CALGARY,
AB, Aug. 2, 2023 /CNW/ - Spartan Delta
Corp. ("Spartan" or the "Company") (TSX: SDE) is
pleased to report its unaudited financial and operating results for
the three and six months ended June 30,
2023.
Selected financial and operational information is set out below
and should be read in conjunction with Spartan's unaudited
consolidated interim financial statements and related management's
discussion and analysis ("MD&A") for the three and six
months ended June 30, 2023 and 2022,
which are filed on SEDAR+ at www.sedarplus.ca and are
available on the Company's website at www.spartandeltacorp.com. The
highlights reported in this press release include certain non-GAAP
financial measures and ratios which have been identified using
capital letters. The reader is cautioned that these measures may
not be directly comparable to other issuers; refer to additional
information under the heading "Reader Advisories – Non-GAAP
Measures and Ratios".
SECOND QUARTER 2023 HIGHLIGHTS
- Spartan successfully closed on May 10,
2023, the sale of its Gold Creek and Karr Montney assets to Crescent Point Energy
Corp. for cash consideration of $1.7
billion (the "Asset Sale").
- Spartan, on June 20, 2023,
completed the transfer of its early stage Montney assets to Logan
Energy Corp. ("Logan") and on July 6,
2023, the distribution to eligible shareholders of
$9.50 in cash per Spartan share, 1.0
common share of Logan per Spartan share, and 1.0 Logan share
purchase warrant per Spartan share.
- Second quarter production of 57,972 BOE/d included 20,919
bbls/d of liquids (oil, condensate and NGLs) and 222,320 mcf/d of
natural gas. The reduction in production quarter over quarter was a
result of the Asset Sale. Spartan experienced temporary shut-ins
due to the Alberta wildfires,
which resulted in a 525 BOE/d impact to second quarter production
volumes. Spartan would like to thank its staff, their families, and
all the emergency response personnel for their efforts to control
the fires.
- Spartan successfully executed a $95.8
million capital program in the second quarter of 2023, with
specific focus placed on the continued development across multiple
horizons in the Deep Basin as well as development of its recently
divested Gold Creek and Karr assets located in the Montney oil
window.
-
- In the Deep Basin, Spartan drilled 3.9 net wells, completed 2.9
net wells, and brought 2.9 net wells on production.
- In the Montney, Spartan drilled 3.6 net wells, completed
6.0 net wells, brought 4.0 net wells on production, and completed
1.0 service/disposal well.
- Net Income of $457.1 million
($2.64 per share, diluted) in the
second quarter of 2023, up 151% from $181.7
million ($1.05 per share,
diluted) in the second quarter of 2022 due to the gain on the Asset
Sale of $549.2 million, as well as
hedging gains.
- Adjusted Funds Flow of $123.3
million ($0.71 per share,
diluted) in the second quarter of 2023; despite weaker commodity
prices, which benefitted from the Company's strong gas hedge
position.
- Free Funds Flow of $27.5 million
in the second quarter of 2023.
- Balance sheet is strong with our net debt at $96.7 million and 0.4X Annualized Net
Debt/Adjusted Funds Flow.
OUTLOOK
On May 17, 2023, the Company
issued a press release to announce the approval of a revised pro
forma 2023 capital expenditure budget of $280 million and updated guidance production of
53,000 BOE/d. The updated guidance reflects the reduction in
forecasted production resulting from the Asset Sale, the transfer
of its early stage Montney assets to Logan, and a reduction in
forecast commodity prices.
"Spartan, with its depth of economic drilling inventory,
strategic operated infrastructure, strong gas hedges and clean
balance sheet is uniquely positioned to continue pursuing organic
growth augmented with opportunistic strategic acquisitions and
periodic special dividends that generate enhanced returns for our
shareholders," commented Fotis
Kalantzis, President & CEO of Spartan.
As previously announced on May 10,
2023, a special cash dividend of $0.10 per common share of Spartan was paid on
July 31, 2023, to eligible holders of
Spartan shares of record at the close of business on July 14, 2023.
ESG Report
Spartan is committed to producing energy sustainably and
responsibly, as such Spartan regularly updates its environment,
social and governance ("ESG") reporting tool which can be
accessed at https://esg.spartandeltacorp.com. Spartan's recent
updates to its ESG reporting tool include 2022 performance data and
charts. Spartan is committed to maintaining the highest standards
of environmental stewardship and is committed to reducing
environmental impacts on the communities in which it operates.
