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Stock Incentive Plan | 9 Months Ended
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Sep. 30, 2024
Share-Based Payment Arrangement [Abstract] |
Stock Incentive Plan | Stock Incentive Plan 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 PSUs to directors, officers, employees and consultants or advisors employed by or providing service to the Company. During the first quarter of 2024, the Company granted restricted stock awards, stock options, and PSUs. Stock-based compensation expense during the three and nine months ended September 30, 2024 was $0.6 million and $1.7 million, respectively. During the first quarter of 2023, the Company granted restricted stock awards, fully vested stock awards, stock options, and PSUs. Stock-based compensation expense during the three and nine months ended September 30, 2023 was $0.4 million and $1.8 million, respectively. Restricted Stock Awards - The Company has granted restricted stock awards to certain of its employees and consultants under the Plan. 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. The holders of unvested restricted stock awards have voting rights and the right to receive dividends. The restricted stock awards generally vest ratably over a period of three years. 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 has granted PSUs to certain of its officers under the Plan. The PSUs 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 achieved by the Company compared to a predetermined group of peer companies at the end of the applicable performance period. Individual performance criteria are 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 the PSUs based on financial performance are valued based on the closing price of the Company's common stock on the date of grant. Stock Options - The Company has granted stock options to certain of its officers under the Plan. The Company's outstanding stock options expire in 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 2024, the Company granted 134,375 stock options with an exercise price of $6.06 per share. During the first quarter of 2023, the Company granted 72,108 stock options with an exercise price per share of $5.02 and 320,000 stock options with an exercise price per share of $9.22. Stock Awards - The Company may issue other awards to its employees and consultants under the Plan. During the first quarter of 2023, the Company issued 94,007 fully vested stock awards as other awards to certain of its employees and consultants under the Plan. Weighted average grant date fair value of other awards was $8.51. 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:
| Restricted Stock Awards |  | Performance Stock Units |  | Stock Options
Outstanding at December 31, 2023 | 295,990 |  |  | 26,574 |  |  | 392,108 |
Awards granted (1) | 383,430 |  |  | 70,958 |  |  | 134,375 |
Awards vested (2) | (139,790) |  |  | — |  |  | — |
Outstanding at September 30, 2024 | 539,630 |  |  | 97,532 |  |  | 526,483 |
(1) Weighted average grant date fair value per share/unit | $ | 6.07 |  |  | $ | 8.64 |  |  | $ | 1.38 |
(2) Represents restricted stock and PSUs vested during the period. During the nine months ended September 30, 2024, 175,493 stock options vested. As of September 30, 2024, there were a total of 306,195 stock options exercisable.
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, 2023 is presented below:
| Restricted Stock Awards |  | Performance Stock Units |  | Stock Options
Outstanding at December 31, 2022 | — |  |  | — |  |  | — |
Awards granted (1) | 308,938 |  |  | 26,574 |  |  | 392,108 |
Awards vested (2) | — |  |  | — |  |  | (130,702) |
Outstanding at September 30, 2023 | 308,938 |  |  | 26,574 |  |  | 261,406 |
(1) Weighted average grant date fair value per share/unit | $ | 5.72 |  |  | $ | 6.01 |  |  | $ | 0.82 |
(2) Represents restricted stock and PSUs vested during the period. During the nine months ended September 30, 2023, 130,702 stock options vested and were exercisable as of September 30, 2023.

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