Exhibit 99.1

CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

For the three and six month periods ended June 30, 2025

Greenfire Resources Ltd.

Condensed Interim Consolidated Balance Sheets (unaudited)

As at		June 30		December 31
($CAD thousands)	note	2025		2024
Assets
Current assets
Cash and cash equivalents		$	69,980	$	67,419
Accounts receivable	11		60,363		56,417
Inventories			18,645		14,946
Prepaid expenses and deposits			6,761		5,456
Risk management contracts	11		31,940		-
			187,689		144,238
Non-current assets
Property, plant and equipment	3		956,458		960,059
Deferred income tax asset			141,325		153,174
			1,097,783		1,113,233
			1,285,472		1,257,471
Liabilities
Current liabilities
Accounts payable and accrued liabilities			52,080		61,804
Current portion of long-term debt	4		5,064		248,489
Current portion of lease liabilities and other			4,965		7,014
Warrant liability	6		4,456		18,304
Risk management contracts	11		-		248
			66,565		335,859
Non-current liabilities
Long-term debt	4		309,641		80,441
Lease liabilities and other			3,785		2,296
Decommissioning liabilities	5		18,488		17,444
			331,914		100,181
			398,479		436,040
Shareholders’ equity
Share capital	7		166,845		164,402
Contributed surplus			7,147		8,921
Retained earnings			713,001		648,108
			886,993		821,431
		$	1,285,472	$	1,257,471

Related party transaction (note 13)

See accompanying notes to the unaudited condensed interim consolidated financial statements

Greenfire Resources Ltd.

2025 Q2 Financial Statements | 2

Greenfire Resources Ltd.

Condensed Interim Consolidated Statements of Comprehensive Income (Loss) (unaudited)

		Three months ended June 30						Six months ended June 30
($CAD thousands, except per share amounts)	note	2025			2024			2025			2024
Revenues
Oil sales	8	$	144,542		$	219,444		$	328,179		$	420,434
Royalties			(3,932	)		(9,919	)		(10,756	)		(16,234	)
Oil sales, net of royalties			140,610			209,525			317,423			404,200
Gain (loss) on risk management contracts	11		35,662			(959	)		40,910			(48,493	)
			176,272			208,566			358,333			355,707
Expenses
Diluent expense			56,290			84,545			130,284			176,227
Transportation and marketing			12,415			13,313			26,600			26,512
Operating expenses			31,823			34,997			69,752			71,345
General and administrative			5,023			3,869			14,430			8,618
Stock-based compensation	10		398			2,568			1,650			3,420
Financing and interest	9		13,124			17,759			25,404			33,215
Depletion and depreciation	3		19,968			17,153			41,585			35,156
Exploration expenses			609			580			1,343			1,134
Other income			(703	)		(1,261	)		(1,373	)		(2,702	)
Loss (gain) on revaluation of warrants	6		(5,852	)		683			(13,848	)		7,062
Foreign exchange (gain) loss			(14,192	)		3,512			(14,236	)		11,787
Total expenses			118,903			177,718			281,591			371,774
Net income (loss) before taxes			57,369			30,848			76,742			(16,067	)
Income tax expense			8,639			-			11,849			-
Net income (loss) and comprehensive income (loss)		$	48,730		$	30,848		$	64,893		$	(16,067	)
Net income (loss) per share
Basic	7	$	0.69		$	0.45		$	0.92		$	(0.23	)
Diluted	7	$	0.69		$	0.43		$	0.92		$	(0.23	)

See accompanying notes to the unaudited condensed interim consolidated financial statements

Greenfire Resources Ltd.

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Greenfire Resources Ltd.

Condensed Interim Consolidated Statements of Changes in Shareholders’ Equity (unaudited)

Six months ended June 30
($CAD thousands)	note	2025			2024
Share capital
Balance, beginning of period		$	164,402		$	158,515
Issuance of shares on exercise of share units	7,10		2,443			2,586
Balance, end of period			166,845			161,101
Contributed surplus
Balance, beginning of period			8,921			9,788
Stock-based compensation			1,650			3,420
Issuance of shares on exercise of share units	7,10		(3,424	)		(3,821	)
Balance, end of period			7,147			9,387
Retained earnings
Balance, beginning of period			648,108			526,697
Net income (loss) and comprehensive income (loss)			64,893			(16,067	)
Balance, end of period			713,001			510,630
Total shareholders’ equity		$	886,993		$	681,118

See accompanying notes to the unaudited condensed interim consolidated financial statements

Greenfire Resources Ltd.

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Greenfire Resources Ltd.

