Granite Ridge Resources第二季每股賺0.23美元 維持派息0.11美元

EX-99.1
2
grnt-20260806xexx991.htm
EX-99.1

Document

 
Exhibit 99.1
Granite Ridge Resources, Inc. Reports Second Quarter 2026 Results and Declares Quarterly Cash Dividend
Dallas, Texas, August 6, 2026 – Granite Ridge Resources, Inc. (“Granite Ridge” or the “Company”) (NYSE: GRNT) today reported financial and operating results for the second quarter of 2026. 
Second Quarter 2026 Highlights
•Grew daily production 1% to 32,044 barrels of oil equivalent (“Boe”) per day (51% oil), from 31,576 Boe per day for the second quarter of 2025.
•Reported net income of $30.0 million, or $0.23 per diluted share, versus $25.1 million, or $0.19 per diluted share, for the prior year period. Adjusted Net Income (non-GAAP) totaled $11.1 million, or $0.09 Adjusted Earnings Per Diluted Share (non-GAAP).
•Generated $79.6 million of Adjusted EBITDAX (non-GAAP).
•Invested $78.5 million in drilling and completions capital expenditures and $16.7 million in acquisition capital to capture high quality drilling opportunities.
•Placed 7.2 net wells online.
•Paid dividend of $0.11 per share of common stock.
•Net Debt to Trailing Twelve Months Adjusted EBITDAX (non-GAAP) of 1.4x.
•Subsequent to quarter end, the Company’s Board of Directors declared a regular quarterly dividend of $0.11 per share payable on September 14, 2026 to shareholders of record as of August 28, 2026. Future declarations of dividends are subject to approval by the Board of Directors.
See “Supplemental Non-GAAP Financial Measures” below for descriptions of the above non-GAAP measures as well as a reconciliation of these measures to the associated GAAP (as defined herein) measures.
Tyler Farquharson, President and CEO of Granite Ridge, commented, “2026 is the final year in which we expect to invest ahead of cash flow, and our second quarter activity advanced the plan we have laid out to reach a free cash flow inflection in 2027. During the quarter we brought new wells online, added high-return inventory, and maintained a conservative balance sheet and our quarterly dividend.
“Our Operated Partnership platform remains our principal differentiator. Through Admiral Permian Resources, and through the additional partnerships we are developing, we fund development on acreage sourced through our partners' operating relationships rather than through broadly marketed packages, adding inventory at attractive entry costs while retaining control of our capital. We underwrite every opportunity to a full-cycle return above 25% at strip pricing, and in the first half of 2026 we replaced inventory faster than we developed it.
“Our strategy does not depend on a higher commodity price environment; our underwriting discipline and hedge program are designed to protect cash flow across a range of outcomes. We remain focused on executing toward our 2027 framework of durable growth, a double-digit free cash flow yield, and a well-covered dividend.”
Financial Results 
Oil and natural gas sales for the second quarter of 2026 were $149.3 million. Net income was $30.0 million, or $0.23 per diluted share. Excluding non-cash and special items, Adjusted Net Income (non-GAAP) was $11.1 million, or $0.09 per diluted share. 
Adjusted EBITDAX (non-GAAP) for the second quarter of 2026 totaled $79.6 million compared to $75.4 million for the second quarter of 2025. Cash flow from operating activities was $55.6 million, including $14.0 million in working capital changes. Operating Cash Flow Before Working Capital Changes (non-GAAP) was $69.5 million.
Production Results
Second quarter 2026 oil production volumes totaled 16,341 barrels (“Bbls”) per day, a 2% increase from the second quarter of 2025. Natural gas production for the second quarter of 2026 totaled 94,220 thousand cubic feet of natural gas (“Mcf”) per day, a 1% increase from the second quarter of 2025. The Company’s daily production for the second quarter of 2026 grew 1% from the second quarter of the prior year to 32,044 Boe per day. 
1

