Greenfire Resources Ltd. - GFR STOCK NEWS

Greenfire Resources (NYSE: GFR) (TSX: GFR) is facing a challenge to its shareholder protection rights plan agreement (Rights Plan) from Waterous Energy Fund Management Corp. (WEF) and certain shareholders. The challenge comes after WEF announced plans to acquire 43.3% of Greenfire's common shares on September 16, 2024. Greenfire intends to defend the necessity of its Rights Plan at an Alberta Securities Commission hearing.

The company adopted the Rights Plan to ensure fair treatment of all shareholders in case of unsolicited take-over bids or control acquisitions, and to give the board sufficient time to explore value-enhancing alternatives. Greenfire believes WEF is attempting to opportunistically acquire shares at a substantial discount to its oil sands peers, undermining the ongoing strategic review process to maximize shareholder value.

Greenfire Resources (NYSE: GFR) (TSX: GFR), a Calgary-based energy company, has announced that the Toronto Stock Exchange (TSX) has deferred consideration of its shareholder protection rights plan agreement (Rights Plan). This deferral will continue until the TSX is satisfied that the appropriate securities commission will not intervene under National Policy 62-202.

The Rights Plan was adopted in response to the September 16, 2024 announcement that Waterous Energy Fund Management Corp. (WEF) had entered agreements to acquire 43.3% of Greenfire's outstanding common shares. The TSX typically defers acceptance of shareholder rights plans adopted in response to specific take-over bids.

The full text of the Rights Plan will be available on SEDAR+ and SEC websites.

Greenfire Resources (NYSE: GFR) (TSX: GFR) has announced significant developments in response to Waterous Energy Fund's (WEF) agreement to acquire 43.3% of Greenfire's shares. Key points include:

1. Appointment of Matthew Perkal as Interim Chairman and establishment of a Special Committee to oversee strategic alternatives.

2. Adoption of a Shareholder Rights Plan to ensure fair treatment of all shareholders and protect the integrity of the strategic alternatives process.

3. Ongoing evaluation of strategic alternatives with TD Securities, including an updated reserve report expected by year-end.

4. Concern over WEF's acquisition price, which Greenfire believes does not reflect the intrinsic value of its shares.

5. Implementation of measures to prevent unintended 'change of control' that could impact Greenfire's outstanding senior secured notes.

Waterous Energy Fund (WEF) has agreed to acquire 29,988,854 common shares of Greenfire Resources (TSX and NYSE: GFR), representing approximately 43.3% of the company's outstanding shares. The purchase, valued at CAD$327,778,174 (CAD$10.93 per share), will be made from three sellers: Allard Services , Annapurna , and Modro Holdings The transaction is subject to customary closing conditions and regulatory approvals.

Following the acquisition, Julian McIntyre and Venkat Siva will resign from Greenfire's board of directors. WEF, which previously held no shares in Greenfire, is making this investment for strategic purposes and may adjust its ownership in the future based on market conditions and other factors.

Greenfire Resources (NYSE: GFR) reported its Q2 2024 results with a bitumen production of 18,993 barrels per day (bbls/d), up from 18,036 bbls/d in Q2 2023. Adjusted EBITDA rose to $58.4 million, a significant increase from $34.4 million in Q2 2023. The company faced operational disruptions due to wildfires and equipment failures but remains optimistic about future production growth. Notably, Greenfire updated its 2024 outlook, projecting 13-19% annual production growth over 2023 levels and capital expenditures of $80-$90 million.

Additionally, the company announced the appointment of Jonathan Kanderka as Chief Operating Officer. Financial liquidity remains strong with $210 million available, including $160 million in cash. The company redeemed US$61 million of its US$300 million Senior Secured Notes due 2028. An upcoming conference call is scheduled for August 15, 2024, to discuss these results further.

Greenfire Resources (NYSE: GFR, TSX: GFR) has announced the redemption of US$61 million out of its US$300 million senior secured notes due 2028. The payment, scheduled for July 12, 2024, is part of the company’s commitment to reduce its debt in accordance with the indenture governing the notes. As of June 30, 2024, Greenfire had CAD$160 million in cash and cash equivalents, including CAD$50 million from accelerated oil sales collections. The indenture mandates that 75% of Excess Cash Flow (ECF) be directed towards note redemption until total indebtedness is under US$150 million, at which point the required redemption reduces to 25% of ECF. Greenfire plans to release its Q2 2024 operating and financial results on August 14, 2024.

Greenfire Resources (NYSE: GFR, TSX: GFR), a Calgary-based energy company, will participate in the Lytham Partners Spring 2024 Investor Conference on May 30, 2024. The company will give a webcast presentation at 1:15pm ET and conduct one-on-one meetings with investors. The webcast can be accessed on the conference homepage or Greenfire's website and will be available for replay post-event. For one-on-one meetings, interested parties can contact Lytham Partners or register on the event website.

Greenfire Resources (NYSE: GFR, TSX: GFR), a Calgary-based energy company, released the voting results from its annual shareholders meeting held on May 15, 2024. The meeting saw participation from shareholders representing approximately 75% of the company's outstanding shares. All six nominated directors were elected with overwhelming support, with votes ranging from 99.68% to 100% in favor. Additionally, Deloitte LLP was appointed as the company’s auditors for the next fiscal year. Detailed voting results and other information are available on SEDAR+ and the company’s website.

Greenfire Resources announced its Q1 2024 financial results, highlighting key operational milestones and reiterating its positive outlook for 2024. The company reported a consolidated bitumen production of 19,667 barrels per day, an increase from Q4 2023. Adjusted EBITDA rose to $39.3 million, significantly up from $13.3 million in Q1 2023.

Greenfire continued its Refill drilling program and managed regulatory delays by reallocating resources, anticipating a strong impact on bitumen production. The company maintained liquidity at $140.2 million and emphasized debt repayment following the operational start of the Trans Mountain Expansion Project.

Despite temporary production impacts from wildfire evacuations and equipment failures, Greenfire aims to maintain its 2024 outlook, focusing on production growth and free cash flow generation. The company also plans to return capital to shareholders and evaluate growth opportunities.