Condensed Interim Consolidated Statements of Cash Flows (unaudited)

		Three months ended June 30						Six months ended June 30
($CAD thousands)	note	2025			2024			2025			2024
Operating activities
Net income (loss)		$	48,730		$	30,848		$	64,893		$	(16,067	)
Items not affecting cash:
Income tax expense			8,639			-			11,849			-
Unrealized (gain) loss on risk management contracts	11		(25,839	)		(12,839	)		(32,188	)		25,898
Depletion and depreciation	3		20,180			17,287			41,928			35,086
Stock-based compensation	10		398			2,568			1,650			3,420
Accretion	9		2,501			5,148			4,256			7,610
Foreign exchange (gain) loss			(14,914	)		3,512			(15,106	)		11,787
Loss (gain) on revaluation of warrants	6		(5,852	)		683			(13,848	)		7,062
Change in non-cash working capital	12		(16,111	)		37,956			(11,029	)		27,431
Cash provided by operating activities			17,732			85,163			52,405			102,227
Financing activities
Repayment of long-term debt	4		-			-			(7	)		-
Payment of lease liabilities			(118	)		(49	)		(2,048	)		(100	)
Cash used in financing activities			(118	)		(49	)		(2,055	)		(100	)
Investing activities
Property, plant and equipment expenditures	3		(10,840	)		(21,824	)		(37,139	)		(53,744	)
Acquisitions			-			(1,185	)		-			(3,714	)
Change in non-cash working capital (accrued additions to PP&E)	12		(7,111	)		7,117			(8,626	)		3,885
Cash used in investing activities			(17,951	)		(15,892	)		(45,765	)		(53,573	)
Exchange rate impact on cash and cash equivalents held in foreign currency			(1,921	)		521			(2,024	)		1,898
Change in cash and cash equivalents			(2,258	)		69,743			2,561			50,452
Cash and cash equivalents, beginning of period			72,238			90,234			67,419			109,525
Cash and cash equivalents, end of period		$	69,980		$	159,977		$	69,980		$	159,977

See accompanying notes to the unaudited condensed interim consolidated financial statements

Greenfire Resources Ltd.

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Notes to the Condensed Interim Consolidated Financial Statements (unaudited)

1. CORPORATE INFORMATION

Greenfire Resources Ltd. (the “Company” or “Greenfire”) was incorporated under the laws of Alberta on December 9, 2022. These condensed interim consolidated financial statements (the “financial statements”) are comprised of the accounts of Greenfire and its wholly owned subsidiaries. The Company and its subsidiaries are engaged in the exploration, development and operation of oil and gas properties in the Athabasca oil sands region of Alberta. Greenfire’s common shares are publicly traded on the New York Stock Exchange and the Toronto Stock Exchange under the symbol “GFR”. The Company’s corporate head office is located at 1900, 205 5th Avenue SW, Calgary, AB T2P 4B9.

Throughout 2024, certain limited partnerships comprising Waterous Energy Fund and its affiliates (collectively, “WEF”), through a series of transactions acquired a total of 39,300,278 common shares and 2,654,179 common share purchase warrants of Greenfire. The final transaction in this series occurred on December 23, 2024 (the “Change of Control Transaction”), which resulted in WEF holding 56.5% of the Company’s outstanding common shares. At June 30, 2025, approximately 55.9% of the Company’s common shares were owned by WEF.

2. BASIS OF PRESENTATION

Preparation

These financial statements have been prepared in accordance with IAS 34: “Interim Financial Reporting, using the same accounting policies as those set out in Note 3 of the audited annual consolidated financial statements for the year ended December 31, 2024, which were prepared in accordance with IFRS^®Accounting Standards as issued by the International Accounting Standards Board (“IASB”). Certain disclosures, which are normally required to be included in the notes to the audited annual consolidated financial statements, have been condensed or omitted. The financial statements should be read in conjunction with the Company’s audited annual consolidated financial statements and notes thereto for the year ended December 31, 2024.

The Company has adopted all published standards, interpretations or amendments to accounting standards issued by the IASB, that are effective for annual periods beginning on or after January 1, 2025. There was no material impact to the financial statements.

In these financial statements, all amounts are expressed in Canadian dollars (“$CAD”), unless otherwise indicated, which is the Company’s functional currency. These financial statements have been prepared on a historical cost basis, except for certain financial instruments which are measured at their fair value.

These financial statements were approved by Greenfire’s Board of Directors on August 6, 2025.

