Greenfire Resources Stock Earnings Reports

Greenfire announced a transformational recapitalization to address what management describes as excessive leverage and near-term cash shortfalls related to growth capital needs. The plan will fully repay outstanding senior secured notes using existing cash plus a $300 million equity rights offering, which is fully backstopped by Waterous Energy Fund, and will be followed by an upsized $275 million reserve-based revolving credit facility (expected undrawn at close). Management expects the refinancing will result in Greenfire being debt-free at closing and reduce cost of capital versus the redeemed notes. Operationally, Greenfire expects to hit the top end of its 2025 production guidance (15,000–16,000 bbl/d) and reaffirms 2025 capital guidance of $130 million. The company repaired a failed boiler ahead of schedule and is proactively refurbishing a second boiler, expecting full steam capacity at the expansion asset by year-end 2025. Sulfur removal equipment is being installed and expected to be operational in November 2025 to address emission exceedances. The Board approved a 2026 capital budget of $180 million with anticipated production of 15,500–16,500 bbl/d; 2026 production is expected to be relatively flat due to growth projects not coming online until late Q4 2026 (PAD 7 first oil anticipated Q4 2026) and a planned full-plant turnaround in May 2026. Key near-term development milestones include commencing drilling on PAD 7 (13 well pairs) in November 2025 and redevelopment work at the Demo Asset in Q4 2025 with incremental production in H1 2026. Investors should note the refinancing is critical to de-lever the balance sheet but execution risks remain (rights take-up, regulatory approvals, technical delivery of sulfur controls and plant restart, and timing of new wells and turnaround).