Oil, Natural Gas and Related Product Sales
The Company’s average realized price for oil and natural gas for the second quarter of 2026, excluding the effect of commodity derivatives, was $93.93 per Bbl and $1.12 per Mcf, respectively, compared to $61.41 per Bbl and $2.32 per Mcf realized in the second quarter of 2025.
Operating Costs
Lease operating expenses were $30.0 million in the second quarter of 2026, or $10.27 per Boe, a 47% increase on a per unit basis compared to the second quarter of 2025 as a result of increased saltwater disposal costs as a result of higher water cuts and flowback operations, surface equipment rentals, and contract labor. Production and ad valorem taxes were $9.3 million for the quarter, or 6% of oil and natural gas sales. During the quarter, general and administrative expenses totaled $9.2 million, or $3.14 per Boe, inclusive of $1.3 million of non-cash stock-based compensation. 
Capital Expenditures and Operational Activity
Capital expenditures for the quarter were $95.2 million comprised of $78.5 million of drilling and completions capital and $16.7 million of property acquisition costs. The Company closed 27 acquisitions primarily in the Permian and Appalachian Basins, adding an aggregate inventory of 21.9 net undeveloped locations.
The table below provides the costs incurred for oil and natural gas producing activities for the periods indicated:

Three Months Ended June 30,Six Months Ended June 30,
(in thousands)2026202520262025
Property acquisition costs:
Proved$2$—$591$13,341
Unproved16,68210,06926,23431,090
Exploration costs5,339—5,339—
Development costs73,13177,185131,427148,587
Total costs incurred for oil and natural gas properties$95,154$87,254$163,591$193,018

The Company had 7.2 net wells turned in-line (“TIL”) during the second quarter of 2026, compared to 4.9 net wells TIL in the second quarter of 2025. 
The table below provides a summary of gross and net wells completed and TIL for the three and six months ended June 30, 2026:

Three Months Ended June 30, 2026Six Months Ended June 30, 2026
GrossNetGrossNet
Permian436.5627.6
Eagle Ford1— 40.1
Bakken120.3140.3
Haynesville2— 30.1
DJ10.170.1
Appalachian220.3280.4
Total817.21188.6

At June 30, 2026, the Company had 175 gross (14.0 net) wells in process. 
Liquidity and Capital Resources
As of June 30, 2026, Granite Ridge had $350.0 million of principal debt outstanding on 8.875% senior unsecured notes and $125.0 million of debt outstanding under our senior secured revolving credit agreement (as amended, the “Credit 
2

Agreement”). The Company had $293.8 million of liquidity, consisting of $249.7 million of committed borrowing availability under the Credit Agreement and $44.1 million of cash on hand.
Commodity Derivatives Update
The Company’s commodity derivatives strategy is intended to manage its exposure to commodity price fluctuations. Please see the table under “Derivatives Information” below for detailed information about Granite Ridge’s current derivatives positions. 

2026 Guidance
The following table summarizes the Company’s operational and financial guidance for 2026.

2026 Guidance

Annual production (Boe per day)34,000 - 36,000

Oil as a % of sales volumes50% - 52%
Acquisitions ($ in millions)$45 - $55

Development capital expenditures ($ in millions)$300 - $330

Total capital expenditures ($ in millions)
$345 - $385

Lease operating expenses (per Boe)$8.25 - $9.25

Production and ad valorem taxes (as a % of total sales)6% - 7%

Cash general and administrative expense ($ in millions)$25 - $27

Grey Rock Distribution
Grey Rock Investment Partners, which beneficially owns approximately 50% of Granite Ridge's outstanding common stock, has informed the Company that it intends to distribute a portion of its shares to the limited partners of one of its affiliated funds in the third quarter of 2026, representing the first of multiple expected tranches. The distribution is expected to be an in-kind distribution of existing shares by Grey Rock to its limited partners. It is not an underwritten offering, the Company is not issuing any shares, and the Company will not receive any proceeds. The size, timing and completion of any distribution are at Grey Rock's discretion, and no assurance can be given that any distribution will occur as described.
If distributions reduce Grey Rock's beneficial ownership to less than 50% of the Company's voting power, Granite Ridge will transition to governance as a non-controlled company under NYSE listing standards, including a majority-independent Board and independent compensation and nominating and corporate governance committees. The Company will complete that transition within the periods those standards provide. A distribution would not alter the Company's Master Services Agreement with Grey Rock, the opportunity-sharing arrangements thereunder, or the agreements governing the Company's Operated Partnerships. For information regarding Grey Rock's ownership and intentions, investors should refer to its filings under Section 13(d) of the Exchange Act.

Conference Call
Granite Ridge will host a conference call on August 7, 2026, at 10:00 a.m. CT (11:00 a.m. ET) to discuss its second quarter 2026 results. A Q&A session for security analysts will immediately follow the discussion. 

