Greenfire Closes C$1.29B Connacher Acquisition, Q2 Production Drops 8%
GFR sits 43% above its 52-week low of $4.14.
Summary
Greenfire closed its C$1.29 billion acquisition of Connacher Oil and Gas, adding the Great Divide oil sands project. The deal, first announced in July, was funded with debt and a C$575 million rights offering. Q2 results show bitumen production fell 8% sequentially to 13,607 bbls/d due to a planned turnaround at the Expansion Asset. Adjusted funds flow was $21.9 million, and the company posted an adjusted free cash flow deficit of $34.7 million. The acquisition transforms Greenfire's scale, but near-term cash flow remains under pressure from capital spending and hedging losses.
At the time of this announcement, GFR was trading at $5.94 on NYSE in the Energy & Transportation sector, with a market capitalization of approximately $745M. The 52-week trading range was $4.14 to $7.02. This news item was assessed with positive market sentiment and an importance score of 8 out of 10. Source: TMX Newsfile.