Spartan Delta Corp. announces year-end 2025 results, filing of its 2025 AIF, and operations update

CALGARY, AB, Feb. 23, 2026 /CNW/ – Spartan Delta Corp. (“Spartan” or the “Company“) (TSX: SDE) is pleased to report its financial and operating results for the fourth quarter and year ended December 31, 2025, filing of its Annual Information Form (“AIF“), and provide an operations update.

Selected financial and operational information is set out below and should be read in conjunction with Spartan’s audited financial statements and related management’s discussion and analysis (“MD&A“) for the years ended December 31, 2025, and 2024, 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; please refer to additional information under the heading “Reader Advisories – Non-GAAP Measures and Ratios”.

MESSAGE TO SHAREHOLDERS

“2025 represents a transformational year for Spartan as we decisively transitioned into an oil-weighted Duvernay growth company, delivering significant liquids growth while maintaining a strong balance sheet and improving capital efficiencies across our drilling program. As a result, we exceeded our annual guidance and are accelerating the execution of our long-term strategy.

Our Duvernay asset has emerged as one of Canada’s most compelling oil-weighted opportunities, consistently delivering productive and scalable well results and achieving record production in December 2025. Strong year-end reserve additions, exceptional operational performance, and lower capital costs have supported the acceleration of our Duvernay production target to 50,000 BOE/d by 2030.

While the Duvernay drives our oil-weighted growth, our Deep Basin asset continues to demonstrate resilience in a challenging natural gas environment, generating stable free cash flow and providing multi-zone development optionality. Additionally, we are developing emerging liquids-rich and oil opportunities across the expanded Deep Basin acreage.

2025 laid the foundation for significant growth in 2026, positioning Spartan as a large-scale, liquids-growth Duvernay operator with decades of long-term asset value. As we execute on the largest capital program in Spartan’s history, I want to extend my gratitude to the ambitious employees at Spartan for their dedication and determination, and to our board of directors, shareholders, and stakeholders for their continued support,” commented Fotis Kalantzis, President and CEO of Spartan.

FOURTH QUARTER 2025 FINANCIAL & OPERATIONAL HIGHLIGHTS

• In the fourth quarter, the Company reported production of 50,065 BOE/d (44% liquids), a 30% increase from the fourth quarter of 2024, and a 16% increase from the third quarter of 2025.
  • Crude oil production increased by 268% and total liquids production increased by 62% compared to the fourth quarter of 2024.
  • Sequentially, crude oil production increased by 76% and total liquids production increased by 30% compared to the third quarter of 2025.
  • December 2025 West Shale Basin Duvernay (the “Duvernay“) production reached a record of 14,074 BOE/d (78% liquids), a 178% increase from December 2024.
• Executed a fourth quarter capital program of $97.9 million, of which approximately 81% was spent on drilling, completing, equipping, and tie-ins.
  • In the Duvernay, Spartan drilled 1 (1.0 net) well and completed and brought on-stream 5 (5.0 net) wells.
  • In the Deep Basin, Spartan drilled 7 (6.5 net) wells and completed and brought on-stream 5 (5.0 net) wells.
• Fourth quarter oil and gas sales totaled $130.9 million, a 57% increase from the fourth quarter of 2024, and a 58% increase from the third quarter of 2025.
• Generated fourth quarter adjusted funds flow of $80.8 million ($0.40 per share, basic and $0.39 per share, diluted), a 60% increase from the fourth quarter of 2024, and a 61% increase from the third quarter of 2025.
• Operating Netback, before hedging, averaged $18.71/BOE during the fourth quarter of 2025, a 38% increase from the fourth quarter of 2024, and a 58% increase from the third quarter of 2025.
• Exited 2025 with Net Debt of $203.9 million against a $450 million credit facility, resulting in a conservative Net Debt to Annualized Adjusted Funds Flow Ratio of 0.6x.

