Despite strong operating cash flow (OCF/NI of 1.85 in 2026Q2), free cash flow has been negative for nine consecutive quarters, with FCF margins ranging from -61.2% to 1.9%, as capital intensity (CapEx/Revenue up to 122.4% in 2025Q4) and dividend payments outpace cash generation.
Granite Ridge Resources, Inc (GRNT) cash flow statement — 6-year operating, investing & financing cash flows
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 |
|---|
| Cash from Operations | 266.11M | 296.41M | 275.73M | 302.87M | 346.39M | 181.18M | 66.81M |
| Operating CF Margin % | - | 65.83% | 72.56% | 76.86% | 69.64% | 62.43% | 76.7% |
| Operating CF Growth % | -44.79% | 7.5% | -8.96% | -12.56% | 91.18% | 171.2% | - |
| Net Income | -52.15M | 24.35M | 18.76M | 81.1M | 262.34M | 108.46M | -23.93M |
| Depreciation & Amortization | 220.55M | 215.7M | 176.53M | 160.66M | 105.75M | 94.66M | 79.95M |
| Stock-Based Compensation | 5.88M | 3.76M | 2.3M | 2.16M | 0 | 0 | 0 |
| Deferred Taxes | 4.29M | 7.38M | 5.96M | 24.27M | 12.85M | 0 | 0 |
| Other Non-Cash Items | 65.67M | 39.67M | 71.33M | 30.03M | -17.32M | 4.95M | 4.09M |
| Working Capital Changes | -17.74M | 5.55M | 860K | 4.64M | -17.24M | -26.89M | 6.7M |
| Change in Receivables | -43.22M | -4.45M | 3.47M | -743K | -24.99M | -28.6M | 5.53M |
| Change in Inventory | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Payables | 10.2M | 9.56M | 0 | 0 | 0 | 0 | 0 |
| Cash from Investing | -330.38M | -409.81M | -310.77M | -356.68M | -230.56M | -186.02M | -116.74M |
| Capital Expenditures | -192.47M | -118.49M | -346.99M | -76.81M | -49.19M | -219.29M | -117.39M |
| CapEx % of Revenue | 50.25% | 26.31% | 91.31% | 19.49% | 9.89% | 75.57% | 134.78% |
| Acquisitions | -24.95M | 4.99M | 13.99M | 0 | -1.9M | 0 | 0 |
| Investments | - | - | - | - | - | - | - |
| Other Investing | -133.36M | -296.31M | 18.77M | -279.87M | -179.47M | 33.26M | 647K |
| Cash from Financing | 95.16M | 118.82M | 33.72M | 13.41M | -76.85M | 8.49M | 52.07M |
| Debt Issued (Net) | 156.97M | 176.52M | 95M | 110M | -51.1M | 12.6M | -18M |
| Equity Issued (Net) | -30K | -16K | -442K | -35.35M | 6.61M | 0 | 0 |
| Dividends Paid | -57.92M | -57.69M | -57.49M | -58.59M | -10.66M | -51.09M | 0 |
| Share Repurchases | -60K | -16K | -442K | -35.35M | -216K | 0 | 0 |
| Other Financing | -3.86M | 0 | -3.34M | -2.66M | -21.69M | 46.98M | 70.07M |
| Net Change in Cash | 30.89M | 5.43M | -1.31M | -40.4M | 38.98M | 3.65M | 2.13M |
| Free Cash Flow | -55.43M | -122.84M | -71.26M | -56.33M | 111.7M | -38.1M | -50.58M |
| FCF Margin % | -14.47% | -27.28% | -18.75% | -14.3% | 22.46% | -13.13% | -58.08% |
| FCF Growth % | 39.55% | -72.39% | -26.5% | -150.43% | 393.14% | 24.67% | - |
| FCF per Share | -0.42 | -0.94 | -0.55 | -0.42 | 0.84 | -0.29 | -0.38 |
| FCF Conversion (FCF/Net Income) | 1.06x | 12.17x | 14.70x | 3.73x | 1.32x | 1.67x | -2.79x |
| Interest Paid | 0 | 0 | 14.47M | 4.83M | 2.29M | 1.64M | 1.26M |
| Taxes Paid | 0 | 0 | 197K | 742K | 98K | 0 | 0 |
Quick answers to the most common questions about buying GRNT stock.
Granite Ridge Resources, Inc (GRNT) generated $296.4M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Granite Ridge Resources, Inc (GRNT) reported negative free cash flow of $122.8M in 2025, indicating capital requirements exceeded cash from operations.
