SPARTAN DELTA CORP. ANNOUNCES 2026 GUIDANCE AND OPERATIONS UPDATE

Executive Summary

• Spartan Delta Corp. projects 2026 capital spending of $410‑$470 M to lift annualized production to 50,000‑52,000 BOE/d (44% liquids), a 28% increase versus 2025 guidance.
• Net debt is expected to rise to $319 M by year‑end, while Adjusted Funds Flow is forecast at $331 M (+48% YoY).
• Management announced the retirement of Vice President Randy Berg effective Feb 28 2026.

Key Details

• Capital Program 2026: $410–$470 M total; $320–$360 M allocated to drilling, completion, equipping and tie‑ins (DCET); $60–$80 M for infrastructure; $30 M corporate/other.
• Production Guidance: 50,000–52,000 BOE/d (44% liquids) vs. 39,000–41,000 BOE/d in 2025; crude oil & condensate 10,600 bbl/d (+89%).
• Duvernay Asset: $350 M midpoint capital; 24 net wells on‑stream; production estimate 13,872 BOE/d (78% liquids) for Dec 2025, a 174% YoY increase. Pad 04‑20‑041‑03W5 initial results: 3 net wells averaging IP30 1,179 BOE/d, 91% liquids.
• Deep Basin Asset: $90 M midpoint capital; 14 net wells on‑stream; acreage now 243,000 net acres (↑87% YoY). Drilling to commence H1 2026.
• Financial Guidance (midpoint):
• Adjusted Funds Flow: $331 M (+48%) → $1.65 per share.
• Operating Netback (pre‑hedge): $20.65/BOE (+12%).
• Capital Expenditures (pre‑A&D): $410–$470 M (+41% YoY).
• Net Debt: $319 M (+116%).
• Cost Efficiency: DCET cost target < $12 M per well; drilling/completion costs down > 17%; productivity up 25% since 2024.
• Acquisitions: 2025 added 204,000 net acres for ~$40 M; further Duvernay acreage acquisitions planned in 2026.
• Assumptions Impact: ±$5/bbl WTI changes Adjusted Funds Flow by ±$22 M; ±CA$0.25/GJ AECO gas price changes it by ±$9 M.
• Management Change: Randy Berg, VP Land & Stakeholder Relations, retiring Feb 28 2026 after >10 years of service.

Notable Quotes

(No direct quotes were provided in the release.)