Spartan Delta (SDE) Q1 2025 earnings summary

Executive summary

• Achieved production of 38,328 BOE/d (36% liquids) in Q1 2025, with a 196% year-over-year increase in crude oil output and 9% sequential growth from Q4 2024.

• Oil and gas sales reached $91.2 million, with Adjusted Funds Flow of $45.6 million ($0.23 per share, diluted).

• Completed an upsized equity financing for gross proceeds of $97.8 million, enhancing liquidity for Duvernay development and general purposes.

• Executed a $72.8 million capital program, focusing 70% on drilling, completions, and tie-ins.

Financial highlights

• Oil and gas sales increased 8% year-over-year to $91.2 million.

• Net loss of $5.2 million, compared to net income of $11.2 million in Q1 2024.

• Adjusted Funds Flow was $45.6 million, nearly flat year-over-year.

• Capital expenditures before A&D rose 62% to $72.8 million.

• Net Debt reduced 12% year-over-year to $81.9 million, with a Net Debt to Annualized Adjusted Funds Flow ratio of 0.4x.

Outlook and guidance

• Hedging program covers 45% of oil/condensate at $99.88/bbl and 50% of natural gas at $2.20/GJ for the remainder of 2025.

• Focus remains on cost control, operational discipline, and capital flexibility between Deep Basin and Duvernay assets.

• Management expects continued volatility in commodity prices due to tariffs, OPEC+ actions, and economic uncertainty.