Granite Ridge Resources, Inc. Reports Third Quarter 2025 Results and Declares Quarterly Cash Dividend

Granite Ridge Resources, Inc. Reports Third Quarter 2025 Results and Declares Quarterly Cash Dividend November 6, 2025 Granite Ridge Resources, Inc. (“Granite Ridge” or the “Company”) (NYSE: GRNT) today reported financial and operating results for the third quarter of 2025. Third Quarter 2025 Highlights Grew daily production 27% to 31,925 barrels of oil equivalent (“Boe”) per day (51% oil), from 25,177 Boe per day for the third quarter of 2024.Reported net income of $14.5 million, or $0.11 per diluted share, versus $9.1 million, or $0.07 per diluted share, for the prior year period. Adjusted Net Income (non-GAAP) totaled $11.8 million, or $0.09 Adjusted Earnings Per Diluted Share (non-GAAP).Generated $78.6 million of Adjusted EBITDAX (non-GAAP).Invested $64.0 million in development capital expenditures and $16.5 million in acquisition capital to capture high quality drilling opportunities.Placed 9.3 net wells online.Declared dividend of $0.11 per share of common stock.Net Debt to Trailing Twelve Months Adjusted EBITDAX (non-GAAP) of 0.9x.Subsequent to quarter end, the Company’s Board of Directors declared a regular quarterly dividend of $0.11 per share payable on 12/15/2025 to shareholders of record as of 11/28/2025. Future declarations of dividends are subject to approval by the Board of Directors.Subsequent to quarter end, the Company issued $350.0 million aggregate principal amount of 8.875% senior unsecured notes at 96.0% of par with a stated maturity of November 5, 2029. 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, “Granite Ridge delivered another quarter of strong execution and disciplined growth, demonstrating the consistency of our model and the strength of our diversified portfolio. Our Operated Partnership platform continues to perform well, highlighted by Admiral Permian Resources and other key partners who are driving operational excellence and capital efficiency across our portfolio. “Subsequent to quarter end, we further strengthened our balance sheet through proactive refinancing that enhanced our liquidity and extended our financial runway heading into 2026. These actions reflect our continued commitment to maintaining a conservative capital structure and ensuring the flexibility to pursue high-return opportunities while delivering consistent cash returns to shareholders. “As we look ahead to 2026, Granite Ridge is well positioned to build on this momentum. Our Operated Partnerships provide a repeatable path to growth, our non-operated portfolio continues to generate steady cash flow, and our financial strength enables us to create long-term value for shareholders through commodity cycles.” Financial Results Oil and natural gas sales for the third quarter of 2025 were $112.7 million. Net income was $14.5 million, or $0.11 per diluted share. Excluding non-cash and special items, Adjusted Net Income (non-GAAP) was $11.8 million, or $0.09 per diluted share. Adjusted EBITDAX (non-GAAP) for the third quarter of 2025 totaled $78.6 million compared to $75.4 million for the third quarter of 2024. Cash flow from operating activities was $77.8 million, including $4.7 million in working capital changes. Operating Cash Flow Before Working Capital Changes (non-GAAP) was $73.1 million. Production Results Third quarter 2025 oil production volumes totaled 16,222 barrels (“Bbls”) per day, a 28% increase from the third quarter of 2024. Natural gas production for the third quarter of 2025 totaled 94,217 thousand cubic feet of natural gas (“Mcf”) per day, a 25% increase from the third quarter of 2024. The Company’s daily production for the third quarter of 2025 grew 27% from the third quarter of the prior year to 31,925 Boe per day. Oil, Natural Gas and Related Product Sales The Company’s average realized price for oil and natural gas for the third quarter of 2025, excluding the effect of commodity derivatives, was $61.62 per Bbl and $2.39 per Mcf, respectively, compared to $73.44 per Bbl and $1.24 per Mcf realized in the third quarter of 2024. Operating Costs Lease operating expenses were $23.6 million ($8.03 per Boe) for the three months ended September 30, 2025 compared to $13.0 million ($5.62 per Boe) during the same period in 2024. The increase was primarily due to an overall increase in service costs, particularly saltwater disposal costs. Production and ad valorem taxes were $6.6 million for the