Standards issued but not effective

IFRS 18 ‘Presentation and Disclosure in Financial Statements’ was issued in April 2024 by IASB and replaces IAS 1 ‘Presentation of Financial Statements’. The standard introduces defined structure to the Statement of Comprehensive Income (Loss) with related specific disclosure requirements. IFRS 18 is effective January 1, 2027 and is required to be adopted retrospectively. Early adoption is permitted. The Company is assessing the impact of IFRS 18 on its consolidated financial statements.

Greenfire Resources Ltd.

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3. PROPERTY, PLANT AND EQUIPMENT (“PP&E”)

($ thousands)	Developed and producing		Right-of-use assets			Corporate assets		Total
Cost
Balance as at December 31, 2024		1,194,384		9,539			618		1,204,541
Additions		39,589		-			350		39,939
Transfers of right-of-use assets		1,545		(1,545	)		-		-
Reassessment of lease liabilities and right-of-use assets		-		(1,740	)		-		(1,740	)
Change in decommissioning liabilities		128		-			-		128
Balance as at June 30, 2025		1,235,646		6,254			968		1,242,868
Accumulated Depletion, Depreciation and Amortization
Balance as at December 31, 2024		243,494		546			442		244,482
Depletion and depreciation ⁽¹⁾		41,611		208			109		41,928
Balance as at June 30, 2025		285,105		754			551		286,410
Net Book Value
Balance at December 31, 2024	$	950,890	$	8,993		$	176	$	960,059
Balance at June 30, 2025	$	950,541	$	5,500		$	417	$	956,458

(1)

As at June 30, 2025 $0.6 million of depletion and depreciation was capitalized to inventory (December 31, 2024- $0.3 million).

4. LONG-TERM DEBT

Senior Secured Notes

The senior secured notes (the “2028 Notes”) bear interest at the fixed rate of 12.00% per annum payable semi-annually, mature on October 1, 2028. The 2028 Notes are secured by a second priority lien on the Company’s assets and are junior to amounts owing to the Senior Credit Facility lenders.

As at ($ thousands)	June 30, 2025			December 31, 2024
Senior secured notes (“2028 Notes”) $US	$	238,964		$	238,969
Foreign exchange rate		1.3643			1.4389
Senior secured notes (“2028 Notes”) $CAD		326,019			343,852
Unamortized discount and issuance costs		(11,314	)		(14,922	)
Total term debt	$	314,705		$	328,930
Current portion of long-term debt		5,064			248,489
Long-term debt	$	309,641		$	80,441

The 2028 Notes are not subject to any financial covenants but are subject to certain exceptions and qualifications. The indenture governing the 2028 Notes (the “2028 Indenture”) contains certain non-financial covenants that limit the Company’s ability to, among other things, incur additional indebtedness, create or permit liens to exist, pay dividends, redeem stock, make certain restricted payments, and sell assets. In addition, the Company is required to maintain financial hedges for a minimum of 50% of the forward twelve calendar month forecasted production⁽¹⁾until the outstanding principal is less than US$100 million, and to limit capital expenditures to US$150⁽²⁾ million annually until the outstanding principal is less than US$150 million. As at June 30, 2025 the Company was compliant with all covenants.

⁽¹⁾	Forecasted production is defined by the 2028 Indenture as the Company’s proved developed producing (“PDP”) forecast in the Company’s most recent reserve report, as determined by a qualified and independent reserves evaluator, as prepared to the Canadian standard using National Instrument 51-101.
⁽²⁾	On March 10, 2025, the Company completed an amendment to the 2028 Note Indenture to increase the annual capital expenditure limitation from CAD$100 million to US$150 million, until the outstanding principal amount of the 2028 Notes is less than US$150 million.

Greenfire Resources Ltd.

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As the result of a Change of Control Transaction (Note 1), Greenfire was required to make an offer to repurchase the 2028 Notes, or a portion thereof. This repurchase offer expired on February 19, 2025, with $7,000 (US$5,000) principal amount tendered for repurchase.

The 2028 Indenture requires the Company to redeem the 2028 Notes at 105% of the principal amount plus accrued and unpaid interest with 75% of its Excess Cash Flow (as defined in the 2028 Indenture) every six-months (the “ECF Sweep”). When consolidated indebtedness⁽³⁾ is less than US$150 million, the ECF Sweep is reduced to 25% of Excess Cash Flow until the principal outstanding on the 2028 Notes is US$100 million. On July 21, 2025, the Company redeemed $1.9 million (US$1.4 million) of the 2028 Notes under the ECF Sweep. The next redemption, if applicable, is due by March 6, 2026.

