Spartan Delta (SDE) Q3 2024 earnings summary

Executive summary

• Revenue for the nine months ended September 30, 2024 was CA$218.2 million, down from CA$566.9 million year-over-year, reflecting the impact of major asset sales in 2023.

• Net income for the nine months ended September 30, 2024 was CA$29.1 million, compared to CA$552.5 million in the prior year, which included significant one-time gains from asset sales.

• The company completed a major acquisition in May 2024, adding Duvernay assets for CA$50 million, and continued its Duvernay growth strategy with additional land purchases.

• The company maintains sufficient liquidity, with CA$151.2 million in cash and restricted cash and access to undrawn credit facilities.

Financial highlights

• Oil and gas sales, net of royalties, were CA$188.5 million for the nine months ended September 30, 2024, down from CA$507.9 million year-over-year.

• Net income per share (basic and diluted) for the nine months ended September 30, 2024 was CA$0.17, compared to CA$3.21 and CA$3.19, respectively, in the prior year.

• Adjusted Funds Flow for Q3 2024 was CA$31.3 million, annualized to CA$125.2 million.

• Net Debt as of September 30, 2024 was CA$159.2 million, up from CA$75.3 million at year-end 2023, primarily due to acquisitions.

• Gain on derivative financial instruments for the nine months ended September 30, 2024 was CA$20.0 million.

Outlook and guidance

• The company expects to fund 2024 exploration and development capital expenditures through operating cash flow, supplemented by bank debt as needed.

• Liquidity is expected to remain strong over the next 12 months, with current cash, operating cash flow, and undrawn credit lines sufficient to meet obligations.

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