quarter, or 6% of oil and natural gas sales. During the quarter, general and administrative expenses totaled $7.0 million, or $2.38 per Boe, inclusive of $0.4 million of nonrecurring severance and capital markets expenses and $1.3 million of non-cash stock-based compensation. Capital Expenditures and Operational Activity Capital expenditures for the quarter were $80.5 million comprised of $64.0 million of development capital and $16.5 million of property acquisition costs. The Company closed 17 acquisitions in the Permian and Utica Basins, adding an aggregate inventory of 13.6 net undeveloped locations. The table below provides the costs incurred for oil and natural gas producing activities for the periods indicated: Three Months Ended September 30, Nine Months Ended September 30, (in thousands) 2025 2024 2025 2024 Property acquisition costs: Proved $ 807 $ — $ 14,148 $ 2,824 Unproved 15,704 32,919 46,794 51,515 Development costs 64,006 77,171 212,593 206,761 Total costs incurred for oil and natural gas properties $ 80,517 $ 110,090 $ 273,535 $ 261,100 The Company had 9.3 net wells turned in-line (“TIL”) during the third quarter of 2025, compared to 5.2 net wells TIL in the third quarter of 2024. Granite Ridge saw strong well performance across multiple basins, highlighted by robust initial production from recently TIL wells in the Permian Basin. The table below provides a summary of gross and net wells completed and TIL for the three and nine months ended September 30, 2025: Three Months Ended September 30, 2025 Nine Months Ended September 30, 2025 Gross Net Gross Net Permian 25 7.3 113 24.3 Eagle Ford 5 0.5 7 0.5 Bakken 0 0.0 10 0.2 Haynesville 12 1.2 12 1.2 DJ 6 0.2 72 0.6 Appalachian 11 0.1 41 1.1 Total 59 9.3 255 27.9 At September 30, 2025, the Company had 108 gross (11.3 net) wells in process. Liquidity and Capital Resources As of September 30, 2025, Granite Ridge had $300.0 million of debt outstanding under its existing Credit Agreement and $86.5 million of liquidity, consisting of $74.7 million of committed borrowing availability and $11.8 million of cash on hand. 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 2029 Senior Notes were purchased by a group of institutional accounts, including funds managed by EOC Partners Advisors L.P. 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. 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: reaffirm the borrowing base and aggregate elected commitment amounts at $375.0 million,permit the issuance of the 2029 Senior Notes, andextend the maturity date to 2029. Commodity Derivatives Update The Company’s commodity derivatives strategy is intended to manage its exposure to commodity price fluctuations. Please see the table under “Derivatives Information” below for detailed information about Granite Ridge’s current derivatives positions. 2025 Guidance The following table summarizes the Company’s operational and financial guidance for 2025. Annual production (Boe per day) 31,000 - 33,000 Oil as a % of sales volumes 51% - 53% Acquisitions ($ in millions) $120 - $120 Development capital expenditures ($ in millions) $280 - $300 Total capital expenditures ($ in millions) $400 - $420 Lease operating expenses (per Boe) $6.25 - $7.25 Production and ad valorem taxes (as a % of total sales) 6% - 7% Cash general and administrative expense ($ in millions) $25 - $27 Conference Call Granite Ridge will host a conference call on November 7, 2025, at 10:00 AM CT (11:00 AM ET) to discuss its third quarter 2025 results. A brief Q&A session for security analysts will immediately follow the discussion. The telephone number and passcode to access the conference call are provided below: Dial-in: (888) 660-6093 Intl. dial-in: (929) 203-0844 Participant Passcode: 4127559 To access the live webcast visit Granite Ridge’s website at www.graniteridge.com. Alternatively, an audio replay will be available through November 21, 2025. To access the audio replay, dial (800) 770-2030 and enter confirmation code 4127559. Upcoming Investor Events Granite Ridge management will be participating in the following upcoming investor events: BofA Securities Global Energy Conference (Houston, TX) - November 12, 2025Stephens Annual Investment Conference (Nashville, TN) - November 20, 2025Capital One Securities Energy Conference (New Orleans, LA) - December 9, 2025 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 2025 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 and cash flows 