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Hamilton Spectator
08-05-2025
- Business
- Hamilton Spectator
Parex Resources Announces First Quarter Results, Declaration of Q2 2025 Dividend, and Operational Update
CALGARY, Alberta, May 08, 2025 (GLOBE NEWSWIRE) — Parex Resources Inc. ('Parex' or the 'Company') (TSX: PXT) is pleased to announce its financial and operating results for the three-month period ended March 31, 2025, the declaration of its Q2 2025 regular dividend of C$0.385 per share, as well as an operational update. All amounts herein are in United States Dollars ('USD') unless otherwise stated. 'We entered the year with a disciplined and diversified plan aimed at delivering steady performance, and given current market volatility, are focused on sustaining base production and maintaining flexibility,' commented Imad Mohsen, President & Chief Executive Officer. 'After a measured first quarter, drilling activity is increasing consistent with our budget. The recent tuck-in acquisition of LLA-32, an asset integral to our development plans, along with encouraging exploration results, represent key milestones that will drive near-term production. While we are well-positioned to deliver a strong second half, we will closely monitor commodity prices and our capital allocation throughout the year to maximize shareholder value.' Key Highlights Q1 2025 Results (1) Capital management measure. See 'Non-GAAP and Other Financial Measures Advisory.' (2) Non-GAAP ratio. See 'Non-GAAP and Other Financial Measures Advisory.' (3) Based on weighted average basic shares for the period. (4) Supplementary financial measure. See 'Non-GAAP and Other Financial Measures Advisory.' (5) Based on Q1 2025 actuals and estimated April 2025 average production; rounded for presentation purposes. (6) Non-GAAP financial measure. See 'Non-GAAP and Other Financial Measures Advisory.' (7) See 'Operational and Financial Highlights' for a breakdown of production by product type. (1) Reference to crude oil or natural gas in the above table and elsewhere in this press release refer to the light and medium crude oil and heavy crude oil and conventional natural gas, respectively, product types as defined in National Instrument 51-101 - Standards of Disclosure for Oil and Gas Activities. (2) Non-GAAP ratio. See 'Non-GAAP and Other Financial Measures Advisory'. (3) Non-GAAP financial measure. See 'Non-GAAP and Other Financial Measures Advisory'. (4) Supplementary financial measure. See 'Non-GAAP and Other Financial Measures Advisory'. (5) Capital management measure. See 'Non-GAAP and Other Financial Measures Advisory'. (6) Per share amounts (with the exception of dividends) are based on weighted average common shares. (7) Borrowing limit of $240.0 million as of March 31, 2025. (8) Diluted shares as stated include common shares and stock options outstanding at period-end. The March 31, 2025 closing stock price was C$13.42 per share. LLA-32 Tuck-In Acquisition On March 14, 2025, Parex executed a tuck-in acquisition for the remaining working interest at LLA-32 for total consideration of $16 million. LLA-32 is located to the north and adjacent to the Company's core LLA-34 and Cabrestero blocks. The strategic rationale for the acquisition was to gain full control of the asset, grow production, expand inventory, and add low-cost recompletion opportunities. Following the close of the acquisition, Parex started a workover program with positive results thus far, and in Q2 2025, initiated a five-well development campaign. Current production from LLA-32 is roughly 4,000 boe/d(1). Operational Update 2025 Corporate Guidance & Outlook While Parex's 2025 corporate guidance of average production of 43,000 to 47,000 boe/d and capital expenditures of $285 to $315 million remains unchanged as previously disclosed, the Company is closely monitoring oil price volatility to ensure that project economics remain robust. Given the conventional nature of Parex's business and the structure of its drilling and service contracts, optionality exists to adjust activity levels in response to prevailing market conditions in order to ensure efficient capital allocation and maximization of shareholder value. For Q2 2025, average production is expected to be similar to Q1 2025, supported by increased development activity and preliminary near-field exploration success. Operational Update Average production for Q1 2025 of 43,658 boe/d(2) was in line with Management expectations. The quarter progressed steadily, which is aligned with the Company's activity plan to support a growing H2 2025 production profile, as previously disclosed. April 2025 average production was 41,400 boe/d(3), with production generally consistent with lower activity levels and modest capital outlay in Q1 2025, as well as higher than budgeted downtime due to weather factors. Downtime levels have normalized and initial average production rates in May are roughly 43,200 boe/d(4). With budgeted activity underway, operational momentum is expected to build through the remainder of the year. Parex currently has three drilling rigs operating (two operated and one non-operated). In addition to enhanced oil recovery initiatives at Cabrestero and LLA-34, activity for Q2 2025 is primarily focused on development wells that are planned to be sequential in nature and located on existing pads that enable efficient production across parallel operations. Near-Term Development Activity Near-Field Exploration Program plus Follow-Up Drilling As part of this program, two separate prospects have yielded positive initial results in the Southern Llanos, where operations are ongoing: (1) Estimated average production for April 1, 2025 to April 30, 2025; light & medium crude oil: ~3,409 bbl/d, conventional natural gas: ~3,544 mcf/d; rounded for presentation purposes. (2) See 'Operational and Financial Highlights' for a breakdown of production by product type. (3) Estimated average production for April 1, 2025 to April 30, 2025; light & medium crude oil: ~10,099 bbl/d, heavy crude oil: ~30,541 bbl/d, conventional natural gas: ~4,557 mcf/d; rounded for presentation purposes. (4) Estimated average production for May 1, 2025 to May 6, 2025; light & medium crude oil: ~10,538 bbl/d, heavy crude oil: ~31,869 bbl/d, conventional natural gas: ~4,756 mcf/d; rounded for presentation purposes. (5) Short-term production rate. See 'Oil & Gas Matters Advisory.' Risk Management For Q1 2025, Parex entered into a Brent crude oil hedge to manage price risk on approximately 25% of planned net crude oil production, utilizing a Brent put spread at $60/bbl and $70/bbl. For Q2 2025, Parex entered into similar hedges for the months of April 2025 and May 2025. Parex plans to regularly evaluate market conditions, operational requirements, and other pertinent factors, to assess the need for any additional hedging actions as it progresses through 2025. Return of Capital Update Q2 2025 Dividend Parex's Board of Directors have approved a Q2 2025 regular dividend of C$0.385 per share to shareholders of record on June 9, 2025, to be paid on June 16, 2025. This regular dividend payment to shareholders is designated as an 'eligible dividend' for purposes of the Income Tax Act (Canada). Normal Course Issuer Bids In 2025, Parex has repurchased approximately 0.7 million shares under its NCIBs, for total consideration of roughly C$10 million. Q1 2025 Results - Conference Call & Webcast Parex will host a conference call and webcast to discuss its Q1 2025 results on Thursday, May 8, 2025, beginning at 9:30 am MT (11:30 am ET). To participate in the conference call or webcast, please see the access information below: Conference ID: 5403995 Participant Toll-Free Dial-In Number: 1-646-307-1963 Participant Dial-In Number: 1-647-932-3411 Webcast: Annual General Meeting On Thursday, May 8, 2025, Parex will hold its Annual General Meeting at 11:00 am MT (1:00 pm ET) both in-person and virtually. Participants may attend at the 4th Floor Conference Center, Eight Avenue Place, East Tower, 525, 8th Ave SW, Calgary, Alberta – and virtual participants can join through the following link: https: Additional information regarding the Annual General Meeting, including meeting materials, can be found at under Investors. About Parex Resources Inc. Parex is one of the largest independent oil and gas companies in Colombia, focusing on sustainable conventional production. The Company's corporate headquarters are in Calgary, Canada, with an operating office in Bogotá, Colombia. Parex shares trade on the Toronto Stock Exchange under the symbol PXT. For more information, please contact: Mike Kruchten Senior Vice President, Capital Markets & Corporate Planning Parex Resources Inc. 403-517-1733 Steven Eirich Senior Investor Relations & Communications Advisor Parex Resources Inc. 587-293-3286 NOT FOR DISTRIBUTION OR FOR DISSEMINATION IN THE UNITED STATES Non-GAAP and Other Financial Measures Advisory This press release uses various 'non-GAAP financial measures', 'non-GAAP ratios', 'supplementary financial measures' and 'capital management measures' (as such terms are defined in NI 52-112), which are described in further detail below. Such measures are not standardized financial measures under IFRS and might not be comparable to similar financial measures disclosed by other issuers. Investors are cautioned that non-GAAP financial measures should not be construed as alternatives to or more meaningful than the most directly comparable GAAP measures as indicators of Parex's performance. These measures facilitate management's comparisons to the Company's historical operating results in assessing its results and strategic and operational decision-making and may be used by financial analysts and others in the oil and natural gas industry to evaluate the Company's performance. Further, management believes that such financial measures are useful supplemental information to analyze operating performance and provide an indication of the results generated by the Company's principal business activities. Set forth below is a description of the non-GAAP financial measures, non-GAAP ratios, supplementary financial measures and capital management measures used in this press release. Non-GAAP Financial Measures Capital expenditures, is a non-GAAP financial measure which the Company uses to describe its capital costs associated with oil and gas expenditures. The measure considers both property, plant and equipment expenditures and exploration and evaluation asset expenditures which are items in the Company's statement of cash flows for the period and is calculated as follows: Free funds flow, is a non-GAAP financial measure that is determined by funds flow provided by operations less capital expenditures. The Company considers free funds flow to be a key measure as it demonstrates Parex's ability to fund return of capital, such as the normal course issuer bid and dividends, without accessing outside funds and is calculated as follows: EBITDA , is a non-GAAP financial measure that is defined as net income (loss) adjusted for finance income and expenses, other expenses, income tax expense (recovery) and depletion, depreciation and amortization. Adjusted EBITDA, is a non-GAAP financial measure defined as EBITDA adjusted for non-cash impairment charges, share-based compensation expense (recovery), unrealized foreign exchange gains (losses) and unrealized gains (losses) on risk management contracts. The Company considers EBITDA and Adjusted EBITDA to be key measures as they demonstrate Parex's profitability before finance income and expenses, taxes, depletion, depreciation and amortization and other non-cash items. A reconciliation from net income to EBITDA and Adjusted EBITDA is as follows: Non-GAAP Ratios Operating netback per boe, is a non-GAAP ratio that the Company considers to be a key measure as it demonstrates Parex' profitability relative to current commodity prices. Parex calculates operating netback per boe as operating netback (calculated as oil and natural gas sales from production, less royalties, operating, and transportation expense) divided by the total equivalent sales volume including purchased oil volumes for oil and natural gas sales price and transportation expense per boe and by the total equivalent sales volume excluding purchased oil volumes for royalties and operating expense per boe. Funds flow provided by operations netback per boe or FFO netback per boe , is a non-GAAP ratio that includes all cash generated from operating activities and is calculated before changes in non-cash assets and liabilities , divided by produced oil and natural gas sales volumes. The Company considers funds flow provided by operations netback per boe to be a key measure as it demonstrates Parex's profitability after all cash costs relative to current commodity prices. Basic funds flow provided by operations per share or FFO per share , is a non-GAAP ratio that is calculated by dividing funds flow provided by operations by the weighted average number of basic shares outstanding. Parex presents basic funds flow provided by operations per share whereby per share amounts are calculated using weighted-average shares outstanding, consistent with the calculation of earnings per share. The Company considers basic funds flow provided by operations per share or FFO per share to be a key measure as it demonstrates Parex's profitability after all cash costs relative to the weighted average number of basic shares outstanding. Capital Management Measures Funds flow provided by operations, is a capital management measure that includes all cash generated from operating activities and is calculated before changes in non-cash assets and liabilities. The Company considers funds flow provided by operations to be a key measure as it demonstrates Parex's profitability after all cash costs. A reconciliation from cash provided by operating activities to funds flow provided by operations is as follows: Working capital surplus , is a capital management measure which the Company uses to describe its liquidity position and ability to meet its short-term liabilities. Working capital surplus is defined as current assets less current liabilities. Supplementary Financial Measures 'Oil and natural gas sales price per boe' is comprised of total commodity sales from oil and natural gas production, as determined in accordance with IFRS, divided by the total oil and natural gas sales volumes including purchased oil volumes. 