Spartan Delta (SDE) AI Stock Analysis

• Market Cap: C$1.65B
• Dividend Yield: N/A
• Average Volume (3M): 481.56K
• Price to Earnings (P/E): 41.7
• Beta (1Y): 1.25
• Revenue Growth: 17.31%
• EPS Growth: -75.56%
• Country: CA
• Employees: 121
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Exploration & Production
• EPS (TTM): 0.03
• Shares Outstanding: 200,500,000
• 10 Day Avg. Volume: 420,519
• 30 Day Avg. Volume: 481,563
• PEG Ratio: -0.18
• Price to Book (P/B): 1.27
• Price to Sales (P/S): 1.95
• P/FCF Ratio: 49.14
• 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$9.00
• Price Target Upside: 9.68% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 67 Neutral
• Price Target: C$9.00 ▲(9.62% Upside)

Spartan Delta's overall stock score reflects a balanced view of its financial performance, technical indicators, and valuation. The strong balance sheet and positive technical trends are significant strengths. However, liquidity challenges and a high P/E ratio present risks. The absence of earnings call data and corporate events means these factors do not influence the score.

Positive Factors

Balance Sheet Strength

Low leverage and a strong equity base give Spartan Delta durable financial flexibility. A 0.15 debt/equity and ~56% equity ratio reduce refinancing risk, support sustained capex and selective M&A, and help the company withstand commodity cycles without eroding credit access.

Consistent Revenue Growth

Sustained top-line growth (TTM +8.6%) suggests expanding production or better realized pricing. Continued revenue expansion supports reinvestment in high-return projects, helps absorb fixed costs, and underpins longer-term cash generation and reserve development.

Operational Focus and Cost Management

A stated emphasis on operational efficiency and cost management signals management intent to improve capital productivity. Persisting efficiency gains create a structural cost advantage across cycles, lowering break-even production costs and improving long-term margin resilience.

Negative Factors

Negative Free Cash Flow

Material negative free cash flow (-$86.6M TTM) indicates structural liquidity pressure despite revenue gains. Persistent negative FCF forces reliance on external financing for capex or distributions, limits strategic optionality, and increases vulnerability to commodity price shocks.

Eroding Gross Margins

A sharp decline in gross profit margin implies sustained cost inflation or weaker realizations. Lower gross margins reduce cash available for reinvestment and debt reduction, heighten sensitivity to commodity downturns, and require enduring efficiency or pricing improvements to restore profitability.

Earnings Volatility

A steep EPS decline (~-75.6%) points to significant earnings volatility or one-off impacts. This undermines predictability of free cash flow and returns, complicates capital allocation decisions, and may constrain access to capital or increase lender scrutiny over the medium term.

Spartan Delta Business Overview & Revenue Model

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.

How the Company Makes Money

Spartan Delta generates revenue primarily through the sale of oil, natural gas, and natural gas liquids produced from its properties. The company monetizes its production by selling these hydrocarbons to various customers, including refineries and utility companies, often through long-term contracts or spot market transactions. Key revenue streams include crude oil sales, natural gas sales, and the sale of by-products. Additionally, Spartan Delta benefits from strategic partnerships and joint ventures that enhance its operational capabilities and expand its market reach, further contributing to its earnings. The company's focus on cost management and efficiency improvements also plays a significant role in its profitability.

Spartan Delta Financial Statement Overview

Summary

Spartan Delta shows a stable financial position with a strong balance sheet and moderate income statement performance. However, cash flow challenges, particularly negative free cash flow, indicate areas for improvement in financial management.

Income Statement

Spartan Delta's income statement shows a moderate performance with a TTM gross profit margin of 42.58% and a net profit margin of 11.47%. Revenue growth is positive at 8.29% TTM, indicating recovery from previous declines. However, margins have decreased compared to historical highs, suggesting some pressure on profitability.

Balance Sheet

The balance sheet is strong with a low debt-to-equity ratio of 0.15 TTM, indicating conservative leverage. Return on equity is modest at 7.07% TTM, reflecting stable but not exceptional profitability. The equity ratio is healthy, suggesting a solid capital structure.