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, 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, 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, 2024 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. Granite Ridge Resources, Inc. Condensed Consolidated Balance Sheets (Unaudited) (in thousands, except par value and share data) September 30, 2025 December 31, 2024 ASSETS Current assets: Cash $ 11,832 $ 9,419 Revenue receivable 74,669 69,692 Advances to operators 2,786 19,959 Prepaid and other current assets 1,131 3,831 Derivative assets - commodity derivatives 6,809 537 Equity investments 11,574 31,783 Total current assets 108,801 135,221 Property and equipment: Oil and gas properties, successful efforts method 1,815,027 1,540,021 Accumulated depletion (800,177 ) (643,051 ) Total property and equipment, net 1,014,850 896,970 Long-term assets: Derivative assets - commodity derivatives 1,373 — Other long-term assets 3,516 4,288 Total long-term assets 4,889 4,288 Total assets $ 1,128,540 $ 1,036,479 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable and accrued liabilities $ 75,413 $ 99,440 Derivative liabilities - commodity derivatives 426 1,822 Other liabilities 1,124 546 Total current liabilities 76,963 101,808 Long-term liabilities: Long-term debt 300,000 205,000 Derivative liabilities - commodity derivatives 1,055 3,679 Asset retirement obligations 11,511 10,693 Deferred tax liability 95,119 79,946 Total long-term liabilities 407,685 299,318 Total liabilities 484,648 401,126 Stockholders' Equity: Common stock, $0.0001 par value, 431,000,000 shares authorized, 136,937,989 and 136,417,677 issued at September 30, 2025 and December 31, 2024, respectively 14 14 Additional paid-in capital 657,859 655,472 Retained earnings 22,215 16,047 Treasury stock, at cost, 5,686,711 and 5,683,921 shares at September 30, 2025 and December 31, 2024, respectively (36,196 ) (36,180 ) Total stockholders' equity 643,892 635,353 Total liabilities and stockholders' equity $ 1,128,540 $ 1,036,479 Granite Ridge Resources, Inc. Condensed Consolidated Statements of Operations (Unaudited) Three Months Ended September 30, Nine Months Ended September 30, (in thousands, except per share data) 2025 2024 2025 2024 Revenues: Oil and natural gas sales $ 112,671 $ 94,075 $ 344,821 $ 273,723 Operating costs and expenses: Lease operating expenses 23,596 13,026 59,954 42,174 Production and ad valorem taxes 6,551 6,345 21,356 18,975 Depletion and accretion expense 55,947 44,149 157,804 126,682 Impairments of unproved properties — — — 732 General and administrative 6,988 5,590 22,968 18,705 Other, net — 283 (120 ) 283 Total operating costs and expenses 93,082 69,393 261,962 207,551 Net operating income 19,589 24,682 82,859 66,172 Other income (expense): Gain on derivatives - commodity derivatives 5,224 11,841 14,292 7,895 Interest expense, net (6,069 ) (4,820 ) (16,998 ) (13,797 ) Gain (loss) on equity investments 548 (18,320 ) (15,218 ) (19,315 ) Other income (loss) — 1 (93 ) 271 Total other income (expense) (297 ) (11,298 ) (18,017 ) (24,946 ) Income before income taxes 19,292 13,384 64,842 41,226 Income tax expense 4,769 4,330 15,426 10,845 Net income $ 14,523 $ 9,054 $ 49,416 $ 30,381 Net income per share: Basic $ 0.11 $ 0.07 $ 0.38 $ 0.23 Diluted $ 0.11 $ 0.07 $ 0.38 $ 0.23 Weighted-average number of shares outstanding: Basic 130,472 130,204 130,426 130,182 Diluted 130,506 130,242 130,500 130,219 Granite Ridge Resources, Inc. Condensed Consolidated Statements of Cash Flows (Unaudited) Nine Months Ended September 30, (in thousands) 2025 2024 Operating activities: Net income $ 49,416 $ 30,381 Adjustments to reconcile net income to net cash provided by operating activities: Depletion and accretion expense 157,804 126,682 Impairments of unproved properties — 732 Unrealized (gain) loss on derivatives - commodity derivatives (11,666 ) 4,494 Stock-based compensation 2,387 1,683 Amortization of deferred financing costs 1,222 3,162 Loss on equity investments 15,218 19,415 Deferred income taxes 15,173 10,733 Other (266 ) (145 ) Increase (decrease) in cash attributable to changes in operating assets and liabilities: Revenue receivable (4,978 ) 14,429 Other receivable 317 (18 ) Accounts payable and accrued liabilities 5,797 (3,240 ) Prepaid and other current assets 1,497 (859 ) Other liabilities (7 ) 87 Net cash provided by operating activities 231,914 207,536 Investing activities: Capital expenditures for oil and natural gas properties (233,135 ) (193,376 ) Acquisition of oil and natural gas properties (57,048 ) (51,994 ) Proceeds from sale of equity investments 4,991 3,362 Proceeds from sale of oil and natural gas properties 175 3,064 Refund of advances to operators 4,230 5,314 Net cash used in investing activities (280,787 ) (233,630 ) Financing activities: Proceeds from borrowing on credit facilities 135,000 85,000 Repayments of borrowing on credit facilities (40,000 ) — Deferred financing costs (450 ) (3,004 ) Purchase of treasury shares (16 ) (418 ) Payment of dividends (43,248 ) (43,112 ) Net cash provided by financing activities 51,286 38,466 Net change in cash and restricted cash 2,413 12,372 Cash and restricted cash at beginning of period 9,419 10,730 Cash and restricted cash at end of period $ 11,832 $ 23,102 Supplemental disclosure of non-cash investing activities: Change in accrued capital expenditures included in accounts payable and accrued liabilities $ (13,575 ) $ 40,003 Advances to operators applied to development of oil and natural gas properties $ 115,868 $ 80,320 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 September 30, Nine Months Ended September 30, 2025 2024 2025 2024 Net Sales (in thousands): Oil sales $ 91,960 $ 85,503 $ 273,269 $ 238,761 Natural gas and related product sales 20,711 8,572 71,552 34,962 Total revenues $ 112,671 $ 94,075 $ 344,821 $ 273,723 Net Production: Oil (MBbl) 1,492 1,164 4,277 3,129 Natural gas (MMcf) 8,668 6,912 24,994 20,758 Total (MBoe)(1) 2,937 2,316 8,443 6,589 Average Daily Production: Oil (Bbl) 16,222 12,655 15,666 11,420 Natural gas (Mcf) 94,217 75,133 91,554 75,758 Total (Boe)(1) 31,925 25,177 30,925 24,046 Average Sales Prices: Oil (per Bbl) $ 61.62 $ 73.44 $ 63.89 $ 76.31 Effect of gain on settled oil derivatives on average price (per Bbl) 0.02 0.55 0.16 0.11 Oil net of settled oil derivatives (per Bbl)(2) $ 61.64 $ 73.99 $ 64.05 $ 76.42 Natural gas sales (per Mcf) $ 2.39 $ 1.24 $ 2.86 $ 1.68 Effect of gain on settled natural gas derivatives on average price (per Mcf) 0.20 0.74 0.08 0.58 Natural gas sales net of settled natural gas derivatives (per Mcf)(2) $ 2.59 $ 1.98 $ 2.94 $ 2.26 Realized price on a Boe basis excluding settled commodity derivatives $ 38.36 $ 40.61 $ 40.84 $ 41.54 Effect of gain on settled commodity derivatives on average price (per Boe) 0.60 2.47 0.31 1.88 Realized price on a Boe basis including settled commodity derivatives(2) $ 38.96 $ 43.08 $ 41.15 $ 43.42 Operating Expenses (in thousands): Lease operating expenses $ 23,596 $ 13,026 $ 59,954 $ 42,174 Production and ad valorem taxes 6,551 6,345 21,356 18,975 Depletion and accretion expense 55,947 44,149 157,804 126,682 General and administrative 6,988 5,590 22,968 18,705 Costs and Expenses (per Boe): Lease operating expenses $ 8.03 $ 5.62 $ 7.10 $ 6.40 Production and ad valorem taxes $ 2.23 $ 2.74 $ 2.53 $ 2.88 Depletion and accretion $ 19.05 $ 19.06 $ 18.69 $ 19.23 General and administrative $ 2.38 $ 2.41 $ 2.72 $ 2.84 Net Producing Wells at Period-End: 235.27 195.88 235.27 195.88 (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. Granite Ridge Resources, Inc. Derivatives Information The table below provides data associated with the Company’s derivatives at November 6, 2025, for the periods indicated: Q4 2025 2026 2027 Collar (oil) Volume (Bbl) 806,958 2,408,128 902,396 Weighted-average floor price ($/Bbl) $ 59.32 $ 59.06 $ 52.50 Weighted-average ceiling price ($/Bbl) $ 75.38 $ 69.88 $ 75.00 Swaps (oil) Volume (Bbl) 210,180 357,224 452,936 Weighted-average price ($/Bbl) $ 60.92 $ 60.33 $ 60.21 Collar (natural gas) Volume (Mcf) 4,958,499 12,487,504 3,332,922 Weighted-average floor price ($/Mcf) $ 3.44 $ 3.50 $ 4.00 Weighted-average ceiling price ($/Mcf) $ 4.32 $ 4.33 $ 5.15 Swaps (natural gas) Volume (Mcf) 831,350 7,252,148 6,777,284 Weighted-average price ($/Mcf) $ 3.67 $ 3.73 $ 3.65 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 to Adjusted EBITDAX Adjusted EBITDAX is presented herein and reconciled from the GAAP measure of net income because of its wide acceptance by the investment community as a financial indicator. The Company defines Adjusted EBITDAX as net income before depletion and accretion expense, unrealized (gain) loss on derivatives – commodity derivatives, interest expense, net, non-cash stock-based compensation, income tax expense, impairment of unproved properties, impairment 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 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 to Adjusted