The table below summarizes the Company's financial and operating
results for the three and six months ended June 30, 2023 and June 30,
2022:
(CA$ thousands,
except as otherwise noted)
|
Three months ended June
30
|
Six months ended June
30
|
|
2023
|
2022
|
%
|
2023
|
2022
|
%
|
FINANCIAL
HIGHLIGHTS
|
|
|
|
|
|
|
Oil and gas
sales
|
168,847
|
437,699
|
(61)
|
485,059
|
760,123
|
(36)
|
Net income and
comprehensive income
|
457,069
|
181,740
|
151
|
543,518
|
242,917
|
124
|
$ per share, basic
(a)
|
2.65
|
1.17
|
126
|
3.16
|
1.58
|
100
|
$ per share, diluted
(a)
|
2.64
|
1.05
|
151
|
3.14
|
1.41
|
123
|
Cash provided by
operating activities
|
146,482
|
236,007
|
(38)
|
361,200
|
373,847
|
(3)
|
Adjusted Funds Flow
(b)
|
123,300
|
232,374
|
(47)
|
305,576
|
392,095
|
(22)
|
$ per share, basic
(a)(b)
|
0.72
|
1.50
|
(52)
|
1.78
|
2.54
|
(30)
|
$ per share, diluted
(a)(b)
|
0.71
|
1.33
|
(47)
|
1.76
|
2.26
|
(22)
|
Free Funds Flow
(b)
|
27,507
|
141,738
|
(81)
|
69,950
|
193,475
|
(64)
|
Cash (provided by) used
in investing activities
|
(1,563,240)
|
103,185
|
NM
|
(1,435,888)
|
207,547
|
NM
|
Capital Expenditures before
A&D (b)
|
95,793
|
90,636
|
6
|
235,626
|
198,620
|
19
|
Adjusted Net Capital A&D
(b)
|
(1,704,464)
|
(374)
|
NM
|
(1,703,695)
|
(941)
|
NM
|
Total assets
|
2,500,443
|
1,811,725
|
38
|
2,500,443
|
1,811,725
|
38
|
Debt
|
146,981
|
226,762
|
(35)
|
146,981
|
226,762
|
(35)
|
Net Debt
(b)
|
96,673
|
261,655
|
(63)
|
96,673
|
261,655
|
(63)
|
Net Debt to Annualized AFF
Ratio (b)
|
0.4X
|
0.3X
|
33
|
0.4X
|
0.3X
|
33
|
Shareholders'
equity
|
308,825
|
1,139,794
|
(73)
|
308,825
|
1,139,794
|
(73)
|
Common shares
outstanding (000s), end of period (a)
|
173,201
|
155,390
|
11
|
173,201
|
155,390
|
11
|
OPERATING HIGHLIGHTS
AND NETBACKS (e)
|
|
|
|
|
|
|
Average daily
production
|
|
|
|
|
|
|
Crude oil
(bbls/d)
|
7,489
|
13,009
|
(42)
|
11,241
|
12,145
|
(7)
|
Condensate (bbls/d)
(c)
|
2,269
|
2,365
|
(4)
|
2,629
|
2,389
|
10
|
Natural gas liquids (bbls/d)
(c)
|
11,161
|
12,373
|
(10)
|
12,176
|
12,670
|
(4)
|
Natural gas
(mcf/d)
|
222,320
|
271,313
|
(18)
|
257,874
|
273,443
|
(6)
|
BOE/d
|
57,972
|
72,966
|
(21)
|
69,025
|
72,778
|
(5)
|
% Liquids
(d)
|
36 %
|
38 %
|
(5)
|
38 %
|
37 %
|
3
|
Average realized
prices, before financial instruments
|
|
|
|
|
|
|
Crude oil ($/bbl)
|
99.64
|
137.94
|
(28)
|
99.84
|
127.98
|
(22)
|
Condensate ($/bbl)
(c)
|
94.59
|
135.63
|
(30)
|
100.28
|
127.87
|
(22)
|
Natural gas liquids ($/bbl)
(c)
|
30.04
|
57.88
|
(48)
|
36.44
|
53.66
|
(32)
|
Natural gas
($/mcf)
|
2.52
|
7.29
|
(65)
|
3.30
|
6.07
|
(46)
|
Combined average
($/BOE)
|
32.01
|
65.92
|
(51)
|
38.83
|
57.70
|
(33)
|
Netbacks ($/BOE)
(e)
|
|
|
|
|
|
|
Oil and gas sales
|
32.01
|
65.92
|
(51)
|
38.83
|
57.70
|
(33)
|
Processing and other
revenue
|
0.48
|
0.30
|
60
|
0.47
|
0.33
|
42
|
Royalties
|
(2.84)
|
(8.69)
|
(67)
|
(3.89)
|
(6.79)
|
(43)
|
Operating
expenses
|
(7.73)
|
(9.18)
|
(16)
|
(8.04)
|
(8.78)
|
(8)
|
|
Three months ended June
30
|
Six months ended June
30
|
Netbacks continued
from previous page
|
2023
|
2022
|
%
|
2023
|
2022
|
