GFRWF Overview

Financial Performance: Greenfire Resources Ltd. reported a bitumen production of 15,757 bbls/d for Q3 2025, with adjusted funds flow of $38.1 million and adjusted free cash flow of $20.2 million, reflecting a decrease in production compared to Q3 2024.

Operational Updates: The company successfully restored a failed steam generator at the Hangingstone Expansion Facility and plans to commence drilling operations at a new SAGD well pad in November 2025, with first oil expected in Q4 2026.

Regulatory Compliance: Greenfire is addressing sulphur dioxide emissions exceeding regulatory limits at the Expansion Asset by installing sulphur removal facilities, with commissioning expected in November 2025.

Future Outlook: The company anticipates production on the high end of its 2025 guidance and has approved a 2026 capital budget of $180 million, focusing on sustaining and growth capital to enhance production efficiency.

Rights Offering Announcement: Greenfire Resources Ltd. plans to undertake a rights offering of its common shares to raise approximately C$300 million, with details to be finalized before the offering commences.

Standby Purchase Agreement: The company expects to enter into a standby purchase agreement with Waterous Energy Fund, which holds about 55.9% of Greenfire's shares, to ensure full subscription of the offering.

Use of Proceeds: The net proceeds from the rights offering will be used to redeem US$237.5 million of outstanding senior secured notes due in 2028, with a conditional notice of redemption to be issued following the offering's launch.

Regulatory Compliance: The rights offering will be conducted in Canada and the U.S., subject to necessary approvals and market conditions, and will comply with applicable securities laws.

Analyst Downgrade: Greenfire Resources Ltd. (NYSE:GFR) was downgraded from Outperform to Market Perform by BMO Capital analyst Tariq Saad, with a price target maintained at C$8, due to anticipated cash flow challenges in 2026.

Production and Financial Performance: The company produced 15,748 barrels of bitumen per day despite operational setbacks, generating $17.7 million in operating cash flow, while capital expenditures decreased to $10.8 million.

Voting Results: Greenfire Resources Ltd. held its annual meeting on May 6, 2025, where approximately 80.93% of shares were voted, resulting in the approval of all matters including the election of seven directors and the appointment of Deloitte LLP as auditors.

Director Elections: The elected directors include Adam Waterous, Tom Ebbern, Henry Hager, Brian Heald, Andrew Kim, David Knight Legg, and David Roosth, with Mr. Heald appointed as Chair of the Audit Committee following the meeting.

Change of Control Offer Announcement: Greenfire Resources Ltd. has initiated a Change of Control Offer for its 12.000% Senior Secured Notes due 2028 following Waterous Energy Fund Corp.'s acquisition of a 56.5% interest in the company, with the offer commencing on December 27, 2024, and expiring on February 19, 2025.

Tender Offer Details: Holders of the Notes can tender their securities for US$1,010 per US$1,000 principal amount plus accrued interest, with the option to withdraw until February 20, 2025; the purchase of validly tendered Notes is expected to occur on February 24, 2025.