Greenfire bought a rival for $1.3 billion. To pay for it, it almost doubled its own shares.

Greenfire pulls oil from the ground. It works in the Athabasca region of Alberta, Canada. [C7][C7] News release, About GreenfireGreenfire is an oil sands producer actively developing its long-life and low-decline thermal oil assets in the Athabasca region of Alberta, Canada, with its registered office in Calgary, Alberta.Greenfire Resources Ltd. Form 6-K, news releases on the preliminary results and closing of its rights offering, filed September 17, 2026Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/1966287/000121390026100679/ea030578801ex99-2.htm

Its shares trade in New York and Toronto, both under the letters GFR. [C8][C8] News release, About GreenfireGreenfire common shares are listed on the New York Stock Exchange and the Toronto Stock Exchange under the trading symbol “GFR”.Greenfire Resources Ltd. Form 6-K, news releases on the preliminary results and closing of its rights offering, filed September 17, 2026Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/1966287/000121390026100679/ea030578801ex99-2.htm

One owner runs the show. A fund called Waterous Energy owned about 72% before this deal. [C4][C4] News release, closing of rights offeringImmediately prior to the completion of the Rights Offering, WEF owned 90,317,640 Common Shares, representing approximately 72.0% of the issued and outstanding Common SharesGreenfire Resources Ltd. Form 6-K, news releases on the preliminary results and closing of its rights offering, filed September 17, 2026Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/1966287/000121390026100679/ea030578801ex99-2.htm

In July 2026, Greenfire set its sights on a neighbor. Connacher owns land right next to Greenfire's own project. [C9][C9] News release, July 13, 2026Connacher is a private thermal oil sands company with a 100% operated interest in the Great Divide oil sands project (“Great Divide”)... Great Divide is located directly adjacent to Greenfire’s Hangingstone assets, enabling more efficient development of the combined asset base.Greenfire Resources Ltd. Form 6-K, news release announcing the acquisition of Connacher Oil and Gas Limited, filed July 13, 2026Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/1966287/000121390026077391/ea029780201ex99-1.htm

Connacher pumped about 20,000 barrels a day on its own. Together, the two firms hoped to reach about 34,000 barrels a day. [C10][C10] News release, July 13, 2026In 2026, production from Great Divide is expected to average approximately 19,500 Bbl/d (100% oil)... Pro forma the Acquisition, Greenfire will have expected 2026 production of approximately 34,000 Bbl/d (100% oil)Greenfire Resources Ltd. Form 6-K, news release announcing the acquisition of Connacher Oil and Gas Limited, filed July 13, 2026Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/1966287/000121390026077391/ea029780201ex99-1.htm

The Connacher deal cost about $1.3 billion in cash. Greenfire did not have that kind of money sitting around. [C1][C1] News release, July 13, 2026Greenfire Resources Ltd. (NYSE: GFR, TSX: GFR) (“Greenfire” or the “Company”) today announced it has entered into a definitive agreement to acquire all of the issued and outstanding shares of Connacher Oil and Gas Limited (“Connacher”) for approximately $1.277 billion in cash consideration, net of closing adjustments (the “Acquisition”).Greenfire Resources Ltd. Form 6-K, news release announcing the acquisition of Connacher Oil and Gas Limited, filed July 13, 2026Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/1966287/000121390026077391/ea029780201ex99-1.htm

So it borrowed most of it. It drew about $700 million from a loan. It also took out a separate $575 million bridge loan. [C11][C11] News release, July 13, 2026, FinancingThe Acquisition is expected to be financed with a mix of debt and equity, comprised of: (i) an approximately $700 million draw on an underwritten $1.0 billion reserves-based loan (upsized from $275 million currently), and (ii) a $575 million underwritten bridge facility (“Bridge Facility”), which, post-closing of the Acquisition, will be repaid with proceeds from an anticipated rights offering of Greenfire common shares.Greenfire Resources Ltd. Form 6-K, news release announcing the acquisition of Connacher Oil and Gas Limited, filed July 13, 2026Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/1966287/000121390026077391/ea029780201ex99-1.htm

A bridge loan is short-term debt. Greenfire always planned to pay this one off by selling new shares to its own shareholders, a deal called a rights offering. [C11][C11] News release, July 13, 2026, FinancingThe Acquisition is expected to be financed with a mix of debt and equity, comprised of: (i) an approximately $700 million draw on an underwritten $1.0 billion reserves-based loan (upsized from $275 million currently), and (ii) a $575 million underwritten bridge facility (“Bridge Facility”), which, post-closing of the Acquisition, will be repaid with proceeds from an anticipated rights offering of Greenfire common shares.Greenfire Resources Ltd. Form 6-K, news release announcing the acquisition of Connacher Oil and Gas Limited, filed July 13, 2026Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/1966287/000121390026077391/ea029780201ex99-1.htm

