Spartan Delta Corp. First Quarter 2023 Results

(CA$ thousands, except as otherwise noted)

Three months ended March 31

2023

2022

%

FINANCIAL HIGHLIGHTS

Oil and gas sales

316,212

322,424

(2)

Net income and comprehensive income

86,449

61,177

41

     $ per share, basic ^(a)

0.50

0.40

25

     $ per share, diluted ^(a)

0.49

0.36

36

Cash provided by operating activities

214,718

137,840

56

Adjusted Funds Flow ^(b)

182,276

159,721

14

     $ per share, basic ^(a)(b)

1.06

1.04

2

     $ per share, diluted ^(a)(b)

1.03

0.92

12

Free Funds Flow ^(b)

42,443

51,737

(18)

Cash used in investing activities

127,352

104,362

22

     Capital Expenditures before A&D ^(b)

139,833

107,984

29

     Adjusted Net Capital A&D ^(b)

769

(567)

(236)

Total assets

2,155,052

1,811,765

19

Debt

145,752

356,570

(59)

Net Debt ^(b)

138,706

405,691

(66)

     Net Debt to Annualized AFF Ratio ^(b)

0.2 x

0.6 x

(67)

Shareholders’ equity

1,582,999

950,734

67

Common shares outstanding (000s), end of period ^(a)

171,426

153,469

12

OPERATING HIGHLIGHTS AND NETBACKS ^(e)

Average daily production

     Crude oil (bbls/d)

15,034

11,270

33

     Condensate (bbls/d) ^(c)

2,994

2,414

24

     Natural gas liquids (bbls/d) ^(c)

13,202

12,971

2

     Natural gas (mcf/d)

293,822

275,596

7

     BOE/d

80,200

72,588

10

     % Liquids ^(d)

39 %

37 %

5

Average realized prices, before financial instruments

     Crude oil ($/bbl)

99.94

116.35

(14)

     Condensate ($/bbl) ^(c)

104.65

120.17

(13)

     Natural gas liquids ($/bbl) ^(c)

41.91

49.59

(15)

     Natural gas ($/mcf)

3.89

4.85

(20)

     Combined average ($/BOE)

43.81

49.35

(11)

Netbacks ($/BOE) ^(e)

     Oil and gas sales

43.81

49.35

(11)

     Processing and other revenue

0.46

0.36

28

     Royalties

(4.65)

(4.86)

(4)

     Operating expenses

(8.26)

(8.36)

(1)

     Transportation expenses

(2.83)

(2.76)

3

Three months ended March 31

Netbacks continued from previous page

2023

2022

%

Operating Netback, before hedging ($/BOE) ^(e)

28.53

33.73

(15)

     Settlements on Commodity Derivative Contracts^(e)(f)

(1.36)

(6.74)

(80)

     Net Pipeline Transportation Margin ^(e)(g)

–

(0.05)

(100)

Operating Netback, after hedging ($/BOE) ^(e)

27.17

26.94

1

     General and administrative expenses

(0.67)

(0.88)

(24)

     Cash Financing Expenses ^(e)(h)

(0.70)

(1.04)

(33)

     Realized foreign exchange gain (loss)

0.04

–

 nm

     Other income

–

0.10

(100)

     Settlement of decommissioning obligations

(0.16)

(0.19)

(16)

     Lease payments ⁽ⁱ⁾

(0.43)

(0.48)

(10)

Adjusted Funds Flow Netback ($/BOE) ^(e)

25.25

24.45

3