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

Executive Summary

• Spartan Delta Corp. reported its unaudited financial and operating results for the second quarter and first half of 2025, highlighting a 151% year-over-year increase in crude oil production and strong operational execution across its Duvernay and Deep Basin assets.
• The Company achieved Oil and Gas Sales of $81.0 million and Adjusted Funds Flow of $47.9 million ($0.23 per share, diluted) in Q2 2025, representing a 29% increase in Adjusted Funds Flow compared to Q2 2024.
• Spartan remains on track to meet its 2025 guidance of 40,000 BOE/d, with significant liquids growth, a strong balance sheet (Net Debt of $123.7 million), and a deep inventory of locations supporting continued development.

Key Details

• Financial Performance (Q2 2025):
  • Oil and Gas Sales: $81.0 million (up 10% from Q2 2024).
  • Net Income: $33.5 million ($0.17 per share, diluted).
  • Adjusted Funds Flow: $47.9 million ($0.23 per share, diluted), up 29% from Q2 2024.
  • Free Funds Flow: $(35.6) million.
  • Cash Provided by Operating Activities: $43.6 million.
• Financial Performance (H1 2025):
  • Oil and Gas Sales: $172.2 million.
  • Net Income: $28.4 million.
  • Adjusted Funds Flow: $93.5 million ($0.46 per share, diluted).
  • Cash Provided by Operating Activities: $99.9 million.
• Production Metrics (Q2 2025):
  • Average Daily Production: 38,513 BOE/d (36% liquids).
  • Crude Oil: 2,485 bbls/d (up 151% YoY).
  • Condensate: 2,056 bbls/d.
  • NGLs: 9,304 bbls/d.
  • Natural Gas: 148,010 mcf/d.
• Operational Activity (Q2 2025):
  • Drilled 8.0 (7.3 net) wells.
  • Completed 10.0 (7.5 net) wells.
  • Brought on-stream 6.0 (4.7 net) wells.
  • Capital Expenditures: $83.5 million, with ~85% spent on drilling, completing, equipping, and tie-ins.
• Duvernay Asset Updates:
  • H1 2025: Drilled 12.0 (9.6 net) wells, completed 7.0 (4.9 net) wells, brought on-stream 3.0 (2.1 net) wells.
  • Q2 2025: Drilled 6.0 (5.4 net) wells, completed 7.0 (4.9 net) wells, brought on-stream 3.0 (2.1 net) wells.
  • 06-04-043-03W5 Pad: IP30 rates averaged 1,261 BOE/d and 86% liquids per well (1,042 BBL/d crude, 49 BBL/d NGLs, 1.0 MMcf/d gas).
  • 02-22-042-03W5 Pad: Initial results exceed expectations; first 15 days averaged >1,600 BOE/d with >1,300 BBL/d crude and NGLs per well.
  • 07-15-044-03W5 Pad: Commenced completions on 4.0 (4.0 net) wells.
  • 04-20-041-03W5 Pad: Began drilling operations.
  • Field production estimates >9,000 BOE/d (77% liquids), a 400% increase in 12 months.
  • H2 2025 Outlook: Drill 5.0 (5.0 net) wells, complete 10.0 (10.0 net) wells, bring on-stream 14.0 (12.8 net) wells.
• Deep Basin Asset Updates:
  • H1 2025: Drilled 9.0 (7.5 net) wells, completed and brought on-stream 8.0 (6.5 net) wells.
  • Q2 2025: Drilled 2.0 (1.9 net) wells, completed and brought on-stream 3.0 (2.6 net) wells.
  • 08-21-045-11W5 & 10-20-043-09W5 (Spirit River): IP30 rates averaged 1,657 BOE/d (25% liquids); IP90 rates averaged 1,254 BOE/d (24% liquids).
  • 03-07-045-09W5 Pad (Cardium): IP30 rates averaged 482 BOE/d (43% liquids); IP90 rates averaged 566 BOE/d (42% liquids).
  • 14-08-044-08W5 Pad (Cardium): Exceeding expectations; IP30 rates averaged 1,203 BOE/d (40% liquids).
  • 15-25-044-09W5 (Spirit River): Significantly exceeding expectations, onstream <30 days.
  • H2 2025 Outlook: Drill 10.0 (9.2 net) wells, complete and bring on-stream 9.0 (8.2 net) wells, focusing on Cardium, Spirit River, Rock Creek, Viking, Belly River, and Wilrich formations.
• Balance Sheet & Hedging:
  • Net Debt: $123.7 million (0.7X Net Debt to Annualized Adjusted Funds Flow ratio).
  • Total Assets: $1.04 billion.
  • Shareholders' Equity: $600.1 million.
  • Common Shares Outstanding: ~200.1 million.
  • Hedging: 91,065 GJ/d of natural gas at $2.25/GJ and 2,700 bbl/d of crude/condensate at $99.75/bbl for remainder of 2025.
• Acquisitions & Dispositions:
  • Adjusted Net Capital A&D (H1 2025): $6.0 million.
  • Net Acreage: Accumulated ~365,000 net acres in the Duvernay (52% increase from Q2 2024).

Notable Quotes

• "Spartan successfully completed its first half 2025 capital program, highlighting strong execution and operational discipline across its West Shale Basin Duvernay... and Deep Basin assets."
• "Spartan is on course to meet its 2025 guidance of 40,000 BOE/d and is well-positioned for continued operational momentum entering the second half of 2025."
• "Spartan's Duvernay results have exceeded internal expectations to date, underscoring the productivity and consistency of its acreage."