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Surge Energy Inc (Alberta) T.SGY

Alternate Symbol(s):  ZPTAF | T.SGY.DB.B

Surge Energy Inc. is a Canada-based oil focused exploration and production (E&P) company. The Company's business consists of the exploration, development and production of oil and gas from properties in Western Canada. It holds focused and operated light and medium gravity crude oil properties in Alberta, Saskatchewan and Manitoba, characterized by large oil in place crude oil reservoirs with low recovery factors. It offers exposure to two of the five conventional oil growth plays in Canada: the Sparky and SE Saskatchewan. It holds a dominant land position and is drilling a mix of horizontal multi-frac and horizontal multi-lateral wells in the Sparky area. Sparky is a large, well established oil producing fairway in Western Canada. SE Saskatchewan is a focused operated asset base with light oil operating netbacks. SE Saskatchewan operates low-cost wells with short payouts and offers potential for continued area consolidation.


TSX:SGY - Post by User

Comment by Chris007on Jun 23, 2021 11:10pm
328 Views
Post# 33439667

RE:This is a rather unique situation

RE:This is a rather unique situation Nothing particularly unique to surge. plenty of small cap e&ps are still crazy cheap, even after multibagger returns over the last year.

Using Nutall's favored 4x CF/EV for 2022, SGY is definitely worth a buck assuming $65 WTI

Cash flow @65WTI is estimated at $210,000,000

4 x 210,000,000 =$840,000,000

$840M-210M (2022 net debt) = $630M

$630M/608M shares outstanding = $1.04/share

If you think the discount that SGY is trading at is crazy, OBE is even more nuts

Cash flow at $65 WTI in 2022 is expected to be $254M

$254M x 4 = $1,016,000,000

$1,016,000,000 - $303,000,000 (2022 net debt) = $713,000,000

$713M/74.9M shares oustanding = $9.52/share

OBE is currently trading at $4.38/share


soundandfury wrote: Here we are a 20,200 bpd oil company.......crude is 73.00......next year our fcf is projected to be somewhere between 85 million and 120 million dollars......we now have 5 cash generateing areas.......3 or 4 core areas.......an experienced management team......a good cfo.......and yet our stock can't get to 1.00.........shakes my head and wonders what went wrong? What do you think they talk about at the sgy board meetings after the cfo gives his presentation? Hmmmm


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