EPG's updated profile on SGY...On May 29th, Surge closed a sale of some non-core assets, using the sales proceeds to pay down debt. Now that the Company has reached Phase Two of their debt repayment goals, Surge will be increasing their monthly dividends starting in August.
Free cash flow going forward will be split 50/50 for further debt repayment and an aggressive stock buyback program. Based on my forecast model, Surge should achieve the final phase of their debt repayment goals early in 2025. Post Phase Three, 75% of free cash flow will be used for increased dividends, stock buybacks and accelerated production growth.
Surge has a lot of high-quality "Running Room" in two core areas they call Sparky and SE Saskatchewan. Revenues are heavily weighted to oil, and their realized oil price is getting a boost from completion of the Trans Mountain Pipeline (TMX).
Click the link below to view the updated profile...
https://mcusercontent.com/865ccb371827440037e7f7e73/files/dc9a68cd-ecfc-8f8d-a1c7-9e6555f9a121/Surge_Energy_Profile_6_15_2024.pdf