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Highlights

  • In Q2 2024, SDE reported oil and gas sales of CAD 73.4mn, marking a drop of 56.5% compared to CAD 168.8 million in pcp
  • Management anticipates an Adjusted Funds Flow of CAD 176 million and a Free Funds Flow of CAD 26 million for FY24

Spartan Delta Corp. (TSX: SDE) is a petroleum and natural gas company. The company primarily operates in the Peace River Arch and Central Alberta regions.

In Q2 2024, the company reported oil and gas sales of CAD 73.4 million. This represents a drop of 56.5% compared to CAD 168.8 million in Q2 2023. Total expenses also decreased to CAD 62.2 million, down 36.9% from CAD 98.6 million a year earlier. Earnings before income taxes fell sharply to CAD 16.9 million, compared to CAD 593.4 million in the same quarter last year, despite some support from other income. As a result, net earnings were CAD 14.3 million, a 96.9% decrease from CAD 457.0 million in Q2 2023.

Recent Business Update

The company aims to significantly increase oil and liquids production while improving well costs and productivity. Despite facing challenging commodity prices, the company generated positive Free Funds Flow in the second quarter of 2024. It exited the quarter with a Net Debt of CAD 132.4 million.

Company Outlook

The company targets an average production of 39,500 to 41,500 barrels of oil equivalent per day (BOE/d) for FY 2024.Management anticipates an Adjusted Funds Flow of CAD 176 million and a Free Funds Flow of CAD 26 million for the year.

Top 10 Shareholders:

The top 10 shareholders of SDE account for about 37.28% of total outstanding shares. GMT Capital Corp. holds the largest stake at approximately 22.27%. Kalatzis (Fotis) follows with a stake of around 4.49%.

Price Information

The stock price of SDE has declined by approximately 6.30% over the past month and about 14.71% over the last three months.

Note 1: Past performance is not a reliable indicator of future performance.
Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is October 29, 2024. The reference data in this report has been partly sourced from EODHD/Others.