00019284462025Q3false12/31P2YP1MP1MP1Mxbrli:sharesiso4217:USDiso4217:USDxbrli:sharesgrnt:segmentxbrli:puregrnt:sourcegrnt:regionutr:bbliso4217:USDutr:bblutr:Mcfiso4217:USDutr:Mcfutr:D00019284462025-01-012025-09-3000019284462025-11-0300019284462025-09-3000019284462024-12-3100019284462025-07-012025-09-3000019284462024-07-012024-09-3000019284462024-01-012024-09-300001928446us-gaap:CommonStockMember2024-12-310001928446us-gaap:AdditionalPaidInCapitalMember2024-12-310001928446us-gaap:RetainedEarningsMember2024-12-310001928446us-gaap:TreasuryStockCommonMember2024-12-310001928446us-gaap:CommonStockMember2025-01-012025-03-310001928446us-gaap:AdditionalPaidInCapitalMember2025-01-012025-03-3100019284462025-01-012025-03-310001928446us-gaap:TreasuryStockCommonMember2025-01-012025-03-310001928446us-gaap:RetainedEarningsMember2025-01-012025-03-310001928446us-gaap:CommonStockMember2025-03-310001928446us-gaap:AdditionalPaidInCapitalMember2025-03-310001928446us-gaap:RetainedEarningsMember2025-03-310001928446us-gaap:TreasuryStockCommonMember2025-03-3100019284462025-03-310001928446us-gaap:CommonStockMember2025-04-012025-06-300001928446us-gaap:AdditionalPaidInCapitalMember2025-04-012025-06-3000019284462025-04-012025-06-300001928446us-gaap:RetainedEarningsMember2025-04-012025-06-300001928446us-gaap:CommonStockMember2025-06-300001928446us-gaap:AdditionalPaidInCapitalMember2025-06-300001928446us-gaap:RetainedEarningsMember2025-06-300001928446us-gaap:TreasuryStockCommonMember2025-06-3000019284462025-06-300001928446us-gaap:CommonStockMember2025-07-012025-09-300001928446us-gaap:AdditionalPaidInCapitalMember2025-07-012025-09-300001928446us-gaap:RetainedEarningsMember2025-07-012025-09-300001928446us-gaap:CommonStockMember2025-09-300001928446us-gaap:AdditionalPaidInCapitalMember2025-09-300001928446us-gaap:RetainedEarningsMember2025-09-300001928446us-gaap:TreasuryStockCommonMember2025-09-300001928446us-gaap:CommonStockMember2023-12-310001928446us-gaap:AdditionalPaidInCapitalMember2023-12-310001928446us-gaap:RetainedEarningsMember2023-12-310001928446us-gaap:TreasuryStockCommonMember2023-12-3100019284462023-12-310001928446us-gaap:CommonStockMember2024-01-012024-03-310001928446us-gaap:AdditionalPaidInCapitalMember2024-01-012024-03-3100019284462024-01-012024-03-310001928446us-gaap:TreasuryStockCommonMember2024-01-012024-03-310001928446us-gaap:RetainedEarningsMember2024-01-012024-03-310001928446us-gaap:CommonStockMember2024-03-310001928446us-gaap:AdditionalPaidInCapitalMember2024-03-310001928446us-gaap:RetainedEarningsMember2024-03-310001928446us-gaap:TreasuryStockCommonMember2024-03-3100019284462024-03-310001928446us-gaap:AdditionalPaidInCapitalMember2024-04-012024-06-3000019284462024-04-012024-06-300001928446us-gaap:RetainedEarningsMember2024-04-012024-06-300001928446us-gaap:CommonStockMember2024-06-300001928446us-gaap:AdditionalPaidInCapitalMember2024-06-300001928446us-gaap:RetainedEarningsMember2024-06-300001928446us-gaap:TreasuryStockCommonMember2024-06-3000019284462024-06-300001928446us-gaap:AdditionalPaidInCapitalMember2024-07-012024-09-300001928446us-gaap:RetainedEarningsMember2024-07-012024-09-300001928446us-gaap:CommonStockMember2024-09-300001928446us-gaap:AdditionalPaidInCapitalMember2024-09-300001928446us-gaap:RetainedEarningsMember2024-09-300001928446us-gaap:TreasuryStockCommonMember2024-09-3000019284462024-09-300001928446grnt:ProvedOilAndNaturalGasPropertiesMember2025-07-012025-09-300001928446grnt:ProvedOilAndNaturalGasPropertiesMember2024-01-012024-09-300001928446grnt:ProvedOilAndNaturalGasPropertiesMember2025-01-012025-09-300001928446grnt:ProvedOilAndNaturalGasPropertiesMember2024-07-012024-09-300001928446grnt:PermianBasinTexasMembergrnt:UnprovedOilAndNaturalGasPropertiesMember2025-07-012025-09-300001928446grnt:PermianBasinTexasMembergrnt:UnprovedOilAndNaturalGasPropertiesMember2025-01-012025-09-300001928446grnt:A2023DivestituresMemberus-gaap:CommonStockMembergrnt:VitalEnergyIncMember2023-12-012023-12-310001928446grnt:VitalEnergyIncMemberus-gaap:ConvertiblePreferredStockMember2023-12-310001928446grnt:VitalEnergyIncMembergrnt:A2023DivestituresMemberus-gaap:ConvertiblePreferredStockMember2024-06-042024-06-040001928446grnt:VitalEnergyIncMembergrnt:A2023DivestituresMemberus-gaap:ConvertiblePreferredStockMember2023-12-012023-12-310001928446grnt:VitalEnergyIncMembergrnt:A2025DivestituresMemberus-gaap:CommonStockMember2025-04-012025-06-300001928446grnt:VitalEnergyIncMembergrnt:A2025DivestituresMember2025-04-012025-06-300001928446grnt:VitalEnergyIncMembergrnt:A2025DivestituresMemberus-gaap:CommonStockMember2024-07-012024-09-300001928446grnt:VitalEnergyIncMembergrnt:A2025DivestituresMember2024-07-012024-09-300001928446grnt:VitalEnergyIncMembergrnt:A2023DivestituresMemberus-gaap:CommonStockMember2025-09-300001928446us-gaap:OilAndGasServiceMember2025-07-012025-09-300001928446us-gaap:OilAndGasServiceMember2024-07-012024-09-300001928446us-gaap:OilAndGasServiceMember2025-01-012025-09-300001928446us-gaap:OilAndGasServiceMember2024-01-012024-09-300001928446us-gaap:NaturalGasStorageMember2025-07-012025-09-300001928446us-gaap:NaturalGasStorageMember2024-07-012024-09-300001928446us-gaap:NaturalGasStorageMember2025-01-012025-09-300001928446us-gaap:NaturalGasStorageMember2024-01-012024-09-300001928446grnt:PermianBasinTexasMember2025-07-012025-09-300001928446grnt:PermianBasinTexasMember2024-07-012024-09-300001928446grnt:PermianBasinTexasMember2025-01-012025-09-300001928446grnt:PermianBasinTexasMember2024-01-012024-09-300001928446grnt:EagleFordBasinTexasMember2025-07-012025-09-300001928446grnt:EagleFordBasinTexasMember2024-07-012024-09-300001928446grnt:EagleFordBasinTexasMember2025-01-012025-09-300001928446grnt:EagleFordBasinTexasMember2024-01-012024-09-300001928446grnt:BakkenBasinMontanaNorthMontanaNorthDakotaMember2025-07-012025-09-300001928446grnt:BakkenBasinMontanaNorthMontanaNorthDakotaMember2024-07-012024-09-300001928446grnt:BakkenBasinMontanaNorthMontanaNorthDakotaMember2025-01-012025-09-300001928446grnt:BakkenBasinMontanaNorthMontanaNorthDakotaMember2024-01-012024-09-300001928446grnt:HaynesvilleMember2025-07-012025-09-300001928446grnt:HaynesvilleMember2024-07-012024-09-300001928446grnt:HaynesvilleMember2025-01-012025-09-300001928446grnt:HaynesvilleMember2024-01-012024-09-300001928446grnt:DenverJulesburgDjColoradoMember2025-07-012025-09-300001928446grnt:DenverJulesburgDjColoradoMember2024-07-012024-09-300001928446grnt:DenverJulesburgDjColoradoMember2025-01-012025-09-300001928446grnt:DenverJulesburgDjColoradoMember2024-01-012024-09-300001928446grnt:AppalachianMember2025-07-012025-09-300001928446grnt:AppalachianMember2024-07-012024-09-300001928446grnt:AppalachianMember2025-01-012025-09-300001928446grnt:AppalachianMember2024-01-012024-09-300001928446grnt:CollarOilContract2025Membergrnt:FourthQuarterMember2025-09-300001928446grnt:CollarOilContract2026TotalMembergrnt:A2026Member2025-09-300001928446grnt:CollarOilContract2025Membergrnt:FourthQuarterMembergrnt:WeightedAverageFloorPriceMember2025-09-300001928446grnt:CollarOilContract2026TotalMembergrnt:A2026Membergrnt:WeightedAverageFloorPriceMember2025-09-300001928446grnt:CollarOilContract2025Membergrnt:FourthQuarterMembergrnt:WeightedAverageCeilingPriceMember2025-09-300001928446grnt:CollarOilContract2026TotalMembergrnt:A2026Membergrnt:WeightedAverageCeilingPriceMember2025-09-300001928446grnt:CollarNaturalGasContract2025Membergrnt:FourthQuarterMember2025-09-300001928446grnt:CollarNaturalGasContract2026TotalMembergrnt:A2026Member2025-09-300001928446grnt:CollarNaturalGasContract2025Membergrnt:FourthQuarterMembergrnt:WeightedAverageFloorPriceMember2025-09-300001928446grnt:CollarNaturalGasContract2026TotalMembergrnt:A2026Membergrnt:WeightedAverageFloorPriceMember2025-09-300001928446grnt:CollarNaturalGasContract2025Membergrnt:FourthQuarterMembergrnt:WeightedAverageCeilingPriceMember2025-09-300001928446grnt:CollarNaturalGasContract2026TotalMembergrnt:A2026Membergrnt:WeightedAverageCeilingPriceMember2025-09-300001928446grnt:SwapsNaturalGasContract2025Membergrnt:FourthQuarterMember2025-09-300001928446grnt:SwapsNaturalGasContract2026TotalMembergrnt:A2026Member2025-09-300001928446grnt:SwapsNaturalGasContract2025Membergrnt:FourthQuarterMembergrnt:WeightedAveragePriceMember2025-09-300001928446grnt:SwapsNaturalGasContract2026TotalMembergrnt:A2026Membergrnt:WeightedAveragePriceMember2025-09-300001928446srt:CrudeOilMember2025-07-012025-09-300001928446srt:CrudeOilMember2024-07-012024-09-300001928446srt:CrudeOilMember2025-01-012025-09-300001928446srt:CrudeOilMember2024-01-012024-09-300001928446srt:NaturalGasPerThousandCubicFeetMember2025-07-012025-09-300001928446srt:NaturalGasPerThousandCubicFeetMember2024-07-012024-09-300001928446srt:NaturalGasPerThousandCubicFeetMember2025-01-012025-09-300001928446srt:NaturalGasPerThousandCubicFeetMember2024-01-012024-09-300001928446us-gaap:CarryingReportedAmountFairValueDisclosureMember2025-09-300001928446us-gaap:EstimateOfFairValueFairValueDisclosureMember2025-09-300001928446us-gaap:CarryingReportedAmountFairValueDisclosureMember2024-12-310001928446us-gaap:EstimateOfFairValueFairValueDisclosureMember2024-12-310001928446grnt:A2023DivestituresMemberus-gaap:ConvertiblePreferredStockMember2024-06-042024-06-040001928446grnt:VitalEnergyIncMemberus-gaap:ConvertiblePreferredStockMember2024-06-040001928446grnt:VitalEnergyIncMembergrnt:A2023DivestituresMemberus-gaap:CommonStockMember2024-12-310001928446us-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Member2025-09-300001928446us-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Member2025-09-300001928446us-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Member2025-09-300001928446us-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:FairValueMeasurementsRecurringMember2025-09-300001928446us-gaap:FairValueMeasurementsRecurringMember2025-09-300001928446us-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Member2024-12-310001928446us-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Member2024-12-310001928446us-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Member2024-12-310001928446us-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:FairValueMeasurementsRecurringMember2024-12-310001928446us-gaap:FairValueMeasurementsRecurringMember2024-12-310001928446grnt:PermianBasinTexasMember2025-01-012025-09-300001928446grnt:PermianBasinTexasMember2024-01-012024-09-300001928446grnt:BakkenBasinMontanaNorthMontanaNorthDakotaMember2025-01-012025-09-300001928446grnt:BakkenBasinMontanaNorthMontanaNorthDakotaMember2024-01-012024-09-300001928446grnt:DenverJulesburgDjColoradoMember2025-01-012025-09-300001928446grnt:DenverJulesburgDjColoradoMember2024-01-012024-09-300001928446grnt:AppalachiaMember2025-01-012025-09-300001928446grnt:AppalachiaMember2024-01-012024-09-300001928446grnt:ProvedAndUnprovedOilAndNaturalGasPropertiesMember2025-01-012025-09-300001928446grnt:ProvedAndUnprovedOilAndNaturalGasPropertiesMember2024-01-012024-09-300001928446grnt:A2025DivestituresMember2025-01-012025-09-300001928446us-gaap:RestrictedStockMembersrt:MinimumMembergrnt:EmployeeAndConsultantsMember2025-01-012025-09-300001928446us-gaap:RestrictedStockMembersrt:MaximumMembergrnt:EmployeeAndConsultantsMember2025-01-012025-09-300001928446grnt:NonEmployeeDirectorsMemberus-gaap:RestrictedStockMember2025-01-012025-09-300001928446us-gaap:PerformanceSharesMembergrnt:AwardPeriodOneMember2025-01-012025-09-300001928446srt:MinimumMemberus-gaap:PerformanceSharesMember2025-01-012025-09-300001928446srt:MaximumMemberus-gaap:PerformanceSharesMember2025-01-012025-09-300001928446us-gaap:PerformanceSharesMembergrnt:GranteeStatusOfficersMember2025-04-012025-06-300001928446us-gaap:PerformanceSharesMember2025-07-012025-09-300001928446us-gaap:PerformanceSharesMembergrnt:GranteeStatusOfficersMember2025-07-012025-09-300001928446us-gaap:EmployeeStockOptionMember2025-01-012025-09-300001928446srt:MinimumMemberus-gaap:EmployeeStockOptionMember2025-01-012025-09-300001928446srt:MaximumMemberus-gaap:EmployeeStockOptionMember2025-01-012025-09-300001928446us-gaap:EmployeeStockOptionMember2025-01-012025-03-310001928446us-gaap:EmployeeStockOptionMember2024-01-012024-03-310001928446us-gaap:RestrictedStockMember2024-12-310001928446us-gaap:PerformanceSharesMember2024-12-310001928446us-gaap:EmployeeStockOptionMember2024-12-310001928446us-gaap:RestrictedStockMember2025-01-012025-09-300001928446us-gaap:PerformanceSharesMember2025-01-012025-09-300001928446us-gaap:RestrictedStockMember2025-09-300001928446us-gaap:PerformanceSharesMember2025-09-300001928446us-gaap:EmployeeStockOptionMember2025-09-300001928446us-gaap:RestrictedStockMember2023-12-310001928446us-gaap:PerformanceSharesMember2023-12-310001928446us-gaap:EmployeeStockOptionMember2023-12-310001928446us-gaap:RestrictedStockMember2024-01-012024-09-300001928446us-gaap:PerformanceSharesMember2024-01-012024-09-300001928446us-gaap:EmployeeStockOptionMember2024-01-012024-09-300001928446us-gaap:RestrictedStockMember2024-09-300001928446us-gaap:PerformanceSharesMember2024-09-300001928446us-gaap:EmployeeStockOptionMember2024-09-3000019284462024-01-012024-12-310001928446us-gaap:LineOfCreditMember2025-01-012025-09-300001928446us-gaap:LineOfCreditMember2025-03-310001928446us-gaap:LineOfCreditMember2025-04-290001928446us-gaap:LineOfCreditMember2025-09-300001928446us-gaap:LineOfCreditMemberus-gaap:SecuredOvernightFinancingRateSofrMembersrt:MinimumMember2025-09-300001928446us-gaap:LineOfCreditMemberus-gaap:SecuredOvernightFinancingRateSofrMembersrt:MaximumMember2025-09-300001928446us-gaap:LineOfCreditMembergrnt:CreditSpreadAdjustmentScenarioOneMemberus-gaap:SubsequentEventMember2025-10-312025-10-310001928446us-gaap:LineOfCreditMembergrnt:FederalFundsEffectiveRateMember2025-01-012025-09-300001928446us-gaap:LineOfCreditMembergrnt:CreditSpreadAdjustmentScenarioOneMember2025-01-012025-09-300001928446us-gaap:LineOfCreditMemberus-gaap:SecuredOvernightFinancingRateSofrMembergrnt:CreditSpreadAdjustmentScenarioOneMembersrt:MinimumMember2025-01-012025-09-300001928446us-gaap:LineOfCreditMemberus-gaap:SecuredOvernightFinancingRateSofrMembergrnt:CreditSpreadAdjustmentScenarioOneMembersrt:MaximumMember2025-01-012025-09-300001928446us-gaap:LineOfCreditMembergrnt:A2029SeniorNotesMemberus-gaap:SubsequentEventMember2025-11-050001928446us-gaap:LineOfCreditMembersrt:MinimumMemberus-gaap:SubsequentEventMember2025-11-052025-11-050001928446us-gaap:LineOfCreditMembersrt:MaximumMemberus-gaap:SubsequentEventMember2025-11-052025-11-050001928446us-gaap:LineOfCreditMembergrnt:FederalFundsEffectiveRateMemberus-gaap:SubsequentEventMember2025-11-052025-11-050001928446us-gaap:LineOfCreditMemberus-gaap:SecuredOvernightFinancingRateSofrMembergrnt:CreditSpreadAdjustmentScenarioOneMemberus-gaap:SubsequentEventMember2025-11-052025-11-050001928446us-gaap:LineOfCreditMembergrnt:CreditSpreadAdjustmentScenarioOneMemberus-gaap:SubsequentEventMember2025-11-052025-11-050001928446us-gaap:LineOfCreditMemberus-gaap:BaseRateMemberus-gaap:SubsequentEventMembergrnt:CreditSpreadAdjustmentScenarioOneMembersrt:MinimumMember2025-11-052025-11-050001928446us-gaap:LineOfCreditMemberus-gaap:BaseRateMemberus-gaap:SubsequentEventMembergrnt:CreditSpreadAdjustmentScenarioOneMembersrt:MaximumMember2025-11-052025-11-050001928446grnt:A2029SeniorNotesMemberus-gaap:UnsecuredDebtMemberus-gaap:SubsequentEventMember2025-11-050001928446grnt:SeniorUnsecuredNotesMembergrnt:A2029SeniorNotesMemberus-gaap:SubsequentEventMember2025-11-050001928446grnt:SeniorUnsecuredNotesMembergrnt:A2029SeniorNotesMemberus-gaap:UnsecuredDebtMemberus-gaap:SubsequentEventMember2025-11-050001928446grnt:A2029SeniorNotesMemberus-gaap:UnsecuredDebtMemberus-gaap:SubsequentEventMember2025-11-052025-11-050001928446grnt:DebtInstrumentCovenantPaymentDefaultMembergrnt:A2029SeniorNotesMemberus-gaap:UnsecuredDebtMemberus-gaap:SubsequentEventMember2025-11-050001928446grnt:A2029SeniorNotesMemberus-gaap:DebtInstrumentRedemptionPeriodOneMemberus-gaap:UnsecuredDebtMemberus-gaap:SubsequentEventMember2025-11-052025-11-050001928446grnt:A2029SeniorNotesMemberus-gaap:DebtInstrumentRedemptionPeriodTwoMemberus-gaap:UnsecuredDebtMemberus-gaap:SubsequentEventMember2025-11-052025-11-050001928446us-gaap:LineOfCreditMembergrnt:A2029SeniorNotesMemberus-gaap:UnsecuredDebtMemberus-gaap:SubsequentEventMember2025-11-050001928446us-gaap:LineOfCreditMembergrnt:DebtInstrumentCovenantCoverageRatioScenarioOneMembergrnt:A2029SeniorNotesMemberus-gaap:SubsequentEventMemberus-gaap:UnsecuredDebtMember2025-11-050001928446us-gaap:LineOfCreditMembergrnt:DebtInstrumentCovenantCoverageRatioScenarioTwoMembergrnt:A2029SeniorNotesMemberus-gaap:SubsequentEventMember2025-11-050001928446grnt:DebtInstrumentCovenantCoverageRatioScenarioThreeMembergrnt:A2029SeniorNotesMembersrt:ProFormaMemberus-gaap:SubsequentEventMembersrt:MaximumMemberus-gaap:UnsecuredDebtMember2025-11-050001928446grnt:DebtInstrumentCovenantCoverageRatioScenarioTwoMembergrnt:A2029SeniorNotesMembersrt:ProFormaMemberus-gaap:SubsequentEventMembersrt:MinimumMemberus-gaap:UnsecuredDebtMember2025-11-050001928446grnt:GreyRockAdministrationLLCTheManagerMemberus-gaap:RelatedPartyMember2025-01-012025-09-300001928446grnt:InvestmentAdvisorUnderFundsControlMemberus-gaap:RelatedPartyMember2025-07-012025-09-300001928446grnt:InvestmentAdvisorUnderFundsControlMemberus-gaap:RelatedPartyMember2025-01-012025-09-300001928446grnt:InvestmentAdvisorUnderFundsControlMemberus-gaap:RelatedPartyMember2024-07-012024-09-300001928446grnt:InvestmentAdvisorUnderFundsControlMemberus-gaap:RelatedPartyMember2024-01-012024-09-300001928446grnt:AntidilutivePerformanceStockUnitsMember2025-07-012025-09-300001928446grnt:AntidilutivePerformanceStockUnitsMember2024-07-012024-09-300001928446grnt:AntidilutivePerformanceStockUnitsMember2025-01-012025-09-300001928446grnt:AntidilutivePerformanceStockUnitsMember2024-01-012024-09-300001928446grnt:AntidilutiveStockOptionsMember2025-07-012025-09-300001928446grnt:AntidilutiveStockOptionsMember2024-07-012024-09-300001928446grnt:AntidilutiveStockOptionsMember2025-01-012025-09-300001928446grnt:AntidilutiveStockOptionsMember2024-01-012024-09-300001928446us-gaap:SubsequentEventMember2025-10-012025-11-060001928446grnt:AssetAcquisitionsPermianBasinAndAppalachianBasinMemberus-gaap:SubsequentEventMember2025-10-012025-11-040001928446grnt:AppalachiaMemberus-gaap:SubsequentEventMember2025-10-012025-11-040001928446grnt:PermianBasinTexasMemberus-gaap:SubsequentEventMember2025-10-012025-11-040001928446grnt:CollarOilContract2025Membergrnt:FourthQuarterMemberus-gaap:SubsequentEventMember2025-10-310001928446grnt:CollarOilContract2026TotalMembergrnt:A2026Memberus-gaap:SubsequentEventMember2025-10-310001928446grnt:CollarOilContract2027TotalMembergrnt:A2027YearMemberus-gaap:SubsequentEventMember2025-10-310001928446grnt:SwapsOilContract2025Membergrnt:FourthQuarterMemberus-gaap:SubsequentEventMember2025-10-310001928446grnt:SwapsOilContract2026TotalMembergrnt:A2026Memberus-gaap:SubsequentEventMember2025-10-310001928446grnt:SwapsOilContract2027TotalMembergrnt:A2027YearMemberus-gaap:SubsequentEventMember2025-10-310001928446grnt:CollarNaturalGasContract2025Membergrnt:FourthQuarterMemberus-gaap:SubsequentEventMember2025-10-310001928446grnt:CollarNaturalGasContract2026TotalMembergrnt:A2026Memberus-gaap:SubsequentEventMember2025-10-310001928446grnt:CollarNaturalGasContract2027TotalMembergrnt:A2027YearMemberus-gaap:SubsequentEventMember2025-10-310001928446grnt:SwapsNaturalGasContract2026TotalMembergrnt:A2026Memberus-gaap:SubsequentEventMember2025-10-310001928446grnt:SwapsNaturalGasContract2027TotalMembergrnt:A2027YearMemberus-gaap:SubsequentEventMember2025-10-31