'Royalties per boe' is comprised of royalties, as determined in accordance with IFRS, divided by the total equivalent sales volume and excludes purchased oil volumes. 'Net revenue per boe' is comprised of net revenue, as determined in accordance with IFRS, divided by the total equivalent sales volume and includes purchased oil volumes. 'Production expense per boe' is comprised of production expense, as determined in accordance with IFRS, divided by the total equivalent sales volume and excludes purchased oil volumes. 'Transportation expense per boe' is comprised of transportation expense, as determined in accordance with IFRS, divided by the total equivalent sales volumes including purchased oil volumes. 'Dividends paid per share' is comprised of dividends declared, as determined in accordance with IFRS, divided by the number of shares outstanding at the dividend record date. Oil & Gas Matters Advisory The term 'Boe' means a barrel of oil equivalent on the basis of 6 Mcf of natural gas to 1 barrel of oil ('bbl'). Boe's may be misleading, particularly if used in isolation. A boe conversation ratio of 6 Mcf: 1 Bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. Given the value ratio based on the current price of crude oil as compared to natural gas is significantly different from the energy equivalency of 6 Mcf: 1Bbl, utilizing a conversion ratio at 6 Mcf: 1 Bbl may be misleading as an indication of value. This press release contains a number of oil and gas metrics, including, operating netbacks and FFO netbacks. These oil and gas metrics have been prepared by management and do not have standardized meanings or standard methods of calculation and therefore such measures may not be comparable to similar measures used by other companies and should not be used to make comparisons. Such metrics have been included herein to provide readers with additional measures to evaluate the Company's performance; however, such measures are not reliable indicators of the future performance of the Company and future performance may not compare to the performance in previous periods and therefore such metrics should not be unduly relied upon. Management uses these oil and gas metrics for its own performance measurements and to provide security holders with measures to compare the Company's operations over time. Readers are cautioned that the information provided by these metrics, or that can be derived from the metrics presented in this news release, should not be relied upon for investment or other purposes. Any reference in this press release to short-term production rates are useful in confirming the presence of hydrocarbons, however such rates are not determination of the rates at which such wells will continue production and decline thereafter and readers are cautioned not to place reliance on such rates in calculating the aggregate production of Parex. Distribution Advisory The Company's future shareholder distributions, including but not limited to the payment of dividends and the acquisition by the Company of its shares pursuant to an NCIB, if any, and the level thereof is uncertain. Any decision to pay further dividends on the common shares (including the actual amount, the declaration date, the record date and the payment date in connection therewith and any special dividends) or acquire shares of the Company will be subject to the discretion of the Board of Directors of Parex and may depend on a variety of factors, including, without limitation the Company's business performance, financial condition, financial requirements, growth plans, expected capital requirements and other conditions existing at such future time including, without limitation, contractual restrictions and satisfaction of the solvency tests imposed on the Company under applicable corporate law. Further, the actual amount, the declaration date, the record date and the payment date of any dividend are subject to the discretion of the Board. There can be no assurance that the Company will pay dividends or repurchase any shares of the Company in the future. Advisory on Forward Looking Statements Certain information regarding Parex set forth in this document contains forward-looking statements that involve substantial known and unknown risks and uncertainties. The use of any of the words 'plan', 'expect', 'prospective', 'project', 'intend', 'believe', 'should', 'anticipate', 'estimate', 'forecast', 'guidance', 'budget' or other similar words, or statements that certain events or conditions 'may' or 'will' occur are intended to identify forward-looking statements. Such statements represent Parex's internal projections, estimates or beliefs concerning, among other things, future growth, results of operations, production, future capital and other expenditures (including the amount, nature and sources of funding thereof), competitive advantages, plans for and results of drilling activity, environmental matters, business prospects and opportunities. These statements are only predictions and actual events or results may differ materially. Although the Company's management believes that the expectations reflected in the forward-looking statements are reasonable, it cannot guarantee future results, levels of activity, performance or achievement since such expectations are inherently subject to significant business, economic, competitive, political and social uncertainties and contingencies. Many factors could cause Parex's actual results to differ materially from those expressed or implied in any forward-looking statements made by, or on behalf of, Parex. In particular, forward-looking statements contained in this document include, but are not limited to, statements with respect to: the Company's focus, plans, priorities and strategies; average production guidance and capital expenditure guidance; expectations and plans regarding the Company's drilling activity, the Company's production profile, prospects in the Southern Llanos, the LLA-32 tuck-in acquisition, drilling and programs at LLA-34, LLA-32, Putumayo, and LLA-74; expectations about the Company's FY 2025 tax rate; plans with respect to assessing the need for additional hedging in 2025; the anticipated terms of the Company's Q2 2025 regular quarterly dividend, including its expectation that it will be designated as an 'eligible dividend'; and the anticipated date and time of Parex's conference call to discuss Q1 2025 results. These forward-looking statements are subject to numerous risks and uncertainties, including but not limited to, the impact of general economic conditions in Canada and Colombia; an unpredictable tariff and trade environment; prolonged volatility in commodity prices; industry conditions including changes in laws and regulations including adoption of new environmental laws and regulations, and changes in how they are interpreted and enforced in Canada and Colombia; determinations by OPEC and other countries as to production levels; competition; lack of availability of qualified personnel; the results of exploration and development drilling and related activities; obtaining required approvals of regulatory authorities in Canada and Colombia; the risks associated with negotiating with foreign governments as well as country risk associated with conducting international activities; volatility in market prices for oil; fluctuations in foreign exchange or interest rates; environmental risks; changes in income tax laws or changes in tax laws and incentive programs relating to the oil industry; changes to pipeline capacity; ability to access sufficient capital from internal and external sources; failure of counterparties to perform under contracts; the risk that Brent oil prices may be lower than anticipated; the risk that Parex's evaluation of its existing portfolio of development and exploration opportunities may not be consistent with its expectations; the risk that Parex may not have sufficient financial resources in the future to provide distributions to its shareholders; the risk that the Board may not declare dividends in the future or that Parex's dividend policy changes; the risk that Parex may not be responsive to changes in commodity prices; the risk that Parex may not meet its production guidance for the year ended December 31, 2025; the risk that Parex's 2025 capital expenditures may be greater or less than anticipated; the risk that plans and expectations related to Parex's drilling program as disclosed herein do not materialize as expected and/or at all; and other factors, many of which are beyond the control of the Company. Readers are cautioned that the foregoing list of factors is not exhaustive. Additional information on these and other factors that could affect Parex's operations and financial results are included in reports on file with Canadian securities regulatory authorities and may be accessed through the SEDAR+ website ( Although the forward-looking statements contained in this document are based upon assumptions which Management believes to be reasonable, the Company cannot assure investors that actual results will be consistent with these forward-looking statements. With respect to forward-looking statements contained in this document, Parex has made assumptions regarding, among other things: current and anticipated commodity prices and royalty regimes; availability of skilled labour; timing and amount of capital expenditures; future exchange rates; the price of oil, including the anticipated Brent oil price; the impact of increasing competition; conditions in general economic and financial markets; availability of drilling and related equipment; effects of regulation by governmental agencies; receipt of partner, regulatory and community approvals; royalty rates; future operating costs; uninterrupted access to areas of Parex's operations and infrastructure; recoverability of reserves and future production rates; the status of litigation; timing of drilling and completion of wells; on-stream timing of production from successful exploration wells; operational performance of non-operated producing fields; pipeline capacity; that Parex will have sufficient cash flow, debt or equity sources or other financial resources required to fund its capital and operating expenditures and requirements as needed; that Parex's conduct and results of operations will be consistent with its expectations; that Parex will have the ability to develop its oil and gas properties in the manner currently contemplated; that Parex's evaluation of its existing portfolio of development and exploration opportunities is consistent with its expectations; current or, where applicable, proposed industry conditions, laws and regulations will continue in effect or as anticipated as described herein; that the estimates of Parex's production and reserves volumes and the assumptions related thereto (including commodity prices and development costs) are accurate in all material respects; that Parex will be able to obtain contract extensions or fulfill the contractual obligations required to retain its rights to explore, develop and exploit any of its undeveloped properties; that Parex will have sufficient financial resources to pay dividends and acquire shares pursuant to its NCIB in the future; that Parex is able to execute its plans with respect to the Company's drilling program as disclosed herein; and other matters. Management has included the above summary of assumptions and risks related to forward-looking information provided in this document in order to provide shareholders with a more complete perspective on Parex's current and future operations and such information may not be appropriate for other purposes. Parex's actual results, performance or achievement could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly, no assurance can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do, what benefits Parex will derive. These forward-looking statements are made as of the date of this document and Parex disclaims any intent or obligation to update publicly any forward-looking statements, whether as a result of new information, future events or results or otherwise, other than as required by applicable securities laws. This press release contains information that may be considered a financial outlook under applicable securities laws about the Company's potential financial position, including, but not limited to; Parex's FY 2025 capital expenditure guidance; Parex 2025 guidance, including anticipated Brent crude oil average prices, funds flow provided by operations netback; funds flow provided by operations, capital expenditures, free funds flow; and the anticipated terms of the Company's Q2 2025 regular quarterly dividend including its expectation that it will be designated as an 'eligible dividend', all of which are subject to numerous assumptions, risk factors, limitations and qualifications, including those set forth in the above paragraphs. The actual results of operations of the Company and the resulting financial results will vary from the amounts set forth in this press release and such variations may be material. This information has been provided for illustration only and with respect to future periods are based on budgets and forecasts that are speculative and are subject to a variety of contingencies and may not be appropriate for other purposes. Accordingly, these estimates are not to be relied upon as indicative of future results. Except as required by applicable securities laws, the Company undertakes no obligation to update such financial outlook. The financial outlook contained in this press release was made as of the date of this press release and was provided for the purpose of providing further information about the Company's potential future business operations. Readers are cautioned that the financial outlook contained in this press release is not conclusive and is subject to change. The following abbreviations used in this press release have the meanings set forth below: PDF available:
Associated Press
30-04-2025
- Business
- Associated Press
Tenth Avenue Petroleum Announces 2024 Year-End Results And Reserves