The Company may make additional redemptions of some or all of the 2028 Notes on or after October 1, 2025, inclusive of a “make whole” premium, as set out in the table below. At any time before October 1, 2025, the Company may redeem up to 40% of the aggregate principal amount of the notes using the net proceeds from certain equity issuances at a redemption price equal to 112% of the principal amount plus accrued and unpaid interest. The following table discloses the redemption amount including the “make whole” premium on redemption of the 2028 Notes:

	2028 Notes
On or after October 1, 2025 to October 1, 2026		106	%
On or after October 1, 2026 to October 1, 2027		103	%
On or after October 1, 2027		100	%

As at June 30, 2025, the carrying value of the Company’s long-term debt was $314.7 million and the fair value was $343.1 million (December 31, 2024 carrying value – $328.9 million, fair value - $371.2 million).

Senior Credit Facility

Greenfire has a reserve-based credit facility (the “Senior Credit Facility”) comprised of an operating facility and a syndicated facility. Total credit available under the Senior Credit Facility is $50.0 million comprised of a $20.0 million operating facility and a $30.0 million syndicated facility.

The Senior Credit Facility is a committed facility available on a revolving basis until May 31, 2026. The Senior Credit Facility may, subject to the lenders’ approval, be extended for a 364-day period. If the revolving period is not extended, the undrawn portion of the facility will be cancelled and any amounts outstanding would be repayable on May 31, 2027. The Senior Credit Facility is subject to a semi-annual borrowing base review, occurring in May and November of each year. The borrowing base is determined based on the lenders’ evaluation of the Company’s hydrocarbon reserves and their commodity price outlook at the time of each borrowing base review.

The Senior Credit Facility is secured by a first priority security interest on substantially all of the assets of the Company and is senior in priority to the 2028 Notes. The Senior Credit Facility contains certain covenants that limit the Company’s ability to, among other things, incur additional indebtedness, create or permit liens to exist, pay dividends, redeem stock, and sell assets. The Senior Credit Facility is not subject to any financial covenants.

⁽³⁾	Consolidated indebtedness under the 2028 Indenture includes amounts outstanding under the 2028 Notes, amounts outstanding under the Senior Credit Facility, and any leases that would be classified as a “capital lease” under IAS^® 17 – Leases (superseded).

Greenfire Resources Ltd.

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Amounts borrowed under the Senior Credit Facility bear interest at a floating rate based on the applicable Canadian prime rate, US base rate, adjusted secured overnight financing rate or adjusted Canadian overnight repo rate average, plus a margin of 1.75% to 6.25% based on Debt to EBITDA ratio. A standby fee on the undrawn portion of the Senior Credit Facility ranges from 0.6875% to 1.5625% based on Debt to EBITDA ratio. As at June 30, 2025 and December 31, 2024, the Company had no amounts drawn under the Senior Credit Facility.

Letter of Credit Facility

Greenfire maintains a separate $55.0 million letter of credit facility (the “EDC Facility”) with a Canadian bank that is supported by a performance security guarantee from Export Development Canada (“EDC”). The EDC Facility is available on a demand basis. As at June 30, 2025, the Company had $54.0 million (December 31, 2024 - $54.0 million) in letters of credit outstanding under the EDC Facility.

5. DECOMMISSIONING LIABILITIES

The Company’s decommissioning liabilities result from net ownership interests in petroleum assets including well sites, gathering systems and processing facilities. In 2024, the Company acquired certain natural gas and heavy oil assets in the Athabasca region of Northern Alberta and recognized $12.5 million of future decommissioning obligations. The Company estimates the total undiscounted escalated amount of cash flows required to settle its decommissioning liabilities to be approximately $341.4 million (December 31, 2024 - $340.8 million). For the period ended June 30, 2025, a credit-adjusted discount rate of 10.5% (December 31, 2024 - 10.5%) and an inflation rate of 2.0% (December 31, 2024 - 2.0%) were used to calculate the decommissioning liabilities. A 1.0% change in the credit-adjusted discount rate would impact the discounted value of the decommissioning liabilities by approximately $3.3 million with a corresponding adjustment to PP&E. The decommissioning liabilities are estimated to be settled in periods up to year 2077, with the majority being incurred between 2047 and 2077.

