RE:RecommendationI believe that Deep Basin assets were for sale and Spartan just wasn't able to find a buyer. The new Spartan has a cleaned balance sheet and would make a clean acquisition. Depending on who you ask, Deep Basin is worth anywhere from $1-1.3b
New Spartan has minimum operational upside as they'd just grow production to optimize infrastructure constraints, but it's for sure not growth.
IMO, you're buying new Spartan for the yield today with the expectation that they're selling it tomorrow. There is still 30-50% upside on it, but whether they find a buyer tomorrow or 2 years from now is anyone's guess.
I definitely think insiders have a lot of capital tied in Spartan that they would love to liquidate to move over to Logan where they own a much larger piece of the pie. That's the obvious management bias