Greenfire Resources .(GFR)

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Greenfire Resources .(GFR) - 2025 Q2 - Earnings Call Transcript
2025-08-07 14:00
Financial Data and Key Metrics Changes - In 2025, the company expects to produce between 15,000 to 16,000 barrels a day of bitumen and plans to invest CAD 130 million in capital expenditures [6][7] - The production has been reduced by approximately 1,500 to 2,300 barrels a day due to a boiler outage [5] Business Line Data and Key Metrics Changes - The company has advanced its inaugural SAGD pad, PADD 7, which is expected to start drilling in Q4 2025, with first oil forecasted for Q4 2026 [7][8] - The current plan for PADD 7 includes 13 well pairs with lateral lengths ranging from 800 to 1,400 meters [7] Market Data and Key Metrics Changes - The company is addressing sulfur dioxide emissions by procuring a sulfur removal unit expected to be operational by year-end 2025 [6] Company Strategy and Development Direction - The company is focusing on the development of PADD 7 and evaluating shorter cycle drilling opportunities to be completed concurrently in 2026 [8] - The new VP of Finance, Travis Belak, is expected to enhance the financial stewardship of the company [8] Management's Comments on Operating Environment and Future Outlook - Management acknowledged that 2025 has been a challenging year operationally due to various issues, including boiler repairs and historical underinvestment in new well pairs [4][5] - The company is undergoing a turnaround process to address over-leveraging and operational inefficiencies [19][20] Other Important Information - The company has made considerable progress in addressing operational challenges, with the boiler repair on schedule for full capacity by year-end 2025 [5][6] - The leadership transition with the new VP of Finance is seen as a positive step for the company's financial management [8] Q&A Session Summary Question: Production level at the demo asset - Management noted that two wells drilled in Q1 have been ramping up nicely, adding approximately 800 barrels each [11][12] Question: CapEx guidance for 2026 - Management stated that they are not yet in a position to provide guidance for 2026 but emphasized the significant operational changes required for the turnaround [16][20] Question: Unwinding of spend and future operational plans - Management indicated that they have unwound a lot of past operational decisions but are just beginning to execute the development plan [20]
Greenfire Resources Reports Second Quarter 2025 Results and Provides an Operational Update
Newsfile· 2025-08-06 23:44
Core Insights - Greenfire Resources Ltd. reported its Q2 2025 operating and financial results, highlighting a decrease in production and revenue compared to previous periods [3][4][9]. Financial Highlights - Average WTI price for Q2 2025 was $63.74 per barrel, down from $80.57 in Q2 2024 [4]. - Bitumen production averaged 15,748 bbls/d, a 10% decrease from Q1 2025 and a 17% decrease from Q2 2024 [4][9]. - Oil sales totaled $144.5 million, compared to $219.4 million in Q2 2024 [4][37]. - Net income for Q2 2025 was $48.7 million, significantly higher than $30.8 million in Q2 2024 [7]. - Adjusted funds flow was $33.8 million, down from $47.2 million in Q2 2024 [6][30]. Operational Updates - Production in July 2025 was approximately 16,000 bbls/d, impacted by a failure of one steam generator at the Expansion Asset, causing a production loss of 1,500 to 2,250 bbls/d [11]. - The Expansion Asset produced 10,105 bbls/d in Q2 2025, a 20% decrease from Q1 2025, while the Demo Asset saw a 16% increase to 5,643 bbls/d [13]. Capital Expenditures and Cash Flow - Capital expenditures for Q2 2025 were $10.8 million, down from $23.0 million in Q2 2024 [10][40]. - Adjusted free cash flow was $23.0 million, slightly lower than $24.2 million in Q2 2024 [6][30]. Future Development Plans - The company plans to develop a new SAGD well pad ("Pad 7") with drilling operations expected to start in Q4 2025 and first oil production anticipated in Q4 2026 [14][18]. - A capital budget of $130 million for 2025 has been approved, focusing on both sustaining and growth initiatives [18]. Regulatory Engagement - Greenfire is engaging with the Alberta Energy Regulator regarding sulphur dioxide emissions at the Expansion Asset and has ordered sulphur removal facilities to restore compliance by Q4 2025 [12].