( Exact Name of Registrant as Specified in Its Charter )

(Registrant’s telephone number, including area code)

(Former name, former address and former fiscal year, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act:

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x No o

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes x No o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes o No x

As of November 3, 2025, there were 131,251,278 shares of our common stock, par value $0.0001, outstanding.

We are including the following discussion to inform our existing and potential security holders generally of some of the risks and uncertainties that can affect our company and to take advantage of the “safe harbor” protection for forward-looking statements that applicable federal securities law afford.

From time to time, our management or persons acting on our behalf may make "forward-looking statements," within the meaning of Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), to inform existing and potential security holders about our company. All statements other than statements of historical facts included in this Quarterly Report on Form 10-Q (this "Report"), including, without limitation, statements regarding our 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 flow, borrowing base under our Credit Agreement (as defined below), our intention or ability to pay or increase dividends on our capital stock, and impairment are forward-looking statements. When used in this Report, 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, sales, market size, collaborations, cash flows, 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 our company’s control) could cause actual results to differ materially from those set forth in the forward-looking statements, including the following:

•changes in current or future commodity prices and interest rates;

•supply chain disruptions;

•infrastructure constraints and related factors affecting our properties;

•our ability to acquire additional development opportunities and potential or pending acquisition transactions, as well as the effects of such acquisitions on our company’s cash position and levels of indebtedness;

•changes in our 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 our 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, 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;

•market conditions and global, regulatory, 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

•other factors discussed in our Annual Report on Form 10-K for the year ended December 31, 2024 (the "2024 Form 10-K") under “Risk Factors,” as updated by any subsequent Quarterly Reports on Form 10-Q, including this Report, which we file with the United States Securities and Exchange Commission (“SEC”).

We have based any forward-looking statements on our current expectations and assumptions about future events. While our 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 our 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.

