Greenfire Resources Reports Second Quarter 2025 Results and Provides an Operational Update

Executive Summary

• Greenfire Resources Ltd. reported its operating and financial results for the quarter ended June 30, 2025, highlighting a decrease in bitumen production due to steam generator downtime at the Expansion Asset.
• The company generated $17.7 million in cash from operating activities and $23.0 million in adjusted free cash flow, with capital expenditures totaling $10.8 million.
• Operational updates include plans to restore full steam capacity by year-end 2025, install sulphur removal facilities in Q4 2025, and begin drilling Pad 7 in Q4 2025 with first oil expected in Q4 2026.

Key Details

• Production: Average bitumen production was 15,748 bbls/d in Q2 2025, a 10% decrease from Q1 2025 (17,495 bbls/d) and a decrease from Q2 2024 (18,993 bbls/d).
  • Expansion Asset production: 10,105 bbls/d (down 20% from Q1 2025) due to steam generator failure.
  • Demo Asset production: 5,643 bbls/d (up 16% from Q1 2025) driven by well performance optimization.
• Financial Performance (Q2 2025):
  • Cash provided by operating activities: $17.7 million.
  • Adjusted funds flow: $33.8 million.
  • Adjusted free cash flow: $23.0 million.
  • Net income: $48.7 million.
  • Capital expenditures: $10.8 million.
  • Cash and cash equivalents: $69.98 million.
  • Net debt: $(216.0) million.
• Operational Updates:
  • Steam Generator: One of four steam generators at the Expansion Asset failed, impacting production by an estimated 1,500 to 2,250 bbls/d. Full steam capacity is expected to be restored by year-end 2025.
  • Sulphur Removal: Sulphur removal facilities have been ordered to address SO2 emissions exceedances; installation and commissioning are scheduled for Q4 2025 at an estimated cost of $11.3 million.
  • Pad 7 Development: A new SAGD well pad (Pad 7) consisting of 13 well-pairs is planned northeast of the Expansion CPF. Drilling is expected to begin in Q4 2025, with first oil anticipated in Q4 2026.
• 2025 Outlook:
  • Approved capital budget: $130 million (evenly split between sustaining and growth).
  • Anticipated annual production range: 15,000 to 16,000 bbls/d.
• Hedging:
  • WTI hedges: 9,450 bbls/d at approx. $100.90/bbl through 2025.
  • WCS Hardisty differential hedges: 12,600 bbl/d for Q3 2025 at US$10.90/bbl and 12,600 bbl/d for Q4 2025 at US$13.50/bbl.
• Credit Facilities: $50.0 million available under the Senior Credit Facility with no amounts drawn as of June 30, 2025.

Notable Quotes

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