CALGARY, AB / ACCESS Newswire / April 30, 2025 / Tenth Avenue Petroleum Corp. ('TPC' or the 'Company') (TSXV:TPC) is pleased to report its financial and operating results for the fourth quarter and year ended December 31, 2024, as well as highlights of the Company's year-end reserves evaluation. Selected financial and operational information is set out below and should be read in conjunction with the Company's audited consolidated annual financial statements and related management's discussion and analysis ('MD&A') for the years ended December 31, 2024, and 2023, which are filed on SEDAR+ at and are available on the Company's website at The highlights reported in this press release include certain non-GAAP financial measures and ratios which have been identified using capital letters. The reader is cautioned that these measures may not be directly comparable to other issuers; please refer to additional information under the heading 'Reader Advisories - Non-GAAP Measures and Ratios'. 2024 FINANCIAL, OPERATING AND RESERVE HIGHLIGHTS The following table summarizes the Company's financial and operating results for the fourth quarters and years ended December 31, 2024, and December 31, 2023. 2024 RESERVE HIGHLIGHTS The Company is pleased to provide selected highlights from the results of its year-end independent oil and gas reserve evaluation as of December 31, 2024, as prepared by its independent qualified reserve evaluator, Trimble Engineering & Associates Ltd. (the 'Trimble Report'). The evaluation of Company's properties was prepared in accordance with the definitions, standards and procedures contained in the most recent publication of the Canadian Oil and Gas Evaluation Handbook ('COGEH') and National Instrument 51-101 - Standards of Disclosure for Oil and Gas Activities ('NI 51-101"). The Trimble Report is based on forecast prices and costs and applies the Sproule Associates Ltd. ('Sproule') December 31, 2024, forecast escalated commodity price deck and foreign exchange rate and inflation rate assumptions. Estimated future net revenue is stated without any provisions for interest costs, other debt service charges, or general and administrative expenses, and after the deduction of royalties, estimated operating costs, estimated abandonment and reclamation costs, and estimated future development costs. Additional information regarding the Company's reserves data and other oil and gas information are included in the Company's Annual Information Form for the year ended December 31, 2024 (the 'AIF'), which is available on the Company's issuer profile on SEDAR at See also the 'Cautionary Statements' below for further explanations and discussion. Summary of Corporate Reserves (1) As at December 31, 2024, the Company had 44,114,100 basic shares outstanding and 48,845,770 fully diluted. (2) Oil equivalent amounts have been calculated using a conversion ratio of six thousand cubic feet of natural gas to one barrel of oil. See 'Cautionary Statements - Barrels of oil equivalent' below. The Company's reserve volumes and undiscounted future development costs ('FDC') as of December 31, 2024, are summarized below: The following table summarizes the NPV of the Company's reserves (before-tax) as at December 31, 2024. The reserves value on a $/BOE basis, discounted at 10% per year, is also summarized for each category. The Company's operations have been, and in the future may be, affected by political developments and by national, federal, provincial, stated and local laws and regulations such as restrictions on production, the imposition of tariffs, embargoes or export restrictions on the Company's products, including the tariffs on a variety of goods announced by the US government on March 4, 2025, and Canadian countermeasures subsequently announced, both of which are anticipated to evolve. An updated corporate presentation can be found at For further information please contact: Tenth Avenue Petroleum Corp. Cameron MacDonald, President & CEO Phone: (403) 585-9875 Email: [email protected] About Tenth Avenue Petroleum Corp. Tenth Avenue Petroleum Corp. is a junior oil and gas exploration and production company with operations in Alberta. Forward-looking Information and Statements The information in this news release contains certain forward-looking statements. These statements relate to future events or our future performance. All statements other than statements of historical fact may be forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as 'seek', 'anticipate', 'plan', 'continue', 'estimate', 'approximate', 'expect', 'may', 'will', 'project', 'predict', 'potential', 'targeting', 'intend', 'could', 'might', 'should', 'believe', 'would' and similar expressions. These statements involve substantial known and unknown risks and uncertainties, certain of which are beyond the Company's control, including: the impact of the COVID-19 pandemic on the Company's business and operations (and the duration of the impacts thereof). the inability of the Company to meet its commitments on its lands or on the lands it may acquire, the impact of general economic conditions; industry conditions; changes in laws and regulations including the adoption of new environmental laws and regulations and changes in how they are interpreted and enforced; fluctuations in commodity prices and foreign exchange and interest rates; stock market volatility and market valuations; volatility in market prices for oil and natural gas; liabilities inherent in oil and natural gas operations; uncertainties associated with estimating oil and natural gas reserves, changes in income tax laws or changes in tax laws and incentive programs relating to the oil and gas industry; geological, technical, drilling and processing problems and other difficulties in producing petroleum reserves; and obtaining required approvals of regulatory authorities. The Company's actual results, performance or achievement could differ materially from those expressed in, or implied by, such forward-looking statements and, accordingly, no assurances can be given that any of the events anticipated by the forward-looking statements will transpire or occur or, if any of them do, what benefits the Company will derive from them. These statements are subject to certain risks and uncertainties and may be based on assumptions that could cause actual results to differ materially from those anticipated or implied in the forward-looking statements. The forward-looking statements in this news release are expressly qualified in their entirety by this cautionary statement. Except as required by law, the Company undertakes no obligation to publicly update or revise any forward-looking statements. Investors are encouraged to review and consider the additional risk factors set forth in the Company's continuous disclosure documents which are available on SEDAR at Oil and Gas Advisories This press release contains certain oil and gas metrics which do not have standardized meanings or standard methods of calculation and therefore such measures may not be comparable to similar measures used by other companies and should not be used to make comparisons. Such metrics have been included in this document to provide readers with additional measures to evaluate our performance, however, such measures are not reliable indicators of our future performance and future performance may not compare to our performance in previous periods and therefore such metrics should not be unduly relied upon. Specifically, this press release contains the following abbreviations: Meaning of Boe The term 'boe' or barrels of oil equivalent may be misleading, particularly if used in isolation. A boe conversion ratio of six thousand cubic feet of natural gas to one barrel of oil equivalent (6 Mcf: 1 bbl) is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. Additionally, given that the value ratio based on the current price of crude oil, as compared to natural gas, is significantly different from the energy equivalency of 6:1; utilizing a conversion ratio of 6:1 may be misleading as an indication of value. Reserves Estimates The estimates of reserves and future net revenue for individual properties may not reflect the same confidence level as estimates of reserves and future net revenue for all properties, due to the effects of aggregation. Reserves disclosed in this press release are based on an independent engineering evaluation of the oil, NGLs and natural gas interests attributable to the Company's assets prepared by Sproule Associates Ltd. effective December 31, 2024. The estimates of Sproule Associates Limited were prepared using guidelines outlined in the Canadian Oil and Gas Evaluation Handbook and in accordance with National Instrument 51-101 - Standards of Disclosure for Oil and Gas Activities. The recovery and reserve estimates of oil, NGLs and natural gas reserves provided herein are estimates only. Actual reserves may be greater than or less than the estimates provided herein. Reserves are estimated remaining quantities of commercially recoverable oil, natural gas, and related substances anticipated to be recoverable from known accumulations, as of a given date, based on the analysis of drilling, geological, geophysical, and engineering data, the use of established technology, and specified economic conditions, which are generally accepted as being reasonable. Reserves are further categorised according to the level of certainty associated with the estimates and may be sub- classified based on development and production status. Proved reserves are those reserves that can be estimated with a high degree of certainty to be recoverable. It is likely that the actual remaining quantities recovered will exceed the estimated proved reserves. Probable reserves are those additional reserves that are less certain to be recovered than proved reserves. It is equally likely that the actual remaining quantities recovered will be greater or less than the sum of the estimated proved plus probable reserves. Non-GAAP Measurements The Company utilizes certain measurements that do not have a standardized meaning or definition as prescribed by International Financial Reporting Standards ('IFRS') and therefore may not be comparable with the calculation of similar measures by other entities, including but not limited to operating netback, cash flow and working capital. Readers are referred to advisories and further discussion on non-GAAP measurements contained in the Company's continuous disclosure documents. Operating netback is a non‐GAAP measure calculated as the average per boe of the Company's oil and gas sales, less royalties and operating costs. Neither the TSX Venture Exchange nor its Regulation Service Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. SOURCE: Tenth Avenue Petroleum Corp. press release
Cision Canada
28-04-2025
- Business
- Cision Canada
SOURCE ROCK ROYALTIES ANNOUNCES FOURTH QUARTER & YEAR-END 2024 RESULTS INCLUDING RECORD ANNUAL FUNDS FROM OPERATIONS
CALGARY, AB, April 28, 2025 /CNW/ - Source Rock Royalties Ltd. ("Source Rock") (TSXV: SRR), a pure-play oil and gas royalty company with an established portfolio of oil focused royalties, announces results for the three-month period and year ended December 31, 2024. Annual Highlights: Record annual royalty production of 251 boe/d (95% oil and NGLs), an increase of 21% over 2023. Record annual royalty revenue of $7,689,586, an increase of 16% over 2023. Record annual Adjusted EBITDA (2) of $6,816,173 ($0.15 per share), an increase of 18% (16% per share) over 2023. Record annual funds from operations (2) of $5,994,371 ($0.13 per share), an increase of 6% (5% per share) over 2023. Declared $3,473,939 in dividends ($0.0765 per share), resulting in a payout ratio (2) of 58%. Achieved an operating netback (2) of $74.20 per boe and a corporate netback (2) of $65.25 per boe. 43 gross new horizontal wells began producing on royalty lands in S.E. Saskatchewan (20), central Alberta (18), west-central Saskatchewan (3), east-central Alberta (1) and Manitoba (1). Working capital of $4,860,362 ($0.105 per share) as at December 31, 2024. Fourth Quarter Highlights: Quarterly royalty production of 256 boe/d (97% oil and NGLs), an increase of 17% over Q4 2023. Quarterly royalty revenue of $1,871,245, an increase of 9% over Q4 2023. Quarterly Adjusted EBITDA (2) of $1,709,057 ($0.038 per share), an increase of 12% over Q4 2023. Quarterly funds from operations (2) of $1,511,958 ($0.033 per share), a decrease of 9% (11% per share) over Q4 2023. Declared three monthly dividends of $0.0065 per share, resulting in a payout ratio (2) of 59%. Achieved an operating netback (2) of $72.57 per boe and a corporate netback (2) of $64.20 per boe. Source Rock's reserves data and other oil and natural gas information, as required under National Instrument 51-101, is available on SEDAR+ at Financial and Operational Results Three Months Ended December 31, Year Ended December 31, FINANCIAL ($, except as noted) 2024 2023 Change 2024 2023 Change Royalty revenue 1,871,245 1,720,264 (1) 9 % 7,689,586 6,646,326 (1) 16 % Adjusted EBITDA (2) 1,709,057 1,525,386 12 % 6,816,173 5,793,204 18 % Per share (basic) 0.038 0.034 12 % 0.15 0.129 16 % Funds from operations (2) 1,511,958 1,663,376 -9 % 5,994,371 5,653,618 6 % Per share (basic) 0.033 0.037 -11 % 0.132 0.126 5 % Total comprehensive income (loss) 501,915 382,367 31 % 1,495,319 1,566,310 -5 % Per share (basic) 0.011 0.008 38 % 0.033 0.035 -6 % Per share (diluted) 0.01 0.008 25 % 0.031 0.034 -9 % Dividends declared 888,863 812,850 9 % 3,473,939 2,968,990 17 % Per share 0.0195 0.018 8 % 0.0765 0.066 16 % Payout ratio (2) 59 % 49 % 20 % 58 % 53 % 9 % Cash and cash equivalents 4,635,727 1,462,040 217 % 4,635,727 1,462,040 217 % Per share (basic) 0.10 0.03 214 % 0.10 0.03 215 % Average shares outstanding (basic) 45,582,727 45,139,091 1 % 45,386,449 45,022,140 1 % Shares outstanding (end of period) 45,582,727 45,231,645 1 % 45,582,727 45,231,645 1 % OPERATING Average daily production (boe/d) 256 218 (3) 17 % 251 208 (3) 21 % Percentage oil & NGLs 97 % 94 % 3 % 95 % 93 % 2 % Average price realizations ($/boe) 79.45 85.86 -7 % 83.58 87.54 -5 % Operating netback (2) ($/boe) 72.57 76.06 -5 % 74.20 76.30 -3 % Corporate netback (2) ($/boe) 64.20 82.94 -23 % 65.25 74.47 -12 % (1) Source Rock also benefited from $211,892 (Q4 2023) and $373,437 (fiscal 2023) of sales proceeds from royalty production that occurred after the effective date but prior to the closing date of acquisitions. These proceeds