Why did GFR's EPS remain stagnant in 2021?

Greenfire Resources (GFR) experienced a significant increase in its financial performance in the fourth quarter of 2024, as evidenced by a substantial rise in adjusted funds flow and production levels. However, the company's diluted EPS remained stagnant in 2021 due to several factors: 1. **Revenue Growth**: Although GFR's revenue grew by 29.2% year-over-year to C$208.89 million in Q4 2024, the growth rate in 2021 was not as significant. The company's revenue growth rate, net income growth rate, and diluted EPS growth rate in 2021 are not available. The lack of substantial revenue growth in 2021 could have contributed to the stagnant EPS. 2. **Net Income Increase**: GFR's net income increased to C$54.56 million in Q4 2024, up from the previous quarter's net income of C$33.09 million. However, the net income growth rate in 2021 is not available. If the net income increase in 2021 was not significant, it could have resulted in a stagnant EPS. 3. **Diluted EPS Calculation**: The calculation of diluted EPS may not have been favorable in 2021 due to the company's financial performance. Diluted EPS is calculated by dividing net income by the number of outstanding shares. If the net income increase is not significant, even with a constant number of outstanding shares, the diluted EPS may remain stagnant. 4. **Share Buybacks and Institutional Activity**: Institutional investors, including Diametric Capital LP and Hartree Partners LP, reduced their holdings in GFR in 2024. Share buybacks or reductions in institutional holdings can affect the number of outstanding shares, which in turn impacts diluted EPS. If the company or institutions bought back shares, the EPS would remain the same with fewer shares, or if institutions sold their shares, the EPS would remain the same with more shares. In conclusion, Greenfire Resources' diluted EPS remained stagnant in 2021 due to a lack of significant revenue growth, potentially modest net income increase, and the calculation of diluted EPS. The company's focus on financial performance improvement and operational strategy overhaul may help address these issues in the future.