Greenfire Resources .(GFR) - 2025 Q1 - Quarterly Report
2025-05-07 10:06
[Introduction and Business Overview](index=2&type=section&id=Introduction%20and%20Business%20Overview) Greenfire is an oil sands producer focused on thermal oil assets in Alberta, Canada, with Waterous Energy Fund holding a controlling interest [Description of Business](index=2&type=section&id=DESCRIPTION%20OF%20BUSINESS) Greenfire is an oil sands producer focused on developing its thermal oil assets in Alberta, Canada. Its common shares are listed on the NYSE and TSX under the symbol 'GFR'. As of March 31, 2025, Waterous Energy Fund (WEF) holds a controlling interest of approximately 56.2% following a Change of Control Transaction in December 2024 - Greenfire is an oil sands producer focused on long-life, low-decline thermal oil assets in the Athabasca region of Alberta, Canada[8](index=8&type=chunk) - Following a series of transactions in 2024, Waterous Energy Fund (WEF) acquired a controlling stake, holding **56.2%** of the Company's common shares as of March 31, 2025[10](index=10&type=chunk)[11](index=11&type=chunk) [Greenfire's Assets and Strategy](index=2&type=section&id=GREENFIRE%27S%20ASSETS%20AND%20STRATEGY) The company's principal assets are the Hangingstone Facilities, which consist of the Expansion Asset (75% working interest) and the Demo Asset (100% working interest). Greenfire's strategy is to maximize long-term value by investing in proven SAGD optimization techniques to increase production and leverage existing facility capacity while maintaining cost discipline - The company's main assets are the Hangingstone Facilities, comprising the Expansion Asset and the Demo Asset, both utilizing Steam-Assisted Gravity Drainage (SAGD) technology[12](index=12&type=chunk) - The core strategy involves using industry-standard SAGD optimization to boost production, utilize spare facility capacity, and control operating costs to maximize long-term net asset value per share[13](index=13&type=chunk) [Recent Developments](index=3&type=section&id=Recent%20Developments) Recent operational updates include lower production due to an offline steam generator, addressing sulphur dioxide emissions, and planning new well developments [Production and Steam Generation Update](index=3&type=section&id=Production%20and%20Steam%20Generation%20Update) Production in the second quarter of 2025 to date has averaged approximately 15,650 bbls/d. This is lower than historical levels due to one of four steam generation units at the Expansion Asset being offline, causing a production impact of 1,500 to 2,250 bbls/d. The company aims to restore the offline generator by year-end 2025 - Q2 2025 production to date is approximately **15,650 bbls/d**, impacted by downtime at a steam generation unit[14](index=14&type=chunk) - One of four steam generators is offline, reducing production by an estimated **1,500 to 2,250 bbls/d**. The target for restoration is year-end 2025[14](index=14&type=chunk) [Emissions Reporting and Regulatory Environment](index=3&type=section&id=Emissions%20Reporting%20and%20Regulatory%20Environment) Greenfire is addressing sulphur dioxide emissions that have exceeded regulatory limits at its Expansion Asset. The company is in discussions with the Alberta Energy Regulator (AER) and has ordered sulphur removal facilities at an estimated cost of $15.0 million, with installation targeted for Q4 2025 to restore compliance - The company is addressing sulphur dioxide emissions at the Expansion Asset that exceeded regulatory limits[15](index=15&type=chunk) - Sulphur removal facilities have been ordered for an estimated **$15.0 million**, with commissioning planned for Q4 2025 to ensure regulatory compliance[15](index=15&type=chunk) [Progress Update on Future Development Plans](index=3&type=section&id=Progress%20Update%20on%20Future%20Development%20Plans) To counter production declines, Greenfire is planning to construct new well pads and drill new well pairs at the Expansion Asset. Subject to board approval, drilling could commence as early as Q4 2025. The company is also evaluating additional development targets to support future growth - Plans are underway to construct new well pads and drill new wells to address production declines, with a potential start in Q4 2025 pending board approval[16](index=16&type=chunk) [Financial & Operating Highlights](index=3&type=section&id=FINANCIAL%20%26%20OPERATING%20HIGHLIGHTS) Q1 2025 saw a significant turnaround to net income, improved operating netback, and increased adjusted funds flow despite lower bitumen production [Quarterly Highlights](index=3&type=section&id=Quarterly%20Highlights) In Q1 2025, Greenfire reported net income of $16.2 million, a significant turnaround from a net loss of $46.9 million in Q1 2024. Bitumen production decreased to 17,495 bbls/d from 19,667 bbls/d year-over-year. Despite lower production and oil sales, operating netback increased to $31.67/bbl from $24.69/bbl, and adjusted