SPARTAN DELTA CORP. ANNOUNCES FIRST QUARTER 2026 RESULTS, INCREASED 2026 GUIDANCE, AND INCREASE TO CREDIT FACILITY

Spartan Delta Corp. released its First Quarter 2026 results on May 5, 2026, reporting a significant acceleration in operational performance and financial flexibility compared to previous guidance. Key highlights include: - Production Growth: Q1 production reached 52,140 BOE/d, a 36% increase year-over-year (YoY), with crude oil production surging 217%. This exceeds the midpoint of the January 2026 guidance range (50,000–52,000 BOE/d) on an annualized basis. - Financial Performance: Oil and gas sales increased 61% YoY to $147.1 million. Adjusted Funds Flow (AFF) rose 79% YoY to $81.4 million ($0.40/share). Operating netback before hedging improved 39% to $20.56/BOE. - Guidance Upgrade: The company increased its 2026 capital program to $475–$525 million (previously $410–$470 million) and raised annualized production guidance to 52,000–54,000 BOE/d (previously 50,000–52,000 BOE/d). - Credit Facility Expansion: Total credit capacity was expanded from $450 million to $700 million to support accelerated Duvernay development. - Net Debt: Ended the quarter at $257.5 million, with a Net Debt to Annualized Adjusted Funds Flow Ratio of 0.8x.

The Q1 2026 results represent a Material - Positive event for Spartan Delta Corp. The news exceeds the expectations set in the January 2026 guidance update regarding both production volume and capital allocation. Specifically: - Operational Outperformance: Achieving a run-rate of over 52,000 BOE/d in Q1 validates the company's ability to execute its Duvernay development strategy faster than previously projected. The 36% YoY production growth is substantial for a company of this size. - Balance Sheet Strengthening: The increase in credit facility from $450 million to $700 million provides significant liquidity headroom ($442.5 million available after net debt) to fund the increased capital program without immediate equity dilution. This reduces refinancing risk in a potentially volatile interest rate environment. - Guidance Revision: Raising the full-year production target by 2,000 BOE/d and increasing the capital budget signals management confidence in well economics (IP30 rates averaging ~1,930 BOE/d in Willesden Green). - Risk Consideration: While positive, the increase in Net Debt from $203.9 million (Dec 2025) to $257.5 million (Mar 2026) indicates higher leverage during this growth phase. Investors must monitor if AFF growth keeps pace with debt accumulation to maintain the healthy 0.8x ratio.

Spartan Delta Corp. is an oil and gas exploration and production company focused on the West Shale Basin in Alberta, Canada. Its primary asset is the Duvernay formation, where it has been transitioning from a natural gas-weighted portfolio to an oil-weighted growth strategy. The Deep Basin assets (Viking, Mannville) provide stable cash flow to fund Duvernay development. - Flagship Project: Duvernay Development (Willesden Green and Gilby areas). Recent results show inaugural wells averaging IP30 rates of ~1,930 BOE/d with high liquids content (59–83%). - Inventory: As per February 2026 reserves update, the company has significant inventory with Total Proved Plus Probable (TPP) reserves up 18% YoY. TPP reserves represent only 14% of internally identified inventory, suggesting long-term growth potential.