Greenfire to Acquire Connacher for C$1.28B, Doubling Production and Reserves
GFR sits 41% above its 52-week low of $4.1 on light trading volume (0.3× avg).
Summary
Greenfire Resources is acquiring private thermal oil sands producer Connacher Oil and Gas for C$1.277 billion in cash, net of adjustments. The deal adds 19,500 Bbl/d of production and 441 MMBbl of proved plus probable reserves, bringing pro forma output to 34,000 Bbl/d and reserves to 850 MMBbl. Connacher's Great Divide asset is directly adjacent to Greenfire's Hangingstone, enabling $30 million in annual synergies by end-2026. Financing includes a $700 million draw on an upsized $1 billion reserves-based loan and a $575 million bridge facility, to be repaid via a rights offering backstopped by Waterous Energy Fund. Pro forma leverage is expected at 1.7x Debt/2027E EBITDA at US$70 WTI. The transaction is expected to close in August 2026, following a May 2026 credit facility increase to C$2 billion, positioning Greenfire for this transformative acquisition.
At the time of this announcement, GFR was trading at $5.79 on NYSE in the Energy & Transportation sector, with a market capitalization of approximately $698.6M. The 52-week trading range was $4.10 to $7.02. This news item was assessed with positive market sentiment and an importance score of 9 out of 10. Source: TMX Newsfile.