%
|
Transportation
expenses
|
(2.56)
|
(2.79)
|
(8)
|
(2.72)
|
(2.77)
|
(2)
|
Operating Netback,
before hedging ($/BOE) (e)
|
19.36
|
45.56
|
(58)
|
24.65
|
39.69
|
(38)
|
Settlements on Commodity
Derivative Contracts(e)(f)
|
5.36
|
(8.09)
|
(166)
|
1.48
|
(7.42)
|
(120)
|
Net Pipeline Transportation
Margin (e)(g)
|
-
|
-
|
-
|
-
|
(0.02)
|
(100)
|
Operating Netback,
after hedging ($/BOE) (e)
|
24.72
|
37.47
|
(34)
|
26.13
|
32.25
|
(19)
|
General and administrative
expenses
|
(1.02)
|
(0.99)
|
3
|
(0.82)
|
(0.94)
|
(13)
|
Cash financing expense
(income) (e)(h)
|
0.49
|
(1.05)
|
147
|
(0.20)
|
(1.04)
|
(81)
|
Realized foreign exchange
gain (loss)
|
(0.09)
|
0.12
|
(175)
|
(0.01)
|
0.06
|
(117)
|
Other income
|
-
|
-
|
-
|
-
|
0.05
|
(100)
|
Settlement of
decommissioning obligations
|
(0.13)
|
(0.10)
|
30
|
(0.15)
|
(0.15)
|
-
|
Lease payments
(i)
|
(0.60)
|
(0.45)
|
33
|
(0.49)
|
(0.46)
|
7
|
Adjusted Funds Flow
Netback ($/BOE) (e)
|
23.37
|
35.00
|
(33)
|
24.46
|
29.77
|
(18)
|
a)
|
Refer to "Share
Capital" section of this press release.
|
b)
|
"Adjusted Funds Flow",
"Free Funds Flow", "Capital Expenditures before A&D", "Adjusted
Net Capital A&D", "Net Debt" and "Net Debt to Annualized AFF
Ratio" do not have standardized meanings under IFRS, refer to
"Non-GAAP Measures and Ratios" section of this press
release.
|
c)
|
Condensate is a natural
gas liquid ("NGL") as defined by NI 51-101. See "Other
Measurements".
|
d)
|
"Liquids" includes
crude oil, condensate and NGLs.
|
e)
|
"Netbacks" are non-GAAP
financial ratios calculated per unit of production. "Operating
Netback", "Settlements on Commodity Derivative Contracts", "Net
Pipeline Transportation Margin", "Cash Financing Expenses"
and "Adjusted Funds Flow Netback" do not have standardized
meanings under IFRS, refer to "Non-GAAP Measures and Ratios"
section of this press release.
|
f)
|
Includes realized gains
or losses on derivative financial instruments plus settlements of
acquired derivative liabilities.
|
g)
|
Pipeline transportation
revenue, net of pipeline transportation expense.
|
h)
|
Includes interest and
fees on long-term debt, net of interest income.
|
i)
|
Includes total lease
payments comprised of the principal portion and financing cost of
lease liabilities.
|
ABOUT SPARTAN DELTA CORP.
Spartan is committed to creating value for its shareholders,
focused on sustainability both in operations and financial
performance. The Company's ESG-focused culture is centered on
generating Free Funds Flow through responsible oil and gas
exploration and development. The Company has established a
portfolio of high-quality production and development opportunities
in the Deep Basin. Spartan will continue to focus on the execution
of the Company's organic drilling program in the Deep Basin,
delivering operational synergies in a respectful and responsible
manner to the environment and communities it operates in. The
Company is well positioned to continue pursuing growth with organic
drilling, opportunistic acquisitions, and the delivery of Free
Funds Flow and periodic special dividends to shareholders.
