RE:RE:RE:RE:RE:RE:How much Debt does Surge Energy have now?It's all good mate. Keep in mind that those hedges have been forced on him as part of the refinance deal he struck. Unless he increases production and sells more oil, that debt at 25 million fcf would take 3 years+ to pay off.
This is how I see it. With the wells that are coming on line and higher oil prices, the fcf should be closer to 65 million in q2. For q3, q4 slightly less. So in the next 3 quarters fcf should total close to 190 million with wti calculated at $94. Oil trading higher will increase fcf from there regardless of hedges (right now in q2 avg. is $104'ish) so it is very possible that even with the divy and a modest capex, that 1/2 remaining debt ($150 million) will be paid before the end of 2022.
Bottom line, if we start Q1-2023 with a 150 million debt load and fcf at $52 million per quarter (conservatively since this is what we have now SO no increase in production because all 23 1/2 of their wells hit nothing), it becomes meaningless debt.
Mas