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

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Post by zack50on Dec 21, 2022 6:53pm

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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)