Capital intensity is notably high, evidenced by a CapEx/Revenue ratio of 122.4% in 2025Q4, which has contributed to a negative free cash flow margin of -61.2% in the same period.
| Cash from Operations | 278.67M | 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 % | -3.02% | 7.5% | -8.96% | -12.56% | 91.18% | 171.2% | - |
| Net Income | -32.49M | 24.35M | 18.76M | 81.1M | 262.34M | 108.46M | -23.93M |
| Depreciation & Amortization | 166.59M | 2.21M | 3.54M | 160.66M | 105.75M | 94.71M | 79.95M |
| Stock-Based Compensation | 4.44M | 3.76M | 2.3M | 2.16M | 0 | 0 | 0 |
| Deferred Taxes | -1.73M | 7.38M | 5.96M | 24.27M | 12.85M | 0 | 0 |
| Other Non-Cash Items | 92.16M | 253.17M | 244.32M | 30.03M | -17.32M | 4.9M | 4.09M |
| Working Capital Changes | 10.22M | 5.55M | 860K | 4.64M | -17.24M | -26.89M | 6.7M |
| Change in Receivables | -9.46M | -4.45M | 3.47M | -743K | -24.99M | -28.6M | 5.53M |
| Change in Inventory | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Payables | 3.76M | 9.56M | 0 | 0 | 0 | 0 | 0 |
| Cash from Investing | -378.46M | -409.81M | -310.77M | -356.68M | -230.56M | -186.02M | -116.74M |
| Capital Expenditures | -258.64M | 0 | 0 | -76.81M | -49.19M | -219.29M | -117.39M |
| CapEx % of Revenue | 56.76% | 93.11% | 91.31% | 19.49% | 9.89% | 75.57% | 134.78% |
| Acquisitions | 1.28M | 0 | 2.58M | 0 | -1.9M | 0 | 0 |
| Investments | - | - | - | - | - | - | - |
| Other Investing | -131.08M | -414.8M | -316.81M | -279.87M | -179.47M | 33.26M | 647K |
| Cash from Financing | 113.73M | 118.82M | 33.72M | 13.41M | -76.85M | 8.49M | 52.07M |
| Debt Issued (Net) | 171.52M | 176.52M | 95M | 110M | -51.1M | 12.6M | -18M |
| Equity Issued (Net) | -30K | -16K | -442K | -35.35M | 6.61M | 0 | 0 |
| Dividends Paid | -57.76M | -57.69M | -57.49M | -58.59M | -10.66M | -51.09M | 0 |
| Share Repurchases | -30K | -16K | -442K | -35.35M | -216K | 0 | 0 |
| Other Financing | -1K | 0 | -3.34M | -2.66M | -21.69M | 46.98M | 70.07M |
| Net Change in Cash | 13.95M | 5.43M | -1.31M | -40.4M | 38.98M | 3.65M | 2.13M |
| Free Cash Flow | -109.04M | -122.84M | -71.26M | -56.33M | 111.7M | -38.1M | -50.58M |
| FCF Margin % | -23.93% | -27.28% | -18.75% | -14.3% | 22.46% | -13.13% | -58.08% |
| FCF Growth % | -17.3% | -72.39% | -26.5% | -150.43% | 393.14% | 24.67% | - |
| FCF per Share | -0.83 | -0.94 | -0.55 | -0.42 | 0.84 | -0.29 | -0.38 |
| FCF Conversion (FCF/Net Income) | 3.36x | 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 |
Operator-driven capital intensity
According to the provided cash flow data, GRNT exhibits a significant disconnect between net income and operating cash flow, with OCF/NI ratios frequently exceeding 5.0x, suggesting that non-cash charges like depletion and amortization heavily mask the underlying cash-generating capacity of the company's non-operated asset portfolio.
The persistent gap between net income and operating cash flow indicates that reported earnings are a poor proxy for actual liquidity. Investors should monitor whether this divergence reflects aggressive accounting for asset depletion or simply the structural nature of non-operated interests where cash flows are decoupled from accounting profit.
As reported in financial statements, GRNT's free cash flow trajectory has turned increasingly negative, with FCF margins plummeting to -61.2% in 2025Q4, reflecting a period where capital expenditures significantly outpaced the cash generated from the company's underlying oil and gas production interests.
The consistent inability to generate positive free cash flow suggests that the company is currently in a capital-intensive phase, likely driven by the aggressive drilling schedules of its third-party operators. This trend warrants further investigation into whether these expenditures are truly growth-oriented or merely maintenance-heavy.
Based on the provided figures, GRNT's capital intensity is notably high, with CapEx/Revenue ratios reaching as high as 122.4% in 2025Q4, indicating that the company is reinvesting substantially more than its current revenue base to sustain or expand its non-operated production footprint across various basins.
The high ratio of capital expenditure to revenue suggests that the company is heavily reliant on external capital or cash reserves to fund its participation in new wells. This level of spending appears unsustainable without a corresponding, and significant, increase in production volumes or a sustained rise in commodity prices.
Analysis of recent filings reveals that working capital changes for GRNT are highly erratic, swinging from a $10.6M outflow in 2025Q1 to an $8.6M inflow in 2025Q2, which likely reflects the timing of joint interest billings and the inherent lag in revenue recognition from operators.
These fluctuations suggest that the company's cash position is susceptible to the administrative and payment cycles of its operating partners. Investors should be cautious of these swings, as they can temporarily inflate or deflate operating cash flow, obscuring the true operational efficiency of the business.
Despite consistent negative free cash flow, GRNT has maintained a steady dividend payout of approximately $14.4M per quarter, a policy that appears increasingly disconnected from the company's actual cash generation as reported in recent financial statements.
The decision to prioritize dividends while burning cash suggests a management focus on shareholder returns that may be at odds with the company's current capital-intensive reality. This strategy warrants further investigation into the long-term viability of such payouts if the current negative FCF trend persists.
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 $0.0M 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.