YEAR-END 2025 FINANCIAL & OPERATIONAL HIGHLIGHTS

• Spartan reported production of 42,559 BOE/d (39% liquids) in 2025, a 12% increase from 2024, and exceeded mid-point 2025 production guidance by 6%.
  • Crude oil production increased by 235% and total liquids production increased by 33% compared to 2024.
• The Company successfully executed a capital program of $359.3 million in 2025. The drilling, completion, equipping and tie-in and infrastructure program was completed on budget ($319.6 million), with an additional $39.7 million allocated to opportunistic Duvernay land acquisitions.
  • In the Duvernay, Spartan drilled 16 (13.6 net) wells, completed 16 (13.9 net) wells, and brought on-stream 14 (11.9 net) wells, averaging an IP30 rate of approximately 1,400 BOE/d and 1,000 BBL/d of crude oil per well.
  • 2025 Duvernay lateral lengths increased by 19%, and productivity increased by 25%, while drilling and completions costs decreased by more than 17% as compared to 2024.
  • In the Deep Basin, Spartan drilled 19 (17.1 net) wells and completed and brought on-stream 17 (15.6 net) wells.
• In 2025, Spartan continued to strategically expand its footprint at an attractive entry cost, growing its:
  • Duvernay asset by 83% to 457,000 net acres (714 net sections)
  • Deep Basin asset by 87% to 243,000 net acres (380 net sections)
• Oil and gas sales totaled $385.9 million, generating adjusted funds flow of $224.7 million ($1.13 per share, basic and $1.10 per share, diluted) in 2025, a 28% and a 37% increase from 2024, respectively.
• Despite challenging commodity prices in 2025, Operating Netback, before hedging, averaged $14.94/BOE ($16.45/BOE after hedging), a 28% increase from 2024, attributed to oil-weighted production growth.
• Due to exceptional well performance, significant cost reductions, and substantial drilling inventory expansion, Spartan advanced its Duvernay production target to 50,000 BOE/d by 2030.
• Year-end 2025 reserves evaluation demonstrated strong organic growth across all categories, with notable oil and condensate growth reflecting the Company’s successful transition to a liquids-weighted producer, while establishing a multi-decade inventory depth. Further reserves details were announced on February 9, 2026 and are included in the Company’s AIF.

FINANCIAL & OPERATING HIGHLIGHTS

OPERATIONS UPDATE

Spartan has commenced operations on its 2026 capital program, deploying four rigs with three in the Duvernay and one in the Deep Basin.

In the Duvernay, the Company is focused on delineation and development, with one rig drilling in Willesden Green and two in Gilby. Spartan completed two wells in 2025 that are anticipated to be brought on-stream in the first quarter of 2026. The Company also initiated completions on a 2 (2.0 net) well pad at 01-09-043-06W5 in Willesden Green, with the wells anticipated to be brought on-stream in the second quarter of 2026.

In the Deep Basin, the Company recently drilled a Viking well, brought on-stream wells in the Rock Creek and Mannville formations, and is drilling a Wilrich well. This activity underscores the asset’s multi-zone development optionality.

The Company maintains significant financial and operational optionality to adjust capital allocation in response to commodity price movements, with the ability to accelerate development activity in either the Duvernay or Deep Basin as market conditions warrant.

ABOUT SPARTAN DELTA CORP.

Spartan Delta Corp. is a Calgary-based oil and gas company focused on delivering sustainable oil-weighted production growth. The Company has established one of the largest acreage positions in the Duvernay and operates a substantial Deep Basin asset, providing multi-decade inventory depth across its portfolio of assets. Spartan’s Duvernay asset represents a scalable light-oil growth platform, while the Deep Basin provides stable free funds flow and liquids-rich natural gas development optionality. The Company is committed to operational excellence, capital discipline, and responsible development in relation to the environment and communities in which it operates.

Spartan’s corporate presentation, as of February 23, 2026, 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 Accounting Standards“) 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 Accounting Standards.

The definitions below should be read in conjunction with the “Non-GAAP Measures and Ratios” section of the Company’s most recent MD&A, 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, 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 and net commodities purchased margin, less operating and transportation expenses. “Operating Income, after hedging” is calculated by adjusting Operating Income for realized gains or losses on derivative financial instruments. 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.

Cash provided by operating activities is the most directly comparable measure to Adjusted Funds Flow. “Adjusted Funds Flow” is a non-GAAP financial measure reconciled to cash provided by operating activities by excluding changes in non-cash working capital, adding back transaction costs on acquisitions and dispositions, 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 restructuring following significant acquisition or divestitures are included in Spartan’s general and administrative expenses. Lease liabilities are not included in Spartan’s definition of Net Debt 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 a non-GAAP financial measure calculated by Spartan as Adjusted Funds Flow less Capital Expenditures before A&D. 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 current and long-term debt, reinvest in the business or return capital to shareholders.

Adjusted Funds Flow (“AFF“) per share is a non-GAAP financial ratio used by the Company 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 Accounting Standards for purposes of calculating EPS due to non-cash items that impact net income only. The 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” is a non-GAAP financial measure 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 before A&D is cash used in investing activities.

“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 Accounting Standards. The most directly comparable GAAP measures are acquisition costs and disposition proceeds included as components of cash used in investing activities.

References to “Net Debt” includes long-term debt under Spartan’s revolving credit facility, net of Adjusted Working Capital. Net Debt and Adjusted Working Capital are both non-GAAP financial measures. “Adjusted Working Capital” is calculated as current assets less current liabilities, excluding derivative financial instrument assets and liabilities, lease liabilities, and current debt (if applicable). The Adjusted Working Capital deficit includes cash and cash equivalents, restricted cash, accounts receivable, prepaid expenses and deposits, accounts payable and accrued liabilities, dividends payable, and the current portion of decommissioning obligations.