Cash Flow

Cash flow analysis reveals challenges, with negative free cash flow TTM and a free cash flow to net income ratio of -0.37. Despite strong operating cash flow, the negative free cash flow indicates potential issues in capital expenditure management or investment returns.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	323.29M	307.26M	662.36M	1.48B	618.84M	99.71M
Gross Profit	137.66M	158.47M	317.78M	1.10B	449.31M	63.70M
EBITDA	179.60M	165.87M	939.96M	953.50M	475.32M	71.89M
Net Income	37.08M	34.28M	663.11M	681.09M	334.22M	47.66M
Balance Sheet
Total Assets	1.04B	933.14M	819.52M	2.10B	1.74B	331.43M
Cash, Cash Equivalents and Short-Term Investments	194.00K	924.00K	406.00K	124.40M	1.25M	2.69M
Total Debt	87.78M	146.75M	79.71M	190.68M	442.36M	49.77M
Total Liabilities	437.45M	461.72M	389.81M	582.65M	855.76M	193.89M
Stockholders Equity	600.08M	471.43M	429.72M	1.52B	886.65M	137.54M
Cash Flow
Free Cash Flow	-66.13M	12.18M	180.62M	354.75M	-333.18M	-93.82M
Operating Cash Flow	181.15M	174.08M	475.67M	795.37M	279.77M	32.21M
Investing Cash Flow	-222.59M	-240.53M	1.32B	-442.30M	-925.71M	-113.10M
Financing Cash Flow	41.01M	66.95M	-1.92B	-230.14M	644.46M	58.92M

Spartan Delta Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 8.21
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:SDE, the sentiment is Positive. The current price of 8.21 is above the 20-day moving average (MA) of 7.44, above the 50-day MA of 7.36, and above the 200-day MA of 5.03, indicating a bullish trend. The MACD of 0.22 indicates Negative momentum. The RSI at 69.65 is Neutral, neither overbought nor oversold. The STOCH value of 92.12 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:SDE.

Spartan Delta Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HWX	79 Outperform	C$2.48B	14.26	23.55%	4.58%	6.44%	-6.74%
CJ	72 Outperform	C$1.40B	18.18	8.46%	8.25%	-9.30%	-26.09%
BIR	70 Neutral	C$1.88B	25.48	3.16%	1.59%	-9.76%	374.65%
SDE	67 Neutral	C$1.65B	41.65	7.22%	―	17.31%	-75.56%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
KEL	61 Neutral	C$1.54B	26.40	5.22%	―	9.92%	2.74%
AAV	58 Neutral	C$1.85B	30.55	3.69%	―	27.84%	28.87%

Spartan Delta Corporate Events

Spartan Delta Ramps Up 2026 Spending to Drive Duvernay-Focused Liquids Growth

Spartan Delta Corp. has set a 2026 capital program of $410 million to $470 million aimed at accelerating light oil and condensate growth, with planned average production rising to 50,000–52,000 BOE/d, up 28% from 2025, and crude oil and condensate volumes nearly doubling. The company will direct roughly $350 million to its Duvernay assets, where it plans to bring 24 net wells onstream, target more than 100% annual production growth, and leverage cost reductions and productivity gains to establish the play as a leading emerging oil-weighted growth engine, while allocating about $90 million to the Deep Basin to keep production flat, advance new liquids-rich targets, and support a projected 48% increase in adjusted funds flow in 2026 despite a lower WTI price outlook.

The most recent analyst rating on (TSE:SDE) stock is a Hold with a C$8.00 price target. To see the full list of analyst forecasts on Spartan Delta stock, see the TSE:SDE Stock Forecast page.

Spartan Delta Corp. Reports Strong Q3 2025 Results and Expands Duvernay Operations

Spartan Delta Corp. reported robust operational results for the third quarter of 2025, with significant activity in the Duvernay and Deep Basin regions. The company drilled and completed several wells, achieving production rates that exceeded expectations. Spartan is on track to meet or surpass its 2025 production guidance and has increased its credit capacity to support further growth. The company continues to expand its Duvernay acreage, positioning itself as a leading player in this promising oil-weighted growth area.

The most recent analyst rating on (TSE:SDE) stock is a Hold with a C$7.00 price target. To see the full list of analyst forecasts on Spartan Delta stock, see the TSE:SDE Stock Forecast page.