used by the CODM to assess performance for the oil and natural gas development, exploration and production segment. Significant segment expenses are the same as those reported in the condensed consolidated statements of operations. Total assets, as reported within the Company’s condensed consolidated balance sheets, is the measure of segment assets.

Oil and Natural Gas Properties

The Company uses the successful efforts method of accounting for oil and natural gas producing activities, as further defined under Accounting Standards Codification ("ASC") 932, Extractive Activities - Oil and Gas (“ASC 932”). Costs to

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GRANITE RIDGE RESOURCES, INC.

Notes to Condensed Consolidated Financial Statements

acquire mineral interests in oil and gas properties, to drill and equip exploratory leases that find proved reserves, and to drill and equip development leases and related asset retirement costs are capitalized. Costs to drill exploratory wells are capitalized pending determinations of whether the wells have proved reserves. If the Company determines that the wells do not have proved reserves, the costs are charged to expense.

Capitalized leasehold costs relating to proved properties are depleted using the unit-of-production method based on proved reserves. The depletion of capitalized drilling and development costs and integrated assets is based on the unit-of-production method using proved developed reserves. The Company recognized depletion expense of $54.7 million and $48.2 million for the three months ended March 31, 2026 and 2025, respectively.

The Company reviews its long-lived assets to be held and used, including proved oil and natural gas properties, whenever events or circumstances indicate that the carrying value of those assets may not be recoverable; for instance, when there are declines in commodity prices or well performance. An impairment loss is indicated if the sum of the expected undiscounted future net cash flows is less than the carrying amount of the assets. For each property determined to be impaired, an impairment loss equal to the difference between the carrying value of the properties and the estimated fair market value is recognized at that time. The fair value of impaired assets is determined using the market or income valuation approach. The income approach is calculated using a discounted cash flow model. Discounted future cash flows use a discount rate similar to that used by market participants, or comparable market value if available. Estimating future cash flows involves the use of judgments, including estimation of the proved and risk-adjusted unproved oil and natural gas reserve quantities, timing of development and production, expected future commodity prices, capital expenditures and production costs. There was no proved property impairment recorded for the three months ended March 31, 2026 or 2025.

Unproved oil and natural gas properties are periodically assessed for impairment by considering future drilling and exploration plans, results of exploration activities, commodity price outlooks, planned future sales and expiration of all or a portion of the projects. The Company recorded unproved oil and gas properties impairment of $11.2 million for the three months ended March 31, 2026 in the Permian Basin as a result of changes in operator development plans. There was no unproved impairment for the three months ended March 31, 2025.

Equity Investments

The Company follows the guidance in ASC 321, Investments - Equity Securities ("ASC 321") for its investment in common stock. ASC 321 requires equity investments with readily determinable fair values to be measured at fair value, with unrealized holding gains and losses recorded as a gain or loss in the condensed consolidated statements of operations. For the preferred stock that did not have a readily determinable fair value, the Company did not elect the measurement alternative in ASC 321 and instead accounted for the preferred stock at fair value with unrealized gains and losses recorded through net income for the period until the preferred stock was converted into common stock.

The Company recognized an unrealized gain of $6.7 million and unrealized loss of $10.0 million for the three months ended March 31, 2026 and 2025, respectively, included in gain (loss) on equity investments within the Company’s condensed consolidated statements of operations that accounts for the change in fair value of the common stock.

Revenue Recognition

The Company’s revenues are primarily derived from its interests in the sale of oil and natural gas production. The Company recognizes revenue from its interests in the sales of oil and natural gas in the period that its performance obligations are satisfied.

Performance obligations are satisfied when the customer obtains control of the product, when the Company has no further obligations to perform related to the sale, when the transaction price has been determined, and when collectability is probable.

The Company receives payment from the sale of oil and natural gas production from one to three months after delivery. The transaction price is variable as it is based on market prices for oil and natural gas, less revenue deductions such as gathering, transportation, and compression costs. Management has determined that the variable revenue constraint is overcome at the date control passes to the customer since the variable consideration to be received can be reasonably estimated based on daily market prices and historical transportation charges. Revenue is presented net of these costs within

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GRANITE RIDGE RESOURCES, INC.

Notes to Condensed Consolidated Financial Statements

the condensed consolidated statements of operations. At the end of each month when the performance obligations are satisfied, the variable consideration can be reasonably estimated and amounts due from customers are accrued in revenue receivable in the condensed consolidated balance sheets. Variances between the Company’s estimated revenue and actual payments are recorded in the month the payment is received; however, differences have been and are insignificant.

The Company does not disclose the value of unsatisfied performance obligations under its contracts with customers as it applies the practical expedient in accordance with ASC 606. The expedient, as described in ASC 606-10-50-14(a), applies to variable consideration that is recognized as control of the product is transferred to the customer. Since each unit of product represents a separate performance obligation, future volumes are wholly unsatisfied, and disclosure of the transaction price allocated to remaining performance obligations is not required.

