Oil and gas company Granite Ridge Resources (NYSE: GRNT) will be reporting results this Thursday after market close. Here’s what investors should know.
Granite Ridge Resources beat analysts’ revenue expectations last quarter, reporting revenues of $149.3 million, up 36.7% year on year. It was an incredible quarter for the company, with a beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates. It reported year-on-year oil production growth of 2.1%.
Is Granite Ridge Resources a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Granite Ridge Resources’s revenue to grow 35.3% year on year, improving from the 19.8% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Granite Ridge Resources has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at Granite Ridge Resources’s peers in the mixed or offshore upstream e&p segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Talos Energy delivered year-on-year revenue growth of 27.7%, beating analysts’ expectations by 7.3%, and Black Stone Minerals reported a revenue decline of 24.7%, falling short of estimates by 12.6%. Black Stone Minerals’s stock price was unchanged following the results.
Read our full analysis of Talos Energy’s results here and Black Stone Minerals’s results here.
Over the past year, investors have repeatedly shifted their focus from one macro narrative to another (AI disruption and AI capex spending to geopolitics, interest rates, and the broader health of the economy). While some of the mixed or offshore upstream e&p stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 2.2% on average over the last month. Granite Ridge Resources is up 15.3% during the same time and is heading into earnings with an average analyst price target of $8.75 (compared to the current share price of $5.20).
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