Spartan's corporate presentation as of August 2, 2023 can be accessed on the Company's
website at www.spartandeltacorp.com.
READER ADVISORIES
Non-GAAP Measures and Ratios
This press release contains certain financial measures and
ratios which do not have standardized meanings prescribed by
International Financial Reporting Standards ("IFRS") or
Generally Accepted Accounting Principles ("GAAP"). As these
non-GAAP financial measures and ratios are commonly used in the oil
and gas industry, Spartan believes that their inclusion is useful
to investors. The reader is cautioned that these amounts may not be
directly comparable to measures for other companies where similar
terminology is used.
The non-GAAP measures and ratios used in this press release,
represented by the capitalized and defined terms outlined below,
are used by Spartan as key measures of financial performance and
are not intended to represent operating profits nor should they be
viewed as an alternative to cash provided by operating activities,
net income or other measures of financial performance calculated in
accordance with IFRS.
The definitions below should be read in conjunction with the
"Non-GAAP Measures and Ratios" section of the Company's MD&A
dated August 2, 2023, which includes
discussion of the purpose and composition of the specified
financial measures and detailed reconciliations to the most
directly comparable GAAP financial measures.
Operating Income and Operating Netback
Operating Income, a non-GAAP financial measure, is a useful
supplemental measure that provides an indication of the Company's
ability to generate cash from field operations, prior to
administrative overhead, financing and other business expenses.
"Operating Income, before hedging" is calculated by Spartan
as oil and gas sales, net of royalties, plus processing and other
revenue, less operating and transportation expenses. "Operating
Income, after hedging" is calculated by adjusting Operating
Income for: (i) realized gains or losses on derivative financial
instruments including settlements on acquired derivative financial
instrument liabilities (together a non-GAAP financial measure
"Settlements on Commodity Derivative Contracts"), and (ii)
pipeline transportation revenue, net of pipeline transportation
expense (the "Net Pipeline Transportation Margin"). The
Company refers to Operating Income expressed per unit of production
as an "Operating Netback" and reports the Operating Netback
before and after hedging, both of which are non-GAAP financial
ratios. Spartan considers Operating Netback an important measure to
evaluate its operational performance as it demonstrates its field
level profitability relative to current commodity prices.
Adjusted Funds Flow and Free Funds Flow
Cash provided by operating activities is the most directly
comparable measure to Adjusted Funds Flow. "Adjusted Funds
Flow" is reconciled to cash provided by operating activities by
excluding changes in non-cash working capital, adding back
transaction costs on acquisitions, and deducting the principal
portion of lease payments. Spartan utilizes Adjusted Funds Flow as
a key performance measure in the Company's annual financial
forecasts and public guidance. Transaction costs, which primarily
include legal and financial advisory fees, regulatory and other
expenses directly attributable to execution of acquisitions and
dispositions, are added back because the Company's definition of
Free Funds Flow excludes capital expenditures related to
acquisitions and dispositions. For greater clarity, incremental
overhead expenses related to ongoing integration and restructuring
post-acquisition are not adjusted and are included in Spartan's
general and administrative expenses. Lease liabilities are not
included in Spartan's definition of Net Debt (non-GAAP measure
defined herein) therefore lease payments are deducted in the period
incurred to determine Adjusted Funds Flow.
The Company refers to Adjusted Funds Flow expressed per unit of
production as an "Adjusted Funds Flow Netback".
"Free Funds Flow" is calculated by Spartan as Adjusted
Funds Flow less Capital Expenditures before A&D, which is also
a non-GAAP financial measure (defined herein). Spartan believes
Free Funds Flow provides an indication of the amount of funds the
Company has available for future capital allocation decisions such
as to repay long-term debt, reinvest in the business or return
capital to shareholders.
Adjusted Funds Flow per share
Adjusted Funds Flow ("AFF") per share is a non-GAAP
financial ratio used by the Spartan as a key performance indicator.
AFF per share is calculated using the same methodology as net
income per share ("EPS"), however the diluted weighted
average common shares ("WA Shares") outstanding for AFF may
differ from the diluted weighted average determined in accordance
with IFRS for purposes of calculating EPS due to non-cash items
that impact net income only. The dilutive impact of stock options
and share awards is more dilutive to AFF than EPS because the
number of shares deemed to be repurchased under the treasury stock
method is not adjusted for unrecognized share based compensation
expense as it is non-cash (see also, "Share Capital").
