Greenfire Resources Announces Q2 2024 Results, Updated 2024 Outlook and Appointment of Chief Operating Officer

Core Viewpoint - Greenfire Resources Ltd. reported its Q2 2024 financial and operational results, highlighting production challenges due to external factors and providing an updated outlook for 2024, including the appointment of a new Chief Operating Officer [2][4][5]. Financial Highlights - Consolidated bitumen production reached 18,993 barrels per day (bbls/d) in Q2 2024, an increase from 18,036 bbls/d in Q2 2023 [8]. - Adjusted EBITDA for Q2 2024 was $58.4 million, up 48% from $34.4 million in Q2 2023, while adjusted funds flow increased by 71% to $47.2 million from $23.5 million in Q2 2023 [8][9]. - The company maintained available liquidity of approximately $210 million as of June 30, 2024, consisting of $160 million in cash and cash equivalents and $50 million in available credit [9][14]. Operational Update - Production at the Expansion Asset averaged 15,824 bbls/d in Q2 2024, down from 17,361 bbls/d in Q1 2024, primarily due to operational disruptions and delays caused by wildfires and equipment failures [15][18]. - The Demo Asset achieved an average production of 3,169 bbls/d in Q2 2024, an increase from 2,306 bbls/d in Q1 2024, following the completion of drilling activities [20]. Updated 2024 Outlook - The updated production guidance for 2024 is set at an annual average of 20,000 - 21,000 bbls/d, reflecting a growth of 13% - 19% over 2023 production levels, down from the previous forecast of 25% - 40% growth [24][22]. - Planned capital expenditures for 2024 are estimated to be between $80 million and $90 million, with a focus on drilling activities and facility optimizations [23][24]. Leadership Changes - Jonathan Kanderka has been appointed as Chief Operating Officer, bringing over 20 years of experience in steam-assisted gravity drainage (SAGD) and thermal oil operations [27][28]. - Dean Custance has been appointed Vice President, Finance, with extensive experience in finance and accounting within the oil and gas sector [29]. Strategic Positioning - Greenfire holds a 75% working interest in the Hangingstone Expansion Facility and a 100% working interest in the Hangingstone Demonstration Facility, positioning the company for continued production growth and potential free cash flow generation [7][30]. - The company is well-positioned with $1.8 billion in corporate tax pools and lower pre-payout royalty rates, which are expected to enhance free cash flow generation, especially at higher commodity prices [26].