A reconciliation of the decommissioning liabilities is provided below:

As at ($ thousands)	June 30, 2025		December 31, 2024
Balance, beginning of period	$	17,444	$	8,449
Acquisitions		-		12,483
Liabilities incurred		128		27
Change in estimates		-		(5,801	)
Accretion expense		916		2,286
Balance, end of period	$	18,488	$	17,444

6. WARRANT LIABILITY

The outstanding warrants entitle the holder to purchase one common share of Greenfire, expire on September 19, 2028, and contain a cashless exercise feature, permitting an exercise without the payment of the exercise price by the issuance of a net, lower number of common shares. The warrants are remeasured to their fair value at each reporting period with the change recognized through the statement of comprehensive income (loss). The following table reconciles the warrant liability.

	Six months ended June 30, 2025					Year ended December 31, 2024
($ thousands, unless otherwise noted)	Warrants (’000)		Amount			Warrants (’000)		Amount
Balance, beginning of period		7,527	$	18,304			7,527	$	18,630
Change in fair value		-		(13,848	)		-		(326	)
Balance, end of period		7,527	$	4,456			7,527	$	18,304
Common shares issuable on exercise		7,527		-			7,527		-

Greenfire Resources Ltd.

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The fair value of each warrant was estimated using the Black Scholes Merton model with the following assumptions:

	June 30, 2025			December 31, 2024
Share price $USD	$	4.46		$	7.06
Exercise price $USD	$	11.50		$	11.50
Average risk-free interest rate		4.45	%		4.49	%
Average expected volatility ⁽¹⁾		45	%		45	%
Average expected life (years)		3.25			3.75

(1)

Expected volatility has been based on historical share volatility and that of similar market participants.

A 10% change in the share price would impact warrant liability by $1.7 million with a corresponding adjustment to the statement of comprehensive income (loss).

7. SHARE CAPITAL AND PER SHARE AMOUNTS

Share capital

As at June 30, 2025 the Company’s authorized share capital consists of an unlimited number of common shares without a nominal or par value. The following table summarizes the changes to the Company’s common share capital:

	Six months ended June 30, 2025				Year ended December 31, 2024
($ thousands, unless otherwise noted)	Shares (’000)		Amount		Shares (’000)		Amount
Balance, beginning of period		69,718	$	164,402		68,642	$	158,515
Issued on exercise of share units⁽¹⁾		534		2,443		1,076		5,887
Balance, end of period		70,252	$	166,845		69,718	$	164,402

(1)

Differences in the number of exercised units compared to those disclosed in stock-based compensation (Note 10) and the value recognized in contributed surplus relates to withholding taxes on issuances (Note 12).

Per share amounts

The following table summarizes the Company’s basic and diluted net income (loss) per share:

	Three months ended June 30				Six months ended June 30
(thousands of shares, except per share information)	2025		2024		2025		2024
Weighted average shares outstanding - basic		70,119		69,123		70,538		68,923
Dilutive effect of share units		100		2,996		100		-
Weighted average shares outstanding - diluted		70,219		72,119		70,638		68,923
Basic $ per share	$	0.69	$	0.45	$	0.92	$	(0.23	)
Diluted $ per share	$	0.69	$	0.43	$	0.92	$	(0.23	)

When computing the diluted net income (loss) per share for the six months ended June 30, 2024, the Company excluded the effect of 7.5 million warrants, 2.7 million performance warrants and 1.3 million share units as their effect was anti-dilutive.

Greenfire Resources Ltd.

2025 Q2 Financial Statements | 10

8. REVENUE FROM CONTRACTS WITH CUSTOMERS

The Company’s revenue from contracts with customers consists of diluted and non-diluted bitumen sales.

	Three months ended June 30				Six months ended June 30
($ thousands)	2025		2024		2025		2024
Diluted bitumen sales	$	135,841	$	211,678	$	310,206	$	408,658
Non-diluted bitumen sales		8,701		7,766		17,973		11,776
Oil sales	$	144,542	$	219,444	$	328,179	$	420,434

9. FINANCING AND INTEREST

	Three months ended June 30				Six months ended June 30
($ thousands)	2025		2024		2025		2024
Interest on senior secured notes	$	9,780	$	11,657	$	19,778	$	24,419
Other interest		843		954		1,370		1,186
Total finance and interest expense before accretion		10,623		12,611		21,148		25,605
Amortization of issuance costs and premiums (Note 4)		1,913		4,508		2,912		6,404
Accretion of decommissioning obligations (Note 5)		458		624		916		1,173
Accretion of lease liabilities		130		16		428		33
Accretion		2,501		5,148		4,256		7,610
Financing and interest expense	$	13,124	$	17,759	$	25,404	$	33,215

10. STOCK-BASED COMPENSATION

A summary of the Performance Warrants (“PWs”), Restricted Stock Units (“RSUs”), Performance Share Units (“PSUs”) and Deferred Share Units (“DSUs”), collectively the share units, issued and outstanding is as follows:

