Spartan Delta (SDE) AI Stock Analysis

• Market Cap: $615.58M
• Dividend Yield: N/A
• Average Volume (3M): 432.19K
• Price to Earnings (P/E): 15.6
• Beta (1Y): 1.57
• Revenue Growth: -54.93%
• EPS Growth: -94.86%
• Country: CA
• Employees: 121
• Sector: Energy
• Sector Strength: 72
• Industry: Oil & Gas Exploration & Production
• EPS (TTM): 0.20
• Shares Outstanding: 199,216,690
• 10 Day Avg. Volume: 226,080
• 30 Day Avg. Volume: 432,195
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 1.77
• Price to Cash Flow (P/CF): 3.10
• P/FCF Ratio: 16.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: C$5.19
• Price Target Upside: 67.87% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

The overall score reflects Spartan Delta's challenges with declining revenues and increased leverage, balanced by strong operational efficiency and a reasonable valuation. Technical indicators suggest bearish momentum, while strategic expansions and equity offerings present potential for future growth.

Spartan Delta Business Overview & Revenue Model

Company Description

Spartan Delta Corp. (SDE) is a publicly traded energy company primarily engaged in the exploration, development, and production of oil and natural gas assets. The company operates within the energy sector, focusing its operations in the prolific oil and gas regions of Western Canada. Spartan Delta's core activities include acquiring and developing high-quality, long-life oil and gas reserves, with an emphasis on generating sustainable growth and delivering value to its shareholders.

How the Company Makes Money

Spartan Delta makes money through the exploration, extraction, and sale of oil and natural gas. The company's revenue model is centered around its ability to efficiently develop its reserves and produce hydrocarbons, which are then sold in the commodities markets. Key revenue streams include the sale of crude oil, natural gas, and natural gas liquids. Spartan Delta's earnings are influenced by factors such as commodity prices, production volumes, and operational efficiencies. The company may also engage in strategic partnerships or joint ventures to enhance its asset base and optimize its production capabilities.

Spartan Delta Financial Statement Overview

Summary

Spartan Delta's financial performance reflects declining revenues and profitability, with increasing leverage and reduced cash flow generation. Despite challenges with decreasing margins and increased financial risk, operational efficiency remains strong as indicated by the EBITDA margin and cash conversion.

Income Statement

Spartan Delta's revenue has shown significant volatility with a decline to $307.26M in 2024 from a peak of $1.48B in 2022. The gross profit margin dropped from 74.85% in 2022 to 51.58% in 2024, indicating reduced profitability. The net profit margin also decreased from 46.15% in 2022 to 11.16% in 2024. The company experienced negative EBIT in 2024, contrasting with positive EBIT margins in prior years. However, the EBITDA margin remains strong at 53.25% in 2024, suggesting operational efficiency. Overall, the income statement reflects declining revenue and profitability, which poses a risk to financial stability.

Balance Sheet

The company's debt-to-equity ratio increased from 0.13 in 2022 to 0.31 in 2024, indicating higher leverage. Return on equity has decreased significantly from 44.89% in 2022 to 7.27% in 2024, showing reduced efficiency in generating profits from shareholders' equity. The equity ratio decreased from 72.27% in 2022 to 50.51% in 2024, implying a higher reliance on debt financing. The balance sheet reveals increased financial risk due to higher leverage, despite maintaining a substantial equity base.

Cash Flow

Operating cash flow decreased from $795.37M in 2022 to $174.08M in 2024. Free cash flow also declined from $354.75M in 2022 to $12.18M in 2024. The free cash flow to net income ratio remains positive but has decreased from 0.52 in 2022 to 0.36 in 2024, indicating diminished cash generation relative to profits. Despite the decline, the operating cash flow to net income ratio remains strong at 5.08 in 2024, reflecting good cash conversion. The cash flow statement indicates reduced cash generation but strong operational cash flow.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
307.26M	662.36M	1.48B	618.84M	99.71M
	Gross Profit
158.47M	317.78M	1.10B	449.31M	63.70M
	EBIT
0.00	213.62M	775.93M	277.30M	-2.77M
	EBITDA
163.58M	931.48M	953.50M	475.32M	71.89M
	Net Income Common Stockholders
34.28M	663.11M	681.09M	334.22M	47.66M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
924.00K	406.00K	124.40M	1.25M	2.69M
	Total Assets
933.14M	819.52M	2.10B	1.74B	331.43M
	Total Debt
146.75M	79.71M	190.68M	442.36M	49.77M
	Net Debt
145.82M	79.30M	66.28M	441.12M	47.08M
	Total Liabilities
461.72M	389.81M	582.65M	855.76M	193.89M
	Stockholders Equity
471.43M	429.72M	1.52B	886.65M	137.54M
Cash Flow		Free Cash Flow
12.18M	180.62M	354.75M	-333.18M	-93.82M
	Operating Cash Flow
174.08M	475.67M	795.37M	279.77M	32.21M
	Investing Cash Flow
-240.53M	1.32B	-442.30M	-925.71M	-113.10M
	Financing Cash Flow
66.95M	-1.92B	-230.14M	644.46M	58.92M

