Spartan Delta (SDE) Q2 2024 earnings summary

Executive summary

• Achieved stable production of 38,583 BOE/d (32% liquids) in Q2 2024, maintaining levels despite production impediments and voluntary shut-ins due to low natural gas prices.

• Completed a strategic acquisition in the Duvernay, adding 1,600 BOE/d (70% liquids) and 38,000 net acres for $49.8 million.

• Focused on optimizing Deep Basin operations and accelerating Duvernay development, reallocating capital to higher-return oil and liquids projects.

Financial highlights

• Q2 2024 oil and gas sales were $73.5 million, with Adjusted Funds Flow of $37.2 million ($0.21/share, diluted).

• Net income for Q2 2024 was $14.4 million ($0.09/share, diluted), up from $11.2 million in Q1 2024.

• Free Funds Flow was $14.6 million, and Net Debt stood at $132.4 million at quarter-end.

• Capital expenditures before acquisitions and dispositions totaled $22.6 million in Q2 2024.

Outlook and guidance

• Plans to accelerate Duvernay development in H2 2024 with up to $65 million in capital for drilling and completions.

• Anticipates bringing shut-in Deep Basin production (approx. 2,000 BOE/d) online in Q4 2024 to capture higher natural gas prices.

• Expects continued optimization and growth in oil and liquids production, leveraging technical expertise and infrastructure.