funds flow grew to $31.4 million from $27.6 million Q1 2025 vs Q1 2024 Financial & Operating Highlights | | Three months ended March 31, | | :--- | :--- | :--- | | **($ thousands, unless otherwise noted)** | **2025** | **2024** | | Bitumen production (bbls/d) | 17,495 | 19,667 | | Oil sales | 183,637 | 200,990 | | Gross profit (loss) | 34,392 | (12,068) | | Operating netback ($/bbl) | 31.67 | 24.69 | | Adjusted funds flow | 31,444 | 27,589 | | Capital expenditures | 26,299 | 34,449 | | Net income (loss) | 16,163 | (46,915) | | Per share - basic | 0.23 | (0.68) | | Adjusted EBITDA | 41,316 | 39,346 | [Liquidity and Balance Sheet](index=4&type=section&id=Liquidity%20and%20Balance%20Sheet) As of March 31, 2025, Greenfire had $72.2 million in cash and cash equivalents and $50.0 million available under its credit facilities. The face value of its long-term debt stood at $343.5 million Liquidity and Balance Sheet Summary | | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **($ thousands)** | | | | Cash and cash equivalents | 72,238 | 67,419 | | Available credit facilities | 50,000 | 50,000 | | Face value of long-term debt | 343,535 | 343,852 | [Operational Performance](index=4&type=section&id=PRODUCTION%20AND%20COMMODITY%20PRICING) Q1 2025 bitumen production decreased due to operational issues, while commodity prices saw a narrower WCS differential but lower natural gas and power prices [Bitumen Production and Sales](index=4&type=section&id=Bitumen%20Production%20and%20Sales) Bitumen production for Q1 2025 decreased by 11% year-over-year to 17,495 bbl/d, down from 19,667 bbl/d in Q1 2024. The decline is attributed to the unplanned loss of a steam generation unit and natural field declines Bitumen Production and Sales Volumes (bbls/d) | | Three months ended March 31, | | :--- | :--- | :--- | | **(Average barrels per day)** | **2025** | **2024** | | Bitumen production | 17,495 | 19,667 | | Bitumen sales | 17,404 | 19,869 | - The **11% decrease** in Q1 2025 bitumen production compared to Q1 2024 was caused by an unplanned steam generator outage and natural field declines[21](index=21&type=chunk) [Commodity Prices](index=4&type=section&id=Commodity%20Prices) In Q1 2025, the WCS Hardisty benchmark price increased to C$84.29/bbl from C$77.76/bbl in Q1 2024. The WCS differential to WTI narrowed significantly to (C$18.18)/bbl from (C$26.05)/bbl, benefiting the company's realized prices. However, natural gas (AECO) and Alberta power prices were substantially lower year-over-year Benchmark Commodity Prices | | Three months ended March 31, | | :--- | :--- | :--- | | **Benchmark Pricing** | **2025** | **2024** | | WTI (US$/bbl) | 71.42 | 76.96 | | WCS differential to WTI (US$/bbl) | (12.67) | (19.31) | | WCS Hardisty (C$/bbl) | 84.29 | 77.76 | | AECO 5A (C$/GJ) | 2.05 | 2.36 | | Alberta power pool (C$/MWh) | 40.30 | 98.89 | - The commissioning of the Trans Mountain Pipeline expansion in May 2024 increased Western Canadian egress capacity, contributing to a narrower WCS differential[25](index=25&type=chunk) [Financial Results of Operations](index=5&type=section&id=FINANCIAL%20RESULTS) Q1 2025 financial results show decreased oil sales, higher royalty rates, a significant gain on risk management contracts, and increased operating and G&A expenses [Oil Sales](index=5&type=section&id=Oil%20Sales) Oil sales decreased by 9% to $183.6 million in Q1 2025 from $201.0 million in Q1 2024. This was driven by lower sales volumes, which was partially offset by a higher realized price per barrel ($82.10/bbl vs $75.41/bbl) due to improved Canadian-denominated WCS pricing Oil Sales Performance | | Three months ended March 31, | | :--- | :--- | :--- | | **($ thousands, unless otherwise noted)** | **2025** | **2024** | | Oil Sales | 183,637 | 200,990 | | - ($/bbl) | 82.10 | 75.41 | [Royalties](index=5&type=section&id=Royalties) The effective royalty rate increased to 6.90% in Q1 2025 from 6.42% in Q1 2024. The increase was due to the mechanics of the prescribed pre-payout royalty rate calculation, which is based on trailing benchmark prices, during a period of declining commodity prices in 2025 versus rising prices in 2024 Royalty Expense | | Three months ended March 31, | | :--- | :--- | :--- | | **($ thousands, unless otherwise noted)** | **2025** | **2024** | | Royalties | 6,824 | 6,315 | | - ($/bbl) | 4.36 | 3.49 | | Effective royalty rate | 6.90% | 6.42% | [Risk Management Contracts](index=6&type=section&id=Realized%20and%20Unrealized%20Gain%20%28Loss%29%20on%20Risk%20Management%20Contracts) In Q1 2025, the company recorded a total gain of $5.2 million on risk management contracts, a significant reversal from a $47.5 million loss in Q1 2024. This was composed of a $1.1 million realized loss and a $6.3 million unrealized gain, compared to an $8.8 million realized loss and a $38.7 million unrealized loss in the prior year Risk Management Gains (Losses) | | Three months ended March 31, | | :--- | :--- | :--- | | **($ thousands)** | **2025** | **2024** | | Realized loss | (1,101) | (8,797) | | Unrealized gain (loss) | 6,349 | (38,737) | | **Total gain (loss)** | **5,248** | **(47,534)** | [Operating Expenses](index=7&type=section&id=Operating%20Expenses) Operating expenses per barrel increased by 20% to $24.21/bbl in Q1 2025 from $20.10/bbl in Q1 2024. While energy costs per barrel decreased by 13% due to lower natural gas and power prices, non-energy costs rose by 38% due to higher staffing costs (from a shift to cash bonuses) and increased maintenance Operating Expenses Breakdown | | Three months ended March 31, | | :--- | :--- | :--- | | **($ thousands, unless otherwise noted)** | **2025** | **2024** | | Operating expenses – energy ($/bbl) | 6.03 | 6.92 | | Operating expenses – non-energy ($/bbl) | 18.18 | 13.18 | | **Total operating expenses ($/bbl)** | **24.21** | **20.10** | - The increase in non-energy costs was driven by higher staffing costs after transitioning from stock-based compensation to annual cash bonuses, as well as higher maintenance costs[43](index=43&type=chunk) [Operating Netback](index=8&type=section&id=Operating%20Netback) Operating netback per barrel increased by 28% to $31.67/bbl in Q1 2025, compared to $24.69/bbl in Q1 2024. The improvement was driven by higher Canadian-denominated WCS benchmark prices and a narrower WTI differential, which led to higher per-barrel oil sales and lower diluent costs Operating Netback Reconciliation | | Three months ended March 31, | | :--- | :--- | :--- | | **($ thousands, unless otherwise noted)** | **2025** | **2024** | | Gross profit (loss) | 34,392 | (12,068) | | Add: Depletion | 21,561 | 17,980 | | Add: Loss (gain) on risk management contracts | (5,248) | 47,534 | | **Operating netback** | **49,604** | **44,649** | | **Operating netback ($/bbl)** | **31.67** | **24.69** | [General & Administrative Expenses](index=9&type=section&id=General%20%26%20Administrative%20Expenses%20%28%22G%26A%22%29) G&A expenses nearly doubled to $9.4 million in Q1 2025 from $4.7 million in Q1 2024. The increase includes a one-time expense of $1.9 million related to a shareholder rights plan challenge. The remainder of the increase is due to higher employee incentive compensation, which shifted from equity grants to annual cash bonuses - G&A expenses increased **98% YoY** to **$9.4 million**, including a **$1.9 million** one-time expense related to a successful challenge by WEF against the company's shareholder rights plan[51](index=51&type=chunk) - The remaining increase in G&A is attributed to a change in employee compensation, with annual cash bonuses replacing equity grants after the suspension of the omnibus share incentive plan in January 2025[51](index=51&type=chunk) [Net Income (Loss) and Adjusted EBITDA](index=10&type=section&id=Net%20Income%20%28loss%29%20and%20Comprehensive%20Income%20%28Loss%29%20and%20Adjusted%20EBITDA) The company reported net income of $16.2 million in Q1 2025, a $63.1 million improvement from the $46.9 million net loss in Q1 2024, primarily due to unrealized gains on risk management contracts and warrant revaluations. Adjusted EBITDA increased by 5% to $41.3 million, driven by stronger commodity prices and lower diluent costs Adjusted EBITDA Reconciliation | | Three months ended March 31, | | :--- | :--- | :--- | | **($ thousands)** | **2025** | **2024** | | Net income (loss) | 16,163 | (46,915) | | Add (deduct): | | | | Income tax expense | 3,210 | - | | Unrealized (gain) loss on risk management contracts | (6,349) | 38,737 | | Financing and interest | 12,280 | 15,456 | | Depletion and depreciation | 21,617 | 18,003 | | Non-recurring transactions | 1,853 | - | | Loss (gain) on revaluation of warrants | (7,996) | 6,379 | | Foreign exchange loss (gain) | (44) | 8,275 | | **Adjusted EBITDA** | **41,316** | **39,346** | [Risk Management](index=11&type=section&id=RISK%20MANAGEMENT) The company manages commodity price risk through hedging, with specific requirements from its 2028 Notes, and addresses foreign exchange, interest rate, credit, and liquidity risks [Commodity Price Risk](index=11&type=section&id=Commodity%20Price%20Risk) Greenfire uses a risk management program with instruments like swaps and collars to reduce cash flow volatility. As required by its 2028 Notes, the company must hedge at least 50% of its proved developed producing (PDP) reserve forecast for the next twelve months. As of March 31, 2025, the company had WTI fixed price swaps and costless collars in place for future quarters - The company is required by its 2028 Notes to maintain a hedging program covering at least **50%** of its forward twelve-month PDP hydrocarbon output[71](index=71&type=chunk) Outstanding WTI Hedges at March 31, 2025 | Term | Type | Volume (bbls/d) | Price (C$/bbl) | | :--- | :--- | :--- | :--- | | Q2 2025 | Fixed Price Swap | 9,450 | $100.84 | | Q3 2025 | Fixed Price Swap | 9,450 | $101.00 | | Q4 2025 | Fixed Price Swap | 9,450 | $100.85 | | Q1 2026 | Costless