Capital Expenditures, before A&D
"Capital Expenditures before A&D" is used by Spartan
to measure its capital investment level compared to the Company's
annual budgeted capital expenditures for its organic drilling
program. It includes capital expenditures on exploration and
evaluation assets and property, plant and equipment, before
acquisitions and dispositions. The directly comparable GAAP measure
to capital expenditures is cash used in investing activities.
Adjusted Net Capital A&D
"Adjusted Net Capital A&D" is a supplemental measure
disclosed by Spartan which aggregates the total amount of cash,
debt and share consideration used to acquire crude oil and natural
gas assets during the period, net of cash proceeds received on
dispositions. The Company believes this is useful information
because it is more representative of the total transaction value
than the cash acquisition costs or total cash used in investing
activities, determined in accordance with IFRS.
Net Debt (Surplus) and Adjusted Working Capital
References to "Net Debt (Surplus)" includes current and
long-term debt under Spartan's revolving credit facility and second
lien term facility, net of Adjusted Working Capital. Net Debt
(Surplus) and Adjusted Working Capital are both non-GAAP financial
measures. "Adjusted Working Capital" is calculated as
current assets less current liabilities, excluding lease
liabilities, derivative financial instrument assets and
liabilities, lease liabilities, assets/liabilities held for
distribution, distribution payable and current debt (if
applicable). As at June 30, 2023 and
December 31, 2022, the Adjusted
Working Capital (surplus) deficit includes cash and cash
equivalents, accounts receivable, prepaid expenses and deposits,
other current assets, accounts payable and accrued liabilities,
dividends payable, share-based compensation liability, and the
current portion of decommissioning obligations. Current assets and
liabilities held for distribution, and distributions payable are
not included in the adjusted working capital (surplus) deficit as
they are not representative of the ongoing current assets and
liabilities of the Company.
Spartan uses Net Debt (Surplus) as a key performance measure to
manage the Company's targeted debt levels. The Company believes its
presentation of Adjusted Working Capital and Net Debt (Surplus) are
useful as supplemental measures because lease liabilities and
derivative financial instrument assets and liabilities relate to
contractual obligations for future production periods. Lease
payments and cash receipts or settlements on derivative financial
instruments are included in Spartan's reported Adjusted Funds Flow
in the production month to which the obligation relates.
References to "Cash Financing Expenses" includes interest
and fees on long-term debt, net of interest income, and excludes
financing costs related to lease liabilities and accretion of
decommissioning obligations. Cash Financing Expenses is a non-GAAP
financial measure used by Spartan in its budget and guidance as it
corresponds to the Company's definition of Net Debt (Surplus),
however it should not be viewed as an alternative to total
financing expenses presented in accordance with IFRS.
Net Debt to Annualized AFF Ratio
The Company monitors its capital structure using a "Net Debt
to Annualized AFF Ratio", which is a non-GAAP financial ratio
calculated as the ratio of the Company's "Net Debt" to its
"Annualized Adjusted Funds Flow" which is calculated by multiplying
Adjusted Funds Flow for the most recent quarter, normalized for
significant non-recurring items, by a factor of 4.
Other Measurements
All dollar figures included herein are presented in Canadian
dollars, unless otherwise noted.
This press release contains various references to the
abbreviation "BOE" which means barrels of oil equivalent.
Where amounts are expressed on a BOE basis, natural gas volumes
have been converted to oil equivalence at six thousand cubic feet
(Mcf) per barrel (bbl). The term BOE may be misleading,
particularly if used in isolation. A BOE conversion ratio of six
thousand cubic feet per barrel is based on an energy equivalency
conversion method primarily applicable at the burner tip and does
not represent a value equivalency at the wellhead and is
significantly different than the value ratio based on the current
price of crude oil and natural gas. This conversion factor is an
industry accepted norm and is not based on either energy content or
current prices. Such abbreviation may be misleading, particularly
if used in isolation.
References to "oil" in this press release include light crude
oil and medium crude oil, combined. NI 51-101 includes condensate
within the product type of "natural gas liquids". References to
"natural gas liquids" or "NGLs" include pentane, butane, propane,
and ethane. References to "gas" or "natural gas" relates to
conventional natural gas.
