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    Spartan Delta earnings higher on hedging gains


Revenue was down as commodity prices fell across the board.

by: Dale Lunan

Posted in:

Natural Gas & LNG News, Americas, Corporate, Financials, News By Country, Canada

Spartan Delta earnings higher on hedging gains

Canadian producer Spartan Delta reported higher Q1 2023 earnings on May 12, attributing the improvement primarily to unrealised gains on commodity derivatives.

Net income for the quarter increased to C$86.4mn (US$64mn) from C$61.2mn in Q1 2022. Revenue from oil and gas sales slipped to C$316.2mn from C$322.4mn.

Adjusted funds flow rose to C$182.3mn from C$159.7mn but free cash flow fell to C$42.4mn from C$51.7mn as capital expenditures increased to C$139.8mn from C$108mn.

Production averaged 80,200 barrels of oil equivalent (boe)/day, down from 72,588 boe/day, but natural gas production increased to 293.8mn ft3/day from 275.6mn ft3/day as new production was brought on in the Deep Basin and the Montney.

Average realised commodity prices were down across the board, led by a 20% drop in natural gas, to C$3.89/’000 ft3 from C$4.85/’000 ft3, before financial instruments.