Greenfire Resources .(US:GFR) Newsfileยท2025-08-06 23:44Core 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].