Greenfire Resources Ltd. (NYSE: GFR | TSX: GFR) has announced the successful completion of its C$775 million rights offering, with the offering fully subscribed and closing on September 15, 2026. The Calgary-based oil sands producer issued 114,985,163 common shares at C$6.74 or US$4.81 per share, generating approximately C$774 million in aggregate gross proceeds. Net proceeds were applied to fully repay the company's C$575 million bridge facility and a portion of other debt incurred through its recent acquisition of Connacher Oil and Gas Limited, a development that investors in the oil sands sector may be watching closely.

Key Points

  • Greenfire Resources Ltd. (NYSE: GFR | TSX: GFR) is an Athabasca oil sands producer based in Calgary, Alberta
  • The rights offering closed fully subscribed on September 15, 2026, raising approximately C$774 million in gross proceeds
  • 114,985,163 common shares were issued; the company now has 240,413,692 common shares issued and outstanding
  • Investors may watch the company's leverage trajectory, with approximately C$570 million drawn on its C$1.0 billion reserves-based revolving credit facility

Rights Offering Fully Subscribed With No Standby Commitment Required

The rights offering was fully subscribed, meaning Greenfire did not need to draw on a previously arranged standby commitment from Waterous Energy Fund ("WEF"), under which WEF had agreed to acquire any unsubscribed common shares. Of the total shares issued, 114,041,317 were issued under the basic subscription privilege and 943,846 under the additional subscription privilege. Because the additional subscription privilege was oversubscribed, those shares were subject to proration in accordance with the terms set out in the company's short form prospectus dated August 7, 2026. Each right entitled the holder to acquire 0.9167 of a common share, with no fractional common shares issued.

Bridge Facility Fully Repaid Following Connacher Oil and Gas Acquisition

Upon completion of the rights offering, Greenfire applied net proceeds to fully repay its C$575 million bridge facility and a portion of additional indebtedness assumed in connection with its acquisition of Connacher Oil and Gas Limited. The company states it has approximately C$570 million drawn on its C$1.0 billion reserves-based revolving credit facility. The release characterises this as reflecting a leverage level of approximately 1.2x Debt to 2027 Estimated Adjusted EBITDA at US$70 WTI. Adjusted EBITDA is a non-GAAP measure; readers should refer to the company's Management's Discussion and Analysis for a full reconciliation.

WEF Maintains Approximately 72% Ownership After Share Issuance

Immediately prior to closing, WEF held 90,317,640 common shares, representing approximately 72.0% of issued and outstanding shares. Following completion of the offering, WEF holds 173,111,818 common shares and 2,654,179 warrants, maintaining approximately 72.0% ownership on an undiluted basis. The warrant terms were previously adjusted effective December 17, 2025 following Greenfire's 2025 rights offering; each warrant now entitles the holder to 1.1707 common shares at US$9.82, adjusted from the original 1.0000 share at US$11.50. The immediate share price impact was not clear from available public information.