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].
Greenfire Resources Reports Year End 2024 Reserves, Fourth Quarter and Full Year 2024 Results, and Provides an Operational Update