Collar | 4,951 | $81.89 - $100.16 | | Q1 2026 | Fixed Price Swap | 2,549 | $96.95 | - Subsequent to quarter-end, the company entered into WCS Differential Swaps for Q3 and Q4 2025[74](index=74&type=chunk) [Other Financial Risks](index=12&type=section&id=Other%20Financial%20Risks) The company is exposed to foreign exchange risk on its US dollar-denominated debt, with a net exposure of a US$217.5 million liability as of March 31, 2025. Interest rate risk is limited as the main debt (2028 Notes) is fixed-rate and the floating-rate credit facility is undrawn. Credit risk is managed by transacting with high-quality counterparties, and liquidity risk is managed through prudent capital spending and monitoring cash flows - As of March 31, 2025, the company's net foreign exchange risk exposure was a **US$217.5 million** liability, primarily from its US dollar-denominated 2028 Notes[75](index=75&type=chunk) - Interest rate risk is minimal as the Senior Credit Facility is undrawn and the 2028 Notes have a fixed interest rate[76](index=76&type=chunk) [Capital Resources and Liquidity](index=12&type=section&id=CAPITAL%20RESOURCES%20AND%20LIQUIDITY) The company's liquidity improved with a working capital surplus, supported by an undrawn credit facility and fixed-rate long-term debt, while cash flow from operations increased [Long Term Debt](index=13&type=section&id=Long%20Term%20Debt) The company's primary long-term debt consists of US$300 million in senior secured notes due 2028 (the '2028 Notes'), bearing a fixed interest rate of 12.00%. The notes have non-financial covenants, including limits on capital expenditures and a requirement to hedge production. As of March 31, 2025, the company was in compliance with all covenants - The main debt instrument is **US$300 million** of **12.00%** senior secured notes maturing in October 2028[82](index=82&type=chunk) - The 2028 Notes indenture includes non-financial covenants limiting capex to **US$150 million** annually (until principal is < US$150M) and requiring hedging of at least **50%** of forward 12-month production (until principal is < US$100M)[83](index=83&type=chunk) [Credit Facilities](index=13&type=section&id=Credit%20Facilities) Greenfire has a $50 million reserve-based Senior Credit Facility, which was undrawn as of March 31, 2025. Additionally, it maintains a separate $55.0 million letter of credit facility (EDC Facility), of which $54.0 million was utilized for outstanding letters of credit - The company has a **$50 million** Senior Credit Facility, which was undrawn as of March 31, 2025[87](index=87&type=chunk)[91](index=91&type=chunk) - A separate **$55.0 million** EDC Facility for letters of credit had **$54.0 million** outstanding as of March 31, 2025[92](index=92&type=chunk) [Adjusted Working Capital](index=14&type=section&id=Adjusted%20Working%20Capital%20Surplus) The company's working capital position improved significantly to a surplus of $60.1 million at March 31, 2025, from a deficit of $191.6 million at year-end 2024. This was mainly because the 2028 Notes, previously classified as a current liability due to a repurchase offer, were reclassified to long-term after the offer expired. Adjusted working capital surplus increased to $66.2 million Adjusted Working Capital Reconciliation | | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **($ thousands)** | | | | Working capital surplus (deficit) | 60,114 | (191,621) | | Add: Current portion of long-term debt | 12,195 | 248,489 | | Less: Current portion of risk management contracts | (6,101) | 248 | | **Adjusted working capital surplus** | **66,208** | **57,116** | [Cash Flow Summary](index=15&type=section&id=Cash%20Flow%20Summary) In Q1 2025, cash provided by operating activities more than doubled to $34.7 million from $17.1 million in Q1 2024, primarily due to changes in non-cash working capital. Cash used in investing activities decreased to $27.8 million from $37.7 million due to lower capital expenditures. Overall, cash and cash equivalents increased by $4.8 million during the quarter Cash Flow Summary | | Three months ended March 31, | | :--- | :--- | :--- | | **($ thousands)** | **2025** | **2024** | | Cash provided by operating activities | 34,673 | 17,064 | | Cash used in financing activities | (1,937) | (51) | | Cash used in investing activities | (27,814) | (37,681) | | **Change in cash and cash equivalents** | **4,819** | **(19,291)** | [Adjusted Funds Flow and Adjusted Free Cash Flow](index=16&type=section&id=Adjusted%20Funds%20Flow%20and%20Adjusted%20Free%20Cash%20Flow) Adjusted funds flow for Q1 2025 was $31.4 million, an increase from $27.6 million in Q1 2024, driven by higher adjusted EBITDA and lower interest expenses. The company generated adjusted free cash flow of $5.1 million, a positive swing from a negative $6.9 million in the prior-year quarter, reflecting higher adjusted funds flow and lower capital spending Adjusted Funds Flow and Free Cash Flow Reconciliation | | Three