The details are as follows: 

When:Friday, August 7, 2026, at 10:00 a.m. CT
Where:https://ir.graniteridge.com

3

Webcast:To access the live webcast, please click the website link
Dial-in / Q&A Participation:1.Click on the call link and complete the online registration form.
2.Upon registering you will receive the dial-in info and a unique PIN to join the call as well as an email confirmation with the details.
3.Select method for joining the call:
a.Dial-in: A dial-in number and unique PIN will be displayed to connect directly from your phone.
b.Call Me: Enter your phone number and click “Call Me” for an immediate callback from the system. The call will come from a US number.

Upcoming Investor Events
Granite Ridge management will be participating in the following upcoming investor events:
•Enercom Denver - The Energy Investment Conference (Denver, CO) - August 18-19, 2026
•Pickering Energy Partners - PEP Energy Conference (Austin, TX) - September 28-30, 2026

Any investor presentations to be used for such events will be posted prior to the respective event on Granite Ridge’s website. Information on Granite Ridge’s website does not constitute a portion of, and is not incorporated by reference into this press release.
About Granite Ridge
Granite Ridge is a scaled energy company which aims to provide shareholders with exposure similar to energy private equity through operated partnerships and traditional non-operated assets. We own assets in six prolific unconventional basins across the United States. We aim to deliver a diversified portfolio with best-in-class full cycle returns by investing in a large number of high-graded deals developed by proven public and private operators. We focus on success as measured by total shareholder returns, which we seek to balance with a low leverage profile. For more information, visit Granite Ridge’s website at www.graniteridge.com.
Forward-Looking Statements and Cautionary Statements
This press release contains forward-looking statements regarding future events and future results that are subject to the safe harbors created under the Securities Act of 1933, as amended, and the Securities Exchange Act of 1934, as amended. All statements other than statements of historical facts included in this release regarding, without limitation, Granite Ridge’s 2026 outlook, financial position, operating and financial performance, business strategy, plans and objectives of management for future operations, industry conditions, indebtedness covenant compliance, capital expenditures, production, cash flows and the Grey Rock distribution are forward-looking statements. When used in this release, forward-looking statements are generally accompanied by terms or phrases such as “estimate,” “project,” “predict,” “believe,” “expect,” “continue,” “anticipate,” “target,” “could,” “plan,” “intend,” “seek,” “goal,” “will,” “should,” “may” or other words and similar expressions that convey the uncertainty of future events or outcomes. Items contemplating or making assumptions about actual or potential future production and sales, market size, collaborations, and trends or operating results also constitute such forward-looking statements.
Forward-looking statements involve inherent risks and uncertainties, and important factors (many of which are beyond Granite Ridge’s control) that could cause actual results to differ materially from those set forth in the forward-looking statements, including the following: changes in Granite Ridge’s strategy, future operations, financial position, estimated revenues and losses, projected costs, prospects and plans, changes in current or future commodity prices and interest rates, supply chain disruptions, infrastructure constraints and related factors affecting our properties, ability to acquire additional development opportunities and potential or pending acquisition transactions, as well as the effects of such acquisitions on the Company’s cash position and levels of indebtedness, changes in reserves estimates or the value thereof, operational risks including, but not limited to, the pace of drilling and completions activity on our properties, changes in the markets in which Granite Ridge competes, geopolitical risk and changes in applicable laws, legislation, or regulations, including those relating to environmental matters, cyber-related risks, the fact that reserve estimates depend on many assumptions that may turn out to be inaccurate and that any material inaccuracies in reserve estimates or underlying assumptions will materially affect the quantities and present value of Granite Ridge’s reserves, the outcome of any known and unknown litigation and regulatory proceedings, limited liquidity and trading of Granite Ridge’s securities, acts of war, terrorism or uncertainty regarding the effects and duration of global hostilities, including the Israel-Hamas conflict, the Russia-Ukraine war, the conflict in Iran, continued instability in the Middle East, and any associated armed conflicts or related sanctions which may disrupt commodity prices and create instability in the financial markets, and market conditions and global, regulatory, 
4