The sale closed on September 16, 2026. It hit its cap. About 115 million new shares went out, at $4.81 each. [C2][C2] News release, closing of rights offeringAt the completion of the Rights Offering and pursuant to the exercise of Rights, the Company issued an aggregate of 114,985,163 Common Shares, representing the maximum allotment available to holders of Common Shares at the record date of August 17, 2026.Greenfire Resources Ltd. Form 6-K, news releases on the preliminary results and closing of its rights offering, filed September 17, 2026Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/1966287/000121390026100679/ea030578801ex99-2.htm [C12][C12] News release, closing of rights offeringCommon Shares acquired pursuant to the exercise of Rights were issued at a price of C$6.74 or US$4.81 per Common Share for aggregate gross proceeds of approximately C$774 million (after conversion of U.S. dollar subscriptions).Greenfire Resources Ltd. Form 6-K, news releases on the preliminary results and closing of its rights offering, filed September 17, 2026Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/1966287/000121390026100679/ea030578801ex99-2.htm

That is nearly double. Shares went from about 125 million to about 240 million. [C3][C3] News release, closing of rights offeringAs of the date hereof, the Company has 240,413,692 Common Shares issued and outstanding.Greenfire Resources Ltd. Form 6-K, news releases on the preliminary results and closing of its rights offering, filed September 17, 2026Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/1966287/000121390026100679/ea030578801ex99-2.htm [C13][C13] Second-quarter financial statements, per-share dataWeighted average shares outstanding - basic 125,428 70,119 125,420 70,538Greenfire Resources Ltd. second-quarter 2026 financial statements, filed with Form 6-K on August 5, 2026Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/1966287/000121390026085449/ea030022101ex99-1.htm

The cash raised paid off the whole $575 million bridge loan. It also paid down part of the other acquisition debt. [C14][C14] News release, closing of rights offeringthe Company used the net proceeds thereof to fully repay the Company’s C$575 million bridge facility and a portion of the other indebtedness incurred in connection with the Company’s recent acquisition of Connacher Oil and Gas Limited.Greenfire Resources Ltd. Form 6-K, news releases on the preliminary results and closing of its rights offering, filed September 17, 2026Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/1966287/000121390026100679/ea030578801ex99-2.htm

Waterous bought its full share of the sale. It owned 72% before. It owns 72% after. Nothing changed for the top owner. [C4][C4] News release, closing of rights offeringImmediately prior to the completion of the Rights Offering, WEF owned 90,317,640 Common Shares, representing approximately 72.0% of the issued and outstanding Common SharesGreenfire Resources Ltd. Form 6-K, news releases on the preliminary results and closing of its rights offering, filed September 17, 2026Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/1966287/000121390026100679/ea030578801ex99-2.htm [C5][C5] News release, closing of rights offeringImmediately after completion of the Rights Offering, WEF owns 173,111,818 Common Shares and 2,654,179 Warrants representing approximately 72.0% of the issued and outstanding Common Shares on an undiluted basis.Greenfire Resources Ltd. Form 6-K, news releases on the preliminary results and closing of its rights offering, filed September 17, 2026Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/1966287/000121390026100679/ea030578801ex99-2.htm

Greenfire still owes money. It has about 570 million Canadian dollars drawn on its credit line. It calls that debt load about 1.2 times next year's expected earnings. [C15][C15] News release, closing of rights offeringGreenfire has approximately C$570 million drawn on its C$1.0 billion reserves-based revolving credit facility, which reflects a leverage level of approximately 1.2x Debt / 2027E Adjusted EBITDA at US$70 WTI.Greenfire Resources Ltd. Form 6-K, news releases on the preliminary results and closing of its rights offering, filed September 17, 2026Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/1966287/000121390026100679/ea030578801ex99-2.htm

Nobody outside knows yet if the promised savings will show up. [C6][C6] News release, July 13, 2026Greenfire has identified midstream, marketing, operating cost, and G&A synergies of approximately $30 million per year (equivalent to approximately 19% of Connacher’s standalone sustaining free cash flow at US$70 WTI), which it expects to be able to realize by the end of 2026.Greenfire Resources Ltd. Form 6-K, news release announcing the acquisition of Connacher Oil and Gas Limited, filed July 13, 2026Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/1966287/000121390026077391/ea029780201ex99-1.htm

Nobody knows the real output yet. Connacher's wells are still being folded in. [C10][C10] News release, July 13, 2026In 2026, production from Great Divide is expected to average approximately 19,500 Bbl/d (100% oil)... Pro forma the Acquisition, Greenfire will have expected 2026 production of approximately 34,000 Bbl/d (100% oil)Greenfire Resources Ltd. Form 6-K, news release announcing the acquisition of Connacher Oil and Gas Limited, filed July 13, 2026Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/1966287/000121390026077391/ea029780201ex99-1.htm

Oil prices move. Greenfire's own debt math assumes oil stays near $70 a barrel. The filing does not say what happens to its debt load if the price falls. [C15][C15] News release, closing of rights offeringGreenfire has approximately C$570 million drawn on its C$1.0 billion reserves-based revolving credit facility, which reflects a leverage level of approximately 1.2x Debt / 2027E Adjusted EBITDA at US$70 WTI.Greenfire Resources Ltd. Form 6-K, news releases on the preliminary results and closing of its rights offering, filed September 17, 2026Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/1966287/000121390026100679/ea030578801ex99-2.htm