Greenfire Resources .(GFR) - 2025 Q2 - Earnings Call Transcript

Financial Data and Key Metrics Changes - In 2025, the company expects to produce between 15,000 to 16,000 barrels a day of bitumen and plans to invest CAD 130 million in capital expenditures [6][7] - The production has been reduced by approximately 1,500 to 2,300 barrels a day due to a boiler outage [5] Business Line Data and Key Metrics Changes - The company has advanced its inaugural SAGD pad, PADD 7, which is expected to start drilling in Q4 2025, with first oil forecasted for Q4 2026 [7][8] - The current plan for PADD 7 includes 13 well pairs with lateral lengths ranging from 800 to 1,400 meters [7] Market Data and Key Metrics Changes - The company is addressing sulfur dioxide emissions by procuring a sulfur removal unit expected to be operational by year-end 2025 [6] Company Strategy and Development Direction - The company is focusing on the development of PADD 7 and evaluating shorter cycle drilling opportunities to be completed concurrently in 2026 [8] - The new VP of Finance, Travis Belak, is expected to enhance the financial stewardship of the company [8] Management's Comments on Operating Environment and Future Outlook - Management acknowledged that 2025 has been a challenging year operationally due to various issues, including boiler repairs and historical underinvestment in new well pairs [4][5] - The company is undergoing a turnaround process to address over-leveraging and operational inefficiencies [19][20] Other Important Information - The company has made considerable progress in addressing operational challenges, with the boiler repair on schedule for full capacity by year-end 2025 [5][6] - The leadership transition with the new VP of Finance is seen as a positive step for the company's financial management [8] Q&A Session Summary Question: Production level at the demo asset - Management noted that two wells drilled in Q1 have been ramping up nicely, adding approximately 800 barrels each [11][12] Question: CapEx guidance for 2026 - Management stated that they are not yet in a position to provide guidance for 2026 but emphasized the significant operational changes required for the turnaround [16][20] Question: Unwinding of spend and future operational plans - Management indicated that they have unwound a lot of past operational decisions but are just beginning to execute the development plan [20]