Strait of Hormuz Risks Send Oil and Gas Stocks into Focus

The Strait of Hormuz has become a focal point for geopolitical risk once again, as tensions between the US and Iran rise. This uncertainty affects global oil flows and prices, causing investors to reassess their views on large oil and gas producers with significant exposure to crude markets.

Greenfire Resources (GFR), a Calgary-based producer focused on developing and operating oil sands assets in Alberta, is one such company. It explores for and extracts bitumen that is processed into crude oil for the broader energy market.

The company has put in place a significant WTI hedging program at about CA$101 a barrel for 2025, providing some price certainty even if volatility persists. However, this comes with rising losses, reliance on external borrowing, and recent shareholder dilution through a rights offering.