were accounted for as a reduction to the purchase price of the acquisitions. (2) This is a non-GAAP financial measure or non-GAAP ratio. Refer to the disclosure under the heading "Non-GAAP Financial Measures & Ratios" for more information on each non-GAAP financial measure or ratio. (3) Source Rock also benefited from 29 boe/d (100% oil & NGLs) for Q4 2023 and 12 boe/d (100% oil & NGLs) for fiscal 2023, of royalty production that occurred after the effective date but prior to the closing date of acquisitions. About Source Rock Royalties Ltd. Source Rock is a pure-play oil and gas royalty company with an existing, oil focused portfolio of royalty interests concentrated in southeast Saskatchewan, central Alberta and west-central Saskatchewan. Source Rock targets a balanced growth and yield business model, using funds from operations to pursue accretive royalty acquisitions and to pay dividends. By leveraging its niche industry relationships, Source Rock identifies and acquires both existing royalty interests and newly created royalties through collaboration with industry partners. Source Rock's strategy is premised on maintaining a low-cost corporate structure and achieving a sustainable and scalable business, measured by growing funds from operations per share and maintaining a strong netback on its royalty production. Forward-Looking Statements This news release includes forward-looking statements and forward-looking information within the meaning of Canadian securities laws. Often, but not always, forward-looking information can be identified by the use of words such as "plans", "is expected", "expects", "scheduled", "intends", "contemplates", "anticipates", "believes", "proposes" or variations (including negative and grammatical variations) of such words and phrases, or state that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved. Forward-looking statements in this news release include statements regarding Source Rock's dividend strategy and the amount and timing of future dividends (and the sustainability thereof), the potential for future drilling on Source Rock's royalty lands, expectations regarding commodity prices, Source Rock's growth strategy and expectations with respect to future royalty acquisition and partnership opportunities, and the ability to complete such acquisitions and establish such partnerships. Such statements and information are based on the current expectations of Source Rock's management and are based on assumptions and subject to risks and uncertainties. Although Source Rock's management believes that the assumptions underlying these statements and information are reasonable, they may prove to be incorrect. The forward-looking events and circumstances discussed in this news release may not occur by certain dates or at all and could differ materially as a result of known and unknown risk factors and uncertainties affecting Source Rock. Although Source Rock has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements and information, there may be other factors that cause actions, events or results to differ from those anticipated, estimated or intended. No forward-looking statement or information can be guaranteed. Except as required by applicable securities laws, forward-looking statements and information speak only as of the date on which they are made and Source Rock undertakes no obligation to publicly update or revise any forward-looking statement or information, whether as a result of new information, future events or otherwise. Non-GAAP Financial Measures & Ratios This news release uses the terms "funds from operations" and "Adjusted EBITDA" which are non-GAAP financial measures and the terms "payout ratio", "operating netback" and "corporate netback" which are non-GAAP ratios. These financial measures and ratios do not have a standardized prescribed meaning under GAAP and these measures and ratios may not be comparable with the calculation of similar measures disclosed by other entities. "Adjusted EBITDA" is used by management to analyze the Corporation's profitability based on the Corporation's principal business activities prior to how these activities are financed, how assets are depreciated, amortized and impaired, and how the results are taxed. Additionally, amounts are removed relating to share-based compensation expense, the sale of assets, fair value adjustments on financial assets and liabilities, other non-cash items and certain non-standard expenses, as the Corporation does not deem these to relate to the performance of its principal business. Adjusted EBITDA is not intended to represent net profit (or loss) as calculated in accordance with IFRS. The most directly comparable GAAP financial measure to funds from operations is cash flow from operating activities. "Funds from operations" is defined as cash flow from operating activities before the change in non-cash working capital. Source Rock believes the timing of collection, payment or incurrence of these non-cash items involves a high degree of discretion and as such may not be useful for evaluating Source Rock's operating performance. Source Rock considers funds from operations to be a key measure of operating performance as it demonstrates Source Rock's ability to generate funds to fund operations, acquisition opportunities, dividend payments and debt repayments, if applicable. Funds from operations should not be construed as an alternative to income or cash flow from operating activities determined in accordance with GAAP as an indication of Source Rock's performance. "Corporate netback" is calculated as funds from operations divided by cumulative production volumes for the period. Corporate netback is used by Source Rock to better analyze the financial performance of its royalties against prior periods and to assess the cost efficiency of its overall corporate platform as it relates to production volumes. There is no standardized meaning for "corporate netback" and this metric as used by Source Rock may not be comparable with the calculation of similar metrics disclosed by other entities, and therefore should not be used to make comparisons. "Operating netback" represents the cash margin for products sold. Operating netback is calculated as revenue minus cash administrative expenses divided by cumulative production volumes for the period. Operating netback is used by Source Rock to assess the cash generating and operating performance of its royalties against prior periods and to assess the costs efficiency of its operating platform as it relates to production volumes. There is no standardized meaning for "operating netback" and this metric as used by Source Rock may not be comparable with the calculation of similar metrics disclosed by other entities, and therefore should not be used to make comparisons. "Payout ratio" is calculated as the aggregate of cash dividends declared in a period divided by funds from operations realized in such period. Source Rock considers payout ratio to be a key measure to assess Source Rock's ability to fund operations, acquisition opportunities, dividend payments, cash taxes and debt repayments, if applicable. SOURCE Source Rock Royalties Ltd.
Associated Press
18-03-2025
- Business
- Associated Press
Greenfire Resources Reports Year End 2024 Reserves, Fourth Quarter and Full Year 2024 Results, and Provides an Operational Update
Readers are advised to review the 'Presentation of Reserves and Other Oil and Gas Information' and 'Non-GAAP and Other Financial Measures' at the conclusion of this news release for information regarding the presentation of the reserves information, as well as certain oil and gas metrics, and certain financial measures that do not have standardized meaning under generally accepted accounting principles, contained in this news release. All amounts in this news release are stated in Canadian dollars unless otherwise specified. The Company holds a 75% working interest in the Hangingstone Expansion Facility (the 'Expansion Asset') and a 100% working interest in the Hangingstone Demonstration Facility (the 'Demo Asset' and, together with the Expansion Asset, the 'Hangingstone Facilities'). Unless indicated otherwise, production volumes and per unit statistics are presented throughout this press release on a 'gross' basis as determined in accordance with National Instrument 51-101 - Standards for Disclosure for Oil and Gas Activities, which is the Company's gross working interest basis before deduction of royalties. Calgary, Alberta--(Newsfile Corp. - March 17, 2025) - Greenfire Resources Ltd. (NYSE: GFR) (TSX: GFR) ('Greenfire' or the 'Company'), today reported its year end 2024 reserves and fourth quarter and full year 2024 financial and operational results. YE 2024 Reserves Highlights Proved ('1P') and Proved Plus Probable ('2P') reserves (3) of 234.7 MMbbl, and 408.6 MMbbl, reflecting growth of 28%, and 72%, respectively, compared to December 31, 2023 58-year 2P Reserve Life Index (3) 1P and 2P before-tax PV-10 growth of 21% and 25%, respectively, compared to December 31, 2023. Net of debt and cash, this corresponds to an increase of 24% and 28% per share (1) FY 2024 Highlights Bitumen production of 19,292 bbls/d (3) Cash provided by operating activities of $144.5 million and Adjusted funds flow (1) of $171.9 million Capital expenditures (2) of $91.8 million Adjusted free cash flow (1) of $80.1 million Q4 2024 Highlights Bitumen production of 19,384 bbls/d (3) Cash provided by operating activities of $60.2 million and Adjusted funds flow (1) of $53.0 million Capital expenditures (2) of $13.2 million Adjusted free cash flow (1) of $39.8 million (1) Non-GAAP measures without a standardized meaning under IFRS ® Accounting Standards as issued by the International Accounting Standards Board ('IFRS'). Refer to the 'Non-GAAP and Other Financial Measures' section in this press release. (2) See 'Supplementary Financial Measures' section of this press release. (3) See 'Presentation of Reserves and Other Oil and Gas Information' section of this press release. Financial & Operating Highlights [This table cannot be displayed. Please visit the source.] Liquidity and Balance Sheet [This table cannot be displayed. Please visit the source.] Q4 2024 Review Hangingstone Facilities: Bitumen Production Results: [This table cannot be displayed. Please visit the source.] Greenfire's production in the fourth quarter of 2024 averaged 19,384 bbls/d, reflecting a 1% increase compared to the prior quarter, while the full-year 2024 production averaged 19,292 bbls/d. Capital expenditures for the fourth quarter totaled $13.2 million, with full-year 2024 capital expenditures amounting to $91.8 million. Adjusted free cash flow for the fourth quarter was $39.8 million, bolstered by more favorable WCS differentials, as well as lower operating and capital spending, with the full-year 2024 at $80.1 million. Expansion Asset: Production in the fourth quarter of 2024 remained relatively stable compared to the third quarter, which was lower than anticipated due to reduced steam generation performance in December 2024. Demo Asset: Production in the fourth quarter of 2024 increased compared to the third quarter and averaged 4,300 bbls/d in November and December 2024, which is driven by the activation of three additional redevelopment wells and the startup of the second disposal well following the completion of scheduled annual maintenance in October 2024. 2025 Operational Update Production Overview The Company's production for 2025 to date is approximately 18,000 bbls/d, reflecting a 7% decrease compared to the previous quarter. This reduction is attributed to the Expansion Asset, where ongoing steam generation equipment repairs, unexpected facility downtime and natural production declines have impacted production output. At present, one of the four steam generation units is offline with an associated impact on production at the Expansion Asset of 1,500 to 2,250 bbls/d. The Company is implementing mitigation strategies to limit production impacts, including developing a comprehensive plan to restore full steam generation capacity and will provide updates in due course. Comprehensive Review of Future Development Plans The Company is currently conducting a comprehensive evaluation of its development plans, capital expenditures, and operational strategies for both the Expansion Asset and the Demo Asset. To address declines at the Expansion Asset, the Company anticipates that future development initiatives will involve drilling new well pairs on undeveloped reservoir, subject to approval from Greenfire's Board of Directors (the 'Board'). At the Demo Asset, future development plans will prioritize optimizing base production. Emissions Reporting and Regulatory Engagement Following the changes in Greenfire's board of directors as a result of the WEF Acquisition, it was brought to the Company's attention that Greenfire's sulphur dioxide emissions may have been underreported. Prior management have been terminated. Greenfire takes its regulatory obligations very seriously and immediately reported the potential exceedance to the Alberta Energy Regulator ('AER'). Greenfire is currently in discussions with the AER and is exploring remedies, including potentially adding sulphur recovery units to the Expansion Asset. The extent of any potential exceedance and any remedies, penalties or orders imposed by the AER are unknown at this time. 2025 Corporate Updates Following the appointment of the new leadership team for the Company on February 11, 2025 and as noted above, Greenfire is undertaking a thorough review of its development plans, cost structures, and operational strategy. Upon completion, the Company intends to provide details of its new development plans. In March of 2025, the Company completed an amendment to the 2028 Note Indenture, which had received requisite approval of the holders of the 2028 Notes, to increase the permitted capital expenditures in any twelve-month period from $100 million to US$150 million. Following the change of control in relation to the recent acquisition of approximately 56.5% of the Company's common shares by certain limited partnerships comprising Waterous Energy Fund, the Board determined to accelerate the expiry dates of the outstanding performance warrants to April 30, 2025, all in accordance with the terms of the warrant plan agreement. There are 2,178,021 performance warrants currently outstanding with exercise prices ranging from $2.14 to $11.09 per common share. Greenfire executed an updated WTI hedging program in the first quarter of 2025 to enhance price certainty for a portion of the Company's production. The Company replaced its existing WTI costless collar contracts, which had a price range average of approximately US$57/bbl to US$83/bbl, with fixed-price swaps covering 9,400 bbls/d of WTI at an average price of approximately C$101/bbl for the full year 2025. Conference Call Details Greenfire plans to host a conference call on Tuesday, March 18, 2025 at 7:00 a.m. Mountain Time (9:00 a.m. Eastern Time), during which members of the Company's executive team will discuss its Q4 2024 results as well as host a question-and-answer session with investors. 