John McCartney, a director at Granite Ridge Resources, Inc. (NYSE:GRNT), recently acquired additional shares of the company. According to a filing with the Securities and Exchange Commission, McCartney purchased 1,000 shares of Granite Ridge's common stock at a price of $6.59 per share on November 18, 2024. This transaction, valued at $6,590, increases McCartney's total holdings to 48,839 shares. The acquisition reflects McCartney's continued investment in the Dallas-based crude petroleum and natural gas company.
In other recent news, Granite Ridge Resources has delivered a robust performance in its third-quarter earnings call, surpassing internal expectations. The company's Controlled Capital program played a significant role in this success, with production exceeding targets and capital expenditures falling under budget. The company's average daily production increased by 9% from Q2, with net income landing at $9.1 million. Granite Ridge also reaffirmed its annual production guidance and announced a cash dividend of $0.11 per share.
In terms of future growth, Granite Ridge Resources is optimistic, with substantial production increases anticipated in 2025 and a solid commitment to expanding its Controlled Capital initiatives. The company plans to develop over 40 net locations in the Permian in the next two to three years, and has closed over a dozen transactions, adding nearly 16 net locations in Q3. Additionally, the company is exploring Controlled Capital partnerships in the Bakken and Eagle Ford (NYSE:F) basins.
However, the company also noted some challenges. The Proved Developed Producing decline rate has increased to around 40%, making gas-weighted opportunities, particularly in the Bakken and Eagle Ford basins, more challenging under current economics. Despite these challenges, Granite Ridge Resources remains confident in its strategy and future growth, with formal guidance for 2025 to be provided in the next earnings call.
InvestingPro Insights
John McCartney's recent purchase of Granite Ridge Resources, Inc. (NYSE:GRNT) shares aligns with several positive indicators highlighted by InvestingPro. The company's financial health appears robust, with InvestingPro Tips noting that GRNT operates with a moderate level of debt and its liquid assets exceed short-term obligations. This financial stability could be a factor in McCartney's decision to increase his stake.
Moreover, GRNT's profitability outlook seems promising. InvestingPro Tips reveal that analysts predict the company will be profitable this year, and it has been profitable over the last twelve months. This positive financial trajectory may have influenced McCartney's confidence in the company's future performance.
The company's valuation metrics also present an interesting picture. With a P/E ratio of 17.4 and an adjusted P/E ratio of 9.65 for the last twelve months as of Q3 2024, GRNT appears to be trading at reasonable multiples relative to its earnings. Additionally, the company offers a substantial dividend yield of 6.66%, which could be attractive to income-focused investors like McCartney.
It's worth noting that GRNT's stock has shown positive momentum, with a year-to-date price total return of 15.61% as of the latest data. This performance, coupled with the company's solid financials, may have contributed to McCartney's decision to expand his position.
For investors seeking more comprehensive insights, InvestingPro offers additional tips and data points beyond those mentioned here. In fact, there are 6 more InvestingPro Tips available for GRNT, providing a deeper understanding of the company's financial health and market position.
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