(thousands of units or warrants)	PWs			RSUs			PSUs			DSUs		Total
Outstanding January 1, 2024		3,617			-			-			-		3,617
Granted		-			672			919			21		1,612
Exercised⁽¹⁾		(1,080	)		(519	)		-			-		(1,599	)
Forfeited / Expired		(17	)		(17	)		(44	)		-		(78	)
Balance, December 31, 2024		2,520			136			875			21		3,552
Exercisable, December 31, 2024		2,520			-			-			21		2,541

(thousands of units or warrants)	PWs			RSUs			PSUs			DSUs			Total
Outstanding January 1, 2025		2,520			136			875			21			3,552
Granted		-			13			18			-			31
Exercised⁽¹⁾		(970	)		(46	)		-			-			(1,016	)
Forfeited / Expired		(152	)		(3	)		(369	)		-			(524	)
Cancelled		(1,398	)		-			-			(21	)		(1,419	)
Balance, June 30, 2025		-			100			524			-			624
Exercisable, June 30, 2025		-			-			-			-			-

(1)

Differences in exercised awards compared to those disclosed in share capital (Note 7) relate to withholding taxes on share issuances (Note 12).

Greenfire Resources Ltd.

2025 Q2 Financial Statements | 11

11. FINANCIAL INSTRUMENTS AND RISK MANAGEMENT

Fair Value of Financial Instruments

A number of the Company’s accounting policies and disclosures require the determination of fair value for both financial and non-financial assets and liabilities. Fair values have been determined for measurement and/or disclosure purposes based on the following methods. When applicable, further information about the assumptions made in determining the fair values is disclosed in the notes specific to that asset or liability.

The Company classifies the fair value of financial instruments according to the following hierarchies based on the amount of observable inputs used to value the instruments:

●

Level 1: Unadjusted quoted prices for identical assets or liabilities in active markets;

●

Level 2: Quoted prices in markets that are not considered to be active or financial instruments for which all significant inputs are observable, either directly or indirectly for substantially the full term of the asset or liability; and

●

Level 3: Significant unobservable inputs for use when little or no market data exists, requiring a significant degree of judgment.

The carrying values of cash and cash equivalents, accounts receivable and accounts payable and accrued liabilities included on the condensed interim consolidated balance sheets approximates the fair values of the respective assets and liabilities due to the short-term nature of those instruments.

The 2028 Notes are classified as Level 1 in the fair value hierarchy. For purposes of estimating the fair value of this instrument, the Company used the quoted market price of the 2028 Notes. The Company’s risk management contracts and warrant liability are classified as Level 2 in the fair value hierarchy. To estimate the fair value of these instruments, the Company used observable market data and/or other sources utilizing assumptions that market participants would use to determine fair value.

Market Risk

Market risk is the risk that changes in market conditions, such as commodity prices, foreign exchange rates and interest rates, will affect the Company’s cash flow, income, or the value of its financial instruments.

Commodity Price Risk

The Company’s risk management program is designed to reduce the volatility of revenue and cash flow, generate sufficient cash flows to service debt obligations, and fund the Company’s operations. The Company’s risk management liabilities may consist of hedging instruments such as fixed price swaps and option structures, including costless collars on WTI, WCS differentials, condensate differential, natural gas and electricity swaps. The Company does not use financial derivatives for speculative purposes.

Greenfire Resources Ltd.

2025 Q2 Financial Statements | 12

The Company’s obligations under its 2028 Notes (Note 4) include a requirement to maintain a twelve-month forward commodity price risk management program covering at least 50% of the forecasted PDP production over the next twelve months, as set out in the Company’s most recent reserves report, until the outstanding principal is reduced to below US$100 million.

The Company’s commodity price risk management program does not involve margin accounts that require posting of margin with increased volatility in underlying commodity prices. Financial risk management contracts are measured at fair value, with gains and losses on re-measurement included in the consolidated statements of comprehensive income (loss) in the period in which they arise.