2024 Reserves Information The tables below summarize Greenfire's 2024 year-end reserves, which were prepared by McDaniel & Associates Consultants Ltd. ('McDaniel'). A complete filing of the Company's oil and gas reserves and other oil and gas information presented in accordance with National Instrument 51-101 - Standards of Disclosure for Oil and Gas Activities ('NI 51-101") are included in Greenfire's Annual Information Form for the year ended December 31, 2024, which will be filed on SEDAR+ at on EDGAR at and on Greenfire's website at Summary of Oil and Gas Reserves (Forecast Prices and Costs) As of December 31, 2024 [This table cannot be displayed. Please visit the source.] Summaryof Net Present Value of Future Net Revenue (Forecast Prices and Costs) As of December 31, 2024 [This table cannot be displayed. Please visit the source.] Notes: (1) Net present value of future net revenue includes all resource income, including the sale of oil, gas, by-product reserves, processing third party reserves and other income. (2) Calculated using net present value of future net revenue before deducting income taxes, discounted at 10% per year, and net reserves. The unit values are based on net reserves volumes. Undiscounted Future Net Revenue by Reserves Category As of December 31, 2024 [This table cannot be displayed. Please visit the source.] Notes: (1) Includes all product revenues and other revenues as forecast. (2) Royalties include any net profits interests paid. (3) Abandonment and reclamation costs include but are not limited to items such as: producing wells, suspended wells, service wells, gathering systems, facilities, and surface land development. Forecast Prices and Costs As of December 31, 2024 [This table cannot be displayed. Please visit the source.] Notes: (1) Inflation rates for forecasting costs only. (2) The exchange rate is used to generate the benchmark reference prices in this table. Reconciliation of Changes in Reserves As of December 31, 2024 [This table cannot be displayed. Please visit the source.] Note: (1) Technical revisions are associated with the decommissioning of production from existing well-bores that are to be re-drilled as part of the upcoming drilling program, as well as changes to the future development plan. About Greenfire Greenfire is an oil sands producer actively developing its long-life and low-decline thermal oil assets in the Athabasca region of Alberta, Canada. The Company plans to leverage its large resource base and significant infrastructure in place to drive meaningful, capital-efficient production growth. Greenfire common shares are listed on the New York Stock Exchange and Toronto Stock Exchange under the symbol 'GFR'. For more information, visit or find Greenfire on LinkedIn and X. Non-GAAP and Other Financial Measures Certain financial measures in this press release are non-GAAP financial measures or ratios and capital management measures. These measures are not defined by IFRS and therefore may not be comparable to similar measures provided by other companies. These non-GAAP and capital management measures should not be considered in isolation or as an alternative for measures of performance prepared in accordance with IFRS. This press release also contains supplementary financial measures and ratios. Supplementary financial measures are derived from IFRS. Non-GAAP financial measures and ratios include operating netback, operating netback, excluding realized gain (loss) on risk management contracts, adjusted funds flow, adjusted free cash flow and per barrel figures associated with non-GAAP financial measures. Capital management measures include net debt. Supplementary financial measures and ratios include gross profit, capital expenditures and depletion. Non-GAAP Financial Measures Operating Netback (including per barrel ($/bbl)) and Operating Netback, excluding realized gain (loss) on risk management contracts (including per barrel ($/bbl)) Gross profit is the most directly comparable GAAP measure to operating netback and operating netback, excluding realized (gain) loss on risk management contracts which are non-GAAP measures. These measures are not intended to represent gross profit, net earnings or other measures of financial performance calculated in accordance with IFRS. Operating netback, excluding realized gain (loss) on risk management contracts is comprised of gross profit, plus loss on risk management contracts, less gain on risk management contracts and less depletion expense on the Company's operating assets. Operating netback, excluding realized gain (loss) on risk management contracts per barrel ($/bbl) is calculated by dividing operating netback , excluding realized gain (loss) on risk management contracts by the Company's bitumen sales volume in a specified period. Operating netback is further adjusted for realized gain (loss) on risk management contracts, as appropriate. Operating netback per barrel ($/bbl) is calculated by dividing operating netback by the Company's bitumen sales volume in a specified period. When Operating netback is expressed on a per barrel basis it is a non-GAAP ratio. Operating netback and operating netback, excluding realized gain (loss) on risk management contracts are financial measures widely used in the oil and gas industry as supplementary measures of a Company's efficiency and ability to generate cash flow for debt repayments, capital expenditures or other uses. The following table is a reconciliation of gross profit to operating netback: [This table cannot be displayed. Please visit the source.] (1) Supplementary financial measure or ratio. Refer to the 'Supplementary Financial Measures' section of this press release. Adjusted Funds Flow and Adjusted Free Cash Flow Cash provided by operating activities is the most directly comparable GAAP measure for adjusted funds flow, which is a non-GAAP measure. This measure is not intended to represent cash provided by operating activities calculated in accordance with IFRS. The adjusted funds flow measure allows management and others to evaluate the Company's ability to fund its capital programs and meet its ongoing financial obligations using cash flow internally generated from ongoing operating related activities. We compute adjusted funds flow as cash provided by operating activities, excluding the impact of changes in non-cash working capital, less transaction costs and transactions considered non-recurring in nature or outside of normal business operations. Cash provided by operating activities is the most directly comparable GAAP measure for adjusted free cash flow, which is a non-GAAP measure. Management uses adjusted free cash flow as an indicator of the efficiency and liquidity of its business, measuring its funds after capital investment that are available to manage debt levels and return capital to shareholders. By removing the impact of current period property, plant and equipment expenditures from adjusted free cash flow, management monitors its adjusted free cash flow to inform its capital allocation decisions. We compute adjusted free cash flow as cash provided by operating activities, excluding the impact of changes in non-cash working capital, less transaction costs, transactions considered non-recurring in nature or outside of normal business operations, property, plant and equipment expenditures and acquisition costs. The following table is a reconciliation of cash provided by operating activities to adjusted funds flow and adjusted free cashflow: [This table cannot be displayed. Please visit the source.] (1) Non-recurring transactions relate to the adoption of a limited purposes shareholder rights plan and the evaluation of strategic alternatives. Net Debt The table below reconciles long-term debt to net debt. [This table cannot be displayed. Please visit the source.] Net debt is a capital management measure. Long-term debt is a GAAP measure that is the most directly comparable financial statement measure to net debt. Net debt is comprised of long-term debt, adjusted for current assets and current liabilities on the Company's balance sheet, and excludes the current portions of risk management contracts and warranty liability. Management uses net debt to monitor the Company's current financial position and to evaluate existing sources of liquidity. Net debt is used to estimate future liquidity and whether additional sources of capital are required to fund planned operations. 1P and 2P before-tax PV10, net of debt and cash 1P and 2P before-tax PV10, net of debt and cash is comprised of before tax present value is calculated using the estimated net present value of all future net revenue from our reserves, before income taxes discounted at 10%, as estimated by McDaniel effective December 31, 2024, less face value of its term debt plus cash and cash equivalents. [This table cannot be displayed. Please visit the source.] [This table cannot be displayed. Please visit the source.] Supplementary Financial Measures Depletion The term 'depletion' or 'depletion expense' is the portion of depletion and depreciation expense reflecting the cost of development and extraction of the Company's bitumen reserves. Gross Profit Gross profit is a supplementary financial measure prepared on a consistent basis with IFRS. Greenfire uses gross profit to assess its core operating performance before considering other expenses such as general and administrative costs, financing costs, and income taxes. Gross profit is calculated as oil sales, net of royalties, plus gains on risk management contracts, less losses on risk management contracts, diluent expense, operating expense, depletion expense on the Company's operating assets, transportation expenses and marketing expenses. Management believes that gross profit provides investors, analysts, and other stakeholders with useful insight into the Company's ability to generate profitability from its core operations before non-operating expenses. When gross profit is expressed on a per barrel basis it is a supplementary financial ratio. [This table cannot be displayed. Please visit the source.] Capital Expenditures Capital expenditures is a supplementary financial measure prepared on a consistent basis with IFRS. Greenfire uses capital expenditures to monitor the cash flows it invests into property, plant and equipment. Capital expenditures is derived from the statement of cash flows and includes property, plant and equipment expenditures and acquisitions. Management believes that capital expenditures provides investors, analysts and other stakeholders with a useful insight into the Company's investments into property, plant and equipment. [This table cannot be displayed. Please visit the source.] Presentation of Reserves and Other Oil and Gas Information In respect of 2024 year-end reserves information contained in this press release, Greenfire's reserves have been evaluated in accordance with Canadian reserve evaluation standards under NI 51-101. McDaniel and Associates Consultants Ltd. ('McDaniel'), an independent petroleum consulting firm based in Calgary, Alberta, has each evaluated the petroleum reserves associated with all of Greenfire's properties. McDaniel used the average of the commodity price forecasts and inflation rates of Sproule Associates Limited, McDaniel and GLJ Ltd. as of January 1, 2025 to prepare their report (the 'McDaniel Report'). Such estimates constitute forward-looking information, which are based on values that Greenfire's management believes to be reasonable, and are subject to the same limitations discussed under 'Forward-Looking Information' below. Greenfire presents the measures below using information derived from its 2024 year-end reserves information. 