Granite Ridge Resources, Inc. (NASDAQ:GRNT) President and CEO Luke C. Brandenberg has purchased 2,500 shares of the company's common stock, according to a recent SEC filing. The acquisition, valued at approximately $16,425, was executed at an average price of $6.57 per share. This transaction took place on November 26, 2024, and increases Brandenberg's direct ownership to 99,133 shares. The purchase was conducted in multiple trades, with prices ranging from $6.56 to $6.57 per share, as specified in the filing.
In other recent news, Granite Ridge Resources has exceeded its third-quarter targets, marking a significant milestone for the company. The company's success is largely attributed to its Controlled Capital program, which has resulted in production surpassing targets and capital expenditures staying under budget. The company's production exceeded targets by 15%, while capital expenditures were 15% under budget.
Granite Ridge Resources is also planning to develop over 40 net locations in the Permian in the next two to three years. The company's average daily production increased by 9% from the second quarter, with net income reported at $9.1 million.
These recent developments also include the closure of over a dozen transactions, adding nearly 16 net locations. The company reaffirmed its annual production guidance and announced a cash dividend of $0.11 per share.
Looking ahead, Granite Ridge Resources anticipates double-digit production growth in 2025, primarily driven by its Controlled Capital initiatives. However, the company noted that the current economics make gas-weighted opportunities, particularly in the Bakken and Eagle Ford (NYSE:F) basins, more challenging. The company will provide formal guidance for 2025 in the next earnings call.
InvestingPro Insights
Granite Ridge Resources, Inc. (NASDAQ:GRNT) has been showing some interesting financial metrics that align with CEO Luke C. Brandenberg's recent stock purchase. According to InvestingPro data, the company's stock is trading near its 52-week high, with a price at 92.68% of its peak. This suggests a strong market performance, which may have influenced Brandenberg's decision to increase his stake.
The company's financial health appears robust, with InvestingPro Tips indicating that GRNT operates with a moderate level of debt and its liquid assets exceed short-term obligations. These factors contribute to a stable financial foundation, potentially making the stock an attractive investment for insiders like Brandenberg.
Investors might also be interested to know that GRNT boasts a high dividend yield of 6.75%, which could be an additional incentive for shareholders. The company's P/E ratio (adjusted) of 9.85 for the last twelve months as of Q3 2024 suggests that the stock might be undervalued compared to its earnings, possibly explaining Brandenberg's decision to acquire more shares.
It's worth noting that InvestingPro has identified 6 additional tips for GRNT, which could provide further insights into the company's prospects. Subscribers to InvestingPro can access these tips and more detailed analysis to make informed investment decisions.
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