months ended March 31, | | :--- | :--- | :--- | | **($ thousands)** | **2025** | **2024** | | Cash provided by operating activities | 34,673 | 17,064 | | Changes in non-cash working capital | (5,082) | 10,525 | | Non-recurring transactions | 1,853 | - | | **Adjusted funds flow** | **31,444** | **27,589** | | Less: Property, plant and equipment expenditures | (26,299) | (31,920) | | Less: Acquisitions | - | (2,529) | | **Adjusted free cash flow** | **5,145** | **(6,860)** | [Other Information](index=16&type=section&id=Other%20Information) This section covers a related party transaction involving legal fee reimbursement and provides a summary of quarterly financial and operational results, along with non-GAAP measure definitions [Related Party Transaction](index=16&type=section&id=RELATED%20PARTY%20TRANSACTION) Following the Change of Control Transaction, Greenfire agreed to reimburse its controlling shareholder, WEF, for approximately $1.9 million in legal fees. These fees were associated with WEF's successful challenge of the company's shareholder rights plan, which ultimately led to the change of control and reconstitution of the board - The company reimbursed WEF approximately **$1.9 million** for legal fees related to a successful challenge of a shareholder rights plan, which led to the Change of Control Transaction[110](index=110&type=chunk) [Summary of Quarterly Results](index=17&type=section&id=SUMMARY%20OF%20QUARTERLY%20RESULTS) The company's quarterly results show fluctuations in production, commodity prices, and financial performance. Q1 2025 saw lower production compared to most of 2024 but achieved a strong operating netback of $31.67/bbl and net income of $16.2 million, reversing the loss from Q1 2024. Adjusted funds flow and free cash flow also showed positive year-over-year trends Selected Quarterly Financial Data | ($ thousands, unless noted) | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 | Q1 2024 | | :--- | :--- | :--- | :--- | :--- | :--- | | Bitumen production (bbls/d) | 17,495 | 19,384 | 19,125 | 18,993 | 19,667 | | Oil sales | 183,637 | 208,895 | 193,643 | 219,444 | 200,990 | | Operating netback ($/bbl) | 31.67 | 34.81 | 34.00 | 36.68 | 24.69 | | Adjusted EBITDA | 41,316 | 62,472 | 53,388 | 58,423 | 39,346 | | Net income (loss) | 16,163 | 78,562 | 58,916 | 30,848 | (46,915) | | Adjusted funds flow | 31,444 | 52,950 | 44,104 | 47,207 | 27,589 | | Adjusted free cash flow | 5,145 | 39,789 | 22,929 | 24,198 | (6,860) | [Non-GAAP and Other Financial Measures](index=18&type=section&id=NON-GAAP%20AND%20OTHER%20FINANCIAL%20MEASURES) This report utilizes several non-GAAP and supplementary financial measures to provide additional insight into the company's performance. Key non-GAAP measures include adjusted EBITDA, operating netback, adjusted funds flow, and adjusted free cash flow. The company provides reconciliations of these measures to their most directly comparable IFRS counterparts within the MD&A - The MD&A uses non-GAAP measures such as adjusted EBITDA, operating netback, adjusted funds flow, and adjusted free cash flow to evaluate performance[117](index=117&type=chunk) - The company believes these measures provide useful information for evaluating financial results and are commonly used in the oil and gas industry, though they may not be comparable to similar measures from other companies[118](index=118&type=chunk)
Greenfire Resources Reports Voting Results from 2025 Annual Meeting of Shareholders
Newsfile· 2025-05-07 00:51
Group 1 - Greenfire Resources Ltd. held its annual meeting of shareholders on May 6, 2025, in Calgary, Alberta, where voting results were announced [1][2] - A total of 56,586,107 Common Shares, representing approximately 80.93% of the issued and outstanding shares, were voted at the meeting [3] - All matters presented at the meeting, including the election of seven directors, were approved [3] Group 2 - The following nominees were elected as directors, with their respective votes for and withheld percentages: - Adam Waterous: 91.67% for, 8.33% withheld - Tom Ebbern: 93.67% for, 6.33% withheld - Henry Hager: 92.55% for, 7.45% withheld - Brian Heald: 93.67% for, 6.33% withheld - Andrew Kim: 91.86% for, 8.14% withheld - David Knight Legg: 93.67% for, 6.33% withheld - David Roosth: 91.86% for, 8.14% withheld [4] Group 3 - Deloitte LLP was appointed as the auditors of Greenfire until the close of the next annual meeting, with remuneration to be determined by the directors [6] Group 4 - Greenfire is an oil sands producer focused on developing long-life and low-decline thermal oil assets in the Athabasca region of Alberta, Canada [7] - The company aims to leverage its large resource base and significant infrastructure to achieve capital-efficient production growth [7]
Greenfire Resources Reports First Quarter 2025 Results and Provides an Operational Update
Newsfile· 2025-05-06 22:15
