from Canaccord this morning WHY DO WE KEEP ON HIGHLIGHTING SURGE? SHOW ME ANOTHER STOCK WHERE THE CEO IS BUYING LIKE COLBORNE IS BUYING.
Insiders at Surge Energy continue to add to their positions through purchases via the public
market. Between April 14-17, 2014, Surge kingpin, Paul Colborne, bought an additional 110,000 common shares (both directly and indirectly) at an average price of $6.847 per common share ($753,200). Colborne, who is Surge's Chairman, President and CEO, has bought nearly $2.57 million worth of stock through the public market over the last 30 days. In the past year, Colborne has purchased nearly $9.13 million worth of stock. Outside of Colborne, last week, Robert Leach, a director of Surge, purchased 50,000 common shares through the public market at an average price of $6.972 per common share ($348,600).
At last update (April 8), Surge announced that current production in the field has exceeded the company's previously stated 2014 exit rate guidance of 16,550 boe/d on the back of better than expected development drilling throughout Q1, discovery of a new oil pool in the Shaunavon and positive initial response from its waterflood programs. The company has modestly increased its exit rate from 16,550 to 16,850 boe/d (or from +21,000 boe/d to 21,350 boe/d pro forma the Longview Oil (LNV) acquisition). Surge indicated it will provide more detailed forecasts following the closing of the transaction, which is expected in early June.
Surge currently offers a ~7.5% yield on an 84% all in payout ratio (2015), which is lower than its peer group (6.0% on 99% all in payout).