10 Best Performing Energy Stocks in 2024

08. Greenfire Resources Ltd. (NYSE:GFR)

Year to date Share Price Gain: 57.61%

Number of Hedge Fund Holders: 12

Greenfire Resources Ltd. (NYSE:GFR) stands out as one of the best-performing energy stocks in 2024, boasting a year-to-date share price gain of 57.61%. The company’s strategic focus on oil and gas development in the Athabasca oil sands region of Alberta, combined with its innovative use of Steam-Assisted Gravity Drainage (SAGD) technology, sets it apart as a leader in the sector. Greenfire Resources Ltd. (NYSE:GFR) assets, including a 75% working interest in the Hangingstone Expansion Facility and a 100% working interest in the Hangingstone Demonstration Facility, further highlight its strong production capabilities.

Despite facing operational delays due to wildfires and equipment failures, Greenfire Resources Ltd. (NYSE:GFR) fundamentals remain strong. In Q2 2024, the company delivered consolidated bitumen production of 18,993 barrels per day, a slight increase from 18,036 barrels per day in Q2 2023. More impressively, Greenfire generated adjusted EBITDA of CAD $58.4 million, marking a 70% year-over-year increase, and adjusted funds flow surged by 100% to CAD $47.2 million.

These strong financial results were achieved even with disruptions, highlighting Greenfire’s resilience and effective operational management. The company’s disciplined approach to capital allocation was evident as it invested CAD $23.0 million into property, plant, and equipment, with 90% allocated to drilling. This investment should support further production growth, especially as Greenfire Resources Ltd. (NYSE:GFR) expects production at the Hangingstone Facilities to increase by 13-19% in 2024.

Greenfire Resources Ltd. (NYSE:GFR) is also committed to reducing its debt. The company redeemed US$61 million of its US$300 million Senior Secured Notes due in 2028, emphasizing its focus on maintaining financial stability. With $1.8 billion in corporate tax pools, low pre-payout royalty rates, and no overriding royalty obligations, Greenfire Resources Ltd. (NYSE:GFR) is well-positioned for future free cash flow generation, particularly as the Trans Mountain Expansion pipeline is expected to enhance crude oil transportation and improve pricing for the company’s products. In summary, Greenfire Resources Ltd. (NYSE:GFR) strong financial metrics, operational resilience, and strategic focus on debt reduction and production growth make it a top-performing energy stock in 2024, with substantial upside potential moving forward.