Granite Ridge Resources (GRNT) reported strong third-quarter results for 2026, with an 8% sequential increase in production and a 35% rise in adjusted EBITDAX. The company attributed the growth to higher oil volumes and recovering natural gas prices. President and CEO Tyler Farquharson highlighted progress toward achieving positive adjusted free cash flow in 2027, which will support dividends and other capital allocation priorities.
Third-quarter production averaged 34,641 barrels of oil equivalent per day, with oil accounting for 55% of output. Adjusted EBITDAX reached $107.3 million, the highest since the company went public. Despite a net loss of $10.1 million due to commodity derivatives, adjusted net income was $22.6 million. Natural gas sales surged to $30 million as prices rebounded following infrastructure improvements.
Granite Ridge authorized a $35 million share repurchase program through 2027 and outlined plans to prioritize dividends, acquisitions, and buybacks with future cash flow. The company generated $13.7 million in adjusted free cash flow during the quarter. It also expanded partnerships, introduced Arete Creek Resources, and completed $19 million in acquisitions while selling $20 million in D.J. Basin assets.
Looking ahead, Granite Ridge expects 10% production growth in 2027, with oil leading the increase. The board is transitioning to a majority-independent structure following a reduction in Grey Rock's ownership to 39%. The company will provide formal 2027 guidance with its fourth-quarter results.