CJ, Debt-Free Spartan Delta (SDE) and Natural Gas Those looking for portfolio diversification with debt-free low-risk energy companies, see new, unknown and debt-free Spartan Delta (SDE) before it becomes popular.
SDE is natural-gas weighted and is currently producing about 36,000 boepd (70% gas sold at AECO, 30% light oil and liquids).
In Q1 2021, before the recent deals, SDE was debt-free with surplus of CAD$35 million, facts below:
https://www.globenewswire.com/news-release/2021/02/16/2176560/0/en/Spartan-Delta-Corp-Announces-Three-Strategic-Acquisitions-and-80-0-Million-Financing.html
Proforma last month's acquisitions, SDE produces 36,000 boepd while also remaining debt-free with a significant surplus of CAD$54 million by the end of 2021, based on the latest guidance below:
https://www.globenewswire.com/news-release/2021/02/16/2176560/0/en/Spartan-Delta-Corp-Announces-Three-Strategic-Acquisitions-and-80-0-Million-Financing.html
So thanks to its debt-free and cash-rich balance sheet, SDE has one of the strongest balance sheets among all the energy companies in North America.
SDE is not a leveraged name like the vast majority of the energy names.
On top of this, SDE is one of the most undervalued nat gas weighted names because SDE currently trades at just C$9,000 per boepd and just about 2 times its annual cash flow.
Insiders own about about 20%.
SDE's management team has an impeccable pedigree with very high returns for those investors who invested early in their previous 3 companies, Spartan Exploration, Spartan Oil, Spartan Energy sold to VET. See the latest presentation. Just my two cents.