Spartan Delta (SDE) Q1 2025 earnings summary

Executive summary

• Reported a net loss of $5.2 million for Q1 2025, compared to net income of $11.2 million in Q1 2024, driven by higher derivative losses and increased expenses.

• Revenue from oil and gas sales, net of royalties, rose to $78.2 million from $72.6 million year-over-year.

• Completed a $97.8 million equity offering in January 2025, using proceeds to repay debt and fund development.

• Maintained strong liquidity with $151.3 million in cash and restricted cash and access to undrawn credit facilities.

Financial highlights

• Oil and gas sales before royalties increased to $91.2 million from $84.1 million year-over-year.

• Net loss per share was $(0.03) basic and diluted, versus $0.06 in Q1 2024.

• Operating cash flow was $56.3 million, up from $48.2 million year-over-year.

• Adjusted Funds Flow for the quarter was $45.6 million, annualized to $182.3 million.

• Net debt decreased to $81.9 million from $148.1 million at year-end 2024.

Outlook and guidance

• Sufficient liquidity for the next 12 months, with capital expenditures for 2025 expected to be funded by operating cash flow and available credit.

• Exploration and development capital expenditures for Q1 2025 totaled $72.8 million.

• Focus remains on Duvernay development and maintaining a flexible capital structure.