technical, and economic factors beyond Granite Ridge’s control, including the potential adverse effects of world health events, affecting capital markets, general economic conditions, global supply chains, uncertainties with respect to trade policies (including the imposition of tariffs) and Granite Ridge’s business and operations, increasing regulatory and investor emphasis on, and attention to, environmental, social and governance matters, our ability to establish and maintain effective internal control over financial reporting, and the other risks described under the heading “Item 1A. Risk Factors” in Granite Ridge’s Annual Report on Form 10-K for the year ended December 31, 2025 filed with the Securities and Exchange Commission (“SEC”), as updated by any subsequent Quarterly Reports on Form 10-Q that Granite Ridge files with the SEC.
Granite Ridge has based these forward-looking statements on its current expectations and assumptions about future events. While management considers these expectations and assumptions to be reasonable, they are inherently subject to significant business, economic, competitive, regulatory and other risks, contingencies and uncertainties, most of which are difficult to predict and many of which are beyond Granite Ridge’s control. If one or more of these risks or uncertainties materialize, or if the underlying assumptions prove incorrect, our actual results may vary materially from those expected or projected. Granite Ridge does not undertake any duty to update or revise any forward-looking statements, except as may be required by the federal securities laws.
Use of Non-GAAP Financial Measures
To supplement the presentation of the Company’s financial results prepared in accordance with U.S. Generally Accepted Accounting Principles (“GAAP”), this press release contains certain financial measures that are not prepared in accordance with GAAP, including Adjusted Net Income, Adjusted Earnings Per Share, Adjusted EBITDAX, Trailing Twelve Months Adjusted EBITDAX, Operating Cash Flow Before Working Capital Changes, and Net Debt.
See “Supplemental Non-GAAP Financial Measures” below for a description and reconciliation of each non-GAAP measure presented in this press release to the most directly comparable financial measure calculated in accordance with GAAP.
5

Granite Ridge Resources, Inc.
Condensed Consolidated Balance Sheets
(Unaudited)

(in thousands, except par value and share data)June 30, 2026December 31, 2025
ASSETS
Current assets:
Cash$44,092 $14,846 
Revenue receivable100,956 74,166 
Advances to operators3,146 2,682 
Prepaid and other current assets4,840 2,251 
Derivative assets - commodity derivatives1,805 13,978 
Equity investments— 10,960 
Total current assets154,839 118,883 
Property and equipment:
Oil and gas properties, successful efforts method2,039,497 1,897,388 
Accumulated depletion(964,968)(857,832)
Total property and equipment, net1,074,529 1,039,556 
Long-term assets:
Derivative assets - commodity derivatives3,088 3,743 
Other long-term assets5,121 5,889 
Total long-term assets8,209 9,632 
Total assets$1,237,577 $1,168,071 
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable and accrued liabilities$100,076 $76,847 
Current portion of long-term debt35,000 17,500
Derivative liabilities - commodity derivatives10,635 24 
Other liabilities5,536 810 
Total current liabilities151,247 95,181 
Long-term liabilities:
Long-term debt, net427,108 367,832 
Derivative liabilities - commodity derivatives1,021 — 
Asset retirement obligations 12,430 11,968 
Deferred tax liability82,456 87,330 
Other long-term payables942 — 
Total long-term liabilities523,957 467,130 
Total liabilities675,204 562,311 
Stockholders' equity:
Common stock, $0.0001 par value, 431,000,000 shares authorized, 137,592,654 and 136,941,978 issued at June 30, 2026 and December 31, 2025, respectively
14 14 
Additional paid-in capital661,876 659,228 
Retained earnings (accumulated deficit)(63,291)(17,286)
Treasury stock, at cost, 5,692,412 and 5,686,711 shares at June 30, 2026 and December 31, 2025, respectively
(36,226)(36,196)
Total stockholders' equity562,373 605,760 
Total liabilities and stockholders' equity$1,237,577 $1,168,071 

6

Granite Ridge Resources, Inc.
Condensed Consolidated Statements of Operations
(Unaudited)

