Surge Energy Inc (Alberta) T.SGY

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

Energy Oil & Gas E&P

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

Surge Energy Inc (Alberta) > Kherson

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Comment by downtozeroon Jun 29, 2021 2:01pm

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Post# 33466910

RE:RE:RE:RE:RE:RE:RE:Kherson

Chris007,

Eric Nutall uses EV/CF and not FCF in his presentations and says average 4 by 6 times target multiple.

https://twitter.com/ericnuttall/status/1405516548807213065/photo/1

$250M Cash flow @$75
608M shares

4 to 6 multiple is $1.64 to $2.45
Debt at end of 2022 is expected to be significantly lower.
If all FCF this year and next year is applied to debt, it will be <$50M.

They expect some FCF will be applied to dividends mid-next year. This will help push the share price up.

I still predict SGY will be $2.5 next year if oil stays at $75.

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