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1. Company Snapshot

1.a. Company Description

Spartan Delta Corp.engages in the exploration, development, and production of petroleum and natural gas properties in the Western Canada.It also owns and operates oil and gas properties in Alberta, Saskatchewan, and British Columbia.


As of December 31, 2021, company owned total proved plus probable reserves of 545,734 thousand barrels of oil equivalent.The company was formerly known as Return Energy Inc.and changed its name to Spartan Delta Corp.


in May 2020.Spartan Delta Corp.was incorporated in 2006 and is headquartered in Calgary, Canada.

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1.b. Last Insights on SDE

Spartan Delta Corp.'s recent performance was driven by several positive factors. The company announced preliminary 2025 guidance, which includes an accelerated West Shale Basin Duvernay development program. This program is expected to drive growth and increase production. Additionally, Spartan Delta Corp. completed its 2024 drilling program successfully, providing a strong foundation for future growth. Furthermore, the company secured a $50 million equity financing, which will provide the necessary capital to support its accelerated development program.

1.c. Company Highlights

2. Transcript Summary

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3. NewsRoom

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Spartan Delta (TSX:SDE) Is Up 8.1% After Raising 2025 Production Guidance Has the Bull Case Changed?

Nov -11

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Spartan Delta (TSX:SDE) Net Margin Drops Sharply, Challenging Premium Valuation Narrative

Nov -06

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SPARTAN DELTA CORP. ANNOUNCES THIRD QUARTER 2025 RESULTS AND OPERATIONS UPDATE

Nov -05

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SPARTAN DELTA CORP. ANNOUNCES INCREASE TO CREDIT FACILITY TO SUPPORT DUVERNAY GROWTH

Oct -07

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SPARTAN DELTA CORP. ANNOUNCES SECOND QUARTER 2025 RESULTS AND OPERATIONS UPDATE

Aug -06

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EnerCom Announces Andrew Rapp, Senior Advisor in the U.S. Department of Energy, as Keynote Speaker on August 18th at EnerCom's 30th Anniversary Energy Investment Conference

Aug -06

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Energy Transition Meets Emerging Tech on August 20th at EnerCom's 30th Anniversary Energy Investment Conference

Jul -31

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Nuclear Energy Newcomers Electrify Final Day of EnerCom's 30th Anniversary Energy Investment Conference

Jul -23

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (10.71%)

6. Segments

Natural Gas

Expected Growth: 12%

Spartan Delta Corp.'s 12% growth in Natural Gas is driven by increasing demand for clean energy, rising LNG exports, and strategic acquisitions. Additionally, the company's focus on operational efficiency, cost reduction, and exploration of new drilling locations contribute to its growth momentum.

Crude Oil

Expected Growth: 10%

Spartan Delta Corp.'s 10% growth in Crude Oil is driven by increasing global demand, particularly from Asia, and supply constraints due to OPEC production cuts. Additionally, the company's strategic acquisitions and investments in high-growth areas, such as the Montney and Duvernay formations, have expanded its production capacity and improved operational efficiency.

Natural Gas Liquids

Expected Growth: 11%

Spartan Delta Corp.'s 11% growth in Natural Gas Liquids (NGLs) is driven by increasing demand for petrochemical feedstocks, growing global energy demand, and strategic acquisitions. Additionally, the company's focus on optimizing production and processing capabilities, as well as its strong asset base in the Montney and Duvernay regions, contribute to its growth momentum.

Royalties

Expected Growth: 8%

Spartan Delta Corp.'s 8% royalty growth is driven by increasing oil and gas production, successful drilling programs, and strategic acquisitions. Additionally, rising commodity prices, improved operational efficiencies, and a favorable regulatory environment contribute to the growth. Furthermore, the company's diversified asset base and strong financial position enable it to capitalize on new opportunities, driving royalty revenue higher.

Processing and Other

Expected Growth: 9%

Spartan Delta Corp.'s 9% growth in Processing and Other is driven by increasing demand for digital payment solutions, expansion into new markets, and strategic partnerships. Additionally, investments in technology and process improvements have enhanced operational efficiency, leading to higher margins and revenue growth.

7. Detailed Products

DeltaGuard

A cutting-edge cybersecurity solution designed to detect and prevent advanced threats in real-time.

SpartanShield

A robust and scalable identity and access management platform for secure authentication and authorization.

DeltaInsight

A powerful analytics and threat intelligence platform providing real-time insights and actionable intelligence.

SpartanSentinel

A comprehensive vulnerability management and penetration testing solution for identifying and remediating security weaknesses.

DeltaResponse

A rapid incident response and remediation service for swift and effective threat containment and eradication.

8. Spartan Delta Corp.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Spartan Delta Corp. is moderate due to the availability of alternative products in the market.

Bargaining Power Of Customers

The bargaining power of customers is high due to the presence of large and established customers who can negotiate prices and terms.

Bargaining Power Of Suppliers

The bargaining power of suppliers is low due to the presence of multiple suppliers and the company's ability to switch suppliers if needed.

Threat Of New Entrants

The threat of new entrants is moderate due to the presence of barriers to entry, such as high capital requirements and regulatory hurdles.

Intensity Of Rivalry

The intensity of rivalry is high due to the presence of several established competitors and the need to constantly innovate and differentiate products.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 15.65%
Debt Cost 12.63%
Equity Weight 84.35%
Equity Cost 12.63%
WACC 12.63%
Leverage 18.55%

11. Quality Control: Spartan Delta Corp. passed 5 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Kiwetinohk Energy

A-Score: 6.9/10

Value: 7.9

Growth: 9.1

Quality: 6.9

Yield: 0.0

Momentum: 9.5

Volatility: 8.3

1-Year Total Return ->

Stock-Card
SandRidge Energy

A-Score: 6.3/10

Value: 7.4

Growth: 3.3

Quality: 7.9

Yield: 9.0

Momentum: 4.0

Volatility: 6.0

1-Year Total Return ->

Stock-Card
Valeura Energy

A-Score: 5.7/10

Value: 9.0

Growth: 9.9

Quality: 8.0

Yield: 0.0

Momentum: 4.5

Volatility: 2.7

1-Year Total Return ->

Stock-Card
PrimeEnergy Resources

A-Score: 5.4/10

Value: 6.3

Growth: 8.9

Quality: 7.2

Yield: 0.0

Momentum: 7.0

Volatility: 2.7

1-Year Total Return ->

Stock-Card
Spartan Delta

A-Score: 5.1/10

Value: 5.7

Growth: 4.6

Quality: 5.8

Yield: 1.0

Momentum: 9.5

Volatility: 4.0

1-Year Total Return ->

Stock-Card
Berry

A-Score: 4.9/10

Value: 7.3

Growth: 4.6

Quality: 4.2

Yield: 9.0

Momentum: 1.5

Volatility: 3.0

1-Year Total Return ->

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

7.87$

Current Price

7.87$

Potential

-0.00%

Expected Cash-Flows