Surge Energy Inc (Alberta) T.SGY

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

Energy Oil & Gas E&P

Surge Energy Inc. is a Canada-based oil focused exploration and production company. The Company’s business consists of the exploration, development and production of oil and gas from properties in western Canada. Its operations include Sparky and SE Saskatchewan. Its supporting assets include Valhalla, and Greater Sawn. The Sparky operation offers light/medium crude oil production with compelling returns. The SE Saskatchewan operation maintains asset base oil operating netbacks. It has low-cost wells with short payouts and the potential for continued area consolidation. The Valhalla operation offers a stacked pay multi-zone potential with light oil and provides a range of area infrastructure and access to multiple egress options supports attractive operating netbacks. Its Greater Swan operation consists of concentrated light oil assets with conventional slave point reefs.

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Surge Energy Inc (Alberta) > Walking back the numbers

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Post by downtozeroon Jan 17, 2022 6:14pm

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Post# 34326367

Walking back the numbers

Any ideas what has caused the reductions in planned performance? Why does SGY constantly promise better performance in the future, then walks it back to poorer performance when the dates arrive. Even the lower numbers are good, just not as good as earlier promises. Forcasts for 2022 @$75 WTI
Aug 2021: CAPEX=110M, FCF=140M, debt to funds flow 0.6x
Nov 2021: CAPEX=120M, FCF=135M, debt to funds flow 0.6x
Jan 2022: CAPEX=124M, FCF=131M, debt to funds flow 0.75x

CAPEX went up 14M, FCF went down 9M and debt to funds flow worsened by 0.15x. All to meet the same boepd. I can only guess 2021 had higher decline rate than expected and higher debt servicing costs.

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