Core Viewpoint - Greenfire Resources Ltd. reported its Q1 2025 financial and operational results, highlighting a decrease in production and changes in financial metrics compared to previous periods [3][4][9]. Financial & Operating Highlights - Average WTI price for Q1 2025 was $71.42 per barrel, down from $76.96 in Q1 2024 [4]. - Bitumen production averaged 17,495 bbls/d, a 10% decrease from Q4 2024 and a 21% decrease from Q1 2024 [9][12]. - Oil sales totaled $183.6 million, down from $200.99 million in Q1 2024 [4][36]. - Net income for Q1 2025 was $16.16 million, compared to a loss of $46.92 million in Q1 2024 [7]. - Cash provided by operating activities was $34.67 million, an increase from $17.06 million in Q1 2024 [7][30]. - Adjusted free cash flow improved to $5.1 million from a negative $6.86 million in Q1 2024 [6][10]. Production and Operational Updates - Production for Q2 2025 to date is approximately 15,650 bbls/d due to steam generation downtime [11]. - The Expansion Asset's production decreased by 21% to 12,613 bbls/d in Q1 2025, while the Demo Asset's production increased by 46% to 4,882 bbls/d [12][10]. - The company plans to restore an offline steam generator by year-end 2025 [11]. Capital Expenditures and Future Development Plans - Capital expenditures for Q1 2025 were $26.3 million, down from $34.4 million in the same period of the prior year [10][39]. - The company is evaluating development plans for the Hangingstone Facilities, with potential drilling of new well pairs starting as early as Q4 2025 [14]. Regulatory Engagement and Emissions Reporting - Greenfire is in discussions with the Alberta Energy Regulator regarding sulphur dioxide emissions exceeding regulatory limits and has ordered sulphur removal facilities at the Expansion Asset [12][13]. Strategic Review and Corporate Update - The strategic review process has concluded, with the decision to continue as a public company focused on maximizing shareholder value [18]. - The company has hedges in place for 9,450 bbls/d of WTI at approximately $100.90 per barrel through 2025 [18].
Greenfire Resources Reports Year End 2024 Reserves, Fourth Quarter and Full Year 2024 Results, and Provides an Operational Update
Newsfile· 2025-03-18 01:28
Core Insights - Greenfire Resources Ltd. reported significant growth in its reserves and production for the year ending December 31, 2024, with proved reserves increasing by 28% to 234.7 million barrels and proved plus probable reserves rising by 72% to 408.6 million barrels [6][19]. - The company achieved a bitumen production rate of 19,292 barrels per day for the full year 2024, with a fourth-quarter average of 19,384 barrels per day, reflecting a 1% increase from the previous quarter [10][11]. - Financially, Greenfire reported cash provided by operating activities of $144.5 million and adjusted funds flow of $171.9 million for the full year 2024, alongside capital expenditures totaling $91.8 million [6][10]. Reserves and Production - Proved ("1P") and proved plus probable ("2P") reserves as of December 31, 2024, were 234.7 million barrels and 408.6 million barrels, respectively, marking growth of 28% and 72% compared to the previous year [6][20]. - The company has a 58-year 2P Reserve Life Index, indicating a long-term production outlook [6]. - Bitumen production for the fourth quarter of 2024 averaged 19,384 barrels per day, with full-year production averaging 19,292 barrels per day [10][11]. Financial Performance - Cash provided by operating activities for Q4 2024 was $60.2 million, with adjusted funds flow of $53.0 million [7][10]. - The company reported adjusted free cash flow of $39.8 million for Q4 2024 and $80.1 million for the full year 2024 [10][11]. - Net income for Q4 2024 was $78.6 million, compared to a loss of $4.7 million in Q4 2023, reflecting a significant turnaround [7][10]. Capital Expenditures and Cash Flow - Capital expenditures for the fourth quarter of 2024 totaled $13.2 million, with full-year capital expenditures amounting to $91.8 million [10][11]. - The adjusted free cash flow for the full year 2024 was $80.1 million, indicating strong cash generation capabilities [10][11]. Operational Updates - The company is currently addressing production challenges at the Expansion Asset due to ongoing steam generation equipment repairs, which have impacted output [13][14]. - Future development plans include drilling new well pairs on undeveloped reservoirs and optimizing base production at the Demo Asset [14][21]. Emissions and Regulatory Engagement - Following changes in leadership, the company reported potential underreporting of sulphur dioxide emissions and is in discussions with the Alberta Energy Regulator regarding compliance and potential remedies [15][16]. Market and Pricing - The average WTI price for Q4 2024 was $70.27 per barrel, down from $78.32 in Q4 2023, while the WCS Hardisty differential to WTI was $(12.56) per barrel [7][10]. - The company has implemented a new WTI hedging program to enhance price certainty for its production [21].
