Granite Ridge Resources: Elevated Lease Operating Expenses In Q1 2026

Granite Ridge's lease operating expenses per BOE rose 24% quarter-over-quarter, or 15% excluding non-recurring charges, with higher Permian saltwater disposal costs driving much of the increase. The company expects lease operating expenses to trend lower later in 2026. The update is a modest near-term margin headwind, partially offset by management's cost outlook.

Analysis

Granite Ridge's lease operating expenses per BOE rose 24% quarter-over-quarter, or 15% excluding non-recurring charges, with higher Permian saltwater disposal costs driving much of the increase. The company expects lease operating expenses to trend lower later in 2026. The update is a modest near-term margin headwind, partially offset by management's cost outlook.