Spartan Delta (SDE) Q4 2024 earnings summary

Executive summary

• Achieved production of 38,166 BOE/d (33% liquids) in 2024, with a 2% sequential increase in Q4 to 38,537 BOE/d (35% liquids).

• Initiated Duvernay program, reaching 5,000 BOE/d of Duvernay production and establishing over 250,000 net acres in the play.

• Deep Basin asset delivered strong results, including one of the best natural gas wells in the region for 2024.

• Accelerated shift from natural gas to oil and condensate, targeting 25,000 BOE/d in Duvernay for 2025.

Financial highlights

• Oil and gas sales totaled $301.6 million in 2024; Adjusted Funds Flow was $164.6 million ($0.93/share, diluted), 3% above guidance.

• Q4 2024 oil and gas sales were $83.5 million, with Adjusted Funds Flow of $50.5 million ($0.28/share, diluted), up 61% from Q3.

• Free Funds Flow reached $2.7 million for 2024 and $10.7 million in Q4; exited 2024 with Net Debt of $148.1 million, reduced to ~$50.3 million post-equity financing.

• Net income for 2024 was $34.3 million, down 95% year-over-year; Q4 net income was $5.2 million.

• Shareholders’ equity increased 10% to $471.4 million at year-end.

Outlook and guidance

• 2025 program to accelerate Duvernay development, with a target of 25,000 BOE/d production.

• Flexibility to increase capital budget in H2 2025 if natural gas prices improve.

• Focus on cost reduction in Duvernay via multi-well pads and infrastructure optimization.