The Company’s financial risk management contracts are subject to master netting agreements that create the legal right to settle the instruments on a net basis. The following table summarizes the gross asset and liability positions of the Company’s individual risk management contracts that are offset in the consolidated balance sheets:

($ thousands)	As at June 30, 2025			As at December 31, 2024
Gross amount	$	33,230		$	(1,395	)
Amount offset		(1,290	)		1,147
Risk management contracts – Asset (Liability)	$	31,940		$	(248	)

The following table summarizes the financial commodity risk management gains and losses:

	Three months ended June 30					Six months ended June 30
($ thousands)	2025		2024			2025		2024
Realized gain (loss)	$	9,823	$	(13,798	)	$	8,722	$	(22,595	)
Unrealized gain (loss)		25,839		12,839			32,188		(25,898	)
Gain (loss) on risk management contracts	$	35,662	$	(959	)	$	40,910	$	(48,493	)

As at June 30, 2025, the following financial commodity risk management contracts were in place:

	Instrument	Units	Volume (bbls/d)		Swap Price			Put Price		Call Price
Q3 2025	WTI Fixed Price Swap	C$ / bbl		9,450	$	101.00			-		-
Q3 2025	WCS Differential Swap	US$ / bbl		12,600	$	(10.90	)		-		-
Q4 2025	WTI Fixed Price Swap	C$ / bbl		9,450	$	100.85			-		-
Q4 2025	WCS Differential Swap	US$ / bbl		12,600	$	(13.50	)		-		-
Q1 2026	WTI Fixed Price Swap	C$ / bbl		2,549	$	96.95			-		-
Q1 2026	WTI Costless Collar	C$ / bbl		4,951		-		$	81.89	$	100.16
Q2 2026	WTI Costless Collar	C$ / bbl		5,027		-		$	78.50	$	83.84
Q2 2026	WTI Costless Collar	US$ / bbl		2,473		-		$	57.00	$	65.15

Greenfire Resources Ltd.

2025 Q2 Financial Statements | 13

Subsequent to June 30, 2025, Greenfire entered into the following financial commodity risk management contracts:

Instrument

Units

Volume (bbls/d)

Put Price

Call Price

Q3 2026

WTI Costless Collar

US$ / bbl

7,500

60.00

65.10

A 10% change in prices for the underlying commodities, related to the Company’s risk management contracts, would have a before-tax impact on net income (loss) of $27.8 million for the three and six months ended June 30, 2025. The Company’s commodity risk management contracts are held with two large reputable financial institutions. As a result, the Company concluded that credit risk associated with its commodity risk management contracts is low.

Foreign Currency Risk Management

The Company is exposed to foreign currency risk on the principal and interest components of its US dollar denominated 2028 Notes (Note 4) and US Dollar denominated cash, cash equivalents, accounts receivables, accounts payables, and accrued liabilities and risk management contracts. As at June 30, 2025, Greenfire’s net foreign exchange risk exposure was a US$205.0 million liability (December 31, 2024 – US$218.4 million liability), and a 10% change in the foreign exchange rate would result in a $28.0 million change in the foreign exchange gain or loss (December 31, 2024 - $31.4 million).

Interest Rate Risk

Interest rate risk is the risk that future cash flows will fluctuate as a result of changes in market interest rates. The Company is exposed to interest rate risk related to borrowings drawn under the Senior Credit Facility, as the interest charged on the credit facility fluctuates with floating interest rates. Currently no amounts are drawn on the Senior Credit Facility. The 2028 Notes and letters of credit issued are subject to fixed interest rates and are not exposed to changes in interest rates.

Credit Risk

($ thousands)	As at June 30 2025		As at December 31 2024
Trade receivables	$	42,775	$	47,412
Joint interest receivables		17,588		9,005
Accounts receivable	$	60,363	$	56,417

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations and arises principally from the Company’s accounts receivable. The Company is primarily exposed to credit risk from receivables associated with its oil sales. The Company manages its credit risk exposure by transacting with high-quality credit worthy counterparties and monitoring credit worthiness and/or credit ratings on an ongoing basis. Trade receivables from oil sales are generally collected on the 25th day of the month following production. Joint interest receivables are typically collected within one to three months of the invoice being issued. The Company has not previously experienced any material credit losses on the collection of accounts receivable.

At June 30, 2025, and December 31, 2024, the Company was exposed to concentration risk associated with its outstanding trade receivables and joint interest receivables balances. Of the Company’s trade receivables at June 30, 2025, 93% was receivable from a single company (December 31, 2024 - 99% receivable from a single company). At June 30, 2025, 100% of the Company’s joint interest receivables were held by a single company (December 31, 2024 - 100% by a single company). Maximum exposure to credit risk is represented by the carrying amount of accounts receivable on the balance sheet. Subsequent to June 30, 2025, the Company has received $1.0 million from its joint interest partner.

Liquidity Risk

Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they become due. The Company’s objective in managing liquidity risk is to maintain sufficient available reserves to meet its financial obligations at any point in time. The Company expects to achieve this objective through prudent capital spending, an active commodity risk management program and through strategies such as continuously monitoring forecast and actual cash flows from operating, financing and investing activities, and available credit facilities. Management believes that future cash flows generated from these sources will be adequate to settle Greenfire’s financial liabilities.