Reserve engineering is a process of estimating underground accumulations of natural gas and oil that cannot be measured in an exact manner. The accuracy of any reserve estimate depends on the quality of available data, the interpretation of such data, and the price and cost assumptions made by reservoir engineers. In addition, the results of drilling, testing and production activities, or changes in commodity prices, may justify revisions of estimates that were made previously. If significant, such revisions would change the schedule of any further production and development drilling. Accordingly, reserve estimates may differ significantly from the quantities of natural gas and oil that are ultimately recovered.

Readers are urged not to place undue reliance on these forward-looking statements, which speak only as of the date of this Report. We assume no obligation to update any forward-looking statements in order to reflect any event or circumstance that may arise after the date of this Report, other than as may be required by applicable law or regulation. Readers are urged to carefully review and consider the various disclosures made by us in our reports filed with the SEC which attempt to advise interested parties of the risks and factors that may affect our business, financial condition, results of operations and cash flows. 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.

The accompanying notes are an integral part to these condensed consolidated financial statements.T

Granite Ridge Resources, Inc. (together with its consolidated subsidiaries, “Granite Ridge” or the “Company”), a Delaware corporation, 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 in multiple basins throughout North America.

A complete discussion of the Company’s significant accounting policies is included in the 2024 Form 10-K.

The condensed consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The accompanying condensed consolidated financial statements include the accounts of the Company and all of its wholly owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation.

The accompanying condensed consolidated financial statements of the Company have not been audited by the Company’s independent registered public accounting firm, except that the condensed consolidated balance sheet at December 31, 2024 is derived from audited consolidated financial statements. In the opinion of management, the accompanying condensed consolidated financial statements reflect all adjustments necessary to present fairly the Company’s condensed consolidated financial statements. All such adjustments are of a normal, recurring nature.

The preparation of the condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Significant estimates of reserves are used to determine depletion and to conduct impairment analysis. Estimating reserves is inherently uncertain, including the projection of future rates of production and the timing of development expenditures. Additional significant estimates include, but are not limited to, fair value of derivative financial instruments, fair value of equity investments, fair value of business combinations, asset retirement obligations, revenue receivable and income taxes. Actual results could differ from those estimates. The results for interim periods are not necessarily indicative of annual results.

Certain disclosures have been condensed in, or omitted from, these condensed consolidated financial statements. Accordingly, these notes to the condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes included in the Company’s 2024 Form 10-K.

Certain reclassifications have been made to prior period amounts to conform to the current period presentation.

The Company operates in one reporting segment, which is oil and natural gas development, exploration and production. All of the Company's operations are conducted in the geographic area of the United States. The reporting segment generates revenue through the sale of oil and natural gas. The Company’s chief operating decision maker (“CODM”), who is the Company’s Chief Executive Officer, manages operations on a consolidated basis for purposes of evaluating operational performance and allocating resources. Net income, as reported within the Company’s condensed consolidated statement of operations, is used by the CODM to assess performance for the oil and natural gas development, exploration and production segment. Significant segment expenses are the same as those reported in the condensed consolidated statement of operations. Total assets, as reported within the Company’s condensed consolidated balance sheets, is the measure of segment assets.

The Company uses the successful efforts method of accounting for oil and natural gas producing activities, as further defined under Accounting Standards Codification ("ASC") 932, Extractive Activities - Oil and Gas (“ASC 932”).

Costs to acquire mineral interests in oil and gas properties, to drill and equip exploratory leases that find proved reserves, and to drill and equip development leases and related asset retirement costs are capitalized. Costs to drill exploratory wells are capitalized pending determinations of whether the wells have proved reserves. If the Company determines that the wells do not have proved reserves, the costs are charged to expense.

Capitalized leasehold costs relating to proved properties are depleted using the unit-of-production method based on proved reserves. The depletion of capitalized drilling and development costs and integrated assets is based on the unit-of-production method using proved developed reserves. The Company recognized depletion expense of $55.7 million and $43.9 million for the three months ended September 30, 2025 and 2024, respectively, and $157.1 million and $126.1 million for the nine months ended September 30, 2025 and 2024, respectively.

The Company reviews its long-lived assets to be held and used, including proved oil and natural gas properties, whenever events or circumstances indicate that the carrying value of those assets may not be recoverable; for instance, when there are declines in commodity prices or well performance. An impairment loss is indicated if the sum of the expected undiscounted future net cash flows is less than the carrying amount of the assets. For each property determined to be impaired, an impairment loss equal to the difference between the carrying value of the properties and the estimated fair market value is recognized at that time. The fair value of impaired assets is determined using the market or income valuation approach. The income approach is calculated using a discounted cash flow model. Discounted future cash flows use a discount rate similar to that used by market participants, or comparable market value if available. Estimating future cash flows involves the use of judgments, including estimation of the proved and risk-adjusted unproved oil and natural gas reserve quantities, timing of development and production, expected future commodity prices, capital expenditures and production costs. No proved property impairment was recorded for the three or nine months ended September 30, 2025 or 2024.

Unproved oil and natural gas properties are periodically assessed for impairment by considering future drilling and exploration plans, results of exploration activities, commodity price outlooks, planned future sales and expiration of all or a portion of the projects. During the first quarter of 2024, we recognized impairment expense of $0.7 million on unproved properties in the Permian Basin as the operator of those properties no longer intends to drill certain locations. No unproved property impairment was recorded for the three and nine months ended September 30, 2025.

In December 2023, the Company completed the sale of certain of its Permian Basin assets to Vital Energy, Inc. ("Vital Energy") for consideration of 561,752 shares of Vital Energy's common stock and 541,155 shares of Vital Energy's 2.0% cumulative mandatorily convertible preferred securities. On June 4, 2024, the 2.0% cumulative mandatorily convertible preferred securities were converted into the equivalent number of shares of Vital Energy’s common stock. During the second quarter of 2025, the Company divested 342,636 shares of Vital Energy’s common stock and realized a loss on sale of $10.5 million, which is included in gain (loss) on equity investments within the Company’s condensed consolidated statements of operations for the nine months ended September 30, 2025. During the three months ended September 30, 2024 the Company divested 75,000 shares of Vital Energy’s common stock and realized a gain on sale of $0.1 million included in gain (loss) on equity investments within the Company’s condensed consolidated statements of operations. As of September 30, 2025, the Company held 685,271 shares of Vital Energy’s common stock.

The Company follows the guidance in ASC 321, Investments - Equity Securities ("ASC 321") for its investment in the common and preferred stock of Vital Energy. ASC 321 requires equity investments with readily determinable fair values to be measured at fair value, with unrealized holding gains and losses recorded as a gain or loss in the condensed consolidated statements of operations. For the preferred stock that did not have a readily determinable fair value, the Company did not elect the measurement alternative in ASC 321 and instead accounted for the preferred stock at fair value with unrealized gains and losses recorded through net income for the periods until the preferred stock was converted into common stock. The Company recognized an unrealized gain of $0.5 million and unrealized loss of $4.7 million for the three and nine months ended September 30, 2025, respectively, included in gain (loss) on equity investments within the Company’s condensed consolidated statements of operations that accounts for the change in fair value of the common stock. For the three and nine months ended September 30, 2024, the Company recognized an unrealized loss of $18.4 million and $19.4 million, respectively, that reflects the change in fair value of the common and preferred stock.

The Company’s revenues are primarily derived from its interests in the sale of oil and natural gas production. The Company recognizes revenue from its interests in the sales of oil and natural gas in the period that its performance obligations are satisfied.

Performance obligations are satisfied when the customer obtains control of the product, when the Company has no further obligations to perform related to the sale, when the transaction price has been determined, and when collectability is probable.

The Company receives payment from the sale of oil and natural gas production from one to three months after delivery. The transaction price is variable as it is based on market prices for oil and natural gas, less revenue deductions such as gathering, transportation, and compression costs. Management has determined that the variable revenue constraint is overcome at the date control passes to the customer since the variable consideration to be received can be reasonably estimated based on daily market prices and historical transportation charges. Revenue is presented net of these costs within the condensed consolidated statements of operations. At the end of each month when the performance obligation is satisfied, the variable consideration can be reasonably estimated and amounts due from customers are accrued in revenue receivable in the condensed consolidated balance sheets. Variances between the Company’s estimated revenue and actual payments are recorded in the month the payment is received; however, differences have been and are insignificant.

The Company does not disclose the value of unsatisfied performance obligations under its contracts with customers as it applies the practical expedient in accordance with ASC 606. The expedient, as described in ASC 606-10-50-14(a), applies to variable consideration that is recognized as control of the product is transferred to the customer. Since each unit of product represents a separate performance obligation, future volumes are wholly unsatisfied, and disclosure of the transaction price allocated to remaining performance obligations is not required.

Under certain arrangements, the Company has the right to take a volume of unprocessed gas in kind at the operator's wellhead, representing its proportionate share of its natural gas production, in lieu of receiving a net payment from the operator. The Company currently takes certain natural gas volumes in kind in lieu of monetary settlement. When the Company elects to take volumes in kind, it pays third parties to transport the natural gas it took in kind to downstream delivery points, where it then sells to customers at prices applicable to those downstream markets. In such situations, revenues are recognized during the month in which control transfers to the customer at the delivery point and it is probable the Company will collect the consideration it is entitled to receive. Sales proceeds are generally received by the Company within one month after the month in which a sale has occurred. In these scenarios, gathering and processing costs and transportation expenses the Company incurs to transport the volumes to downstream customers are recorded in lease operating expenses in the condensed consolidated statements of operations.