Take-in Kind Oil and Natural Gas Revenues

Under certain arrangements, the Company has the right to take a volume of unprocessed gas in kind at the operator's wellhead, representing its proportionate share of its natural gas production, in lieu of receiving a net payment from the operator. The Company currently takes certain natural gas volumes in kind in lieu of monetary settlement. When the Company elects to take volumes in kind, it pays third parties to transport the natural gas it took in kind to downstream delivery points, where it then sells to customers at prices applicable to those downstream markets. In such situations, revenues are recognized during the month in which control transfers to the customer at the delivery point and it is probable the Company will collect the consideration it is entitled to receive. Sales proceeds are generally received by the Company within one month after the month in which a sale has occurred. In these scenarios, gathering and processing costs and transportation expenses the Company incurs to transport the volumes to downstream customers are recorded in lease operating expenses in the condensed consolidated statements of operations.

Disaggregated Oil and Natural Gas Revenues

The Company’s disaggregated revenue has two primary sources: oil sales and natural gas sales. Substantially all of the Company’s oil and natural gas sales come from six geographic areas in the United States: the Eagle Ford Basin (Texas), the Permian Basin (Texas/New Mexico), the Haynesville Basin (Texas/Louisiana), the Denver-Julesburg “DJ” Basin (Colorado), the Bakken Basin (Montana/North Dakota), and Appalachian Basin (Ohio). The following tables present the disaggregation of the Company’s oil and natural gas revenues by basin for the three months ended March 31, 2026 and 2025.


	Three Months Ended March 31,
(in thousands)	2026		2025
Oil	$	103,446	$	91,847
Natural gas	24,818		31,084
Total	$	128,264	$	122,931

Permian	$	87,049	$	81,644
Eagle Ford	6,569		10,984
Bakken	6,412		9,857
Haynesville	11,953		5,738
DJ	7,489		10,400
Appalachian	8,792		4,308
Total	$	128,264	$	122,931

Recently Issued and Applicable Accounting Pronouncements (Issued and Not Yet Adopted)

In November 2024, the FASB issued ASU 2024-03, Disaggregation of Income Statement Expenses ("ASU 2024-03"), which requires enhanced disclosure about specific types of expenses included in the expense captions presented on the face of the consolidated statement of operations as well as disclosures about selling expenses. ASU 2024-03 is effective for

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GRANITE RIDGE RESOURCES, INC.

Notes to Condensed Consolidated Financial Statements

annual periods beginning after December 15, 2026 and interim periods beginning after December 15, 2027. Early adoption is permitted. The Company has not early adopted the standard and is currently assessing the effect that ASU 2024-03 will have on its disclosures.

3. Derivative Financial Instruments

The Company uses derivative financial instruments in connection with its oil and natural gas operations to provide an economic hedge of the Company’s exposure to commodity price risk associated with anticipated future oil and natural gas production. The Company does not hold or issue derivative financial instruments for speculative trading purposes.

The Company does not designate its derivative instruments to qualify for hedge accounting. Accordingly, the Company reflects changes in the fair value of its derivative instruments in its condensed consolidated statements of operations as they occur.

Commodity Derivatives Collar Option Contracts and Swaps

The Company’s commodity derivative financial instruments consist of collar option contracts and swaps. A collar option is established with the sale of a short call option (ceiling price) and the purchase of a long put option (floor price) set to expire at a predetermined date in the future. The options give the owner the right but not the obligation to exercise the option at the expiration date.

When the settlement price is below the established floor price, the Company receives an amount from its counterparty equal to the difference between the settlement price and the floor price multiplied by the hedged contract volume. When the settlement price is above the established ceiling price, the Company pays its counterparty an amount equal to the difference between the settlement price and the ceiling price multiplied by the hedged contract volume. When the settlement price is between the established floor and the ceiling, no amounts are due to or from the counterparty.

A swap contract allows the Company to receive a fixed price and pay a floating market price to the counterparty for the hedged commodity.

The Company has master netting agreements on individual derivative instruments with its counterparties and therefore certain amounts may be presented on a net basis in the condensed consolidated balance sheets.

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GRANITE RIDGE RESOURCES, INC.

Notes to Condensed Consolidated Financial Statements

Volume of Commodity Derivative Collar Option Contracts and Swap Activities

The following table sets forth the Company’s outstanding commodity derivative contracts as of March 31, 2026.


	2026								2027		2028
	Second Quarter		Third Quarter		Fourth Quarter		Total		Total		Total
Collar (oil)
Volume (Bbl)	1,049,430		909,612		795,038		2,754,080		1,361,645		—
Weighted-average floor price ($/Bbl)	$	61.32	$	60.53	$	59.97	$	60.67	$	54.71	$	—
Weighted-average ceiling price ($/Bbl)	$	70.65	$	69.93	$

SEC Form 10-Q filed by Granite Ridge Resources Inc.