In a recent transaction reported to the Securities and Exchange Commission, Matthew Reade Miller, a director at Granite Ridge Resources, Inc. (NYSE:GRNT), acquired 18,173 shares of the company's common stock. The shares were purchased at a weighted average price of $6.49, with the total transaction amounting to $117,942. This acquisition increases Miller's direct ownership to 711,164 shares. The purchase was executed in multiple trades with prices ranging from $6.47 to $6.53.
In other recent news, Granite Ridge Resources has reported a robust performance for the third quarter, exceeding internal expectations. The company's Controlled Capital program played a significant role in this achievement, with production surpassing targets and capital expenditures coming in under budget. Notably, the company's production exceeded targets by 15%, while capital expenditures were 15% under budget.
Moreover, the company closed over a dozen transactions in Q3, adding nearly 16 net locations. This led to a 9% increase in average daily production from Q2, bringing net income to $9.1 million. Granite Ridge has also reaffirmed its annual production guidance and announced a cash dividend of $0.11 per share.
Looking forward, Granite Ridge Resources anticipates double-digit production growth in 2025, primarily driven by its Controlled Capital initiatives. The company is also exploring partnerships in the Bakken and Eagle Ford (NYSE:F) basins. However, it should be noted that the Proved Developed Producing decline rate has increased to around 40%, making gas-weighted opportunities in these basins more challenging. Formal guidance for 2025 will be provided in the next earnings call. These are some of the recent developments for Granite Ridge Resources.
InvestingPro Insights
The recent insider purchase by director Matthew Reade Miller aligns with several positive indicators for Granite Ridge Resources, Inc. (NYSE:GRNT). According to InvestingPro data, the company's stock is currently trading near its 52-week high, with a price at 92.96% of its peak. This suggests investor confidence in the company's performance and potential.
Granite Ridge Resources boasts a robust financial position, as evidenced by its liquid assets exceeding short-term obligations. This financial stability is further supported by the company's moderate debt level, indicating prudent financial management. These factors may have influenced Miller's decision to increase his stake in the company.
The company's valuation metrics also present an interesting picture. With a P/E ratio of 17.97 and an adjusted P/E ratio of 9.9 for the last twelve months as of Q3 2024, GRNT appears to be trading at reasonable valuations compared to industry standards. Additionally, the company offers an attractive dividend yield of 6.75%, which could be appealing to income-focused investors.
InvestingPro Tips highlight that analysts predict the company will be profitable this year, and it has indeed been profitable over the last twelve months. This positive outlook, combined with the company's strong gross profit margin of 82.58% and operating income margin of 34.91%, suggests a solid financial foundation.
For investors seeking more comprehensive analysis, InvestingPro offers additional tips and insights. Currently, there are 6 more InvestingPro Tips available for Granite Ridge Resources, providing a deeper understanding of the company's financial health and market position.
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