Spartan Delta Corp T.SDE

SDE at C$5.60 vs BIR, CR, ARX, SRX, PNE, TOU, NVA, PEY, AAV

[stockfy]

SDE with current Enterprise Value (market cap - cash) at almost C$600 million and about 42,000 boepd current production proforma the latest acquisitons, trades only 3 times its annual cash flow in 2021 and only C$14K per boepd:

 

https://www.newswire.ca/news-releases/spartan-delta-corp-provides-first-quarter-2021-operational-update-886976030.html

 

 

Thus SDE's metrics (EV-to-Annual Cash Flow, EV-to-Boepd) at C$5.60 are the lowest ones among the natural gas weighted peers such as AAV, BIR, CR, ARX, SRX, PNE, TOU, NVA, PEY etc.


Furthermore, all the aforementioned nat gas peers have much weaker balance sheets than SDE, because they have a significant amount of debt and high leverage and/or losses at the bottom line, while SDE is debt-free with working capital surplus and highly profitable.

On top of this, SDE has the lowest decline rate among all the aforementioned natural gas peers.

 

[Seppelt]

What a comparison?! From small CR carrying more than $350 million debt all the way to mature adults ARX and TOU. Good luck with your numbers but here are a few unknown things, hopefully all pleasant surprises: -About $100 mil still left in cash to be spent on acquisitions and consolidation. So far so good. -2022 capex. Time for Simonette and more everywhere else. -Transitioning to TSX. Sooner

[fauxtomato]

>>2022 capex. Time for Simonette and more everywhere else. I'm afraid to say it out loud but I secretly  hold great expectations for the Cequence land. With existing infrastructure in place and the benefit of a few years of offsetting land experience and lower costs, there is great potential there.  

[stockfy]

Let's start with the basics that you obviously miss.  The energy producers are divided into junior, intermediate, senior (or large) and integrated (i.e. XOM, CVX etc.), facts below: https://blog.evaluateenergy.com/list-of-canadian-oil-and-gas-companies The intermediate producers produce from 10,000 boepd to 100,000 boepd. Therefore, most of the peers in the title are intermediate

[stockfy]

SDE's Q2 will be out in early August. SDE is nat gas weighted. It's stupid when its stock drops on the days when oil prices drop.  Given that SDE's revenue and cash flow are mainly dependent on natural gas, AECO hit new highs in Q2, outlook is favorable and SDE's production was above expectations based on the recent operational update, Q2 will be awesome. Therefore, re

[TouchDown12]

i agree Stockfy. However, those drops have enabled me to add about a 50% increase in my position becasue of being able to buy at 5.30's-5.40's. BUT i have moved my thinking from a shorter term hold to a long term play because of it. Now targeting 10+ share price in the next few years rather than a couple of $$ lift in the short term. TD12