Canada's Spartan Delta Q2 oil and gas sales jump 127% on higher production

Overview

• Canada oil and gas producer's Q2 oil and gas sales rose 127% yr/yr on higher production

• Q2 adjusted funds flow increased 93% yr/yr, reflecting higher liquids output

• Company raised 2026 production and capex guidance to accelerate Duvernay development

Outlook

• Spartan Delta raises 2026 average production guidance to 53,500–54,500 BOE/d, 45% liquids

• Company increases 2026 capital expenditures forecast to C$525–C$575 mln from C$475–C$525 mln

• Spartan Delta expects 2026 adjusted funds flow of C$400 mln, up from C$380 mln prior guidance

Result Drivers

• INCREASED LIQUIDS PRODUCTION - Co said Q2 crude oil production rose 161% and total liquids output increased 62% yr/yr, driving higher sales

• DUVERNAY DEVELOPMENT - Accelerated drilling and completions in the Duvernay led to higher production volumes in Q2

• INFRASTRUCTURE EXPANSION - Acquisition of a gas processing plant and new pipelines supported production growth and reduced third-party processing costs

Company press release: ID:nCNW5Wj2Qa

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 9 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the oil gas exploration and production peer group is "buy"

• Wall Street's median 12-month price target for Spartan Delta Corp is C$16.00, about 41.2% above its July 29 closing price of C$11.33

• The stock recently traded at 13 times the next 12-month earnings vs. a P/E of 20 three months ago

Reuters Recommended Reads

• July 28 - Canada's Cardinal Energy Q2 adjusted funds flow jumps 150% on higher output

• July 29 - Canada's Whitecap Resources Q2 revenue surges; 2026 output guidance raised

• July 29 - Canadian oil heads to Japan for the first time in over a year as Iran war tightens Middle East supplies

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)