References to "liquids" includes crude oil, condensate and
NGLs.
Share Capital
Spartan's common shares are listed on the Toronto Stock Exchange
("TSX") and trade under the symbol "SDE". The volume
weighted average trading price of Spartan's common shares on the
TSX was $13.97 and $13.80 for the three and six months ended
June 30, 2023. Spartan's closing
share price was $4.75 on
June 30, 2023, compared to
$14.95 on December 31, 2022.
As at June 30, 2023 and as of the
date hereof, there are 173.2 MM common shares outstanding.
There are no preferred shares or special shares outstanding. The
following securities are outstanding as of the date of this press
release: 2.3 MM restricted share awards, however, Spartan intends
to settle these RSAs in cash.
The table below summarizes the weighted average number of common
shares outstanding (000s) used in the calculation of diluted EPS
and diluted AFF per share:
|
Three months ended June
30
|
Six months ended June
30
|
|
(000s)
|
2023
|
2022
|
%
|
2023
|
2022
|
%
|
WA Shares outstanding,
basic
|
172,265
|
154,960
|
11
|
171,845
|
154,131
|
11
|
Dilutive effect of
outstanding securities
|
936
|
18,432
|
(95)
|
1,356
|
17,923
|
(92)
|
WA Shares, diluted –
for EPS
|
173,201
|
173,392
|
-
|
173,201
|
172,054
|
1
|
Incremental dilution
for AFF (a)
|
-
|
1,468
|
(100)
|
-
|
1,656
|
(100)
|
WA Shares, diluted –
for AFF (a)
|
173,201
|
174,860
|
(1)
|
173,201
|
173,710
|
-
|
|
|
|
|
|
|
|
|
a)
|
AFF per share does not
have a standardized meaning under IFRS, refer to "Non-GAAP Measures
and Ratios".
|
Forward-Looking and Cautionary Statements
Certain statements contained within this press release
constitute forward-looking statements within the meaning of
applicable Canadian securities legislation. All statements other
than statements of historical fact may be forward-looking
statements. Forward-looking statements are often, but not always,
identified by the use of words such as "anticipate", "budget",
"plan", "endeavor", "continue", "estimate", "evaluate", "expect",
"forecast", "monitor", "may", "will", "can", "able", "potential",
"target", "intend", "consider", "focus", "identify", "use",
"utilize", "manage", "maintain", "remain", "result", "cultivate",
"could", "should", "believe" and similar expressions. Spartan
believes that the expectations reflected in such forward-looking
statements are reasonable as of the date hereof, but no assurance
can be given that such expectations will prove to be correct and
such forward-looking statements should not be unduly relied upon.
Without limitation, this press release contains forward-looking
statements pertaining to: the business plan, cost model and
strategy of Spartan, including commodity diversification and oil
weighted production, risk management activities, Spartan plans
to deliver strong operational performance and to generate long term
sustainable Free Funds Flow, organic growth and enhanced returns,
including periodic special dividends, and being well positioned to
take advantage of opportunities in the current business
environment, and to continue pursuing immediate production
optimization, responsible future growth with organic drilling, and
opportunistic acquisitions.
The forward-looking statements and information are based on
certain key expectations and assumptions made by Spartan, including
expectations and assumptions concerning the business plan of
Spartan, the timing of and success of future drilling, development
and completion activities, the performance of existing wells, the
performance of new wells, the availability and performance of
facilities and pipelines, the geological characteristics of
Spartan's properties, the successful integration of the recently
acquired assets into Spartan's operations, the successful
application of drilling, completion and seismic technology,
prevailing weather conditions, prevailing legislation affecting the
oil and gas industry, prevailing commodity prices, price
volatility, price differentials and the actual prices received for
the Company's products, impact of inflation on costs, royalty
regimes and exchange rates, the application of regulatory and
licensing requirements, the availability of capital, labour and
services, the creditworthiness of industry partners, and the
ability to source and complete acquisitions.
