Core Viewpoint - Greenfire Resources Ltd. reported strong operational and financial results for Q3 2024, with a 30% year-over-year increase in consolidated production, reflecting successful drilling campaigns and maintenance activities [3][10][20]. Financial Performance - Consolidated production averaged 19,125 bbls/d in Q3 2024, up from 14,670 bbls/d in Q3 2023 [10]. - Oil sales reached CAD 193.6 million, with an operating netback of CAD 57.8 million, translating to CAD 34.00 per barrel [11][40]. - Adjusted EBITDA for Q3 2024 was CAD 53.4 million, or CAD 31.39 per barrel [11][41]. - The company reported a net income of CAD 58.9 million for the quarter [11][37]. Operational Highlights - The company anticipates an average annual production of approximately 19,500 bbls/d for 2024, slightly below previous guidance due to regulatory delays and maintenance issues [3][27]. - November 2024 production is estimated to average 21,275 bbls/d, driven by new operational Refill wells [20][26]. - The company holds a 75% working interest in the Hangingstone Expansion Facility and a 100% working interest in the Hangingstone Demonstration Facility [9]. Strategic Initiatives - In July 2024, the Board initiated a strategic review process to explore options for maximizing shareholder value, engaging TD Securities and TPH&Co as financial advisors [5][6]. - The company plans to accelerate drilling of an additional Refill well in December 2024, increasing capital expenditure guidance to CAD 90-100 million [28]. - Future growth plans include expanding production capacity by 74% to approximately 59,000 bbls/d, pending board approval and funding commitments [30]. Market Context - The company is positioned to benefit from improving market dynamics for Canadian heavy oil, particularly following the completion of the Trans Mountain Expansion Project [31]. - Greenfire's production is entirely weighted to crude oil benchmarks linked to WCS differentials, with expectations of heightened free cash flow generation in a higher commodity price environment [31].
Greenfire Resources Announces Q3 2024 Results and Operational Update