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Surge Energy Inc (Alberta) T.SGY

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

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, Greater Sawn and Shaunavon. 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 potential for continued area consolidation. The Valhalla operation is offering stacked pay multi-zone potential with light oil and provides range of area infrastructure and access to multiple egress options supports attractive operating netbacks. The Shaunavon operation is producing low decline, medium gravity crude oil with high operating netbacks. Its Greater Swan operation consists of concentrated light oil asset with conventional slave point reefs.


TSX:SGY - Post by User

Post by Tradestayon Jul 14, 2022 12:01pm
299 Views
Post# 34824377

Yours shares are down, but don't forget this.

Yours shares are down, but don't forget this.
Cardinal, BTE, SGY etc based their 2022 production and record cash flow on $90 WTI. $75 was there low target. On the low target cash flow is significant. Oil already averaged well above $90 this year and half the year is gone. Now in 2023 those projection at $75 WTI will be even better because there will be lower debts for most oil names. Check their investors presentation. Lower debts means lower interest payment. Most names have already started share buy back so that improves the EPS. Oil inventories are still well below 5 year averages. Admittedly last EIA was more bearish but thats with large SPR drawn down. With oil volatility producers will cut back on increasing production again most probably until the can get a better view of where things are going, until then they will focus on shareholders return
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