Greenfire Resources (GFR) Q2 2024 earnings summary

Executive summary

• Q2 2024 featured strong financial performance and bitumen production averaging 18,993 bbl/day, up from 18,036 bbl/day in Q2 2023, despite operational challenges from wildfires and sensor failures that delayed production growth.

• All staff have returned, and full operations and drilling have resumed at both facilities.

• Adjusted EBITDA rose to $58.4 million, a 70% increase year-over-year, and adjusted funds flow reached $47.2 million, up 101% from Q2 2023.

• Liquidity at June 30, 2024 was $210 million, including $160 million in cash and $50 million in undrawn credit.

• New leadership appointments included a new COO and VP of Finance to strengthen operational and financial capabilities.

Financial highlights

• Operating netbacks reached CAD 36.68 per barrel, up 49% from Q1 and 59% from Q2 2023.

• Net income for Q2 2024 was $30.8 million, up from $24.4 million in Q2 2023; EPS (basic) was $0.45.

• Oil sales totaled $219.4 million, with an average realized price of $89.93/bbl, up from $75.12/bbl in Q2 2023.

• Adjusted free cash flow was $24.2 million, compared to $21.5 million in Q2 2023.

• Capital expenditures were $23.0 million, with 90% allocated to drilling.

Outlook and guidance

• Full-year 2024 production guidance updated to 20,000–21,000 bbl/day, reflecting 13–19% year-over-year growth, with a fully funded capital program of CAD 80–90 million.

• Production increased to 19,660 bbl/day in July and 21,050 bbl/day in early August, driven by successful well interventions.

• Company remains committed to debt reduction, targeting semi-annual redemptions of 2028 Notes using 70–75% of excess cash flow.

• Production expected to increase into year-end as operational issues are resolved and new wells come online.