Greenfire Resources Ltd Stock Price, News & Analysis

Greenfire Resources (NYSE/TSX: GFR) reported its Q1 2025 financial results with bitumen production of 17,495 bbls/d, down 10% from Q4 2024. The company generated $34.7 million in operating cash flow and $31.4 million in adjusted funds flow. Key financial metrics include capital expenditures of $26.3 million and adjusted free cash flow of $5.1 million. The Expansion Asset saw a 21% production decrease to 12,613 bbls/d, while the Demo Asset increased 46% to 4,882 bbls/d. Current Q2 2025 production is approximately 15,650 bbls/d due to steam generation issues. The company is investing $15 million in sulphur removal facilities to address regulatory compliance and plans new well pad development pending board approval. Greenfire maintains strong hedging positions with 9,450 bbls/d of WTI hedged at approximately $100.90 per barrel through 2025.

Waterous Energy Fund (WEF) has successfully closed its third private equity fund at C$1.4 billion (~US$1 billion). Fund III will focus on value-based investments in the Canadian oil and gas sector, pursuing a concentrated portfolio strategy of scaled businesses with high-quality, geographically adjacent assets.

The Fund has already deployed approximately one-third of its capital in Greenfire Resources , an Athabasca thermal oil production company. The majority of the Fund's capital comes from existing partners, with some new investors joining. Bennett Jones LLP and Mayer Brown LLP served as legal counsel for Fund III's formation.

Greenfire Resources (NYSE: GFR) has reported its year-end 2024 reserves and Q4/FY2024 results. The company achieved significant reserves growth, with Proved (1P) reserves reaching 234.7 MMbbl (+28%) and Proved Plus Probable (2P) reserves at 408.6 MMbbl (+72%) compared to 2023.

Q4 2024 performance showed bitumen production of 19,384 bbls/d, generating cash from operations of $60.2 million and adjusted free cash flow of $39.8 million. Full-year 2024 results included average production of 19,292 bbls/d, with cash from operations of $144.5 million and adjusted free cash flow of $80.1 million.

However, 2025 has started with challenges, as production declined approximately 7% to 18,000 bbls/d due to steam generation equipment repairs and unexpected facility downtime at the Expansion Asset. Additionally, the company disclosed potential underreporting of sulphur dioxide emissions, which is currently under review with the Alberta Energy Regulator.

Greenfire Resources (NYSE: GFR) (TSX: GFR) announced the expiration of its change of control offer to purchase its outstanding 12.000% Senior Secured Notes Due 2028. The offer, which expired on February 19, 2025, resulted in only $5,000 in aggregate principal amount of Notes being validly tendered.

The offer was triggered by Waterous Energy Fund's acquisition of additional shares on December 23, 2024, increasing its ownership to 56.5% of Greenfire's outstanding common shares. Under the indenture terms, Greenfire was required to offer to purchase the Notes at 101% of their principal amount, plus accrued and unpaid interest. Settlement of the tendered Notes is scheduled for February 24, 2025.

Greenfire Resources (NYSE: GFR) (TSX: GFR) has announced significant leadership changes, appointing Colin Germaniuk as President and Adam Waterous as Executive Chairman. Germaniuk, who previously served at Serafina Energy , brings extensive thermal oil operations experience, having helped grow production from zero to approximately 40,000 barrels per day in his former role.

The leadership transition includes the departure of four senior executives: Robert Logan (President and CEO), Kevin Millar (SVP, Operations & Steam Chief), Albert Ma (SVP, Engineering), and Crystal Park (SVP, Commercial). Tony Kraljic and Jonathan Kanderka will continue as CFO and COO respectively, reporting to Germaniuk.

Germaniuk's background includes management positions at Connacher Oil and Gas and Canadian Natural Resources , focusing on thermal oil operations. He will report directly to Waterous and aims to optimize operations, reduce costs, and maximize production.

Greenfire Resources (NYSE: GFR) (TSX: GFR) has initiated a change of control offer for its 12.000% Senior Secured Notes due 2028, following Waterous Energy Fund Corp.'s increased ownership to 56.5% of Greenfire's outstanding common shares on December 23, 2024.

The offer provides holders with US$1,010 per US$1,000 principal amount (101% of principal), plus accrued and unpaid interest. The offer begins December 27, 2024, and expires February 19, 2025, with a withdrawal deadline of February 20, 2025. Expected purchase date for validly tendered notes is February 24, 2025.

Greenfire Resources (NYSE: GFR) announced significant changes to its Board of Directors and ownership structure. The company revealed that WEF (Waterous Energy Fund) has increased its ownership to 56.5% of outstanding common shares by acquiring Brigade's shares at US$7.83 per share. Three board members resigned, replaced by six WEF nominees, with Adam Waterous appointed as Board Chairman. The company terminated its Second Rights Plan and will continue its Strategic Review process until May 6, 2025, under a special committee led by newly appointed Lead Director Tom Ebbern. The review aims to enhance value for all shareholders and will involve appointing a new financial advisor to replace TD Securities.

Greenfire Resources (NYSE: GFR) (TSX: GFR) has appointed Tom Ebbern to its Board of Directors, bringing over 40 years of oil and gas industry experience, including expertise in energy investment banking and capital markets. Ebbern previously served as CFO of North West Refining and held board positions at several energy companies.

The company has scheduled an Annual and Special Meeting of Shareholders for May 6, 2025, in Calgary, following a requisition from Waterous Energy Fund entities, which own approximately 43.3% of Greenfire's shares. Additionally, Greenfire has amended its shareholder rights protection plan, extending the shareholder ratification deadline to May 6, 2025. The Toronto Stock Exchange will defer consideration of accepting the Amended Rights Plan until securities commission review.

Greenfire Resources announces a significant 72% increase in Total Proved and Probable (2P) reserves with a net present value after-tax of $2.7 billion, or $32.89 per diluted share net of debt. The updated reserves report by McDaniel & Associates shows Total Proved (1P) Reserves of approximately 235 million barrels of bitumen with an NPV10 AT of $2.2 billion.

The evaluation includes the Hangingstone Expansion Facility and Demonstration Facility, recognizing existing production capacities of 35,000 bbl/d at the existing plant, planned 15,000 bbl/d Brownfield Expansion, and 10,000 bbl/d at the Demo Asset. A separate Management Accelerated Development Scenario, including the McKay CPF relocation, shows potential for additional value of $357 million.