Production and Sales Performance - Consolidated production in Q3 2024 was 19,125 bbls/d, a 30% increase from 14,670 bbls/d in Q3 2023[15] - Average bitumen production for Q3 2024 was 19,125 bbls/d, up from 14,670 bbls/d in Q3 2023, reflecting a 30.5% increase[40] - Production at the Expansion Asset was 16,126 bbls/d in Q3 2024, up from 15,824 bbls/d in Q2 2024[27] - Production at the Demo Asset was 2,999 bbls/d in Q3 2024, down from 3,618 bbls/d in Q2 2024, due to deferred volumes[31] - Total oil sales for Q3 2024 reached $193.6 million, compared to $161.0 million in Q3 2023, representing a 20.2% increase[48] - In Q3 2024, oil sales amounted to $193,643 thousand, a decrease of 11.8% compared to $219,444 thousand in Q2 2024[160] Financial Performance - Net income for Q3 2024 was $58.9 million, and adjusted EBITDA was $53.4 million ($31.39/bbl)[17] - The company reported a net income of $58,916 thousand in Q3 2024, a significant improvement compared to a net loss of $(46,915) thousand in Q1 2024[160] - Adjusted EBITDA for the three months ended September 30, 2024, was $53.4 million, an increase from $46.4 million in the same period in 2023, primarily due to higher oil sales[109] - For the nine months ended September 30, 2024, net income was $42.8 million, in contrast to a net loss of $131.0 million in the comparable period of 2023[107] Capital Expenditures and Investments - Capital expenditures totaled $21.2 million in Q3 2024, with year-to-date expenditures of $78.6 million[18] - The company plans to drill an additional Refill well at the Expansion Asset in December 2024, increasing annual capital expenditure guidance to $90 - $100 million[35] - Total capital expenditures for the nine months ended September 30, 2024, reached $78.6 million, compared to $14.0 million in 2023, indicating significant investment in growth[139] - The company spent $3.7 million on acquisitions during the nine months ended September 30, 2024, including heavy oil and natural gas assets[140] Liquidity and Debt Management - Available liquidity at the end of Q3 2024 was $87.7 million, consisting of $37.7 million in cash and $50.0 million in available credit[20] - The company aims to reduce debt using 75% of excess cash flow to semi-annually redeem a portion of the 2028 Notes until consolidated indebtedness is less than $150 million[35] - The company redeemed $84.3 million (US$61.0 million) of its 2028 Notes in July 2024, reducing the outstanding principal to US$239 million[19] - As of September 30, 2024, the carrying value of the company's long-term debt was $308.6 million, with a fair value of $349.4 million[117] Operational Efficiency and Costs - The effective royalty rate for Q3 2024 was 7.52%, slightly higher than 7.49% in Q3 2023[56] - Operating expenses for the three months ended September 30, 2024, totaled $40.7 million, with an operating expense of $23.90 per barrel, compared to $38.4 million and $29.12 per barrel in the same period of 2023[71] - The diluent expense for the three months ended September 30, 2024, was $67.9 million, with a cost of $9.08 per barrel, compared to $52.1 million and $7.37 per barrel in the same period of 2023[66] - Transportation and marketing expenses were $12.5 million for the three months ended September 30, 2024, with a cost of $7.34 per barrel, down from $12.8 million and $9.69 per barrel in the same period of 2023[69] Risk Management and Financial Instruments - The Company reported a realized loss of $6.1 million on risk management contracts for the three months ended September 30, 2024, compared to $0 in the same period of 2023[62] - An unrealized gain of $36.0 million on risk management contracts was recorded for the three months ended September 30, 2024, compared to an unrealized loss of $7.6 million in the same period of 2023[64] - Financial risk management contracts are measured at fair value, with gains and losses included in the consolidated statements of comprehensive income in the period they arise[59] Future Outlook and Strategic Initiatives - The company plans to issue an updated independent reserves evaluation in the second half of 2024[26] - Greenfire's Board initiated a strategic review process in July 2024 to explore alternatives for maximizing shareholder value[20] - Greenfire expects average productivity of Refill wells with replaced downhole temperature sensors to increase to align with the current average productivity of the remaining five Refill wells[181] - The company is pursuing capital-efficient and lower-risk growth through the optimization of existing production, facilities, and reserves[181] Shareholder and Market Engagement - The New Rights Plan is subject to shareholder ratification by March 18, 2025, to remain effective[175] - The company has exclusive marketing contracts with a reputable international energy marketing company, expiring in April 2026 and October 2028 for different assets[68] - The company anticipates meeting its cash requirements through a combination of cash on hand, operating cash flows, and potentially accessing available credit facilities[164]
Greenfire Resources .(GFR) - 2024 Q3 - Quarterly Report