The Company’s disaggregated revenue has two primary sources: oil sales and natural gas sales. Substantially all of the Company’s oil and natural gas sales come from six geographic areas in the United States: the Eagle Ford Basin (Texas), the Permian Basin (Texas/New Mexico), the Haynesville Basin (Texas/Louisiana), the Denver-Julesburg “DJ” Basin (Colorado), the Bakken Basin (Montana/North Dakota), and the Appalachian Basin (Ohio). The following tables present the disaggregation of the Company’s oil and natural gas revenues by basin for the three and nine months ended September 30, 2025 and 2024.

In December 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures ("ASU 2023-09"), which requires disaggregated information about a reporting entity’s effective tax rate reconciliation as well as information on income taxes paid. The standard is intended to benefit investors by providing more detailed income tax disclosures that would be useful in making capital allocation decisions. ASU 2023-09 was effective for annual periods beginning after December 15, 2024, with early adoption permitted. The Company is currently assessing the effect that ASU 2023-09 will have on its disclosures.

In November 2024, the FASB issued ASU No. 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses ("ASU 2024-03"), which requires enhanced disclosure about specific types of expenses included in the expense captions presented on the face of the consolidated statement of operations as well as disclosures about selling expenses. ASU 2024-03 is effective for annual periods beginning after December 15, 2026 and interim periods beginning after December 15, 2027, with early adoption permitted. The Company is currently assessing the effect that ASU 2024-03 will have on its disclosures.

The Company uses derivative financial instruments in connection with its oil and natural gas operations to provide an economic hedge of the Company’s exposure to commodity price risk associated with anticipated future oil and natural gas production. The Company does not hold or issue derivative financial instruments for speculative trading purposes.

The Company does not designate its derivative instruments to qualify for hedge accounting. Accordingly, the Company reflects changes in the fair value of its derivative instruments in its condensed consolidated statements of operations as they occur.

The Company’s derivative financial instruments consist of collar option contracts and swaps.

A collar option is established with the sale of a short call option (ceiling price) and the purchase of a long put option (floor price) set to expire at a predetermined date in the future. The options give the owner the right but not the obligation to exercise the option at the expiration date.

When the settlement price is below the established floor price, the Company receives an amount from its counterparty equal to the difference between the settlement price and the floor price multiplied by the hedged contract volume. When the settlement price is above the established ceiling price, the Company pays its counterparty an amount equal to the difference between the settlement price and the ceiling price multiplied by the hedged contract volume. When the settlement price is between the established floor and the ceiling, no amounts are due to or from the counterparty.

A swap contract allows the Company to receive a fixed price and pay a floating market price to the counterparty for the hedged commodity.

The Company has master netting agreements on individual derivative instruments with its counterparties and therefore certain amounts may be presented on a net basis in the condensed consolidated balance sheets.

The following table sets forth the Company’s outstanding commodity derivative contracts as of September 30, 2025.

The following table summarizes the amounts reported as gain (loss) on derivatives - commodity derivatives in the condensed consolidated statements of operations for the three and nine months ended September 30, 2025 and 2024:

The Company has adopted and follows ASC 820, Fair Value Measurements and Disclosures, for measurement and disclosures about fair value of its financial instruments. ASC 820 establishes a framework for measuring fair value in U.S. GAAP, and expands disclosures about fair value measurements. To increase consistency and comparability in fair value measurements and related disclosures, ASC 820 establishes a fair value hierarchy which prioritizes the inputs to valuation techniques used to measure fair value into three (3) broad levels.

The fair value hierarchy gives the highest priority to quoted prices (unadjusted) in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. The three (3) levels of fair value hierarchy defined by ASC 820 are:

Level 1 — Inputs are unadjusted, quoted prices in active markets for identical assets or liabilities at the measurement date.

Level 2 — Inputs (other than quoted market prices included in Level 1) are either directly or indirectly observable for the asset or liability through correlation with market data at the measurement date and for the duration of the instrument’s anticipated life.

Level 3 — Inputs reflect management’s best estimate of what market participants would use in pricing the asset or liability at the measurement date. Consideration is given to the risk inherent in the valuation technique and the risk inherent in the inputs to the model. Valuation of instruments includes unobservable inputs to the valuation methodology that are significant to the measurement of fair value of assets or liabilities.

As defined by ASC 820, the fair value of a financial instrument is the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale, which was further clarified as the price that would be received to sell an asset or paid to transfer a liability (“an exit price”) in an orderly transaction between market participants at the measurement date.

As required, financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. The Company’s assessment of the significance of a particular input requires judgment and may affect the valuation of fair value assets and liabilities and their placement within the fair value hierarchy levels.

The following table presents the carrying amounts and fair values of the Company’s financial instruments as of September 30, 2025 and December 31, 2024:

Revolving credit facilities — The carrying amounts of the revolving credit facilities approximate their fair values, as the applicable interest rates are variable and reflective of market rates.

Other financial assets and liabilities — The carrying amounts of the Company’s other financial assets and liabilities, such as revenue receivable and accrued liabilities, approximate their fair values because of the short maturity of these instruments.

Derivative instruments - commodity derivatives — The fair value of the Company’s derivative instruments is estimated by management considering various factors, including closing exchange and over-the-counter quotations and the time value of the underlying commitments. The fair value of the Company’s commodity derivative instruments is considered to be a Level 2 measurement. Substantially all of these inputs are observable in the marketplace throughout the full term of the derivative instrument, can be derived from observable data, or supported by observable levels at which transactions are executed in the marketplace. The Company’s valuation models are primarily industry-standard models that consider various inputs including: (i) quoted forward prices for commodities, (ii) current market and contractual prices for the underlying instruments, (iii) applicable credit-adjusted risk-free rate curves, as well as other relevant economic measures.

Equity investments — The fair value of the Company’s investment in Vital Energy's common stock was valued using the instrument's publicly listed trading price, which is considered to be a Level 1 measurement due to the use of an observable market quote in an active market. The fair value of the Company's investment in Vital Energy's preferred stock was estimated by management considering various factors, including the publicly listed trading price of Vital Energy's common shares and the present value of expected dividends prior to the conversion of the preferred shares. The fair value of the investment in preferred stock was considered to be a Level 2 measurement. Substantially all of these inputs are observable in the marketplace throughout the full term of the instrument, can be derived from observable data, or are supported by observable levels at which transactions are executed in the marketplace.

On June 4, 2024, the 2.0% cumulative mandatorily convertible preferred securities of Vital Energy were converted into 541,155 shares of common stock of Vital Energy. Prior to this conversion, the common shares of Vital Energy owned by the Company were not entitled to vote and bore a restricted legend to that effect. As of September 30, 2025 and December 31, 2024, the Company held 685,271 and 1,027,907 shares, respectively, of Vital Energy’s common stock, for which the fair value is a Level 1 measurement.

Financial assets and liabilities are classified based on the lowest level of input that is significant to the fair value measurement. The Company’s assessment of the significance of a particular input to the fair value measurement requires judgment and may affect the valuation of the fair value of assets and liabilities and their placement within the fair value hierarchy levels. The following tables summarize (i) the valuation of each of the Company’s financial instruments by required fair value hierarchy levels and (ii) the gross fair value by the appropriate balance sheet classification, even when the derivative instruments are subject to netting arrangements and qualify for net presentation in the Company’s condensed consolidated balance sheets as of September 30, 2025 and December 31, 2024. The Company nets the fair value of commodity derivative instruments by counterparty in the Company’s condensed consolidated balance sheets.

Asset retirement obligations — The fair value measurements of asset retirement obligations are measured on a nonrecurring basis when a well is drilled or acquired or when production equipment and facilities are installed or acquired using a discounted cash flow model based on inputs that are not observable in the market and therefore represent Level 3 inputs. Significant inputs to the fair value measurement of asset retirement obligations include estimates of the costs of plugging and abandoning oil and natural gas wells, removing production equipment and facilities and restoring the surface of the land as well as estimates of the economic lives of the oil and natural gas wells and future inflation rates.

During the nine months ended September 30, 2025 and 2024, the Company acquired various oil and natural gas properties. The following table presents the cumulative adjusted purchase price of transactions accounted for as asset acquisitions in accordance with ASC Topic 805, Business Combinations (“ASC 805”) by basin included in oil and gas properties on the Company’s condensed consolidated balance sheets:

In addition, during the nine months ended September 30, 2024, the Company recorded closing adjustments that reduced the acquisition price of business combinations completed during 2023 by $1.5 million.

