Surge Energy Inc (Alberta) T.SGY

Not a happy shareholder right now

[scienceguy36]

I have sent an email to investor relations to clarify  how these hedges (swaps) for 2022 were decided upon.
Unfortunately because of these hedges (Q2 1/3 of production is hedged at $60.75) i don't see this stock meeting the expectations of so many optimistic long term investors.
I have a fairly large holding in surge (large for me anyway)  and am really disappointed at these hedges for 2022. Any institution thinking of investing in Surge will be doing their research and will opt for another oil company that does not have such restrictive  hedges in place.
Not in a happy place right now.

[Crackerjack12]

luckily for the other quarters the hedges are only 19% of all production for 2022. They'll still meet their requirements to pay debt down to around 250-265m range by the end of April.

[Crackerjack12]

also weren't these hedges already known from prior reporting periods so I have no idea why you would email then now for their hedging they did last year.

[ditchdigger251]

The 1/3 volume hedge has a U.S. example in Ring Energy, another company I follow, where because of debt the bank made them take a hedge for about 3300 bbls/d oil at ~$47 that lasts to the end of this year (60% of their hedges came off just at the end of 2021).  That said REI should pass 10,000 bbls/d I'd expect before the end of Q2 - they did do an additional hedge for 1000 bbls/d at $84

[scienceguy36]

I assumed the hedges reported were in U.S dollars until i went back and read it today. I now see more opportuntiy for growth in at least a half dozen other oil companies that have less restrictive hedges. If this stock ever gets back up to $9.00 i am selling. i don't think they will realize anywhere close to the stock price that is being suggested in 2022. If oil stays at elevated levels the

[fortunefavorsus]

With the swaps and collars they will get around $75 Canadian for those hedges.