2P Reserve Life Index 2P Reserve Life Index calculated by dividing gross 2P reserves by annualized fourth quarter production. For additional information regarding the consolidated reserves and information concerning the resources of the Company as evaluated by McDaniel in the McDaniel Report, please refer to the Company's AIF. Forward-Looking Information This press release contains forward-looking information and forward-looking statements (collectively, 'forward-looking information') within the meaning of applicable securities laws. The forward-looking information in this press release is based on Greenfire's current internal expectations, estimates, projections, assumptions and beliefs. Such forward-looking information is not a guarantee of future performance and involves known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking information. The Company believes the material factors, expectations and assumptions reflected in the forward-looking information are reasonable as of the time of such information, but no assurance can be given that these factors, expectations and assumptions will prove to be correct, and such forward-looking information included in this press release should not be unduly relied upon. The use of any of the words 'expect', 'target', 'anticipate', 'intend', 'estimate', 'objective', 'ongoing', 'may', 'will', 'project', 'believe', 'depends', 'could' and similar expressions are intended to identify forward-looking information. In particular, but without limiting the generality of the foregoing, this press release contains forward-looking information pertaining to the following: the Company's business strategy and future plans, including development plans for the Expansion Asset and the Demo Asset and the anticipated timing thereof; successful execution of the company's strategy and operational goals; expected production and capital expenditures in 2025; the potential impact of regulatory actions by the AER on the Company's business, operations, production, reserves estimates and financial condition; and statements relating to the business and future activities of the Company after the date of this press release. In addition, statements relating to 'reserves' are deemed to be forward-looking information as they involve the implied assessment, based on certain estimates and assumptions, that the reserves described exist in the quantities predicted or estimated and can be profitably produced in the future. Forward-looking information in this press release relating to oil and gas exploration, development and production, and management's general expectations relating to the oil and gas industry are based on estimates prepared by management using data from publicly available industry sources as well as from market research and industry analysis and on assumptions based on data and knowledge of the industry which management believes to be reasonable. Although generally indicative of relative market positions, market shares and performance characteristics, this data is inherently imprecise. Management is not aware of any misstatements regarding any industry data presented in press release. All forward-looking information reflects Greenfire's beliefs and assumptions based on information available at the time the applicable forward-looking information is disclosed and in light of the Company's current expectations with respect to such matters as: the success of Greenfire's operations and growth and expansion projects; expectations regarding production growth, future well production rates and reserves volumes; expectations regarding Greenfire's capital program; the outlook for general economic trends, industry trends, prevailing and future commodity prices, foreign exchange rates and interest rates; prevailing and future royalty regimes and tax laws; expectations regarding differentials and realized prices; future well production rates and reserves volumes; fluctuations in energy prices based on worldwide demand and geopolitical events; the impact of inflation; the integrity and reliability of Greenfire's assets; decommissioning obligations; Greenfire's ability to comply with its financial covenants; Greenfire's ability to comply with applicable regulations, including those related to various emissions; and the governmental, regulatory and legal environment. Management believes that its assumptions and expectations reflected in the forward-looking information contained herein are reasonable based on the information available on the date such information is provided and the process used to prepare the information. However, Greenfire cannot assure readers that these expectations will prove to be correct. The forward-looking information included in this press release is not a guarantee of future performance and involves known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward- looking information, including, without limitation: changes in oil and gas prices and differentials; changes in the demand for or supply of Greenfire's products; the continued impact, or further deterioration, in global economic and market conditions, including from inflation and/or certain geopolitical conflicts, such as the ongoing war in Eastern Europe and the conflict in the Middle East, and other heightened geopolitical risks, including imposition of tariffs or other trade barriers, and the ability of the Company to carry on operations as contemplated in light of the foregoing; determinations by OPEC and other countries as to production levels; unanticipated operating results or production declines; changes in tax or environmental laws, climate change regulations, royalty rates or other regulatory matters; changes in Greenfire's operating and development plans; reliability of third party facilities, infrastructure and pipelines required for Greenfire's operations and production; competition for, among other things, capital, acquisitions of reserves and resources, undeveloped lands, access to services, third party processing capacity and skilled personnel; inability to retain drilling rigs and other services; severe weather conditions, including wildfires, impacting Greenfire's operations and third party infrastructure; availability of diluent, natural gas and power to operate Greenfire's facilities; failure to realize the anticipated benefits of the Company's acquisitions; incorrect assessment of the value of acquisitions; delays resulting from or inability to obtain required regulatory approvals; increased debt levels or debt service requirements; inflation; changes in foreign exchange rates; inaccurate estimation of Greenfire's bitumen reserves volumes; limited, unfavourable or a lack of access to capital markets or other sources of capital; increased costs; failure to comply with applicable regulations, including relating to the Company's air emissions, and potentially significant penalties and orders associated therewith and associated significant effect on the Company's business, operations, production, reserves estimates and financial condition; a lack of adequate insurance coverage; and other factors discussed under the 'Risk Factors' section in Greenfire's Management's Discussion & Analysis and Annual Information Form, each for the year ended December 31, 2024, and from time to time in Greenfire's public disclosure documents, which are available on the Company's SEDAR+ profile at and in the Company's annual report on Form 40-F filed with the SEC, which is available on the Company's EDGAR profile at The foregoing risks should not be construed as exhaustive. The forward-looking information contained in this press release speaks only as of the date of this press release and Greenfire does not assume any obligation to publicly update or revise such forward-looking information to reflect new events or circumstances, except as may be required pursuant to applicable laws. Any forward-looking information contained herein is expressly qualified by this cautionary statement. Contact Information Greenfire Resources Ltd. 205 5th Avenue SW Suite 1900
Yahoo
18-03-2025
- Business
- Yahoo
Greenfire Resources Reports Year End 2024 Reserves, Fourth Quarter and Full Year 2024 Results, and Provides an Operational Update
Readers are advised to review the "Presentation of Reserves and Other Oil and Gas Information" and "Non-GAAP and Other Financial Measures" at the conclusion of this news release for information regarding the presentation of the reserves information, as well as certain oil and gas metrics, and certain financial measures that do not have standardized meaning under generally accepted accounting principles, contained in this news release. All amounts in this news release are stated in Canadian dollars unless otherwise specified. The Company holds a 75% working interest in the Hangingstone Expansion Facility (the "Expansion Asset") and a 100% working interest in the Hangingstone Demonstration Facility (the "Demo Asset" and, together with the Expansion Asset, the "Hangingstone Facilities"). Unless indicated otherwise, production volumes and per unit statistics are presented throughout this press release on a "gross" basis as determined in accordance with National Instrument 51-101 - Standards for Disclosure for Oil and Gas Activities, which is the Company's gross working interest basis before deduction of royalties. Calgary, Alberta--(Newsfile Corp. - March 17, 2025) - Greenfire Resources Ltd. (NYSE: GFR) (TSX: GFR) ("Greenfire" or the "Company"), today reported its year end 2024 reserves and fourth quarter and full year 2024 financial and operational results. YE 2024 Reserves Highlights Proved ("1P") and Proved Plus Probable ("2P") reserves(3) of 234.7 MMbbl, and 408.6 MMbbl, reflecting growth of 28%, and 72%, respectively, compared to December 31, 2023 58-year 2P Reserve Life Index(3) 1P and 2P before-tax PV-10 growth of 21% and 25%, respectively, compared to December 31, 2023. Net of debt and cash, this corresponds to an increase of 24% and 28% per share(1) FY 2024 Highlights Bitumen production of 19,292 bbls/d(3) Cash provided by operating activities of $144.5 million and Adjusted funds flow(1) of $171.9 million Capital expenditures(2) of $91.8 million Adjusted free cash flow(1) of $80.1 million Q4 2024 Highlights Bitumen production of 19,384 bbls/d(3) Cash provided by operating activities of $60.2 million and Adjusted funds flow(1) of $53.0 million Capital expenditures(2) of $13.2 million Adjusted free cash flow(1) of $39.8 million (1) Non-GAAP measures without a standardized meaning under IFRS® Accounting Standards as issued by the International Accounting Standards Board ("IFRS"). Refer to the "Non-GAAP and Other Financial Measures" section in this press release.(2) See "Supplementary Financial Measures" section of this press release.(3) See "Presentation of Reserves and Other Oil and Gas Information" section of this press release. Financial & Operating Highlights Three Months Ended Year Ended ($ thousands, unless otherwise indicated) December 31, 2024 December 31, 2023 September 30, 2024 December 31, 2024 December 31, 2023 WTI (US$ / bbl)70.27 78.32 75.09 75.72 77.62WCS Hardisty differential to WTI (US$ / bbl)(12.56 )(21.89 )(13.55 )(14.76 )(18.71 ) WCS Hardisty (C$ / bbl)80.75 76.85 83.92 83.52 79.50AECO 5A (C$ / GJ)1.40 2.18 0.65 1.38 2.50Average FX Rate (C$ / US$)1.3992 1.3618 1.3636 1.3700 1.3495Bitumen production (bbls/d)19,384 17,335 19,125 19,292 17,639Bitumen sales (bbls/d)20,351 17,314 18,489 19,387 17,692 Oil sales208,895 161,730 193,643 822,972 675,970Diluent expense(83,030 )(76,768 )(67,889 )(327,146 )(304,740 ) Transportation and marketing(13,751 )(13,277 )(12,481 )(52,744 )(55,673 ) Royalties(7,091 )(6,024 )(8,698 )(32,023 )(23,706 ) Operating expenses -- energy(7,800 )(12,223 )(5,860 )(33,104 )(56,624 ) Operating expenses -- non-energy(33,064 )(22,861 )(34,795 )(119,760 )(92,341 ) Oil sales ($/bbl)79.00 71.04 83.01 81.63 73.91Diluent expense ($/bbl)(11.77 )(17.65 )(9.08 )(11.75 )(16.39 ) Transportation and marketing ($/bbl)(7.34 )(8.34 )(7.34 )(7.43 )(8.62 ) Royalties ($/bbl)(3.79 )(3.79 )(5.11 )(4.51 )(3.67 ) Operating expenses -- energy ($/bbl)(4.17 )(7.68 )(3.45 )(4.67 )(8.77 ) Operating expenses -- non-energy ($/bbl)(17.66 )(14.37 )(20.45 )(16.87 )(14.31 ) Gross profit(2)26,471 29,150 76,772 149,756 91,366Operating netback, excluding realized gain (loss) on risk management contracts(1)64,159 30,576 63,920 258,195 142,885Operating netback(1)65.183 27,351 57,833 230,537 132,703 Gross profit ($/bbl)(2)14.14 18.30 45.13 21.10 14.13Operating netback, excluding realized gain (loss) on risk management contracts(1) ($/bbl)34.26 19.21 37.58 36.40 22.14Operating netback(1) ($/bbl)34.81 17.19 34.00 32.49 20.56 Net income (loss) and comprehensive income (loss)78,562 (4,659 )58,916 121,411 (135,671 ) Per share - basic1.13 (0.07 )0.85 1.76 (2.49 ) Per share - diluted1.09 (0.07 )0.82 1.70 (2.49 ) Cash provided by (used in) by operating activities60,195 25,530 (17,875 )144,547 86,548 Adjusted funds flow(1)52,950 10,517 44,104 171,850 73,206Capital expenditures(2)(13,161 )(19,413 )(21,175 )(91,794 )(33,428 ) Adjusted free cash flow(1)39,789 (8,896 )22,929 80,056 39,778 Net debt(1)253,510 279,451 260,755 253,510 279,451 Weighted average common shares outstanding - basic ('000)69,515 68,643 69,334 69,175 68,643Weighted average common shares outstanding - diluted ('000) 72,328 68,643 72,238 71,615 54,425 (1) A non-GAAP financial measure or ratio which does not have a standardized meaning under the "Accounting Standards", see "Non-GAAP Measures" section of this press release.(2) A supplementary financial measure. Refer to the "Supplementary Financial Measures" section of this press release. Liquidity and Balance SheetDecember 31, December 31, ($ thousands) 2024 2023 Cash and cash equivalents 67,419 109,525 Available credit facilities(1) 50,000 50,000 Face value of long-term debt(2) 343,852 396,780 (1) As at December 31, 2024 the Company had $50.0 million (December 31, 2023 - $50.0 million) of available credit under the Senior Credit Facility, of which $nil was drawn as of December 31, 2024 (December 31, 2023 - $nil).(2) As at December 31, 2024, the 2028 Notes (as defined below) had a face value of US$239.0 million (December 31, 2023 - US$300.0 million) and were converted into Canadian dollars as at period end exchange rates (see "Capital Resources and Liquidity - Long Term Debt"). Q4 2024 Review Hangingstone Facilities: Bitumen Production Results: (bbls/d) Q1 2024 Q2 2024 Q3 2024 Q4 2024 Full Year2024 Expansion Asset 17,361 15,824 16,126 16,047 16,338 Demo Asset 2,306 3,169 2,999 3,337 2,954 Consolidated 19,667 18,993 19,125 19,384 19,292 Greenfire's production in the fourth quarter of 2024 averaged 19,384 bbls/d, reflecting a 1% increase compared to the prior quarter, while the full-year 2024 production averaged 19,292 bbls/d. Capital expenditures for the fourth quarter totaled $13.2 million, with full-year 2024 capital expenditures amounting to $91.8 million. Adjusted free cash flow for the fourth quarter was $39.8 million, bolstered by more favorable WCS differentials, as well as lower operating and capital spending, with the full-year 2024 at $80.1 million. Expansion Asset: Production in the fourth quarter of 2024 remained relatively stable compared to the third quarter, which was lower than anticipated due to reduced steam generation performance in December 2024. Demo Asset: Production in the fourth quarter of 2024 increased compared to the third quarter and averaged 4,300 bbls/d in November and December 2024, which is driven by the activation of three additional redevelopment wells and the startup of the second disposal well following the completion of scheduled annual maintenance in October 2024. 