Spartan Delta Corp T.SDE

lack of update

[fattykens]

Does anyone else think the lack of a published ROC plan means they are trying to buy something? Generally, the company emails right back but there has been silence for a while or at least they dont get back to me.

FK

[Fyordian]

They'll wait for quarterly reports to announce anything material. Need to wait until Q2 report before any objective opinions can be formed. From Nuttall discussions, there were multiple suitors invovled for XTO and there's a solid chance SDE was one of them. I'm glad they didn't go for the $1.9B price tag, but just another example of reasons for blackout. Stay patient.

[black4444]

Agreed.   With SDE trading around $37k EV per flowing bbl and $5.00 per year end P+P reserves it would have made no sense to spend $1.7b net on XTO's assets at $53k per flowing bbl. SDE is slightly more expensive on an EV P+P basis, but converting XTO's slightly cheaper barrels in the ground to cash flow would have required big money up front.    If SDE needs to get

[Athenia]

Thank you for the Hammerhead info - they have a fairly good presentation on their website. It's interesting how contiguous their lands are to Spartan's see page 21 of Spartans presentation.

[Fyordian]

My thoughts exactly, the readthrough on that transaction pins a precedent transaction valuation for SDE around $20-25 by my estimates. I'm a long-term holder, but if I could take $20 cash off of the table today, you'd be a fool not to. Hell I'd take $15 today and move it to another O&G stock.