share price dichotomyMarket cap of SGY is $112 million, debt is $350 million. For every $1 of "equity" you buy, you also buy $3 worth of debt. Who in their right mind would buy that?
But....Paul will be hedging production like crazy right now to ensure profitability over the next several months. Let's say Surge decides to bring back a dividend of 1/2 cent per month or 6 cents per year. The cost of that would be $20 million/year. They are currently profiting more than that per month and the hedging will make the profit sustainable for let's say a year, even if the oil price tanks. The half cent dividend, if shares are bought today will pay 15%, a very sustainable dividend for a year regardless of future oil price. Who in their right mind wouldn't buy that?