During the nine months ended September 30, 2025 and 2024, the Company divested of certain proved and unproved properties for total proceeds of $0.2 million and $3.9 million, respectively. During the nine months ended September 30, 2025, proceeds from the divested unproved properties of $0.1 million resulted in a gain on sale, which is included in other, net in the condensed consolidated statements of operations.

The Granite Ridge Resources, Inc. 2022 Omnibus Incentive Plan (the “Plan”) provides the Company the ability to grant, among other award types, stock options, restricted stock awards, and performance stock units ("PSUs") to directors, officers, employees and consultants or advisors employed by or providing service to the Company.

During the nine months ended September 30, 2025 and 2024, the Company granted restricted stock awards, stock options, and PSUs. Stock-based compensation expense during the three and nine months ended September 30, 2025 was $1.3 million and $2.4 million, respectively. Stock-based compensation expense during the three and nine months ended September 30, 2024 was $0.6 million and $1.7 million, respectively.

Restricted Stock Awards - The Company grants service-based restricted stock awards to certain of its employees and consultants under the Plan, which generally vest ratably over a period of three years or cliff vest at the end of five years, and to non-employee directors, which vest in full after one year. Restricted stock awards are valued at the closing price of the Company's common stock on the date of grant. All restricted shares are legally issued and outstanding. If an employee terminates employment prior to the restriction lapse date, the awarded shares are forfeited and canceled and are no longer considered issued and outstanding. For restricted stock awards granted prior to March 2025, the holders of such unvested restricted stock awards have voting rights and the right to receive dividends. For restricted stock awards granted in March 2025 and thereafter, the holders of such unvested restricted stock awards do not have voting rights but do have the right to receive dividends. The Company recognizes compensation expense utilizing graded vesting whereby compensation expense is recognized over the service period for each separately vesting tranche.

PSUs - The Company grants PSUs to certain of its officers under the Plan. PSUs represent the contingent right to receive shares of the Company’s common stock once the PSU is vested and earned. PSUs, other than those granted during the three months ended June 30, 2025, cliff vest at the end of three years, generally subject to continued employment through the performance period. The total number of shares eligible to be earned may range from zero to 200% of the target number of PSUs granted, determined based upon achievement of certain "financial performance" and "market performance" criteria for the Company and individual performance criteria for the officers awarded PSUs. Financial performance is based on the Company's financial performance at the end of the applicable performance period, while market performance is based on the relative standing of total shareholder return (“TSR”) achieved by the Company compared to the TSR achieved by a predetermined group of peer companies at the end of the applicable performance period. Individual performance criteria is based on the officers' performance relative to individual performance goals at the end of the performance period. The Company utilizes the Monte Carlo simulation method to determine the fair value of the PSUs based on market performance, while PSUs based on financial performance are valued using the closing price of the Company's common stock on the date of grant.

During the second quarter of 2025, the Company granted 644,330 PSUs to certain of its officers under the Plan. These PSUs are eligible to vest, generally subject to continued employment, upon the satisfaction of certain stock price thresholds during the performance period, which ends on December 31, 2032. Each such PSU is earned based on whether the Company’s stock price achieves a target average stock price for any 20 consecutive trading days during the performance period. If the stock price thresholds are not met by the end of the performance period, the PSUs will be forfeited and no shares of common stock will be issued. Compensation expense for these awards is based on the grant date fair market value of the award, calculated using a Monte Carlo simulation, and such costs are recorded on a straight-line basis over the derived requisite service period for each separately vesting portion of the award, as if the award was, in-substance, multiple awards, as applicable. During the three months ended September 30, 2025, the Company did not grant any additional PSUs under the Plan.

Stock Options - The Company grants stock options to certain of its officers under the Plan. The Company's outstanding stock options expire 10 years following the date of grant. Pursuant to the stock options granted under the Plan, 33% of the options vest immediately with an additional 33% to vest on each of the next two anniversaries of the date of the grant, generally subject to continued employment through each such vesting date. During the first quarter of 2025, the Company granted 110,257 stock options with an exercise price of $5.61 per share. During the first quarter of 2024, the Company granted 134,375 stock options with an exercise price per share of $6.06.

Stock Awards - The Company may issue other awards to its employees and consultants under the Plan.

A summary of the Company’s activity under the Plan for the restricted stock awards, PSUs and stock options for the nine months ended September 30, 2025 is presented below:

A summary of the Company’s activity under the Plan for the restricted stock awards, PSUs and stock options for the nine months ended September 30, 2024 is presented below:

On July 4, 2025, President Trump signed the One Big Beautiful Bill Act (“OBBBA”) into law. The OBBBA includes, among other things, a permanent extension of 100% bonus depreciation for certain capital expenditures and modifications to the interest expense limitation under Section 163(j). In accordance with ASC Topic 740, Income Taxes, the effects of the tax law are recognized in the period of enactment and, as a result, the Company recognized the impacts of the OBBBA legislation in its unaudited condensed consolidated financial statements for the three and nine months ended September 30, 2025. The effective income tax rates and the total income tax provision were not materially impacted by the enactment of the OBBBA for the three and nine months ended September 30, 2025.

The Company is a C corporation and subject to U.S. federal, state, and local income taxes. The Company records income taxes through the use of an estimated annual effective tax rate and specific events that are discretely recognized as they occur. For the three and nine months ended September 30, 2025, the Company recorded income tax expense of $4.8 million and $15.4 million, respectively. For the three and nine months ended September 30, 2024, the Company recorded income tax expense of $4.3 million and $10.8 million, respectively.

At the end of each interim period, the Company applies an estimated annualized effective tax rate to the current period income or loss before income taxes, which can produce interim effective tax rate fluctuations. The Company’s effective income tax rate was 24.7% and 23.8% for the three and nine months ended September 30, 2025, respectively. For the three and nine months ended September 30, 2024, the Company’s effective income tax rate was 32.4% and 26.3%, respectively.

The effective tax rate differs from the enacted statutory rate of 21% primarily due to the impact of certain discrete items and state income taxes.

The Company has evaluated all tax positions for which the statute of limitations remains open and believes that the material positions taken would more likely than not be sustained upon examination. Therefore, as of September 30, 2025 and December 31, 2024, the Company had no unrecognized tax benefits and did not recognize any interest or penalties during those respective periods related to unrecognized tax benefits.

The carrying value of the Company’s total debt was $300.0 million and $205.0 million at September 30, 2025 and December 31, 2024, respectively.

On October 24, 2022, Granite Ridge entered into a senior secured revolving credit agreement (as amended, the “Credit Agreement”) with a syndicate of banks, currently led by Bank of America, N.A., as administrative agent. The Credit Agreement has a maturity date of five years from the effective date thereof, or October 24, 2027.

On April 29, 2025, the Company and its lenders entered into the Fifth Amendment to Credit Agreement, which amended the Credit Agreement to, among other things, (i) increase the borrowing base from $325.0 million to $375.0 million, and (ii) increase the aggregate elected commitments from $325.0 million to $375.0 million.

The Company and the Required Lenders (as defined in the Credit Agreement) may request one unscheduled redetermination of the borrowing base between each scheduled redetermination. The amount of the borrowing base is determined by the lenders in their sole discretion and consistent with the oil and gas lending criteria of the lenders at the time of the relevant redetermination. The amount the Company is able to borrow under the Credit Agreement is subject to compliance with the financial covenants, satisfaction of various conditions precedent to borrowing and other provisions of the Credit Agreement.

(i)a leverage ratio, which is the ratio of Consolidated Total Debt to EBITDAX (each as defined in the Credit Agreement), of not greater than 3.00 to 1.00 as of the last day of any fiscal quarter, and

(ii)a Current Ratio (as defined in the Credit Agreement), of not less than 1.00 to 1.00 as of the last day of each fiscal quarter.

At September 30, 2025, the Company was in compliance with all covenants required by the Credit Agreement.

On November 5, 2025, the Company and its lenders entered into the Sixth Amendment to Credit Agreement, which amended the Credit Agreement to, among other things, (i) reaffirm the borrowing base and aggregate elected commitment amounts at $375.0 million, (ii) permit the issuance of the 2029 Senior Notes (as defined below), (iii) extend the maturity date to the earliest to occur of (A) November 5, 2029 or (B) the date that is ninety-one days prior to the stated maturity date of the 2029 Senior Notes if any 2029 Senior Notes remain outstanding on such date, and (iv) adjust the interest payable on (A) SOFR loans to interest at a rate per annum equal to SOFR plus an applicable margin ranging from 275 to 375 basis points, depending on the percentage of the borrowing base utilized and (B) base rate loans to interest at a rate per annum equal to the greatest of: (a) the U.S. prime rate as published by the Wall Street Journal; (b) the federal funds effective rate plus 50 basis points; (c) the adjusted SOFR rate for a one-month interest period plus 100 basis points; and (d) 100 basis points, plus, in the case of any base rate loan, an applicable margin ranging from 175 to 275 basis points, depending on the percentage of the borrowing base utilized.

