Spartan Delta (SDE) AI Stock Analysis

• Market Cap: C$2.16B
• Dividend Yield: N/A
• Average Volume (3M): 481.56K
• Price to Earnings (P/E): 20.5
• Beta (1Y): 1.10
• Revenue Growth: 17.31%
• EPS Growth: -75.56%
• Country: CA
• Employees: 121
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Exploration & Production
• EPS (TTM): 0.18
• Shares Outstanding: 200,514,000
• 10 Day Avg. Volume: 420,519
• 30 Day Avg. Volume: 481,563
• PEG Ratio: 0.27
• Price to Book (P/B): 2.21
• Price to Sales (P/S): 3.88
• P/FCF Ratio: -14.88
• 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$11.39
• Price Target Upside: 6.10% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 7
• EPS Forecast (FY): 0.6
• Revenue Forecast (FY): C$610.00M

• Rating: 62 Neutral
• Price Target: C$10.50 ▼(-2.23% Downside)
• Action: Reiterated Date: 02/26/26
• Date: Action: Reiterated 02/26/26

The score is driven primarily by mixed financial performance—strong operating cash flow and a solid balance sheet are offset by volatile results and notably negative 2025 free cash flow. Technicals are supportive with a strong uptrend, but overbought signals temper that strength. Valuation is a headwind given the elevated P/E and lack of a provided dividend yield.

Positive Factors

Operating cash flow strength

Operating cash flow of roughly $220.4M in 2025 provides durable internal funding for a capital‑intensive E&P business. Strong OCF supports sustaining capex, debt servicing and working capital needs, giving the company flexibility to fund projects and operations over the next several months.

Manageable leverage / solid balance sheet

Moderate debt relative to equity (D/E ~0.31) and a sizable asset/equity base (~$1.17B assets; ~$648.6M equity) offer resilience to commodity swings. This capital base preserves access to funding, supports investment capacity and reduces short‑term default risk over a 2–6 month horizon.

Return to profitability and revenue rebound

A 2025 net profit of about $70M on a modest revenue rebound (+5.4% YoY) signals operational recovery after prior contractions. Restored profitability improves cash‑generation prospects and supports reinvestment, making short‑term strategic execution and project funding more viable.

Negative Factors

Negative free cash flow

Material negative free cash flow (~-$96.5M in 2025) limits financial flexibility and forces reliance on external financing or asset sales to fund growth or shareholder returns. Until FCF stabilizes positive, the company faces sustained pressure on liquidity and capital-allocation choices.

Revenue and earnings volatility

Multi-year swings in revenue and earnings reduce predictability of cash flows and complicate capital planning. For an E&P firm, this volatility heightens execution and investment risk, making it harder to rely on stable cash generation over the next several months.

Margin compression & earnings-quality concerns

Compressed margins versus earlier peak years and an anomalous 2023 profit profile raise questions about earnings quality and sustainability. This reduces confidence in medium-term margin durability and complicates forecasting of true operational performance.

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

Results are mixed: the balance sheet is solid with manageable leverage, and operating cash flow is strong, but revenue/earnings have been volatile and free cash flow turned meaningfully negative in 2025 (about -$96.5M), reducing near-term financial flexibility.

Income Statement

Revenue has been volatile: strong growth in 2021–2022, sharp contraction in 2023–2024, and a modest rebound in 2025 (+5.4% year over year). Profitability is positive in the most recent year (2025 net income of ~$70.0M on ~$370.0M revenue), but margins have clearly compressed versus the exceptionally strong 2021–2022 period. Reported 2023 profitability appears unusually high relative to revenue, which reduces confidence in using that year as a steady-state indicator.

Balance Sheet

Leverage looks manageable for the sector: debt remains moderate relative to equity (2024 debt-to-equity ~0.31) and equity has grown versus earlier years. Total debt increased in 2025 (~$188.3M vs. ~$146.7M in 2024), but the capital base is still sizable (2025 equity ~$648.6M; assets ~$1.17B). Overall balance sheet strength is solid, with the main watch item being the recent step-up in debt.

