Hi there,
I was not familiar with this one so had to do a little digging. I wasn't familiar because it was largely a micro cap exploration company which are a dime a dozen. That said, Spartan has begun producing and is generating impressive cash flows at these commodity prices. Through the first nine months of the year, NG accouted for 62% of production while oil accounted for the 18%. However, given the high oil prices, revenue was split 47% to 37%. Therein lies the risk, if oil prices drop in a material way, you'll see revenue impacted. It is particular susceptible to a downtrend because it only has 15% of production hedged.
That said, last quarter it generated $142M in FCF and reduced their debt load to only $262M. Given how high oil prices have persisted this quarter, i'd say they are well positioned to deliver more cash flows and reduce debt further this coming quarter.
It doesn't appear to give production guidance beyond 2022 but if it can continue growing (which it appears to be doing on a reserve basis) it can be an attractive play. I'm always weary of small caps that have had big rises (like this one i sup 110% this year) as the easy money has already been made. That said, it seems to be in good financial shape and at these prices, should be able to internally fund growth.
Honestly, not a bad find here but will be far more volatile than some of the larger players so just be sure it is within your risk tolerance. I do like what I see though.
Mat