Spartan Delta Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 3.09
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:SDE, the sentiment is Negative. The current price of 3.09 is below the 20-day moving average (MA) of 3.22, below the 50-day MA of 3.43, and below the 200-day MA of 3.65, indicating a bearish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 55.86 is Neutral, neither overbought nor oversold. The STOCH value of 59.25 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:SDE.

Spartan Delta Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TOU	78 Outperform	C$25.56B	19.29	8.55%	2.23%	-8.29%	-30.52%
PEY	73 Outperform	C$3.54B	12.40	10.37%	7.43%	-9.52%	-11.68%
ARX	71 Outperform	C$16.58B	14.87	14.67%	2.59%	-9.83%	-27.76%
CVE	67 Neutral	$33.12B	10.82	10.88%	4.02%	3.97%	-22.22%
BIR	62 Neutral	$1.85B	32.71	2.51%	5.10%	-26.02%	464.95%
SDE	60 Neutral	$615.58M	15.62	7.68%	―	-54.93%	-94.86%
Sector *	58 Neutral	$9.12B	5.24	-7.59%	7.51%	0.53%	-65.25%

Spartan Delta Corporate Events

Spartan Delta Reports Strong 2024 Results, Eyes Duvernay Expansion

Spartan Delta Corp. announced its 2024 year-end financial and operational results, reporting a production of 38,166 BOE/d and oil and gas sales of $301.6 million. Despite a challenging natural gas price environment, Spartan successfully executed its corporate strategy by expanding its presence in the Duvernay region and shifting its production focus towards oil and condensate. The company achieved a significant milestone with initial Duvernay production and anticipates substantial growth in 2025, targeting 25,000 BOE/d in Duvernay production. Spartan’s performance highlights its strategic pivot towards liquids, with considerable increases in crude oil and condensate production.

Spartan Delta Closes Upsized Equity Offering and Updates 2025 Guidance

Spartan Delta Corp. has successfully closed its upsized equity offering, raising approximately $97.8 million to accelerate its development program in the Duvernay region, aiming for substantial production growth. The company has also updated its 2025 guidance, planning an increased capital budget to enhance drilling and production activities, particularly in the Duvernay and Deep Basin, with a forecasted 5% annualized production increase and a 75% rise in crude oil and condensate output compared to 2024.

Spartan Delta Corp. Launches $85 Million Share Offering

Spartan Delta Corp. has filed a final short form prospectus for a bought-deal prospectus offering of common shares, aiming to raise approximately $85 million in Canada, excluding Québec. This strategic financial move is expected to support the company’s ongoing efforts in optimizing and expanding its operations in the oil and gas sector, enhancing its industry positioning and potentially benefiting stakeholders through increased operational synergy and asset development.

Spartan Delta Corp. Upsizes Equity Offering Amid Strong Demand

Spartan Delta Corp. has announced an increase in its equity offering from $50 million to $85 million due to high demand, with National Bank Financial Inc. leading the underwriting. The offering will involve the sale of 22,252,000 common shares at $3.82 each, with an option for underwriters to purchase an additional 15% of the shares. The completion of this offering, subject to regulatory approvals, is expected by the end of January 2025. This move indicates strong market interest and positions Spartan Delta to enhance its financial standing and pursue further growth in its core areas of operation.

Spartan Delta Corp Unveils 2025 Growth Plans and Equity Offering

Spartan Delta Corp has announced its preliminary guidance for 2025, highlighting a substantial increase in oil and liquids production driven by an accelerated development program in the Duvernay region and a $50 million equity offering. The company plans to allocate significant capital towards drilling and expanding its water infrastructure, targeting a 180% growth in Duvernay production and a 5% overall production increase. With a capital budget of $300 to $325 million, Spartan aims to produce approximately 40,000 BOE/d and expects a 37% rise in Adjusted Funds Flow in 2025, reflecting a strategic focus on maximizing output and adapting to market conditions.

Spartan Delta Corp. Exceeds Production Expectations with Successful Drilling in Duvernay

Spartan Delta Corp. announced its operations update, highlighting the success of its 2024 drilling program which resulted in higher-than-expected oil and liquids production, particularly in the Duvernay region. The company has increased its crude oil and condensate production by 72% compared to the previous year. Initial production results from recent wells have exceeded internal expectations, positioning Spartan as a significant player in the liquid-rich oil sector and potentially offering substantial returns for shareholders.