2025 Operational Update Production Overview The Company's production for 2025 to date is approximately 18,000 bbls/d, reflecting a 7% decrease compared to the previous quarter. This reduction is attributed to the Expansion Asset, where ongoing steam generation equipment repairs, unexpected facility downtime and natural production declines have impacted production output. At present, one of the four steam generation units is offline with an associated impact on production at the Expansion Asset of 1,500 to 2,250 bbls/d. The Company is implementing mitigation strategies to limit production impacts, including developing a comprehensive plan to restore full steam generation capacity and will provide updates in due course. Comprehensive Review of Future Development Plans The Company is currently conducting a comprehensive evaluation of its development plans, capital expenditures, and operational strategies for both the Expansion Asset and the Demo Asset. To address declines at the Expansion Asset, the Company anticipates that future development initiatives will involve drilling new well pairs on undeveloped reservoir, subject to approval from Greenfire's Board of Directors (the "Board"). At the Demo Asset, future development plans will prioritize optimizing base production. Emissions Reporting and Regulatory Engagement Following the changes in Greenfire's board of directors as a result of the WEF Acquisition, it was brought to the Company's attention that Greenfire's sulphur dioxide emissions may have been underreported. Prior management have been terminated. Greenfire takes its regulatory obligations very seriously and immediately reported the potential exceedance to the Alberta Energy Regulator ("AER"). Greenfire is currently in discussions with the AER and is exploring remedies, including potentially adding sulphur recovery units to the Expansion Asset. The extent of any potential exceedance and any remedies, penalties or orders imposed by the AER are unknown at this time. 2025 Corporate Updates Following the appointment of the new leadership team for the Company on February 11, 2025 and as noted above, Greenfire is undertaking a thorough review of its development plans, cost structures, and operational strategy. Upon completion, the Company intends to provide details of its new development plans. In March of 2025, the Company completed an amendment to the 2028 Note Indenture, which had received requisite approval of the holders of the 2028 Notes, to increase the permitted capital expenditures in any twelve-month period from $100 million to US$150 million. Following the change of control in relation to the recent acquisition of approximately 56.5% of the Company's common shares by certain limited partnerships comprising Waterous Energy Fund, the Board determined to accelerate the expiry dates of the outstanding performance warrants to April 30, 2025, all in accordance with the terms of the warrant plan agreement. There are 2,178,021 performance warrants currently outstanding with exercise prices ranging from $2.14 to $11.09 per common share. Greenfire executed an updated WTI hedging program in the first quarter of 2025 to enhance price certainty for a portion of the Company's production. The Company replaced its existing WTI costless collar contracts, which had a price range average of approximately US$57/bbl to US$83/bbl, with fixed-price swaps covering 9,400 bbls/d of WTI at an average price of approximately C$101/bbl for the full year 2025. Conference Call Details Greenfire plans to host a conference call on Tuesday, March 18, 2025 at 7:00 a.m. Mountain Time (9:00 a.m. Eastern Time), during which members of the Company's executive team will discuss its Q4 2024 results as well as host a question-and-answer session with investors. Date: Tuesday, March 18, 2025 Time: 7:00 a.m. Mountain Time (9:00 a.m. Eastern Time) Webcast Link: Dial In: 1-833-752-3499 or 1-647-846-7280 North America: 1-833-752-3499 International: +1-647-846-7280 2024 Reserves Information The tables below summarize Greenfire's 2024 year-end reserves, which were prepared by McDaniel & Associates Consultants Ltd. ("McDaniel"). A complete filing of the Company's oil and gas reserves and other oil and gas information presented in accordance with National Instrument 51-101 - Standards of Disclosure for Oil and Gas Activities ("NI 51-101") are included in Greenfire's Annual Information Form for the year ended December 31, 2024, which will be filed on SEDAR+ at on EDGAR at and on Greenfire's website at Summary of Oil and Gas Reserves (Forecast Prices and Costs)As of December 31, 2024 Reserves CategoryBitumen Gross(Mbbl) Net(Mbbl) Proved Developed Producing26,819 24,386 Developed Non- Producing- - Undeveloped207,907 160,815 Total Proved234,726 185,201Total Probable 173,861 129,588 Total Proved Plus Probable 408,587 314,788 Summary of Net Present Value of Future Net Revenue (Forecast Prices and Costs) As of December 31, 2024 Reserves Category Before Deducting Income Taxes After Deducting Income Taxes 0% 5% 10% 15% 20% 0% 5% 10% 15% 20% Unit Value(2) (in $ millions)(1)(in $ millions)(1) $/bbl Proved Developed Producing758739693644599758739693644599 28.40 Developed Non- Producing - - - - - - - - - - - Undeveloped 5,929 3,075 1,761 1,102 737 4,327 2,313 1,355 864 587 10.95 Total Proved(3) 6,687 3,813 2,454 1,746 1,336 5,085 3,052 2,047 1,508 1,186 13.25 Total Probable 7,449 1,687 582 303 208 5,022 1,163 422 233 168 4.49 Total Proved plus Probable 14,136 5,500 3,035 2,049 1,544 10,107 4,214 2,469 1,741 1,354 9.64 Notes:(1) Net present value of future net revenue includes all resource income, including the sale of oil, gas, by-product reserves, processing third party reserves and other income.(2) Calculated using net present value of future net revenue before deducting income taxes, discounted at 10% per year, and net reserves. The unit values are based on net reserves volumes. Undiscounted Future Net Revenue by Reserves CategoryAs of December 31, 2024 Reserves Category($millions) Revenue(1) Royalties(2) Operating Costs Development Costs Abandonment and Reclamation Costs(3) Future Net Revenue Before Income Taxes Income Taxes Future NetRevenue After Income Taxes Total Proved 17,959,653 3,922,667 4,961,661 2,117,638 270,265 6,687,422 1,602,263 5,085,160 Total Proved plus Probable 37,851,599 8,921,496 9,869,600 4,563,565 360,844 14,136,095 4,029,151 10,106,944 Notes: (1) Includes all product revenues and other revenues as forecast.(2) Royalties include any net profits interests paid.(3) Abandonment and reclamation costs include but are not limited to items such as: producing wells, suspended wells, service wells, gathering systems, facilities, and surface land development. Forecast Prices and CostsAs of December 31, 2024 Crude Oil Year WTI Crude Oil ($US/bbl) Brent Crude Oil ($US/bbl) Edmonton Light Crude Oil ($/bbl) Alberta Bow River Hardisty Crude Oil ($/bbl) Western Canadian Select Crude Oil ($/bbl) Alberta Heavy Crude Oil ($/bbl) Sask Cromer Medium Crude Oil ($/bbl) Natural Gas at AECO(C$/MMBtu) Inflation(1) % Exchange Rate(2)$US/$CAN 2025 71.58 75.58 94.79 83.89 82.69 75.85 91.15 2.36 0.0 0.712 2026 74.48 78.51 97.04 86.45 84.27 77.56 93.35 3.33 2.0 0.728 2027 75.81 79.89 97.37 85.50 83.81 77.12 93.62 3.48 2.0 0.743 2028 77.66 81.82 99.80 87.21 85.70 78.81 95.96 3.69 2.0 0.743 2029 79.22 83.46 101.79 88.95 87.45 80.45 97.88 3.76 2.0 0.743 2030 80.80 85.13 103.83 90.73 89.25 82.12 99.83 3.83 2.0 0.743 2031 82.42 86.84 105.91 92.55 91.04 83.77 101.83 3.91 2.0 0.743 2032 84.06 88.57 108.03 94.40 92.85 85.45 103.87 3.99 2.0 0.743 2033 85.74 90.31 110.19 96.29 94.71 87.17 105.95 4.07 2.0 0.743 2034 87.46 92.09 112.39 98.21 96.61 88.92 108.06 4.15 2.0 0.743 2035 89.21 93.93 114.64 100.18 98.54 90.69 110.22 4.23 2.0 0.743 2036 90.99 95.81 116.93 102.18 100.51 92.51 112.43 4.32 2.0 0.743 2037 92.81 97.72 119.27 104.22 102.52 94.36 114.68 4.40 2.0 0.743 2038 94.67 99.68 121.65 106.31 104.57 96.25 116.97 4.49 2.0 0.743 2039 96.56 101.67 124.09 108.43 106.66 98.17 119.31 4.58 2.0 0.743 Escalation of 2% per year thereafter Notes:(1) Inflation rates for forecasting costs only.(2) The exchange rate is used to generate the benchmark reference prices in this table. Reconciliation of Changes in ReservesAs of December 31, 2024Bitumen(Mbbl)Proved Probable Proved Plus Probable December 31, 2023 183,282 54,396 237,679 Extensions and improved recovery 60,225 120,423 180,649 Technical revisions(1) (1,576) (959) (2,534) Discoveries - - - Acquisitions - - - Dispositions - - - Economic factors - - - Production (7,206) - (7,206) December 31, 2024 234,726 173,861 408,587 Note:(1) Technical revisions are associated with the decommissioning of production from existing well-bores that are to be re-drilled as part of the upcoming drilling program, as well as changes to the future development plan. About Greenfire Greenfire is an oil sands producer actively developing its long-life and low-decline thermal oil assets in the Athabasca region of Alberta, Canada. The Company plans to leverage its large resource base and significant infrastructure in place to drive meaningful, capital-efficient production growth. Greenfire common shares are listed on the New York Stock Exchange and Toronto Stock Exchange under the symbol "GFR". For more information, visit or find Greenfire on LinkedIn and X. Non-GAAP and Other Financial Measures Certain financial measures in this press release are non-GAAP financial measures or ratios and capital management measures. These measures are not defined by IFRS and therefore may not be comparable to similar measures provided by other companies. These non-GAAP and capital management measures should not be considered in isolation or as an alternative for measures of performance prepared in accordance with IFRS. This press release also contains supplementary financial measures and ratios. Supplementary financial measures are derived from IFRS. Non-GAAP financial measures and ratios include operating netback, operating netback, excluding realized gain (loss) on risk management contracts, adjusted funds flow, adjusted free cash flow and per barrel figures associated with non-GAAP financial measures. Capital management measures include net debt. Supplementary financial measures and ratios include gross profit, capital expenditures and depletion. Non-GAAP Financial Measures Operating Netback (including per barrel ($/bbl)) and Operating Netback, excluding realized gain (loss) on risk management contracts (including per barrel ($/bbl)) Gross profit is the most directly comparable GAAP measure to operating netback and operating netback, excluding realized (gain) loss on risk management contracts which are non-GAAP measures. These measures are not intended to represent gross profit, net earnings or other measures of financial performance calculated in accordance with IFRS. Operating netback, excluding realized gain (loss) on risk management contracts is comprised of gross profit, plus loss on risk management contracts, less gain on risk management contracts and less depletion expense on the Company's operating assets. Operating netback, excluding realized gain (loss) on risk management contracts per barrel ($/bbl) is calculated by dividing operating netback , excluding realized gain (loss) on risk management contracts by the Company's bitumen sales volume in a specified period. Operating netback is further adjusted for realized gain (loss) on risk management contracts, as appropriate. Operating netback per barrel ($/bbl) is calculated by dividing operating netback by the Company's bitumen sales volume in a specified period. When Operating netback is expressed on a per barrel basis it is a non-GAAP ratio. Operating netback and operating netback, excluding realized gain (loss) on risk management contracts are financial measures widely used in the oil and gas industry as supplementary measures of a Company's efficiency and ability to generate cash flow for debt repayments, capital expenditures or other uses. The following table is a reconciliation of gross profit to operating netback:Three months ended Year endedDecember 31, December 31, September 30, December 31, December 31, ($ thousands, unless otherwise noted) 2024 2023 2024 2024 2023 Gross profit(1) 26,471 29,150 76,772 149,756 91,366 Depletion(1) 28,767 16,236 17,073 80,950 67,924 Gain (loss) on risk management contracts 8,921 (14,810) (29,925) 27,489 (16,405) Operating netback, excluding realized gain (loss) on risk management contracts 64,159 30,576 63,920 258,195 142,885 Realized gain (loss) on risk management contracts 1,024 (3,225) (6,087) (27,658) (10,182) Operating netback 65,183 27,351 57,833 230,537 132,703 Operating netback, excluding realized gain (loss) on risk management contracts ($/bbl)(2) 34.26 19.21 37.58 36.40 22.14 Operating netback ($/bbl)(2) 34.81 17.19 34.00 32.49 20.56 (1) Supplementary financial measure or ratio. Refer to the "Supplementary Financial Measures" section of this press release. Adjusted Funds Flow and Adjusted Free Cash Flow Cash provided by operating activities is the most directly comparable GAAP measure for adjusted funds flow, which is a non-GAAP measure. This measure is not intended to represent cash provided by operating activities calculated in accordance with IFRS. The adjusted funds flow measure allows management and others to evaluate the Company's ability to fund its capital programs and meet its ongoing financial obligations using cash flow internally generated from ongoing operating related activities. We compute adjusted funds flow as cash provided by operating activities, excluding the impact of changes in non-cash working capital, less transaction costs and transactions considered non-recurring in nature or outside of normal business operations. Cash provided by operating activities is the most directly comparable GAAP measure for adjusted free cash flow, which is a non-GAAP measure. Management uses adjusted free cash flow as an indicator of the efficiency and liquidity of its business, measuring its funds after capital investment that are available to manage debt levels and return capital to shareholders. By removing the impact of current period property, plant and equipment expenditures from adjusted free cash flow, management monitors its adjusted free cash flow to inform its capital allocation decisions. We compute adjusted free cash flow as cash provided by operating activities, excluding the impact of changes in non-cash working capital, less transaction costs, transactions considered non-recurring in nature or outside of normal business operations, property, plant and equipment expenditures and acquisition costs. The following table is a reconciliation of cash provided by operating activities to adjusted funds flow and adjusted free cashflow: Three months ended Year endedDecember 31, December 31, September 30, December 31, December 31, ($ thousands, unless otherwise noted)2024 2023 2024 2024 2023 Cash provided (used) by operating activities60,195 25,530 (17,875 )144,547 86,548Transaction costs- 3,848 - - 12,172Non-recurring transactions(1)6,661 - 1,000 7,661 -Changes in non-cash working capital (13,906 ) (18,861 ) 60,979 19,642 (25,514 ) Adjusted funds flow 52,950 10,517 44,104 171,850 73,206 Property, plant and equipment expenditures(12,485 )(19,413 )(21,175 )(87,404 )(33,428 ) Acquisitions (676 ) - - (4,390 ) -Adjusted free cash flow 39,789 (8,896 ) 22,929 80,056 39,778 (1) Non-recurring transactions relate to the adoption of a limited purposes shareholder rights plan and the evaluation of strategic alternatives. Net Debt The table below reconciles long-term debt to net debt. December 31, September 30, December 31,($ thousands) 2024 2024 2023 Long-term debt(80,441 )(218,118 )(332,029 ) Current assets144,238 118,405 163,814Current liabilities(335,859 )(176,648 )(130,283 ) Current portion of risk management contracts248 (9,697 )417Current portion of warrant liability 18,304 25,303 18,630 Net debt (253,510 ) (260,755 ) (279,451 ) Net debt is a capital management measure. Long-term debt is a GAAP measure that is the most directly comparable financial statement measure to net debt. Net debt is comprised of long-term debt, adjusted for current assets and current liabilities on the Company's balance sheet, and excludes the current portions of risk management contracts and warranty liability. Management uses net debt to monitor the Company's current financial position and to evaluate existing sources of liquidity. Net debt is used to estimate future liquidity and whether additional sources of capital are required to fund planned operations. 