Three Months Ended June 30,Six Months Ended June 30,
(in thousands, except per share data)2026202520262025
Revenues:
Oil and natural gas sales$149,273 $109,219 $277,537 $232,150 
Operating costs and expenses:
Lease operating expenses29,961 20,118 59,640 36,358 
Production and ad valorem taxes9,284 6,437 17,520 14,805 
Depletion and accretion expense52,666 53,412 107,645 101,857 
Impairments of long-lived assets9,149 — 20,323 — 
General and administrative 9,151 8,517 18,231 15,980 
Other, net45 — 312 (120)
Total operating costs and expenses110,256 88,484 223,671 168,880 
Net operating income39,017 20,735 53,866 63,270 
Other income (expense):
Gain (loss) on derivatives - commodity derivatives12,992 23,925 (59,035)9,068 
Interest expense, net(11,074)(5,914)(21,393)(10,929)
Gain (loss) on equity investments(2,223)(5,795)4,452 (15,766)
Other income (loss)157 (93)315 (93)
Total other income (expense)(148)12,123 (75,661)(17,720)
Income (loss) before income taxes38,869 32,858 (21,795)45,550 
Income tax expense (benefit)8,873 7,777 (4,760)10,657 
Net income (loss)$29,996 $25,081 $(17,035)$34,893 

Net income (loss) per share:
Basic $0.23 $0.19 $(0.13)$0.27 
Diluted$0.23 $0.19 $(0.13)$0.27 
Weighted-average number of shares outstanding:
Basic 130,805130,469130,713130,403
Diluted130,824130,588130,713130,496

7

Granite Ridge Resources, Inc.
Condensed Consolidated Statements of Cash Flows
(Unaudited)

Six Months Ended June 30,
(in thousands)20262025
Operating activities:
Net income (loss)$(17,035)$34,893 
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depletion and accretion expense107,645 101,857 
Impairments of long-lived assets20,323 — 
Unrealized (gain) loss on derivatives - commodity derivatives24,460 (8,210)
Stock-based compensation expense2,648 1,048 
Amortization of deferred financing costs and original issue discount2,658 800 
(Gain) loss on equity investments(4,452)15,766 
Deferred income taxes(4,874)10,275 
Other(135)(258)
Increase (decrease) in cash attributable to changes in operating assets and liabilities:
Revenue receivable(26,790)(6,956)
Accounts payable and accrued liabilities6,581 3,202 
Prepaid and other current assets(2,589)1,615 
Other liabilities and long-term payables5,488 102 
Net cash provided by operating activities113,928 154,134 
Investing activities:
Capital expenditures for oil and natural gas properties(122,593)(164,533)
Acquisition of oil and natural gas properties(26,182)(44,861)
Proceeds from sale of equity investments15,412 4,991 
Proceeds from sale of oil and natural gas properties1,542 175 
Refund of advances to operators1,139 3,695 
Net cash used in investing activities(130,682)(200,533)
Financing activities:
Proceeds from borrowing on credit facilities105,000 95,000 
Repayments of borrowing on credit facilities(30,000)(25,000)
Deferred financing costs— (449)
Purchase of treasury shares(30)(16)
Payment of dividends(28,970)(28,812)
Net cash provided by financing activities46,000 40,723 
Net change in cash29,246 (5,676)
Cash at beginning of period14,846 9,419 
Cash at end of period$44,092 $3,743 
Supplemental disclosure of non-cash investing activities:
Change in accrued capital expenditures included in accounts payable and accrued liabilities$7,396 $(7,815)
Advances to operators applied to development of oil and natural gas properties$84,119 $72,541 

8

Granite Ridge Resources, Inc.
Summary Production and Price Data
The following table sets forth summary information concerning production and operating data for the periods indicated:

Three Months Ended June 30,Six Months Ended June 30,
2026202520262025
Net Sales (in thousands):
Oil sales$139,674 $89,462 $243,120 $181,309 
Natural gas and related product sales9,599 19,757 34,417 50,841 
Total revenues$149,273 $109,219 $277,537 $232,150 

Net Production:
Oil (MBbl)1,487 1,457 2,966 2,784 
Natural gas (MMcf)8,574 8,500 18,311 16,326 
Total (MBoe)(1)
2,916 2,874 6,018 5,505 
Average Daily Production:
Oil (Bbl)16,341 16,009 16,387 15,384 
Natural gas (Mcf)94,220 93,404 101,166 90,200 
Total (Boe)(1)
32,044 31,576 33,249 30,417 

Average Sales Prices:
Oil (per Bbl)$93.93 $61.41 $81.97 $65.11 
Effect of gain (loss) on settled oil derivatives on average price (per Bbl)(18.28)0.49 (11.30)0.23 
Oil net of settled oil derivatives (per Bbl)(2)
$75.65 $61.90 $70.67 $65.34 