Granite Ridge Resources, Inc (GRNT) spent $118.5M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, Granite Ridge Resources, Inc (GRNT) returned $57.7M to shareholders via cash dividends and spent $0.0M on share repurchases. This shows the company's commitment to returning capital to its equity investors.
Key Metrics
Top Statement Risk
Margin compression and operator dependency
Metrics are mathematically derived from official filings.
Earnings Quality Masked by Non-Cash Charges
GRNT's operating cash flow consistently exceeds net income, with OCF/NI ratios ranging from 1.85 to 12.58 in recent quarters, per reported figures, indicating significant non-cash D&A and working capital swings.
The wide gap between net income and operating cash flow is primarily driven by substantial D&A charges, which averaged over $50M per quarter in the last year. This suggests that reported earnings understate the company's cash-generating ability, but the volatility in OCF/NI (from negative to double digits) reflects commodity price swings and timing differences. Investors should focus on cash flow as a more reliable indicator of performance, but the inconsistency warrants caution.
Free Cash Flow Remains Elusive
Despite strong operating cash flow, GRNT's free cash flow has been negative for nine consecutive quarters, with FCF margins ranging from -61.2% to 1.9%, as reported in financial statements, indicating heavy reinvestment.
The company is in a growth phase, with capital expenditures consistently exceeding operating cash flow, leading to negative FCF. Management has guided that 2026 is the final year of investing ahead of cash flow, targeting an inflection in 2027. If realized, this could lead to a re-rating, but until then, the company remains dependent on external financing or cash reserves to fund its dividend.
Capital Intensity Reflects Non-Op Model
CapEx as a percentage of revenue has swung dramatically, from 3.0% in 2024Q1 to 122.4% in 2025Q4, per SEC filings, reflecting the lumpy nature of non-operated drilling commitments.
The capital expenditure pattern is highly variable, driven by the drilling schedules of third-party operators. This makes it difficult to distinguish maintenance from growth capex, but the elevated levels in recent quarters suggest a focus on expanding production. The company's low debt-to-equity ratio of 0.61% indicates it is funding this growth from cash flow and possibly cash reserves, but the negative FCF raises questions about sustainability if commodity prices weaken.
Working Capital Swings Reflect Operator Timing
Working capital changes have been erratic, ranging from -$14.0M to +$8.6M quarterly, as reported, likely due to timing of joint interest billings and revenue reconciliations with operators.
The volatility in working capital is typical for non-operated E&Ps, where cash flows are subject to operator invoicing and revenue accruals. The negative working capital change in 2026Q2 (-$14.0M) may indicate a build-up in receivables or a drawdown in payables, but without further detail, it's unclear if this is a trend or a one-off. Investors should monitor this for signs of deteriorating collection efficiency or strained operator relationships.
Dividends Funded Despite Negative FCF
GRNT has paid a consistent quarterly dividend of approximately $14.4M, per financial statements, even while free cash flow was negative, indicating reliance on cash reserves or external sources.
The company's commitment to returning capital to shareholders is evident, but with FCF negative, the dividend is not fully covered by free cash flow. This may be sustainable in the short term given the low debt, but it underscores the importance of the projected 2027 FCF inflection. If the inflection is delayed, the dividend could be at risk, especially if commodity prices decline.
Cumulative Cash Flow Outpaces Earnings
Over the last ten quarters, cumulative operating cash flow of $645.9M far exceeds cumulative net income of $26.1M, per reported data, highlighting the impact of non-cash D&A and working capital timing.
The large cumulative gap between net income and operating cash flow suggests that earnings are heavily depressed by non-cash charges, particularly D&A, which is typical for capital-intensive E&Ps. This divergence indicates that the company's cash-generating ability is stronger than reported profitability, but it also raises questions about the sustainability of production if capital expenditures are not maintained. The gap may narrow as the company transitions to a harvest phase.
What the Cash Flow Statement Obscures
GRNT's cash flow statement may obscure the true cost of growth, as SBC and acquisition-related cash flows are minimal, but the timing of operator billings and non-consent elections could distort reported figures.
The cash flow statement does not fully capture the potential impact of non-consent elections, where GRNT may choose not to participate in certain wells, affecting future production and cash flows. Additionally, the reported CapEx may not reflect the full cost of acquisitions, as some deals may be structured with deferred payments or contingent considerations. Investors should scrutinize the notes for off-balance-sheet commitments and the timing of joint interest billings to assess the true cash flow trajectory.