Spartan Delta (SDE) Q4 2024 earnings summary

Executive summary

• Revenue for 2024 was CA$301.6M, down from CA$652.8M in 2023, reflecting asset sales and lower commodity prices.

• Net income for 2024 was CA$34.3M, a significant decrease from CA$663.1M in 2023, primarily due to the prior year's large asset sale and related gains.

• Major asset sale and spin-out transactions in 2023 resulted in a $1.7B cash inflow and distribution of shares in a new entity to shareholders.

• In 2024, the company completed the Willesden Green North acquisition for CA$48.6M, expanding its Duvernay asset base.

• A public equity offering in January 2025 raised CA$97.8M to fund accelerated development in the Duvernay.

Financial highlights

• Oil and gas sales, net of royalties, were CA$261.6M in 2024, down from CA$583.2M in 2023.

• Operating income from the Willesden Green North acquisition contributed CA$10.7M from May to December 2024.

• Adjusted funds flow for Q4 2024 annualized to CA$201.9M; net debt at year-end was CA$148.1M, or 0.7x annualized adjusted funds flow.

• Total assets at year-end 2024 were CA$933.1M, with shareholders' equity of CA$471.4M.

• Cash provided by operating activities was CA$174.1M in 2024, down from CA$475.7M in 2023.

Outlook and guidance

• 2025 capital expenditures are expected to be funded by operating cash flow, proceeds from the recent equity offering, and available credit.

• The company is well positioned to execute its growth strategy, with sufficient liquidity for the next 12 months.