Surge Energy Inc (Alberta) T.SGY

Alternate Symbol(s): T.SGY.DB.B | ZPTAF

Energy Oil & Gas E&P

Surge Energy Inc. is a Canada-based oil focused exploration and production (E&P) company. The Company's business consists of the exploration, development and production of oil and gas from properties in Western Canada. It holds focused and operated light and medium gravity crude oil properties in Alberta, Saskatchewan and Manitoba, characterized by large oil in place crude oil reservoirs with low recovery factors. It offers exposure to two of the five conventional oil growth plays in Canada: the Sparky and SE Saskatchewan. It holds a dominant land position and is drilling a mix of horizontal multi-frac and horizontal multi-lateral wells in the Sparky area. Sparky is a large, well established oil producing fairway in Western Canada. SE Saskatchewan is a focused operated asset base with light oil operating netbacks. SE Saskatchewan operates low-cost wells with short payouts and offers potential for continued area consolidation.

TSX:SGY - Post by User

Surge Energy Inc (Alberta) > A review - there's a lot to like here...

<< Previous

Bullboard Posts

Next >>

Post by zack50on Dec 21, 2022 6:53pm

582 Views

Post# 35185975

A review - there's a lot to like here...

Following their recent acquisition, Surge has the following key corporate characteristics:

OOIP / Recovery Factor	3.1 billion^a of net OOIP; 7.5 % RF to date^a
Reserve Base	120 mm boe (87% oil) of independently audited Proven plus Probable reserves as at year end 2021 on a combined basis 12.4 year RLI on Proven plus Probable reserves^b
Production Base & Decline Profile	25,000 boepd of current production (87% light/medium gravity oil) 23% annual decline
Operating Netbacks	Surge's forecasted operating netback^cis $44.50 per boe (@ US $80 WTI flat pricing)
Development Drilling Inventory	> 1,000 net development drilling locations in inventory^d 12 year drilling inventory^d
Cash Flow Base	2023(e) cash flow from operating activities is $335 million (@ US $80 WTI flat oil prices) or $3.47 per share
Free Cash Flow	2023(e) free cash flow before dividends^c is $160 million or $1.66 per share (@ US $80 WTI flat oil prices)
Dividend Yield / Payout Ratio	2023(e) dividend yield^e is currently 5.6% 2023(e) all-in payout ratio^c is estimated at 66%
Balance Sheet	Surge's estimated exit 2023 net debt to cash flow from operating activities^c is 0.6 times (@ US $80 WTI flat oil prices)
Tax Pools	Surge estimates approximately $1.4 billion of tax pools at year end 2022 Surge's tax horizon is estimated to be approximately four years (@ US $80 WTI flat oil prices)
Shares Outstanding	Surge has 96.5 million common shares issued and outstanding (basic)