Just wait 'til Next YearI've owned this stock for 6 years. When I look at my portfolio, Surge is by far my biggest loser. It's one thing to say that "things look bad because the banks made management layer on these hedges" but the reason they did that was because management made some debt-financed acquisitions that have yet to pan out. Recently, they've compounded that problem by making more acquisition by diluting equity and adding debt. This year, CJ shares have increased 10X, SGY has gone nowhere.
Now it's all about 2022. "Just trust us and it's all going to be great next year" is the PR messaging. The numbers look good, right until management makes another bad acquisition.
At this point, I'm still willing to hold, but I need to see two things from management:
1. A commitment that there will be no more acquisitions until the debt and share count are both reduced.
2. A commitment to drill and develop the current inventory and be in the business of being an O&G company instead of an M&A company.