Spartan Delta (SDE) Q2 2024 earnings summary

Executive summary

• Net income for Q2 2024 was $14.4 million, down from $457.1 million in Q2 2023, reflecting the absence of major asset sales and spin-outs that occurred in 2023.

• Revenue for Q2 2024 was $73.5 million, a significant decrease from $168.8 million in Q2 2023, primarily due to asset dispositions.

• The company completed the Willesden Green North Acquisition in May 2024, adding Duvernay assets for $49.8 million.

• As of June 30, 2024, the company has no subsidiaries and is focused on exploration and production in western Canada.

Financial highlights

• Oil and gas sales, net of royalties, were $63.3 million in Q2 2024, down from $153.9 million in Q2 2023.

• Operating income from the WGN Acquisition contributed $3.2 million from May 1 to June 30, 2024.

• Cash provided by operating activities was $44.7 million in Q2 2024, compared to $146.5 million in Q2 2023.

• Net income per share (basic and diluted) was $0.09 in Q2 2024, compared to $2.65 and $2.64, respectively, in Q2 2023.

• Adjusted Funds Flow for Q2 2024 was $37.2 million, annualized to $148.7 million.

Outlook and guidance

• Sufficient liquidity for the next 12 months is expected, supported by $151.4 million in cash and restricted cash, operating cash flow, and undrawn credit facility.

• Exploration and development capital expenditures for 2024 are expected to be funded by operating cash flow and may be supplemented by bank debt.

• The company is well positioned to execute its short- and long-term growth strategy.