On November 5, 2025, the Company, as issuer, completed an issuance of $350.0 million aggregate principal amount of 8.875% senior unsecured notes at 96.0% of par with stated maturity on November 5, 2029 (the “2029 Senior Notes”) pursuant to a note purchase agreement (the “Note Purchase Agreement”). The Company used the net proceeds from issuance of the 2029 Senior Notes to repay certain amounts under the Credit Agreement and to pay related fees and expenses. The Note Purchase Agreement allows the ability for the Company to incur up to $100.0 million of incremental notes for purposes of acquisition financing, subject to, among other things, the willingness of holders to provide such incremental notes and a pro forma net leverage ratio not greater than 2.00 to 1.00.

The 2029 Senior Notes includes certain covenants, which, among other things, requires the maintenance of (i) a net leverage ratio not greater than 3.25 to 1.00 and an (ii) asset coverage ratio greater than or equal to (A) for each Fiscal Quarter ending prior to December 31, 2026, 1.25 to 1.00 and (B) for each Fiscal Quarter ending on or after December 31, 2026, 1.50 to 1.00. The 2029 Senior Notes also contain a total leverage ratio and asset coverage ratio basket for Restricted Payments (as defined in the 2029 Senior Notes), which permits Restricted Payments in the form of cash distributions so long as, subject to certain other conditions, the leverage ratio, after giving pro forma effect to such Restricted Payments, cannot exceed 1.75 to 1.00, and the asset coverage ratio, after giving effect to such Restricted Payments, must be greater than or equal to 1.50 to 1.00. Upon issuance of the 2029 Senior Notes, the Company must maintain a minimum hedging requirement included within the Senior Notes for oil and natural gas based on our proved developed producing projected volumes for each commodity on a rolling 18-month basis.

The Senior Notes are general unsecured obligations ranking equally in right of payment with all other senior unsecured indebtedness of the Company and are senior in right of payment to all existing and future subordinated indebtedness of the Company. The Note Purchase Agreement contains customary terms and covenants and events of default, including limitations on the Company’s ability to incur additional secured and unsecured indebtedness.

Common Stock Dividends - The Company paid dividends of $14.4 million, or $0.11 per share, and $43.2 million, or $0.33 per share during the three and nine months ended September 30, 2025, respectively. For the three and nine months ended September 30, 2024, the Company paid dividends of $14.4 million, or $0.11 per share, and $43.1 million, or $0.33 per share, respectively. Any payment of future dividends will be at the discretion of the Company’s Board of Directors.

Upon formation in 2022, Granite Ridge entered into a Management Services Agreement (the "MSA") with Grey Rock Administration, LLC (the “Manager”). Under the MSA, the Manager provides general management, administrative, and operating services covering the oil and gas assets and other properties of the Company and other day-to-day business and affairs of the Company. In accordance with the MSA, the Company pays the Manager an annual services fee of $10.0 million and reimburses the Manager for certain Granite Ridge group costs related to the operation of the Company’s assets (including for third party costs allocated or attributable to the assets of the Company). The initial term of the MSA expires on April 30, 2028; however, the MSA will automatically renew for additional consecutive one-year renewal terms until terminated in accordance with its terms. Upon any termination of the MSA, the Manager shall provide transition services for a period of up to 90 days.

For the three and nine months ended September 30, 2025, service fees for the Company under the MSA were approximately $2.5 million and $7.5 million, respectively, and are included in general and administrative expenses within the accompanying condensed consolidated statements of operations. For the three and nine months ended September 30, 2024, service fees for the Company under the MSA of $2.5 million and $7.5 million, respectively, were consistent with the same periods of 2025.

As a non-operator, 100% of the Company’s wells are operated by third-party operating partners. As a result, the Company is highly dependent on the success of these third-party operators. If they are not successful in the development, exploitation, production and exploration activities relating to the Company’s leasehold interests, or are unable or unwilling to perform, the Company’s financial condition and results of operations could be adversely affected. These risks are heightened in a low commodity price environment, which may present significant challenges to these third-party operators. The Company’s third-party operators will make decisions in connection with their operations that may not be in the Company’s best interests, and the Company may have little or no ability to exercise influence over the operational decisions of its third-party operators.

In the normal course of business, the Company maintains its cash balances in financial institutions, which at times may exceed federally insured limits. The Company is subject to credit risk to the extent any financial institution with which it conducts business is unable to fulfill contractual obligations on its behalf. Management monitors the financial condition of such financial institutions and does not anticipate any losses from these counterparties.

Derivative Counterparties - The Company uses credit and other financial criteria to evaluate the creditworthiness of counterparties to its derivative instruments. The Company believes that all of its derivative counterparties are currently acceptable credit risks. All of the Company’s outstanding derivative instruments are covered by International Swap Dealers Association Master Agreements (“ISDAs”) entered into with parties that are also lenders under the Company’s Credit Agreement. The Company’s obligations under the derivative instruments are secured pursuant to the Credit Agreement, and no additional collateral has been posted by the Company.

The Company uses the two-class method of calculating earnings per share because certain of the Company’s unvested stock-based awards qualify as participating securities.

The Company’s basic earnings (loss) per share attributable to common stockholders is computed as (i) net income (loss) as reported, (ii) less participating basic earnings (iii) divided by weighted average basic common shares outstanding. The Company’s diluted earnings (loss) per share attributable to common stockholders is computed as (i) basic earnings (loss)

attributable to common stockholders, (ii) plus reallocation of participating earnings (iii) divided by weighted average diluted common shares outstanding.

The computation of diluted net income per share excludes contingently issuable shares related to certain market-based equity awards as the required market price conditions had not been satisfied as of the end of the reporting period. These awards represent 644,330 shares of common stock that may be issued if specified market price targets are achieved. Because the market conditions were not met as of September 30, 2025, the shares were not included in the diluted weighted-average share count. If the market conditions are satisfied in future periods, these shares could have a dilutive effect on earnings per share.

The following table presents the basic and diluted earnings per share computations for the three and nine months ended September 30, 2025 and 2024:

The following table is a summary of the PSUs and stock options, which were not included in the computation of diluted earnings per share, as inclusion of these items would be antidilutive.

The Company’s Board of Directors declared a regular quarterly cash dividend of $0.11 for the fourth quarter of 2025. The dividend will be paid on December 15, 2025 to stockholders of record as of November 28, 2025.

On November 5, 2025, the Company, as issuer, completed an issuance of $350.0 million aggregate principal amount of 8.875% senior unsecured notes at 96.0% of par with stated maturity on November 5, 2029 pursuant to a note purchase agreement. The Company used the net proceeds from the issuance of 2029 Senior Notes to repay certain amounts under the Credit Agreement and to pay related fees and expenses. See Note 8 of the Notes to Condensed Consolidated Financial Statements for further details on the 2029 Senior Notes.

Subsequent to September 30, 2025, the Company closed on various acquisitions of oil and gas properties for a total purchase price of $16.5 million, of which $13.7 million were in the Appalachian Basin and $2.8 million in the Permian Basin.

In October 2025, the Company entered into the following oil and natural gas derivative contracts to hedge additional amounts of estimated future production.

Item 2. Management’s Discussion and Analysis of Financial Conditions and Results of Operations

The following discussion contains “forward‑looking statements” reflecting our current expectations, estimates and assumptions concerning events and financial trends that may affect our future operating results or financial position. Actual results and the timing of events may differ materially from those contained in these forward‑looking statements due to a number of factors. Factors that could cause or contribute to such differences include, but are not limited to, market prices for oil and natural gas, capital expenditures, economic and competitive conditions, regulatory changes and other uncertainties, as well as those factors discussed below and elsewhere in this Report. Please read “Cautionary Note Regarding Forward‑Looking Statements.” Also, please read the risk factors and other cautionary statements described under “Part I, Item 1A. Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2024 (the "2024 Form 10-K") and elsewhere in this Report. We assume no obligation to update any of these forward‑looking statements, except as required by applicable law.

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 opportunities 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.

Our revenues, cash flows from operations and future growth depend substantially upon:

•the timing and success of drilling and production activities by our operating partners;

•the prices and the supply and demand for oil and natural gas;

•the quantity of oil and natural gas production from the wells in which we participate;

•changes in the fair value of the derivative instruments we use to reduce our exposure to fluctuations in the price of oil and natural gas;

•our ability to continue to identify and acquire high-quality acreage and drilling opportunities; and

•the level of our operating expenses.

In addition to the factors that affect companies in our industry generally, the location of substantially all of our acreage in the Eagle Ford, Permian, Bakken, Haynesville, Denver-Julesburg, and Appalachian Basins subjects our operating results to factors specific to these regions. These factors include the potential adverse impact of weather on drilling, production and transportation activities, particularly during the winter and spring months, as well as infrastructure limitations, transportation capacity, regulatory matters, and other factors that may specifically affect one or more of these regions.

The price of oil and natural gas can vary depending on the market in which it is sold and the means of transportation used to transport the oil and natural gas to market.

The price at which our oil and natural gas production is sold typically reflects either a premium or discount to the NYMEX benchmark price. Thus, our operating results are also affected by changes in the oil and natural gas price differentials between the applicable benchmark and the sales prices we receive for our oil and natural gas production.