Spartan uses Net Debt 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 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.

The Company monitors its capital structure using a “Net Debt to Adjusted Funds Flow Ratio“, which is a non-GAAP financial ratio calculated as the ratio of the Company’s Net Debt to its “Annualized Adjusted Funds Flow“. Annualized Adjusted Funds Flow is calculated by multiplying Adjusted Funds Flow for the most recently completed quarter, normalized for significant non-recurring items, by a factor of four.

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.

References to “oil” in this press release include light crude oil and medium crude oil, combined. National Instrument 51-101 – Standards of Disclosure for Oil and Gas Activities (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.

The Company has disclosed condensate as combined with crude oil and/or separately from other natural gas liquids in this press release since the price of condensate as compared to other natural gas liquids is currently significantly higher and the Company believes that this crude oil and condensate presentation provides a more accurate description of its operations and results.

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 $6.64 for the three months ended December 31, 2025 ($3.43 per share for the three months ended December 31, 2024). Spartan’s closing share price was $7.25 on December 31, 2025, compared to $3.45 on December 31, 2024.

As of December 31, 2025, there were 200.5 million common shares outstanding (173.6 million as at December 31, 2024). There are no preferred shares or special preferred shares outstanding.

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:

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”, “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 (or grammatical variations or negatives thereof). 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 continued: execution of the Company’s organic drilling program across its portfolio, pursuit of optimization in the Deep Basin, participation in the consolidation of the Deep Basin fairway, and growth and development of its Duvernay asset. Statements relating to reserves are also deemed to be forward-looking statements, as they involve the implied assessment, based on certain estimates and assumptions, that the reserves described exist in the quantities predicted and that the reserves can be profitably produced in the future.

The forward-looking statements and information are based on certain key expectations and assumptions made by Spartan, including, but not limited to, expectations and assumptions concerning the business plan of Spartan, the timing of and success of future drilling, development and completion activities, the growth opportunities of Spartan’s Duvernay acreage, 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 application of drilling, completion and seismic technology, the Company’s ability to secure sufficient amounts of water, prevailing weather conditions, prevailing legislation affecting the oil and gas industry, prevailing commodity prices, price volatility, future commodity prices, price differentials and the actual prices received for the Company’s products (including pursuant to hedging arrangements), anticipated fluctuations in foreign exchange and interest rates, 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, general economic conditions, 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 and volatility in commodity prices; changes in industry regulations and legislation (including, but not limited to, tax laws, royalties, and environmental regulations); the risk that the U.S. administration (i) maintains tariffs on Canadian goods, including crude oil and natural gas, (ii) increases the rate or scope of previously announced tariffs, or (iii) imposes new tariffs on the import of goods from Canada; the risk that the U.S. and/or Canada imposes any other form of tax, restriction or prohibition on the import or export of products from one country to the other, including crude oil and natural gas, and that such tariffs or other measures (and/or the Canadian government’s response to such tariffs or other measures) adversely affect the Canadian, U.S., and global economies, and by extension the Canadian oil and natural gas industry and the Company; demand and/or market price for the Company’s products and/or otherwise adversely affects the Company; changes in the political landscape both domestically and abroad (including geopolitical developments in Venezuela), wars (including ongoing military actions in the Middle East and between Russia and Ukraine), hostilities, civil insurrections, foreign exchange or interest rates, increased operating and capital costs due to inflationary pressures (actual and anticipated), risks associated with the oil and gas industry in general, 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.

Please refer to Spartan’s most recent MD&A and annual information form 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. Any financial outlook or future-oriented financial information contained in this press release has been approved by management as of the date hereof, is provided for the purpose of conveying the anticipated effects of the Company’s planned activities and strategies and may not be appropriate for other purposes.

This press release contains future-oriented financial information and financial outlook information (collectively, “FOFI“) about Spartan’s 2026 capital program, budget and guidance, including prospective results of operations and production, Operating Netback, before hedging, Adjusted Funds Flow, Adjusted Funds Flow per share, Capital Expenditures, before A&D, Net Debt, operating costs, organic growth, capital efficiency improvements 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 2026 guidance. The Company’s actual results may differ materially from these estimates.

References in this press release to peak rates, peak sales production, initial production rates, IP30s, and other short-term production rates are useful in confirming the presence of hydrocarbons, however such rates are not determinative of the rates at which such wells will commence production and decline thereafter and are not indicative of long-term performance or of ultimate recovery. While encouraging, readers are cautioned not to place reliance on such rates in calculating the aggregate production of Spartan. The Company cautions that such results should be considered preliminary. Peak rates are the highest average daily sales production rate for each well excluding clean-up and downtime.

ABBREVIATIONS

SOURCE Spartan Delta Corp.

 

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