Greenfire Resources .(GFR) - 2025 Q3 - Earnings Call Transcript

Financial Data and Key Metrics Changes - The company is poised to materially outspend cash flow over the next two to three years due to a significant amount of growth capital needed to optimize assets [3][4] - A transformational recapitalization plan is announced, which includes a $300 million equity rights offering and a $275 million revolving credit facility [4][5] Business Line Data and Key Metrics Changes - The company expects to hit the top end of its 2025 production guidance range of 15,000-16,000 barrels per day due to strong base well performance at the Hanging Stone facilities [6] - The 2026 capital budget has been approved at $180 million, with anticipated annual bitumen production of 15,500-16,500 barrels per day [8] Market Data and Key Metrics Changes - The company continues to engage with the Alberta Energy Regulator regarding sulfur emission exceedances and is installing sulfur removal facilities expected to be operational in November 2025 [8] Company Strategy and Development Direction - The recapitalization plan aims to reduce debt and support organic growth business plans to fill plant capacity at the Hanging Stone facilities [4] - The company plans to commence drilling operations at its inaugural SAGD well pad, Pad 7, in November 2025, with first oil anticipated in Q4 2026 [9] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the current oil price outlook and the need for significant growth capital investment, indicating a challenging operating environment [3] - Despite expectations for the expansion asset to resume full capacity by year-end 2025, production levels are anticipated to remain relatively flat in 2026 due to growth capital projects not reaching first oil until late Q4 2026 and a planned major turnaround in May 2026 [8][9] Other Important Information - The company has successfully restored a failed boiler ahead of schedule and is proactively refurbishing a second boiler [6][7] - The recapitalization plan is expected to leave the company debt-free upon closing [5] Q&A Session Summary Question: No questions were asked during the Q&A session - There were no questions from analysts during the Q&A session [11]