Natural gas sales (per Mcf)$1.12 $2.32 $1.88 $3.11 
Effect of gain (loss) on settled natural gas derivatives on average price (per Mcf)0.52 0.03 (0.06)0.01 
Natural gas sales net of settled natural gas derivatives (per Mcf)(2)
$1.64 $2.35 $1.82 $3.12 

Realized price on a Boe basis excluding settled commodity derivatives$51.19 $38.01 $46.12 $42.17 
Effect of gain (loss) on settled commodity derivatives on average price (per Boe)(7.80)0.34 (5.75)0.16 
Realized price on a Boe basis including settled commodity derivatives(2)
$43.39 $38.35 $40.37 $42.33 

Operating Expenses (in thousands):
Lease operating expenses$29,961 $20,118 $59,640 $36,358 
Production and ad valorem taxes9,284 6,437 17,520 14,805 
Depletion and accretion expense52,666 53,412 107,645 101,857 
General and administrative9,151 8,517 18,231 15,980 
Costs and Expenses (per Boe):
Lease operating expenses$10.27 $7.00 $9.91 $6.60 
Production and ad valorem taxes$3.18 $2.24 $2.91 $2.69 
Depletion and accretion$18.06 $18.59 $17.89 $18.50 
General and administrative$3.14 $2.96 $3.03 $2.90 

Net Producing Wells at Period-End:249.92 227.42 249.92 227.42 
(1)Natural gas is converted to Boe using the ratio of one barrel of oil to six Mcf of natural gas.
(2)The presentation of realized prices including settled commodity derivatives is a result of including the net cash receipts from (payments on) commodity derivatives to realized pricing. This presentation of average prices with derivatives is a means by which to reflect the actual cash performance of our commodity derivatives for the respective periods and presents oil and natural gas prices with derivatives in a manner consistent with the presentation generally used by the investment community.

9

Granite Ridge Resources, Inc.
Derivatives Information
The table below provides data associated with the Company’s derivatives at August 6, 2026, for the periods indicated:

202620272028
Third QuarterFourth QuarterTotalTotalTotal
Collars (oil)
Volume (Bbl)909,612795,0381,704,6501,620,934—
Weighted-average floor price ($/Bbl)$60.53 $59.97 $60.27 $54.91 $— 
Weighted-average ceiling price ($/Bbl)$69.93 $68.53 $69.28 $76.63 $— 
Swaps (oil)
Volume (Bbl)73,48453,974127,458452,936—
Weighted-average price ($/Bbl)$60.27 $60.24 $60.26 $60.21 $— 
Swaps (oil WTI / Brent CMA Diff)
Volume (Bbl)368,627318,367686,994——
Weighted-average price ($/Bbl)$(5.51)$(5.51)$(5.51)$— $— 
Collars (natural gas)
Volume (Mcf)1,727,7563,868,3205,596,0766,427,9402,211,640
Weighted-average floor price ($/Mcf)$3.25 $3.66 $3.53 $3.86 $3.60 
Weighted-average ceiling price ($/Mcf)$4.00 $4.44 $4.30 $4.96 $4.73 
Swaps (natural gas)
Volume (Mcf)3,961,3631,222,2185,183,5819,323,814—
Weighted-average price ($/Mcf)$3.73 $3.73 $3.73 $3.60 $— 
Swaps (natural gas Waha Basis)
Volume (Mcf)2,712,5632,300,2005,012,7635,677,944111,100
Weighted-average price ($/Mcf)$(4.74)$(1.60)$(3.30)$(1.38)$(1.60)

