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Spartan Delta Corp T.SDE

Alternate Symbol(s):  DALXF

Spartan Delta Corp. is a Canada-based energy company. The Company is engaged in exploration, development and production of crude oil and natural gas properties in western Canada. The Company has a portfolio of production and development opportunities in the Deep Basin and the Duvernay. It is focused on the execution of the Company’s organic drilling program in the Deep Basin, delivering operational synergies. It is also focused on growing and developing its Duvernay asset.


TSX:SDE - Post by User

Post by PabloLafortuneon Aug 11, 2022 2:11pm
403 Views
Post# 34889038

BIR vs SDE

BIR vs SDEBIR is generating tremedous profits and bringing debt down at a stupendous rate. So is SDE.  But believe it not, SDE is more compelling. Production is more or less the same. Debt I have BIR at $310M + prefs ($80M?) vs $352M for SDE.  SDE first half netback was $39.69 per boe vs $35.04 for BIR -  more liquids.  Translates into $124M on an annual basis. At 20%, that's $600M. And I dare say SDE has more land optionalty - growth and/or better yield. Capex is similar but a bit more for SDE so overtime we can expect as much or more growth from SDE (regardless of annual forecast).  Of note, BIR is doing buybacks and dividends, SDE is not. 
BIR has 280M shares fully diluted, SDE 177M. Translates including debt to $3.2B EV for BIR, $2.8B for SDE. But as we saw, the cashflow from SDE warrants a valuation $500M more ie $3.7B at least relative to BIR's $3.2B EV (and BIR is yielding 20%+). So SDE is the way to go, IMO.

Note that RBC does not cover SDE.
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