Greenfire Resources Ltd.

2025 Q2 Financial Statements | 14

The following table details the Company’s contractual maturities of its financial liabilities:

	As at June 30, 2025				As at December 31, 2024
($ thousands)	Less than one year		Greater than one year		Less than one year		Greater than one year
Accounts payable and accrued liabilities	$	52,080	$	-	$	61,804	$	-
Risk management contracts		-		-		248		-
Lease liabilities⁽¹⁾		5,128		4,224		7,669		2,726
Long-term debt⁽²⁾		5,064		320,955		260,252		83,600
Total financial liabilities	$	62,972	$	325,179	$	329,973	$	86,326

(1)

Amounts represent the expected undiscounted cash payments.

(2)

Amounts represent undiscounted principal only and exclude interest and transaction costs.

12. SUPPLEMENTAL CASH FLOW INFORMATION

The following table reconciles the net changes in non-cash working capital and other liabilities from the consolidated balance sheet to the consolidated statement of cash flows:

	Three months ended June 30						Six months ended June 30
($ thousands)	2025			2024			2025			2024
Change in accounts receivable	$	(5,043	)	$	24,341		$	(3,946	)	$	6,464
Change in inventories		(6,006	)		(1,048	)		(3,699	)		343
Change in prepaid expenses and deposits		91			(31	)		(1,305	)		2,674
Change in accounts payable and accrued liabilities		(12,003	)		22,188			(9,724	)		22,925
		(22,961	)		45,450			(18,674	)		32,406
Other items impacting changes in non-cash working capital:
Withholding taxes on share units		(261	)		(455	)		(981	)		(1,235	)
Unrealized foreign exchange gain related to working capital		-			78			-			145
		(23,222	)		45,073			(19,655	)		31,316
Related to operating activities		(16,111	)		37,956			(11,029	)		27,431
Related to investing activities		(7,111	)		7,117			(8,626	)		3,885
Net change in non-cash working capital	$	(23,222	)	$	45,073		$	(19,655	)	$	31,316
Cash interest paid (included in operating activities)	$	(842	)	$	(954	)	$	(21,683	)	$	(26,835	)
Cash interest received (included in operating activities)	$	703		$	1,267		$	1,373		$	2,771

13. RELATED PARTY TRANSACTION

In 2025, Greenfire agreed to reimburse WEF for approximately $1.9 million of legal fees associated with the Change of Control Transaction (see Note 1) including its adoption of a shareholder rights plan and related hearings before the Alberta Securities Commission, in which WEF was successful. The reimbursement was reviewed and approved by the independent members of the Company’s Board of Directors.

Greenfire Resources Ltd.

2025 Q2 Financial Statements | 15

Corporate Information

Directors		Solicitors

Adam Waterous⁽¹⁾⁽⁴⁾		Blake, Cassels & Graydon LLP
Brian Heald⁽²⁾		3500, 855 – 2^nd Street S.W.
Tom Ebbern⁽³⁾		Bankers Hall East Tower
Andrew Kim		Calgary Alberta, Canada
David Roosth		T2P 4J8
Henry Hager
David Knight-Legg

(1)	Executive Chair of the Board of Directors	Scale LLP
(2)	Chair of the Audit Committee	86147, 750 – North Saint Paul Street Ste 250
(3)	Chair of the Reserves Committee and Lead Director	Dallas, Texas, United States
(4)	Chair of the Compensation and Governance Committee	75201

Officers		Bankers

Colin Germaniuk, P.Eng		Bank of Montreal
President		595 – 8^th Avenue SW
		Calgary, Alberta, Canada
Tony Kraljic, CA		T2P 1G1
Chief Financial Officer

Jonathan Kanderka, P.Eng		Auditor
Chief Operating Officer
		Deloitte LLP
		700, 850 – 2^nd Street S.W.
Charles R. Kraus		Calgary, Alberta, Canada
Corporate Secretary		T2P 0R8

Head Office		Reserve Engineers

1900, 205 – 5^th Avenue SW		McDaniel & Associates Consultants Ltd.
Calgary, Alberta, Canada		2200, 255 – 5^th Avenue S.W.
T2P 2V7		Calgary, Alberta, Canada
www.greenfireres.com		T2P 3G6
NYSE: GFR
TSX: GFR

Greenfire Resources Ltd.

2025 Q2 Financial Statements | 16

Greenfire Resources Ltd. 6-K