10

Granite Ridge Resources, Inc.
Supplemental Non-GAAP Financial Measures
The Company reports its financial results in accordance with GAAP. However, the Company believes certain non-GAAP performance measures may provide financial statement users with additional meaningful comparisons between current results, the results of its peers and the results of prior periods. In addition, the Company believes these measures are used by analysts and others in the valuation, rating and investment recommendations of companies within the oil and natural gas exploration and production industry. See the reconciliations throughout this release of GAAP financial measures to non-GAAP financial measures for the periods indicated.
Reconciliation of Net Income (Loss) to Adjusted EBITDAX
Adjusted EBITDAX is presented herein and reconciled from the GAAP measure of net income (loss) because of its wide acceptance by the investment community as a financial indicator.
The Company defines Adjusted EBITDAX as net income (loss) before depletion and accretion expense, unrealized (gain) loss on derivatives – commodity derivatives, interest expense, net, non-cash stock-based compensation, income tax expense (benefit), impairment of unproved properties, impairments of long-lived assets, (gain) loss on equity investments, and other, net. Adjusted EBITDAX is not a measure of net income or cash flows as determined by GAAP.
The Company’s Adjusted EBITDAX measure provides additional information that may be used to better understand the Company’s operations. Adjusted EBITDAX is one of several metrics that the Company uses as a supplemental financial measurement in the evaluation of its business and should not be considered in isolation or as an alternative to, or more meaningful than, net income (loss) as an indicator of operating performance. Certain items excluded from Adjusted EBITDAX are significant components in understanding and assessing a company’s financial performance, such as a company’s cost of capital and tax structure, as well as the historic cost of depreciable and depletable assets. Adjusted EBITDAX, as used by the Company, may not be comparable to similarly titled measures reported by other companies. The Company believes that Adjusted EBITDAX is a widely followed measure of operating performance and is one of many metrics used by the Company’s management team and by other users of the Company’s consolidated financial statements. For example, Adjusted EBITDAX can be used to assess the Company’s operating performance and return on capital in comparison to other independent exploration and production companies without regard to financial or capital structure, and to assess the financial performance of the Company’s assets and the Company without regard to capital structure or historical cost basis.
The following table provides a reconciliation of the GAAP measure of net income (loss) to Adjusted EBITDAX for the periods indicated:

Three Months Ended June 30,Six Months Ended June 30,
(in thousands)2026202520262025
Net income (loss)$29,996 $25,081 $(17,035)$34,893 
Interest expense, net11,074 5,914 21,393 10,929 
Income tax expense (benefit)8,873 7,777 (4,760)10,657 
Other, net45 — 312 (120)
Depletion and accretion expense52,666 53,412 107,645 101,857 
Non-cash stock-based compensation1,250 395 2,648 1,048 
Impairments of long-lived assets9,149 — 20,323 — 
Unrealized (gain) loss on derivatives - commodity derivatives(35,725)(22,954)24,460 (8,210)
(Gain) loss on equity investments2,223 5,795 (4,452)15,766 
Adjusted EBITDAX$79,551 $75,420 $150,534 $166,820 

The Company defines Trailing Twelve Months Adjusted EBITDAX as the accumulation of the prior twelve months Adjusted EBITDAX. Adjusted EBITDAX for each of the quarters ended September 30, 2025, December 31, 2025, March 31, 2026, and June 30, 2026 were previously reported in an earnings release relating to the applicable quarter, and the reconciliation of net income to Adjusted EBITDAX for each quarter is included in the applicable earnings release.
11

The following table provides a reconciliation of the GAAP measure of net income to Trailing Twelve Months Adjusted EBITDAX for the period indicated:

Trailing Twelve Months Ended June 30,
(in thousands)2026
Net loss$(27,575)
Interest expense, net35,964 
Income tax expense(7,656)
Other, net497 
Depletion and accretion expense221,489 
Non-cash stock-based compensation5,356 
Impairments of long-lived assets64,977 
Unrealized loss on derivatives - commodity derivatives10,008 
Loss on equity investments(4,385)
Trailing Twelve Months Adjusted EBITDAX$298,675 

Reconciliation of Debt to Net Debt
The Company provides Net Debt, which is a non-GAAP financial measure. The Company defines Net Debt as current portion of long-term debt, plus long-term debt, net, less cash as of the balance sheet date. The Company’s Net Debt to Trailing Twelve Months Adjusted EBITDAX provides investors with insight into the Company’s leverage as of the measurement date.
The following table provides a reconciliation from the GAAP measure of Debt to Net Debt and Net Debt to Trailing Twelve Months Adjusted EBITDAX ratio:

June 30,
(in thousands except for ratio)2026
Current portion of long-term debt$35,000 
Long-term debt, net427,108 
Cash(44,092)
Net Debt$418,016 

