Greenfire Resources (GFR) Q3 2024 earnings summary

Executive summary

• Q3 2024 consolidated production rose 30% year-over-year to 19,125 barrels per day, driven by successful refill well drilling and maintenance completion at the Expansion Asset.

• November 2024 production reached approximately 21,375 barrels per day, reflecting new refill wells at the Demo Asset.

• Strategic review process initiated in July 2024 to maximize shareholder value, including a potential sale.

• Waterous Energy Fund acquired 43.3% of outstanding shares in November 2024.

Financial highlights

• Adjusted EBITDA reached CAD 53.4 million ($31.39/bbl) in Q3 2024, up 15% from the prior year.

• Net income was CAD 58.9 million, reversing a CAD 138.7 million loss in Q3 2023.

• Adjusted funds flow was CAD 44.1 million; adjusted free cash flow was CAD 22.9 million.

• Capital expenditures totaled CAD 21.2 million for the quarter and CAD 78.6 million year-to-date.

• Q3 2024 oil sales were $193.6 million, with an operating netback of $57.8 million ($34.00/bbl).

Outlook and guidance

• 2024 annual production expected to average 19,500 barrels per day, slightly below guidance due to regulatory delays and maintenance.

• November 2024 consolidated production reached approximately 21,375 barrels per day.

• 2024 capital expenditure guidance increased to CAD 90–100 million to accelerate drilling.

• Next scheduled debt redemption in Q1 2025; 75% of excess cash flow to be used for debt reduction until indebtedness is below US$150 million.

• Updated independent reserve report to be released in late November 2024.