Spartan Delta Corp T.SDE

Question?

[TouchDown12]

It looks like (to me) with the relentless selling that it maybe a fund unloading; OR The other point of view is if someone bought the stock at 9.50 or above; took the divedend payout (9.50 and LGN shares); then takes the loss on the shares now; it could be a way to off-site the big tax bill on that dividend. It's not a straight line calculation b/c one is a captial loss and one is a dividend (different income/tax calculations); but it could be a strategy. Anyone see this or is it just in my head? I continue to buy at 3.03. TD12

[Seppelt]

I think, Gold Creek and Montney in general attracted a lot of investors. These investors are least interested in gassy Deep Basin and have either sold at about $14 or took the $9.50 dividend, Logan and then sold. Others who stayed, myself included, hoped for some kind of cash distribution and eventual sell. The move into Duvernay was a surprise transition to a long term growth which will tie up

[TerribleEng]

Ditto.  We went from seperating Logan + Spartan based on a growth platform and a yield company. That was the entire justification. Logan assets got transferred at 25% of the current market value of those shares, and then we raised money against that super low valuation.  If Spartan was just going to turn around and build another growth platform in an area that has been overlooked by

[TerribleEng]

No to mention,  You release a PR about an acquisition. You don't state the reserves, how these assets will be accretive or fit in the business plan... or even the capital plan you announced with it. They talk about underutilized infrastructure but don't mention anything about what they bought. It's just completely odd.

[TouchDown12]

Thanks for the comments folks. You are both correct about the Spartan + Logan combo and what it's parts to the whole represent. I am holding both but for entirely different reasons. One for yield (Div.) and one for growth. Now we have one for short-term growth and one for long-term growth (I speak about this not in terms of growth per se but the different accelerations of growth - LGN at the

[PabloLafortune]

Spartan Delta's market cap is the same as Pine Cliff's now.

[Seppelt]

It could be wishful thinking but these guys never stand still. I wonder if they plan to sell Deep Basin, distribute some proceeds and use the rest to expand and develop West Duvernay.  In the near term, they may acquire more Duvernay acreage using debt and cash flow from the DB which can be sold later.

[TerribleEng]

I think this is looking more and more like the game plan. Selling Deep Basin assets with AECO at $2.25 for the next year out may be hard. 

[TouchDown12]

Will the LNG horizen event be factoring into this? Will AECO become less relevant with LNG start-up in 12 months (or so)? Did they do some backroom DD and found that there is a case to be made for a growth focussed value creation runway over the next 12-18 months that was supiorior to the yield structure assumed? I know I am reading way beyond the know lines - and it would be unorthodux - but my

[PabloLafortune]

Excellent point.  You see the LNG deal ARX signed with Cheniere and expanded two days ago.  If you're small, you may not get those opportunities.  Marketing diversifiation via US hubs is kind of deja vu. . Plus Permian continues to grow and seeminglly willing to sell their natgas at any price. So there is probably a need for consolidation to lower costs, drill longer

[PabloLafortune]

Black Friday was a little disappointing.  Although to be honest, the friends and family sales had the best deals back in the day plus you didnt have to wait in line for hours with the plebs...couldnt wait for the next one back then...