Surge Energy Inc (Alberta) T.SGY

$1,300,000 (Cdn) Cash Flow/Day???

[Countrin2tive]

Was just playing with some numbers based on break even $45/$56Cdn breakeven / barrel.  Does $1.300,000 (Cdn) CF at todays WTI each day sound right?  If so, hard to believe this wouldn't break out soon.  Does anyone else see this the same way?

[stocks123ST]

That is not the price SGY is getting!!! I think, the hedge is just less than $80... I'm not sure, but the market price is minimal at best: maybe 1-2000 b/d... The hedge is a two edged sword! With a 22 month hedge of $80/b, Paul could announce that the dividend would be  safe for the next 2 years or so... VET stock more than doubled after Mar 07 when they announced that they were

[Countrin2tive]

Agree, but not all production is hedged.  To be honest, calculation of cash flow is a bit of a mystery, for me anyhow.  I don't find the Earnings reports as clear as they could be.  As an an example, does anyone really know what breakeven cost/barrel is.  I seem to remember the CEO mentioned $45 a while while being interviewed back during the bear oil market.  Anyhow

[fortunefavorsus]

He said $45 and proabably even lower.  With the debt being paid down rapidly and if well perfornce beats then maybe they get down under $40 as breakeven particularly if they focused on the Sask wells.  This is a no brainer buy.

[Rockyboy2015]

Break even might be as much as 10% higher or more then last year due to oil service companies drastically raising what they charge for equipment and labour costs have shot up as well. 

[fortunefavorsus]

Surge said they got good rates starting early and the best rigs for first quarter and they said that the factored higher drilling cost for the year in their estimates