EBITDAX for the periods indicated: Three Months Ended September 30, Nine Months Ended September 30, (in thousands) 2025 2024 2025 2024 Net income $ 14,523 $ 9,054 $ 49,416 $ 30,381 Interest expense, net 6,069 4,820 16,998 13,797 Income tax expense 4,769 4,330 15,426 10,845 Other, net — 283 (120 ) 283 Depletion and accretion expense 55,947 44,149 157,804 126,682 Non-cash stock-based compensation 1,339 588 2,387 1,683 Impairments of unproved properties — — — 732 Unrealized (gain) loss on derivatives - commodity derivatives (3,456 ) (6,112 ) (11,666 ) 4,494 (Gain) loss on equity investments (548 ) 18,320 15,218 19,315 Adjusted EBITDAX $ 78,643 $ 75,432 $ 245,463 $ 208,212 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 December 31, 2024, March 31, 2025, and June 30, 2025 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. 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 September 30, (in thousands) 2025 Net income $ 37,794 Interest expense, net 21,671 Income tax expense 10,788 Other, net (644 ) Depletion and accretion expense 207,651 Non-cash stock-based compensation 3,002 Impairments of long-lived assets 35,637 Unrealized loss on derivatives - commodity derivatives 1,111 Loss on equity investments 11,086 Trailing Twelve Months Adjusted EBITDAX $ 328,096 Reconciliation of Debt to Net Debt The Company provides Net Debt, which is a non-GAAP financial measure. The Company defines Net Debt as long-term debt 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: September 30, (in thousands except for ratio) 2025 Long-term debt $ 300,000 Cash 11,832 Net Debt $ 288,168 Net Debt to Trailing Twelve Months Adjusted EBITDAX Ratio 0.9 Reconciliation of Net Income 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 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, deferred financing cost amortization acceleration, 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. The following table provides a reconciliation from the GAAP measure of net income to Adjusted Net Income, both in total and on a per diluted share basis, for the periods indicated: Three Months Ended September 30, Nine Months Ended September 30, (in thousands, except share data) 2025 2024 2025 2024 Net income $ 14,523 $ 9,054 $ 49,416 $ 30,381 Impairments of unproved properties — — — 732 Unrealized (gain) loss on derivatives - commodity derivatives (3,456 ) (6,112 ) (11,666 ) 4,494 (Gain) loss on equity investments (548 ) 18,320 15,218 19,315 Deferred financing cost amortization acceleration — — — 2,167 Nonrecurring general and administrative expenses - severance costs 25 — 1,757 — Nonrecurring general and administrative expenses - capital markets transaction costs 400 — 1,512 — Tax impact on above adjustments (a) 808 (2,808 ) (1,542 ) (6,143 ) Adjusted Net Income $ 11,752 $ 18,454 $ 54,695 $ 50,946 Earnings per diluted share - as reported $ 0.11 $ 0.07 $ 0.38 $ 0.23 Impairments of unproved properties — — — 0.01 Unrealized (gain) loss on derivatives - commodity derivatives (0.03 ) (0.05 ) (0.09 ) 0.04 (Gain) loss on equity investments — 0.14 0.12 0.15 Deferred financing cost amortization acceleration — — — 0.02 Nonrecurring general and administrative expenses - severance costs — — 0.01 — Nonrecurring general and administrative expenses - capital markets transaction costs — — 0.01 — Tax impact on above adjustments (a) 0.01 (0.02 ) (0.01 ) (0.06 ) Adjusted Earnings Per Diluted Share $ 0.09 $ 0.14 $ 0.42 $ 0.39 Adjusted earnings per share: Basic earnings $ 0.09 $ 0.14 $ 0.42 $ 0.39 Diluted earnings $ 0.09 $ 0.14 $ 0.42 $ 0.39 (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, other receivable, accounts payable and accrued liabilities, prepaid and other current assets, and other 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. 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 September 30, Nine Months Ended September 30, (in thousands) 2025 2024 2025 2024 Net cash provided by operating activities $ 77,780 $ 74,694 $ 231,914 $ 207,536 Changes in cash due to changes in operating assets and liabilities: Revenue receivable (1,978 ) (8,744 ) 4,978 (14,429 ) Other receivable (199 ) 548 (317 ) 18 Accounts payable and accrued liabilities (2,595 ) 842 (5,797 ) 3,240 Prepaid and other current assets — (435 ) (1,497 ) 859 Other payable 109 3,802 7 (87 ) Total working capital changes (4,663 ) (3,987 ) (2,626 ) (10,399 ) Operating Cash Flow Before Working Capital Changes $ 73,117 $ 70,707 $ 229,288 $ 197,137 Source: Granite Ridge Resources, Inc.