Cash Flow

Operating cash flow remains a clear strength (2025 operating cash flow ~$220.4M), but free cash flow has been inconsistent and turned meaningfully negative in 2025 (about -$96.5M) after a small positive in 2024. This pattern suggests heavier investment and/or working-capital swings, and it limits near-term financial flexibility despite healthy operating cash generation.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	369.97M	307.26M	662.36M	1.48B	618.84M
Gross Profit	82.27M	158.47M	317.78M	1.10B	449.31M
EBITDA	200.98M	165.87M	939.96M	953.50M	475.32M
Net Income	70.02M	34.28M	663.11M	681.09M	334.22M
Balance Sheet
Total Assets	1.17B	933.14M	819.52M	2.10B	1.74B
Cash, Cash Equivalents and Short-Term Investments	151.12M	924.00K	406.00K	124.40M	1.25M
Total Debt	188.27M	146.75M	79.71M	190.68M	442.36M
Total Liabilities	524.68M	461.72M	389.81M	582.65M	855.76M
Stockholders Equity	648.63M	471.43M	429.72M	1.52B	886.65M
Cash Flow
Free Cash Flow	-96.47M	12.18M	180.62M	354.75M	-333.18M
Operating Cash Flow	220.41M	174.08M	475.67M	795.37M	279.77M
Investing Cash Flow	-343.34M	-240.53M	1.32B	-442.30M	-925.71M
Financing Cash Flow	122.31M	66.95M	-1.92B	-230.14M	644.46M

Spartan Delta Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 10.74
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 Positive. The current price of 10.74 is above the 20-day moving average (MA) of 9.99, above the 50-day MA of 8.78, and above the 200-day MA of 6.08, indicating a bullish trend. The MACD of 0.55 indicates Negative momentum. The RSI at 68.05 is Neutral, neither overbought nor oversold. The STOCH value of 66.45 is Neutral, 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$2.97B	12.45	23.55%	4.58%	6.44%	-6.74%
CJ	72 Outperform	C$1.73B	22.54	8.46%	8.25%	-9.30%	-26.09%
BIR	70 Neutral	C$1.89B	-27.70	―	1.59%	-9.76%	374.65%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
SDE	62 Neutral	C$2.16B	20.51	7.22%	―	17.31%	-75.56%
KEL	61 Neutral	C$1.77B	-46.03	5.22%	―	9.92%	2.74%
AAV	58 Neutral	C$1.78B	-11,076.20	3.69%	―	27.84%	28.87%

Spartan Delta Corporate Events

Spartan Delta Posts Transformational 2025 as Duvernay Liquids Growth Surges

Spartan Delta reported a transformational 2025 as it accelerated its shift into an oil-weighted Duvernay growth strategy while maintaining a conservative balance sheet and improving capital efficiencies. The company’s Duvernay asset delivered record December output with high liquids weighting, while its Deep Basin gas portfolio continued to generate stable free cash flow and multi-zone development options, underpinning an accelerated long-term production growth outlook.

Fourth-quarter production rose 30% year-on-year to just over 50,000 BOE/d, driven by a sharp increase in crude and total liquids, and supported by a nearly $98 million capital program concentrated on drilling and completions in both Duvernay and Deep Basin. For the full year, Spartan grew average production 12% to 42,559 BOE/d, exceeded its guidance midpoint, boosted oil and liquids volumes sharply, and exited 2025 with low leverage against its credit capacity, reinforcing funding capacity for the largest capital program in its history and its ambition to scale Duvernay output over the coming years.

The most recent analyst rating on (TSE:SDE) stock is a Buy with a C$11.00 price target. To see the full list of analyst forecasts on Spartan Delta stock, see the TSE:SDE Stock Forecast page.

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.