Canada's Greenfire Resources to buy Connacher for about $900 million

Greenfire Resources

13/07/2026 14:57

July 13 (Reuters) - Greenfire Resources GFR.TO said on Monday that it has agreed to acquire privately held Connacher Oil and Gas Limited for around C$1.27 billion ($900 million) in cash. 
On a combined basis, Greenfire's 2026 production is expected to rise to about 34,000 barrels per day, with combined reserves of 850 million barrels, with a long-term plan to increase production to about 65,000 barrels per day.
Connacher is a thermal oil sands company with a 100% operated interest in the Great Divide oil sands project and is expected to produce about 19,500 barrels per day of oil in 2026, with proved plus probable reserves of roughly 441 million barrels.
The deal will be financed through a mix of debt and equity, including an about C$700 million draw on an upsized C$1.0 billion reserves-based loan and a C$575 million bridge facility.
The bridge facility is expected to be repaid with proceeds from a planned rights offering, for which Waterous Energy Fund has committed a standby backstop of at least C$575 million.
Greenfire said it expects to capture about C$30 million a year in synergies from combined midstream, marketing, operating cost and G&A savings by the end of 2026.
The transaction is expected to close in August 2026.

($1 = 1.4142 Canadian dollars)

 (Reporting by Dharna Bafna in Bengaluru)
 ((Dharna.Bafna@thomsonreuters.com))