Based on oil prices at US $70 WTI... Just received the following information from Stephanie McNeill, Communications Analyst with Surge. It's the short version of their latest corporate presentation.
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FIVE KEY REASONS TO OWN SURGE...
Surge has industry leading positive cash flow 'torque' to both rising oil prices and tight Canadian oil price differentials; as well as a very high quality, low cost, low risk, conventional crude oil asset base.
1. The Company has a proven management team with significant insider ownership, and a history of providing investors compelling returns.
2. Crude oil is up >500% in the last 14 months with many large brokerage firms now calling for 80+ WTI oil prices in 2H/2021 and beyond.
3. Surge will deliver >$160 million of adjusted funds flow in 2022 ($0.42 per share), generating $62 million in free cash flow ($0.16 per share), providing an annual free cash flow return of 27% per share.
4. Surge produces medium and light gravity crude oil from elite, large OOIP crude oil assets, with some of the lowest full cycle capital costs in Canada.
5. The Company has a dominant position in its core Sparky asset, which is one of the top conventional oil growth plays in all of Canada with a deep, 14 year, low risk, development drilling inventory.