NB of Canada notes Surge Energy's deal close, 2023 guidance. 07:25 AM EST, 12/20/2022 (MT Newswires) -- National Bank of Canada noted Monday Surge Energy Inc. (SGY.TO)'s completion of its deal to acquire crude oil assets in its Sparky and Saskatchewan core areas from Enerplus Corp. (ERF.TO) for $202 million.
The bank also noted Surge Energy's 2023 guidance that includes estimated average production of 25,000 barrels of oil equivalent per day and $175 million in expenditures.
National Bank said Surge's guidance "continues to highlight the value inherent to its augmented, low-decline and high-return oil assets.
The bank said a potential doubling of shareholder returns in the second half of 2023 is a major catalyst for Surge Energy.
National Bank gave Surge Energy an outperform rating with a $15.00 price target.