GFR · Greenfire Resources Ltd.

Greenfire Resources reported a net loss of $73.0 million for Q1 2026, a sharp reversal from net income of $16.2 million in Q1 2025. The primary driver was a $94.6 million loss on risk management contracts, consisting of a $3.2 million realized loss and a $91.4 million non-cash unrealized loss. Excluding this item, adjusted EBITDA was $25.6 million, down from $41.3 million a year earlier, reflecting lower production and weaker Canadian-dollar WCS pricing. Bitumen production averaged 14,719 bbls/d, a 16% decline year-over-year, due to steeper-than-anticipated base declines at the Expansion Asset and unplanned downtime from a high-productivity well. The Demo Asset saw a slight sequential increase. Oil sales net of royalties fell 19% to $143.0 million, driven by lower volumes and a 6% drop in Canadian-dollar WCS pricing. Operating netback per barrel declined to $23.42 from $31.67 in Q1 2025, pressured by higher per-unit costs and a realized hedging loss. Capital expenditures surged to $49.6 million, primarily for Pad 7 drilling and an expanded oil sands exploration program. The company raised its 2026 capital budget to $210 million to accelerate Pad 8 development, while maintaining production guidance of 13,500-15,500 bbls/d. Liquidity remains adequate with $296.7 million in available funding, though cash dropped to $0.5 million. The senior credit facility borrowing base was reaffirmed at $275 million and extended to May 2028. The significant unrealized hedging loss and production decline are key concerns, but the accelerated growth program and extended credit facility provide a path to recovery.