Alberta Gov't lowering Corportate Tax Rate 12% - 8%
Eric Nutell recently stated on BNN that Surge is fully funded with its current costs at $48.xx
WTI. Keeping in mind that Eric doesn't like Surge, I highly doubt that he inflated the price that they are balanced at in any way. WTI falling below $48 for a short period (less than12 months) and considering a longer term view equals a great buying opportunity. WTI falling below $48 for a long time (greater than 12 months) will pose a problem for all oil companies, not just Surge. It is not feasible and isn't sustainable. The longer the price is below $50 WTI and the lower it goes below $50 WTI, my speculation is the higher the pendulum will swing when the price reverses due to a significant loss in production due to no production replacement. Demand will significantly outpacing supply causing prices to spike.
One last thing that comes to mind is Surge and other OIl/Gase companies in Alberta will be able to with weather lower prices than before. This is due to a factor outside their controll--the Alberta gov't is lowering corportate tax rates from 12% to 8%.
https://www.alberta.ca/job-creation-tax-cut.aspx