Our oil price differential to the NYMEX benchmark price during the three months ended September 30, 2025 and 2024 was a discount of $(4.16) per barrel and $(2.99) per barrel, respectively. For the nine months ended September 30, 2025 and 2024, our oil price differential to the NYMEX benchmark price was a discount of $(3.42) per barrel and $(2.27) per barrel, respectively.

Our natural gas price differential to the average NYMEX price during the three months ended September 30, 2025 and 2024 was a discount of $(0.64) per Mcf and $(0.87) per Mcf, respectively. For the nine months ended September 30, 2025 and 2024, our natural gas price differential to the average NYMEX price was a discount of $(0.59) per Mcf and $(0.43) per Mcf, respectively.

The price that we receive for the oil and natural gas our operators produce is largely a function of market supply and demand. Because our oil and natural gas revenues are heavily weighted toward oil, we are more significantly impacted by changes in oil prices than by changes in the price of natural gas. Worldwide supply in terms of output, especially production from properties within the United States, the production quota set by OPEC, and the strength of the U.S. dollar can adversely impact oil prices.

Historically, commodity prices have been volatile, and we expect that volatility to continue in the future. Although we cannot predict the occurrence of events that may affect future commodity prices, or the degree to which these prices will be affected, the prices for any commodity that we produce will generally approximate current market prices in the geographic region of the production. From time to time, we expect that we may hedge a portion of our commodity price risk to mitigate the impact of price volatility on our business.

Prices for various quantities of oil and natural gas that we produce significantly impact our revenues and cash flows. The following table lists average NYMEX spot prices for oil and natural gas for the three and nine months ended September 30, 2025 and 2024.

For the three months ended September 30, 2025, the average NYMEX oil pricing was $65.78 per barrel of oil, or 14% lower than the average NYMEX price per barrel for the three months ended September 30, 2024. Our settled derivatives increased our realized oil price per barrel by $0.02 for the three months ended September 30, 2025 and increased our realized oil price per barrel by $0.55 for the three months ended September 30, 2024. For the three months ended September 30, 2025, our average realized oil price per barrel after reflecting settled derivatives was $61.64 compared to $73.99 for the three months ended September 30, 2024. For the nine months ended September 30, 2025, the average NYMEX oil pricing was $67.31 per barrel of oil, or 14% lower than the average NYMEX price per barrel for the nine months ended September 30, 2024. Our settled derivatives increased our realized oil price per barrel by $0.16 for the nine months ended September 30, 2025 and increased our realized oil price per barrel by $0.11 for the nine months ended September 30, 2024. For the nine months ended September 30, 2025, our average realized oil price per barrel after reflecting settled derivatives was $64.05 compared to $76.42 for the nine months ended September 30, 2024.

For the three months ended September 30, 2025, the average NYMEX natural gas pricing was $3.03 per Mcf, or 44% higher than the average NYMEX price per Mcf for the three months ended September 30, 2024. Our settled derivatives increased our realized natural gas price per Mcf by $0.20 for the three months ended September 30, 2025 and increased our realized natural gas price per Mcf by $0.74 for the three months ended September 30, 2024. For the three months ended September 30, 2025, our average realized natural gas price per Mcf after reflecting settled derivatives was $2.59 compared to $1.98 for the three months ended September 30, 2024. For the nine months ended September 30, 2025, the average NYMEX natural gas pricing was $3.45 per Mcf, or 64% higher than the average NYMEX price per Mcf for the nine months ended September 30, 2024. Our settled derivatives increased our realized natural gas price per Mcf by $0.08 for the nine months ended September 30, 2025 and increased our realized natural gas price per Mcf by $0.58 for the nine months ended September 30, 2024. For the nine months ended September 30, 2025, our average realized natural gas price per Mcf after reflecting settled derivatives was $2.94 compared to $2.26 for the nine months ended September 30, 2024.

The following table sets forth summary production and operating data for the periods indicated. Because of normal production declines, increased or decreased drilling activities, fluctuations in commodity prices and the effects of acquisitions and divestitures, the historical information presented below should not be interpreted as being indicative of future results.

Our revenues vary from year to year primarily due to changes in realized commodity prices and production volumes. Our oil and natural gas sales for the three months ended September 30, 2025 increased 20% from the same period in 2024. Oil revenues for the three months ended September 30, 2025 increased by 8% compared to the same period in 2024, driven by a 28% increase in production, partially offset by a 16% decrease in realized prices, excluding the effect of settled commodity derivatives. Natural gas revenues increased by 142% for the three months ended September 30, 2025 compared to 2024, driven by a 93% increase in realized natural gas prices, excluding the effect of settled commodity derivatives, and a 25% increase in production.

Our oil and natural gas sales for the nine months ended September 30, 2025 increased 26% from the same period in 2024. Oil revenues increased by 14% compared to the same period in 2024, driven by a 37% increase in production, partially offset by a 16% decrease in realized prices, excluding the effect of settled commodity derivatives. Natural gas revenues increased by 105% compared to the same period in 2024 as a result of a 70% increase in realized natural gas prices, excluding the effect of settled commodity derivatives, and a 20% increase in production.

Production from oil and gas properties increased as a result of drilling success and the acquisition of additional net revenue interests. The number of wells we participated in increased from 195.88 net wells on September 30, 2024 to 235.27 net wells on September 30, 2025.

Lease operating expenses were $23.6 million ($8.03 per Boe) for the three months ended September 30, 2025, an increase of 81% from $13.0 million ($5.62 per Boe) during the same period in 2024. The increase was primarily due to an increase in well count due to acquisitions and additional wells successfully drilled and completed, resulting in an increase in saltwater disposal costs of $2.8 million, or 83%, and an overall increase in service costs.

Lease operating expenses were $60.0 million ($7.10 per Boe) for the nine months ended September 30, 2025, an increase of 42% from $42.2 million ($6.40 per Boe) during the same period in 2024. The increase was primarily due to an increase in production as a result of increased well count, resulting in increased saltwater disposal costs, facilities costs and an overall increase in cost of services.

We generally pay production taxes based on realized oil and natural gas sales. Production taxes were $5.4 million ($1.83 per Boe) for the three months ended September 30, 2025 compared to $5.3 million ($2.29 per Boe) during the same period in 2024. As a percentage of oil and natural gas sales, our production taxes were 5% and 6% during the three months ended September 30, 2025 and 2024, respectively.

Production taxes were $17.3 million ($2.05 per Boe) for the nine months ended September 30, 2025 compared to $15.0 million ($2.28 per Boe) during the same period in 2024. As a percentage of oil and natural gas sales, our production taxes were 5% during both the nine months ended September 30, 2025 and 2024.

Production taxes fluctuate with the market value of our production sold, while ad valorem taxes are generally based on the valuation of our oil and natural gas properties at the beginning of the year, which vary across the different areas in which we operate.

Ad valorem taxes were $1.2 million and $4.1 million for the three and nine months ended September 30, 2025, respectively, compared to $1.0 million and $3.9 million during the same periods in 2024.

Depletion and accretion was $55.9 million ($19.05 per Boe) for the three months ended September 30, 2025, an increase of 27% from $44.1 million ($19.06 per Boe) during the same period in 2024. The increase in depletion and accretion expense was primarily due to the increase in depletion expense resulting from the increase in production.

Depletion and accretion was $157.8 million ($18.69 per Boe) for the nine months ended September 30, 2025, an increase of 25% from $126.7 million ($19.23 per Boe) during the same period in 2024. The increase in depletion and accretion expense was primarily due to the increase in production.

No impairment of unproved properties was recorded for the three months ended September 30, 2025 and 2024. In the first quarter of 2024, we recognized impairment expense of $0.7 million on unproved properties in the Permian Basin as the operator of those properties no longer intends to drill certain locations. During the nine months ended September 30, 2025 no impairment of unproved properties was recorded.

The following table provides components of our general and administrative expenses for the three and nine months ended September 30, 2025 and 2024:

Total general and administrative expenses were $7.0 million ($2.38 per Boe) for the three months ended September 30, 2025, an increase of 25% from $5.6 million ($2.41 per Boe) during the same period in 2024. The increase was primarily for expenses related to stock-based compensation and capital market activities.

Total general and administrative expenses were $23.0 million ($2.72 per Boe) for the nine months ended September 30, 2025, an increase of 23% from $18.7 million ($2.84 per Boe) during the same period in 2024. The increase was primarily due to severance expense incurred during the period as a result of a management transition as well as expenses related to capital market activities.

The following table sets forth the gain (loss) on derivatives for the three and nine months ended September 30, 2025 and 2024:

Our earnings are affected by the changes in the value of our derivatives portfolio between periods and the related cash settlements of those derivatives, which could be significant. To the extent the future commodity price outlook declines between measurement periods, we will have mark-to-market gains; while to the extent future commodity price outlook increases between measurement periods, we will have mark-to-market losses.