1P and 2P before-tax PV10, net of debt and cash 1P and 2P before-tax PV10, net of debt and cash is comprised of before tax present value is calculated using the estimated net present value of all future net revenue from our reserves, before income taxes discounted at 10%, as estimated by McDaniel effective December 31, 2024, less face value of its term debt plus cash and cash equivalents. December 31, December 31,($ thousands) 2024 2023 Total proved PV10 $ 2,454,000$ 2,023,000Term debt(343,852 )(396,780 ) Cash and cash equivalents 67,419 109,525 1P before-tax PV10, net of debt and cash $ 2,177,567 $ 1,735,745 December 31, December 31,($ thousands) 2024 2023 Total proved and probable PV10 $ 3,035,000$ 2,423,000Term debt(343,852 )(396,780 ) Cash and cash equivalents 67,419 109,525 2P before-tax PV10, net of debt and cash $ 2,758,567$ 2,135,745 Supplementary Financial Measures Depletion The term "depletion" or "depletion expense" is the portion of depletion and depreciation expense reflecting the cost of development and extraction of the Company's bitumen reserves. Gross Profit Gross profit is a supplementary financial measure prepared on a consistent basis with IFRS. Greenfire uses gross profit to assess its core operating performance before considering other expenses such as general and administrative costs, financing costs, and income taxes. Gross profit is calculated as oil sales, net of royalties, plus gains on risk management contracts, less losses on risk management contracts, diluent expense, operating expense, depletion expense on the Company's operating assets, transportation expenses and marketing expenses. Management believes that gross profit provides investors, analysts, and other stakeholders with useful insight into the Company's ability to generate profitability from its core operations before non-operating expenses. When gross profit is expressed on a per barrel basis it is a supplementary financial ratio. Three months ended Year endedDecember 31, December 31, September 30, December 31, December 31, ($ thousands, unless otherwise noted) 2024 2023 2024 2024 2023 Oil sales, net of royalties201,804 155,706 184,945 790,949 652,264Gain (loss) on risk management contracts (8,921 ) 14,810 29,925 (27,489 ) 16,405 192,883 170,516 214,870 763,460 668,669Diluent expense(83,030 )(76,768 )(67,889 )(327,146 )(304,740 ) Transportation and marketing(13,751 )(13,277 )(12,481 )(52,744 )(55,673 ) Operating expenses(40,864 )(35,085 )(40,655 )(152,864 )(148,966 ) Depletion (28,767 ) (16,236 ) (17,073 )(80,950 )(67,924 ) Gross profit 26,471 29,150 76,772 149,756 91,366 Gross profit ($/bbl) 14.14 18.30 45.13 21.10 14.13 Capital Expenditures Capital expenditures is a supplementary financial measure prepared on a consistent basis with IFRS. Greenfire uses capital expenditures to monitor the cash flows it invests into property, plant and equipment. Capital expenditures is derived from the statement of cash flows and includes property, plant and equipment expenditures and acquisitions. Management believes that capital expenditures provides investors, analysts and other stakeholders with a useful insight into the Company's investments into property, plant and months ended Year endedDecember 31, December 31, September 30, December 31, December 31, ($ thousands, unless otherwise noted) 2024 2023 2024 2024 2023 Property, plant and equipment expenditures 12,485 19,413 21,175 87,404 33,428 Acquisitions 676 - - 4,390 - Capital expenditures 13,161 19,413 21,175 91,794 33,428 Presentation of Reserves and Other Oil and Gas Information In respect of 2024 year-end reserves information contained in this press release, Greenfire's reserves have been evaluated in accordance with Canadian reserve evaluation standards under NI 51-101. McDaniel and Associates Consultants Ltd. ("McDaniel"), an independent petroleum consulting firm based in Calgary, Alberta, has each evaluated the petroleum reserves associated with all of Greenfire's properties. McDaniel used the average of the commodity price forecasts and inflation rates of Sproule Associates Limited, McDaniel and GLJ Ltd. as of January 1, 2025 to prepare their report (the "McDaniel Report"). Such estimates constitute forward-looking information, which are based on values that Greenfire's management believes to be reasonable, and are subject to the same limitations discussed under "Forward-Looking Information" below. Greenfire presents the measures below using information derived from its 2024 year-end reserves information. 2P Reserve Life Index 2P Reserve Life Index calculated by dividing gross 2P reserves by annualized fourth quarter production. For additional information regarding the consolidated reserves and information concerning the resources of the Company as evaluated by McDaniel in the McDaniel Report, please refer to the Company's AIF. Forward-Looking Information This press release contains forward-looking information and forward-looking statements (collectively, "forward-looking information") within the meaning of applicable securities laws. The forward-looking information in this press release is based on Greenfire's current internal expectations, estimates, projections, assumptions and beliefs. Such forward-looking information is not a guarantee of future performance and involves known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking information. The Company believes the material factors, expectations and assumptions reflected in the forward-looking information are reasonable as of the time of such information, but no assurance can be given that these factors, expectations and assumptions will prove to be correct, and such forward-looking information included in this press release should not be unduly relied upon. The use of any of the words "expect", "target", "anticipate", "intend", "estimate", "objective", "ongoing", "may", "will", "project", "believe", "depends", "could" and similar expressions are intended to identify forward-looking information. In particular, but without limiting the generality of the foregoing, this press release contains forward-looking information pertaining to the following: the Company's business strategy and future plans, including development plans for the Expansion Asset and the Demo Asset and the anticipated timing thereof; successful execution of the company's strategy and operational goals; expected production and capital expenditures in 2025; the potential impact of regulatory actions by the AER on the Company's business, operations, production, reserves estimates and financial condition; and statements relating to the business and future activities of the Company after the date of this press release. In addition, statements relating to "reserves" are deemed to be forward-looking information as they involve the implied assessment, based on certain estimates and assumptions, that the reserves described exist in the quantities predicted or estimated and can be profitably produced in the future. Forward-looking information in this press release relating to oil and gas exploration, development and production, and management's general expectations relating to the oil and gas industry are based on estimates prepared by management using data from publicly available industry sources as well as from market research and industry analysis and on assumptions based on data and knowledge of the industry which management believes to be reasonable. Although generally indicative of relative market positions, market shares and performance characteristics, this data is inherently imprecise. Management is not aware of any misstatements regarding any industry data presented in press release. All forward-looking information reflects Greenfire's beliefs and assumptions based on information available at the time the applicable forward-looking information is disclosed and in light of the Company's current expectations with respect to such matters as: the success of Greenfire's operations and growth and expansion projects; expectations regarding production growth, future well production rates and reserves volumes; expectations regarding Greenfire's capital program; the outlook for general economic trends, industry trends, prevailing and future commodity prices, foreign exchange rates and interest rates; prevailing and future royalty regimes and tax laws; expectations regarding differentials and realized prices; future well production rates and reserves volumes; fluctuations in energy prices based on worldwide demand and geopolitical events; the impact of inflation; the integrity and reliability of Greenfire's assets; decommissioning obligations; Greenfire's ability to comply with its financial covenants; Greenfire's ability to comply with applicable regulations, including those related to various emissions; and the governmental, regulatory and legal environment. Management believes that its assumptions and expectations reflected in the forward-looking information contained herein are reasonable based on the information available on the date such information is provided and the process used to prepare the information. However, Greenfire cannot assure readers that these expectations will prove to be correct. The forward-looking information included in this press release is not a guarantee of future performance and involves known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward- looking information, including, without limitation: changes in oil and gas prices and differentials; changes in the demand for or supply of Greenfire's products; the continued impact, or further deterioration, in global economic and market conditions, including from inflation and/or certain geopolitical conflicts, such as the ongoing war in Eastern Europe and the conflict in the Middle East, and other heightened geopolitical risks, including imposition of tariffs or other trade barriers, and the ability of the Company to carry on operations as contemplated in light of the foregoing; determinations by OPEC and other countries as to production levels; unanticipated operating results or production declines; changes in tax or environmental laws, climate change regulations, royalty rates or other regulatory matters; changes in Greenfire's operating and development plans; reliability of third party facilities, infrastructure and pipelines required for Greenfire's operations and production; competition for, among other things, capital, acquisitions of reserves and resources, undeveloped lands, access to services, third party processing capacity and skilled personnel; inability to retain drilling rigs and other services; severe weather conditions, including wildfires, impacting Greenfire's operations and third party infrastructure; availability of diluent, natural gas and power to operate Greenfire's facilities; failure to realize the anticipated benefits of the Company's acquisitions; incorrect assessment of the value of acquisitions; delays resulting from or inability to obtain required regulatory approvals; increased debt levels or debt service requirements; inflation; changes in foreign exchange rates; inaccurate estimation of Greenfire's bitumen reserves volumes; limited, unfavourable or a lack of access to capital markets or other sources of capital; increased costs; failure to comply with applicable regulations, including relating to the Company's air emissions, and potentially significant penalties and orders associated therewith and associated significant effect on the Company's business, operations, production, reserves estimates and financial condition; a lack of adequate insurance coverage; and other factors discussed under the "Risk Factors" section in Greenfire's Management's Discussion & Analysis and Annual Information Form, each for the year ended December 31, 2024, and from time to time in Greenfire's public disclosure documents, which are available on the Company's SEDAR+ profile at and in the Company's annual report on Form 40-F filed with the SEC, which is available on the Company's EDGAR profile at The foregoing risks should not be construed as exhaustive. The forward-looking information contained in this press release speaks only as of the date of this press release and Greenfire does not assume any obligation to publicly update or revise such forward-looking information to reflect new events or circumstances, except as may be required pursuant to applicable laws. Any forward-looking information contained herein is expressly qualified by this cautionary statement. Contact Information Greenfire Resources Ltd. 205 5th Avenue SWSuite 1900Calgary, AB T2P 2V7 investors@ To view the source version of this press release, please visit
