Form 4: Granite Ridge Resources Interim CFO & CAO Kimberly Weimer Receives Significant Equity Awards

Kimberly Weimer, Interim CFO & CAO of Granite Ridge Resources, Inc., was granted 42,955 restricted stock units and 128,866 performance stock units on June 12, 2025, as part of the company's 2022 Omnibus Incentive Plan.

Summary

• Kimberly Weimer, Interim CFO & CAO of Granite Ridge Resources, Inc. (GRNT), received equity awards on June 12, 2025.
• The awards include 42,955 shares of restricted common stock, which will vest in full on June 12, 2030.
• She also received a total of 128,866 performance stock units (PSUs), each representing a contingent right to one share of common stock.
• These PSUs are divided into three tranches: 42,955 PSUs eligible to vest if GRNT's common stock closes at or above $7.00 per share for 20 consecutive trading days; 42,955 PSUs eligible to vest if GRNT's common stock closes at or above $8.50 per share for 20 consecutive trading days; and 42,956 PSUs eligible to vest if GRNT's common stock closes at or above $10.00 per share for 20 consecutive trading days.
• All performance stock units have an expiration date of December 31, 2032.
• Following these transactions, Ms. Weimer beneficially owns 73,940 shares of common stock and 128,866 performance stock units.

Sentiment

Score: 7

Explanation: The grant of equity awards to a key executive is generally a positive development as it aligns management's interests with shareholder value creation through long-term incentives and performance targets. It reflects a commitment to retaining talent and driving future stock price appreciation.

Positives

• The grant of restricted stock and performance stock units aligns the interests of Interim CFO & CAO Kimberly Weimer with those of shareholders, incentivizing long-term company performance and stock price appreciation.
• The performance-based vesting conditions for the PSUs encourage management to achieve specific stock price targets ($7.00, $8.50, and $10.00), which could benefit shareholders.
• The awards are granted under the company's 2022 Omnibus Incentive Plan, indicating a structured approach to executive compensation.

Negatives

• The awards are subject to vesting conditions and are not immediately liquid, meaning the value is contingent on future performance and continued employment.
• The restricted stock award has a long vesting period (vesting in full on June 12, 2030), delaying the realization of its full value.
• The performance stock units require specific stock price targets to be met over 20 consecutive trading days, which introduces uncertainty regarding their ultimate conversion into shares.

Risks

• Market Risk: The value of the restricted stock and the vesting of performance stock units are directly tied to the future market price of Granite Ridge Resources' common stock, which can fluctuate due to broader market conditions, industry trends, or company-specific factors.
• Performance Risk: The performance stock units may not vest if the company's common stock fails to achieve the specified price targets ($7.00, $8.50, and $10.00) for 20 consecutive trading days before the December 31, 2032 expiration date.
• Forfeiture Risk: The awards are subject to forfeiture if the recipient's employment terminates before the vesting conditions are met.

Future Outlook

The grant of performance stock units indicates a forward-looking incentive structure tied to specific stock price appreciation targets for Granite Ridge Resources' common stock, namely $7.00, $8.50, and $10.00 per share, which must be sustained for 20 consecutive trading days by December 31, 2032.

Management Comments

• The awards are granted under the Granite Ridge Resources, Inc. 2022 Omnibus Incentive Plan.
• Each performance stock unit represents a contingent right to receive one share of the Company's Common Stock.

Industry Context

The granting of restricted stock and performance stock units is a common practice in the U.S. corporate landscape, particularly for publicly traded companies, to incentivize and retain key executives. This form of equity compensation aligns executive interests with shareholder value creation by tying a significant portion of compensation to the company's stock performance and long-term growth.

Comparison to Industry Standards

• While the specific quantum of awards is company-specific, the structure of granting both time-based restricted stock and performance-based stock units is consistent with best practices in executive compensation across various industries, including the energy sector where Granite Ridge Resources operates.
• Many companies, such as EOG Resources, Pioneer Natural Resources, or Diamondback Energy, utilize similar long-term incentive plans that include performance-based equity awards tied to operational or stock price metrics to drive executive accountability and shareholder returns.
• Without specific peer group compensation data for Granite Ridge Resources, a direct quantitative comparison of the award size is not feasible, but the type of awards aligns with industry norms.

Corporate Governance

Stakeholder Impact

• Shareholders: Potential positive impact as executive compensation is tied to stock price appreciation, incentivizing management to enhance shareholder value.
• Employees: May signal stability in executive leadership and a commitment to long-term incentive programs.

Next Steps

• Continued monitoring of Granite Ridge Resources' common stock price performance against the $7.00, $8.50, and $10.00 targets for the performance stock units.
• Vesting of the restricted stock award on June 12, 2030.
• Potential conversion of performance stock units into common stock upon achievement of vesting conditions by December 31, 2032.

Key Dates

Keywords

Granite Ridge Resources, GRNT, SEC Form 4, insider transaction, executive compensation, restricted stock, performance stock units, Kimberly Weimer, equity awards, incentive plan