Although Spartan believes that the expectations and assumptions
on which such forward-looking statements and information are based
are reasonable, undue reliance should not be placed on the
forward-looking statements and information because Spartan can give
no assurance that they will prove to be correct. By its nature,
such forward-looking information is subject to various risks and
uncertainties, which could cause the actual results and
expectations to differ materially from the anticipated results or
expectations expressed. These risks and uncertainties include, but
are not limited to, fluctuations in commodity prices, changes in
industry regulations and political landscape both domestically and
abroad, wars (including Russia's
military actions in Ukraine),
hostilities, civil insurrections, foreign exchange or interest
rates, increased operating and capital costs due to inflationary
pressures (actual and anticipated), stock market and financial
system volatility, impacts of pandemics, the retention of key
management and employees, risks with respect to unplanned
third-party pipeline outages and risks relating to inclement and
severe weather events and natural disasters, including fire,
drought, and flooding, including in respect of safety, asset
integrity and shutting-in production. Ongoing military actions
between Russia and Ukraine have the potential to threaten the
supply of oil and gas from the region. The long-term impacts of the
actions between these nations remains uncertain.
Please refer to Spartan's MD&A and AIF for the year ended
December 31, 2022 for discussion of
additional risk factors relating to the Company, which can be
accessed either on Spartan's website at www.spartandeltacorp.com or
under Spartan's SEDAR+ profile on www.sedarplus.ca. Readers
are cautioned not to place undue reliance on this forward-looking
information, which is given as of the date hereof, and to not use
such forward-looking information for anything other than its
intended purpose. Spartan undertakes no obligation to update
publicly or revise any forward-looking information, whether as a
result of new information, future events or otherwise, except as
required by law.
This press release contains future-oriented financial
information and financial outlook information (collectively,
"FOFI") about Spartan's prospective results of operations
and production, generating Free Funds Flow, organic growth and
periodic special dividends and components thereof, all of which are
subject to the same assumptions, risk factors, limitations, and
qualifications as set forth in the above paragraphs. FOFI contained
in this document was approved by management as of the date of this
document and was provided for the purpose of providing further
information about Spartan's future business operations. Spartan and
its management believe that FOFI has been prepared on a reasonable
basis, reflecting management's best estimates and judgments, and
represent, to the best of management's knowledge and opinion, the
Company's expected course of action. However, because this
information is highly subjective, it should not be relied on as
necessarily indicative of future results. Spartan disclaims any
intention or obligation to update or revise any FOFI contained in
this document, whether as a result of new information, future
events or otherwise, unless required pursuant to applicable law.
Readers are cautioned that the FOFI contained in this document
should not be used for purposes other than for which it is
disclosed herein. Changes in forecast commodity prices, differences
in the timing of capital expenditures, and variances in average
production estimates can have a significant impact on the key
performance measures included in Spartan's guidance. The Company's
actual results may differ materially from these estimates.
Abbreviations
A&D
|
acquisitions and
dispositions
|
AECO
|
Alberta Energy Company
"C" Meter Station of the NOVA Pipeline System
|
AFF
|
Adjusted Funds
Flow
|
AIF
|
refers to the Company's
Annual Information Form dated March 31, 2023
|
bbl
|
barrel
|
bbls/d
|
barrels per
day
|
BOE
|
barrels of oil
equivalent
|
BOE/d
|
barrels of oil
equivalent per day
|
CA$ or CAD
|
Canadian
dollar
|
COVID-19
|
refers to the outbreak
of the novel coronavirus, a public health crisis
|
ESG
|
Environment, Social and
Governance
|
GJ
|
gigajoule
|
mcf
|
one thousand cubic
feet
|
mcf/d
|
one thousand cubic feet
per day
|
MMbtu
|
one million British
thermal units
|
MMcf
|
one million cubic
feet
|
MD&A
|
refers to Management's
Discussion and Analysis of the Company dated August 2,
2023
|
MM
|
millions
|
$MM
|
millions of
dollars
|
NI 51-101
|
National Instrument
51-101 – Standards of Disclosure for Oil and Gas
Activities
|
NGL(s)
|
natural gas
liquids
|
NM
|
not
meaningful
|
NYMEX
|
New York Mercantile
Exchange, with reference to the U.S. dollar "Henry Hub" natural gas
price index
|
Q2 2023
|
second quarter of
2023
|
Q1 2023
|
first quarter of
2023
|
Q4 2022
|
fourth quarter of
2022
|
Q2 2022
|
second quarter of
2022
|
TSX
|
Toronto Stock
Exchange
|
US$ or USD
|
United States
dollar
|
WTI
|
West Texas
Intermediate, the reference price paid in U.S. dollars at Cushing,
Oklahoma for crude oil of standard grade
|
SOURCE Spartan Delta Corp.