Net Debt to Trailing Twelve Months Adjusted EBITDAX Ratio1.4 

Reconciliation of Net Income (Loss) to Adjusted Net Income and Adjusted Earnings Per Share
The Company provides Adjusted Net Income and Adjusted Earnings Per Share, which are non-GAAP financial measures. Adjusted Net Income and Adjusted Earnings Per Share represent earnings and diluted earnings (loss) per share determined under GAAP without regard to certain non-cash and nonrecurring items. The Company defines Adjusted Net Income as net income as determined under GAAP excluding impairments of long-lived assets, unrealized (gain) loss on derivatives - commodity derivatives, (gain) loss on equity investments, certain nonrecurring general and administrative expenses and tax impact on above adjustments.
The Company defines Adjusted Earnings Per Share as Adjusted Net Income divided by weighted average number of diluted shares of common stock outstanding.
The Company believes these measures provide useful information to analysts and investors for analysis of its operating results on a recurring, comparable basis from period to period. Adjusted Net Income and Adjusted Earnings Per Share should not be considered in isolation or as a substitute for earnings or diluted earnings per share as determined in accordance with GAAP and may not be comparable to other similarly titled measures of other companies.
12

The following table provides a reconciliation from the GAAP measure of net income (loss) to Adjusted Net Income, both in total and on a per diluted share basis, for the periods indicated:

Three Months Ended June 30,Six Months Ended June 30,
(in thousands, except share data)2026202520262025
Net income (loss)$29,996 $25,081 $(17,035)$34,893 
Impairments of long-lived assets9,149 — 20,323 — 
Unrealized (gain) loss on derivatives - commodity derivatives(35,725)(22,954)24,460 (8,210)
(Gain) loss on equity investments2,223 5,795 (4,452)15,766 
Nonrecurring general and administrative expenses - severance costs— 1,732 — 1,732 
Nonrecurring general and administrative expenses - capital markets transaction costs— 1,112 — 1,112 
Tax impact on above adjustments (a)5,462 3,235 (9,046)(2,350)
Adjusted Net Income$11,105 $14,001 $14,250 $42,943 

Earnings (loss) per diluted share - as reported$0.23 $0.19 $(0.13)$0.27 
Impairments of long-lived assets0.07 — 0.16 — 
Unrealized (gain) loss on derivatives - commodity derivatives(0.27)(0.18)0.19 (0.06)
(Gain) loss on equity investments0.02 0.05 (0.03)0.12 
Nonrecurring general and administrative expenses - severance costs— 0.01 — 0.01 
Nonrecurring general and administrative expenses - capital markets transaction costs— 0.01 — 0.01 
Tax impact on above adjustments (a)0.04 0.03 (0.08)(0.02)
Adjusted Earnings Per Diluted Share$0.09 $0.11 $0.11 $0.33 
Adjusted earnings per share:
Basic earnings$0.09 $0.11 $0.11 $0.33 
Diluted earnings$0.09 $0.11 $0.11 $0.33 
(a) Estimated using statutory tax rate in effect for the period.

Reconciliation of Net Cash Provided by Operating Activities to Operating Cash Flow Before Working Capital Changes
The Company provides Operating Cash Flow (“OCF”) Before Working Capital Changes, which is a non-GAAP financial measure. The Company defines OCF Before Working Capital Changes as net cash provided by operating activities as determined under GAAP excluding changes in operating assets and liabilities such as: changes in cash due to changes in operating assets and liabilities, revenue receivable, accounts payable and accrued liabilities, prepaid and other current assets, and other liabilities and long-term payables. The Company believes OCF Before Working Capital Changes is an accepted measure of an oil and natural gas company’s ability to generate cash used to fund development and acquisition activities and service debt or pay dividends. 
This non-GAAP measure should not be considered as an alternative to, or more meaningful than, net cash provided by operating activities as an indicator of operating performance.
13

The following table provides a reconciliation from the GAAP measure of net cash provided by operating activities to OCF Before Working Capital Changes:

Three Months Ended June 30,Six Months Ended June 30,
(in thousands)2026202520262025
Net cash provided by operating activities$55,580 $78,043 $113,928 $154,134 
Changes in cash due to changes in operating assets and liabilities:
Revenue receivable10,147 (4,097)26,790 6,956 
Accounts payable and accrued liabilities(1,633)(1,989)(6,581)(3,202)
Prepaid and other current assets3,440 (2,425)2,589 (1,615)
Other liabilities and long-term payables2,002 (73)(5,488)(102)
Total working capital changes13,956 (8,584)17,310 2,037 
Operating Cash Flow Before Working Capital Changes$69,536 $69,459 $131,238 $156,171 

14