MediBeacon® Transdermal GFR System receives device approval in China
GlobeNewswire News Room· 2025-02-25 14:00
Core Insights - INNOVATE Corp. announced the approval of the MediBeacon® TGFR Monitor and TGFR Sensor by the National Medical Products Administration (NMPA) in China for kidney function assessment in patients with normal or impaired renal function [1] - The Lumitrace® (relmapirazin) injection is under review in China, with a target approval date set for late 2025 [1] - The TGFR technology, which includes Lumitrace, is a non-invasive method for assessing kidney function by measuring the clearance rate of a fluorescent agent [1][10] Regulatory and Clinical Developments - The NMPA granted the TGFR Innovative Medical Device Designation in 2021, with only 10% of applications receiving this designation, allowing for early product promotion [2] - Recent studies published in the Clinical Kidney Journal and the Journal of the American Society of Nephrology highlight the effectiveness of relmapirazin in accurately classifying Chronic Kidney Disease (CKD) stages, revealing that over one-third of subjects had misclassified eGFR [3][4][6] Technological Advancements - The TGFR system is the first of its kind for point-of-care kidney function assessment, utilizing a wearable, transdermal device that does not require blood samples [5][10] - The fluorescence-based test demonstrated a strong correlation (r² = 0.90) with plasma mGFR across various skin types, indicating its potential for equitable kidney function assessment [5] Company Background - INNOVATE Corp. operates in three key areas: Infrastructure, Life Sciences, and Spectrum, employing approximately 4,000 people [7] - MediBeacon specializes in fluorescent tracer agents and their transdermal detection, holding over 55 granted U.S. patents and more than 215 patents worldwide [8]
Greenfire Resources' Announces Expiration and Results of Change of Control Offer for Senior Secured Notes Due 2028
Newsfile· 2025-02-20 23:26
Core Points - Greenfire Resources Ltd. announced the expiration of its change of control offer for its 12.000% Senior Secured Notes due 2028, which ended on February 19, 2025, without extension [1] - A total of $5,000 in aggregate principal amount of the Notes was validly tendered and accepted for purchase, with settlement scheduled for February 24, 2025 [2] - The change of control was triggered by Waterous Energy Fund acquiring a 56.5% interest in Greenfire on December 23, 2024, necessitating the offer to purchase the Notes at 101% of their principal amount plus accrued interest [3] Company Overview - Greenfire is a junior oil sands producer focused on developing long-life and low-decline thermal oil assets in the Athabasca region of Alberta, Canada, aiming for capital-efficient production growth [5]
Greenfire Resources Announces New President and Departure of Senior Executives
Newsfile· 2025-02-11 21:55
Core Viewpoint - Greenfire Resources Ltd. has announced the appointment of Colin Germaniuk as President and Adam Waterous as Executive Chairman, marking a significant leadership transition within the company [1][3]. Group 1: Leadership Changes - Colin Germaniuk has extensive experience in thermal oil operations, previously serving at Serafina Energy Ltd., where he helped grow production from zero to approximately 40,000 barrels per day [2]. - Adam Waterous expressed confidence in Germaniuk's leadership capabilities, highlighting his operational expertise and track record in driving safe and capital-efficient operations [3]. - The leadership transition will see the departure of Robert Logan, the current President and CEO, along with three Senior Vice Presidents, while Tony Kraljic and Jonathan Kanderka will retain their roles as CFO and COO, respectively [3]. Group 2: Company Overview - Greenfire is a junior producer in the Athabasca oil sands, focusing on long-life, low-decline thermal assets, and aims to leverage its resource base for capital-efficient production growth [4].
Greenfire Resources Announces Change of Control Offer to Purchase 12.000% Senior Secured Notes due 2028
Newsfile· 2024-12-27 21:00
Core Points - Waterous Energy Fund Corp. has increased its interest in Greenfire Resources Ltd. to 56.5% of the issued and outstanding common shares through an acquisition [3] - Greenfire Resources has initiated a Change of Control Offer for its 12.000% Senior Secured Notes due 2028, following the acquisition [9][10] - The Change of Control Offer will commence on December 27, 2024, and will expire on February 19, 2025, with a withdrawal deadline of February 20, 2025 [4] Offer Details - The consideration for each US$1,000 principal amount of Notes tendered will be US$1,010, which is 101% of the principal amount, plus accrued and unpaid interest [10] - The Issuer expects to purchase any validly tendered Notes on February 24, 2025, provided they are not withdrawn by the withdrawal deadline [4][10] - The Depositary for the Change of Control Offer is The Bank of New York Mellon [11] Company Overview - Greenfire Resources is an intermediate, lower-cost, and growth-oriented producer in the Athabasca oil sands, utilizing steam-assisted gravity drainage extraction methods [13]