Greenfire Resources (GFR) Q2 2024 earnings summary

Executive summary

• Q2 2024 featured strong financial performance with bitumen production averaging 18,993 bbl/day, up from 18,036 bbl/day in Q2 2023, despite operational challenges from wildfires and temporary evacuations.

• All staff have returned, operations and drilling have fully resumed, and production ramped up post-quarter end.

• Leadership team strengthened with the appointment of Jonathan Kanderka as COO and Dean Custance as VP of Finance, both bringing significant industry experience.

• 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.

Financial highlights

• Q2 2024 consolidated production averaged 18,993 bbl/day, down 3% sequentially but up 5% year-over-year.

• 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.

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

• Adjusted free cash flow for Q2 was CAD 24.2 million.

Outlook and guidance

• Updated 2024 guidance: average production of 20,000–21,000 bbl/day, reflecting 13–19% year-over-year growth, with fully funded capex of CAD 80–90 million.

• Production increased to 19,660 bbl/day in July and 21,050 bbl/day in early August.

• Ongoing drilling and facility optimization expected to further increase production into year-end.

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

• 2024 capital expenditures expected at $80–90 million, including $3.7 million for minor acquisitions.