Greenfire Resources Reports First Quarter Loss on Risk Management
The oil sands producer reported a net loss of 73.0 million Canadian dollars for the three months ended March 31, 2026.
Greenfire Resources Ltd. (GFR), an oil sands producer in Alberta's Athabasca region, reported a net loss of 73.0 million Canadian dollars for the first quarter of 2026. The company recorded a loss of 0.58 a share, compared to a net income of 16.2 million Canadian dollars, or 0.23 a share, in the same period of 2025.
The result was driven by a significant swing in risk management contracts. The company recorded a loss on risk management contracts of 94.6 million Canadian dollars in the first quarter of 2026, compared to a gain of 5.2 million Canadian dollars in the first quarter of 2025. This contributed to a gross profit decrease of 115.1 million Canadian dollars, resulting in a gross loss of 80.7 million Canadian dollars for the period.
Operating netback per barrel fell 26% to 23.42 Canadian dollars per barrel, down from 31.67 Canadian dollars per barrel in the prior-year quarter. The company attributed this decline to higher realized risk management losses per barrel and lower realized oil sales. Net oil sales, after royalties, fell to 143.0 million Canadian dollars from 176.8 million Canadian dollars in the first quarter of 2025.
Production volumes also trended lower. Bitumen production averaged 14,719 barrels per day in the first quarter of 2026, compared to 17,495 barrels per day in the same period of 2025. Despite the production decline, depletion and depreciation expenses fell 4% to 20.7 million Canadian dollars. The company said this decline reflected lower production volumes, though it was partially offset by higher depletion costs per barrel due to updated estimates for undeveloped reserves.
Cash flow from operations dropped to 1.4 million Canadian dollars from 34.7 million Canadian dollars in the first quarter of 2025. The company reported an adjusted free cash flow deficit of 25.1 million Canadian dollars. Investing activities saw increased spending, with property, plant and equipment expenditures reaching 49.6 million Canadian dollars, up from 26.3 million Canadian dollars in the prior-year quarter.
Greenfire increased its 2026 capital budget to 210 million Canadian dollars from a previous estimate of 180 million Canadian dollars to accelerate the drilling of Pad 8. The company is maintaining its 2026 production guidance of 13,500 to 15,500 barrels per day.