Greenfire Resources Ltd

Greenfire Resources is one of the Fund's holdings in the Energy sector, specifically as a Canadian oil producer. The Fund's Energy holdings, including Greenfire Resources, were significant contributors to performance in the first half of 2026, benefiting from a surge in oil prices due to geopolitical tensions. However, the Fund's Energy holdings also faced declines in Q2 as oil prices fell. Despite these fluctuations, the Fund views its oil producers as well-positioned to benefit from disruptions in Middle Eastern supply.

We have partnered with Waterous again to help execute a similar strategy that was used to build Strathcona. Since late 2024, we have invested approximately $430 million, allowing Waterous to acquire a controlling stake in Greenfire, a low decline oil producer in the Athabasca region of Alberta, currently producing 16,000 barrels per day. Waterous has plans to organically double Greenfire’s production over the next five years. The cost base to acquire its controlling position is Cdn$8.10 per share relative to Greenfire’s share price of Cdn$6.55 per share on December 31, 2025.

Greenfire Resources has directly benefited from the recent disruptions in global energy supply chains. Our long-standing position in Greenfire reflects our belief in its business quality and price, independent of macroeconomic forecasting. The current energy backdrop, with global crude prices significantly higher than earlier this year, supports our view that Greenfire is well-positioned to capitalize on these market dynamics. We see the opportunity set as particularly attractive, reinforcing our commitment to this holding.

Greenfire Resources Ltd. (GFR) presents an attractive investment opportunity following a significant recapitalization and operational reset under new management. The company, which operates in the Athabasca oil sands, has a repaired balance sheet and is poised for organic growth in production. The new ownership group, led by Adam Waterous, has a proven track record in the sector and aims to consolidate nearby assets. GFR's stock is trading at a substantial discount to NAV and peers, making it a compelling buy for long-term value creation as it builds its productive asset base and earnings power.