Image source: © 2025 Krish Capital Pty. Ltd.

Highlights

  • GFR’s 2 2025 bitumen production averaged 15,748 barrels per day, down 10% from Q1 2025.
  • Adjusted free cash flow for Q2 2025 was CAD 23.0 million, compared to CAD 24.2 million in Q2 2024.
  • Capital expenditures totalled CAD 10.8 million in Q2 2025, less than half of Q2 2024 levels.

Greenfire Resources Ltd. (TSX:GFR) released its unaudited financial and operational results for the second quarter ended June 30, 2025. The company holds a 75% working interest in the Hangingstone Expansion Facility and a 100% working interest in the Hangingstone Demonstration Facility. All production figures are presented on a gross working interest basis.

The company reported average bitumen production of 15,748 barrels per day (bbls/d) in Q2 2025. This represents a 10% decrease from Q1 2025 and a decline from 18,993 bbls/d in Q2 2024. Production at the Hangingstone Expansion Facility averaged 10,105 bbls/d in Q2 2025, down 20% from the previous quarter. The decline was attributed to the failure of one of the four steam generators at the Expansion Asset, which had been previously disclosed.

The Hangingstone Demonstration Facility averaged 5,643 bbls/d during the quarter, marking a 16% increase from the previous quarter. The increase in production was related to optimization efforts targeting base well performance.

Capital expenditures during Q2 2025 were CAD 10.8 million, compared to CAD 23.0 million in Q2 2024. The company reported adjusted funds flow of CAD 33.8 million and adjusted free cash flow of CAD 23.0 million, slightly below the CAD 24.2 million reported in the same quarter of the prior year. Cash provided by operating activities was CAD 17.7 million.

In its July 2025 update, Greenfire noted that corporate production averaged approximately 16,000 bbls/d. Production continued to be impacted by the malfunctioning steam generator at the Expansion Asset, which is estimated to have reduced production by 1,500 to 2,250 bbls/d. The company indicated that full steam capacity is expected to return by year-end 2025.

On the regulatory front, Greenfire is working with the Alberta Energy Regulator in connection with previously disclosed sulphur dioxide emissions from the Expansion Facility that exceed permitted limits. To address this issue, the company has ordered sulphur removal facilities. These are scheduled to be installed and commissioned in the fourth quarter of 2025 at an estimated cost of CAD 11.3 million. This estimate is a revision from an earlier projection of CAD 15.0 million.