BMO maintains Outperform rating, Cdn$5 target on Spartan Delta stock

Published 30/01/2025, 18:02
BMO maintains Outperform rating, Cdn$5 target on Spartan Delta stock

On Thursday, BMO Capital Markets reaffirmed its positive stance on Spartan Delta Corp (NSE:DELT) (SDE:CN) (OTC: DALXF), maintaining an Outperform rating and a price target of Cdn$5.00. BMO Capital’s analyst highlighted the company’s strategic focus on high-quality assets, particularly after the profitable sale of its Montney asset in 2023.

The analyst noted that Spartan Delta’s emphasis has now shifted to the Duvernay formation, where technological advancements have improved economic outcomes. The company’s latest actions demonstrate its intention to concentrate on top-tier assets, evidenced by a doubling of its investment in the Duvernay region. This increased financial commitment is expected to capitalize on the promising initial production rates (IP30) that have surpassed 1,100 barrels of oil equivalent per day (boe/d).

Spartan Delta boasts approximately 350 net sections in the Duvernay, positioning the company as a potential leader as the play develops. The analyst’s commentary underscores Spartan Delta’s potential to become the preferred choice for investors as the Duvernay formation continues to attract more mainstream investment interest.

The company’s strategic allocation of resources and attention to the Duvernay align with its goal of replicating the success of its Montney asset sale. With Spartan Delta’s strong asset base and favorable production rates, the company is poised to capture the attention of investors looking for growth in the energy sector.

The reiterated Outperform rating and price target reflect BMO Capital’s confidence in Spartan Delta’s ability to execute its strategic plan and deliver value to its shareholders. The analyst’s comments indicate a positive outlook for the company’s performance and its potential to stand out in the competitive landscape.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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