Granite Ridge Resources (GRNT): A Strategic Buy as Energy Demand Surges with AI, Onshoring, and LNG Growth

The energy transition isn’t just about renewables—it’s about retooling the entire infrastructure to meet surging demand from AI, onshoring, and LNG exports. Granite Ridge Resources (GRNT) is uniquely positioned to capitalize on these tailwinds, offering a compelling entry point for investors seeking undervalued infrastructure plays. Let’s break down why GRNT deserves a closer look.

Revenue Growth and Strategic Positioning

Granite Ridge reported a 20.4% year-over-year increase in GAAP revenue for Q2 2025, with total revenue rising from $90.7 million in Q2 2024 to $109.2 million in Q2 2025 [4]. While its 2024 annual revenue dipped slightly (-2.75%), the trailing twelve months (ttm) revenue reached $409.33 million, reflecting a 10.32% year-over-year growth [3]. This resilience underscores the company’s ability to adapt to volatile markets while maintaining a disciplined capital structure.

GRNT’s strategic pivot under CEO Tyler Parkinson has focused on operated partnerships in the Permian Basin, where it secured 74 net drilling locations in Q2 2025, with 70 in the Permian [1]. These partnerships allow GRNT to access high-quality inventory without the operational and capital burdens of direct management, a model that has driven a 37% year-over-year increase in daily production to 31,576 barrels of oil equivalent (BOE) per day [5].

Insider Confidence and Financial Discipline

Insider buying activity in 2025 has been robust, signaling confidence in GRNT’s trajectory. Directors like John F. McCartney and Matthew Reade Miller purchased shares at prices ranging from $5.25 to $5.36 per share in August 2025 [1]. This activity aligns with the company’s debt-free balance sheet, which as of June 30, 2025, included $103.4 million in liquidity and a net debt-to-adjusted EBITDA ratio of 0.8x [1]. While GRNT carries $250 million in total debt, its interest coverage ratio of 6.3 and 42.8% debt-to-equity ratio suggest manageable leverage [3].

AI Energy Infrastructure and LNG Export Synergies

GRNT’s involvement in AI-driven energy infrastructure is a key differentiator. By leveraging partnerships with operators like Admiral Permian and PetroLegacy, the company accesses high-return projects with low-carbon intensity, aligning with ESG-driven capital flows [1]. Its 2025 capital expenditure plan of $400–$420 million allocates 80% to the Permian Basin, extending its drilling inventory runway by three years [1].

Meanwhile, the U.S. LNG export boom presents another tailwind. While GRNT isn’t directly involved in LNG terminals, its production growth supports the broader energy infrastructure needed to meet global demand. With 75% of its production hedged through 2026 [1], GRNT is insulated from short-term price volatility while positioning itself to benefit from long-term demand trends.

Valuation: A Discount to Peers

GRNT’s valuation metrics highlight its undervaluation relative to overhyped peers. Its forward P/E ratio of 21.5x is a fraction of Minerals Technologies’ 871.5x [1], while its P/S ratio of 1.36 is 13% above the industry average but far more reasonable than Vitesse Energy’s 23.14 [5]. This premium is justified by GRNT’s 20.48% revenue growth and $5.56 stock price, which sits within a fair range of $2.38–$5.91 based on historical multiples [2].

Conclusion: A Strategic Buy for the Energy Transition

Granite Ridge Resources is a rare blend of disciplined capital allocation, insider confidence, and strategic positioning in the AI and LNG-driven energy transition. While its debt isn’t nonexistent, its coverage ratios and liquidity position it to navigate volatility without sacrificing growth. For investors seeking an undervalued infrastructure play with macro tailwinds, GRNT offers a compelling entry point—especially as the world races to meet surging energy demand.

**Source:[1] Granite Ridge Resources: Mastering the Energy Transition [https://www.ainvest.com/news/granite-ridge-resources-mastering-energy-transition-strategic-partnerships-permian-basin-synergies-2508][2] GRNT PE Ratio — GRNT Valuation [https://intellectia.ai/stock/GRNT/valuation][3] Granite Ridge Resources Balance Sheet Health [https://simplywall.st/stocks/us/energy/nyse-grnt/granite-ridge-resources/health][4] Granite Ridge (GRNT) Q2 Revenue Up 20% [https://www.nasdaq.com/articles/granite-ridge-grnt-q2-revenue-20][5] Granite Ridge Resources, Inc. Reports Second Quarter 2025 [https://finance.yahoo.com/news/granite-ridge-resources-inc-reports-211000726.html]