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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

Post by downtozeroon Jul 31, 2021 10:49am
221 Views
Post# 33636936

Help with SGY numbers

Help with SGY numbersBased on 2nd quarter results, SGY lost $25.6M this quarter. If they had no hedges at all, they would have made $4M. Market conditions were the same the past quarter as we hope for next year with average $70 WTI. If this is true, this would equate to $16M free cash flow next year with no hedges. I'm not even counting the fact that the capital expenditures were way down from the 1st quarter. If SGY has advertised they will make between $100 and $130M FCF next year based on $70 WTI, where is all this going to come from? It can't be all based on the Astra deal. Management hasn't said a word about the loss, and only talking about how wonderful things are going to be next year. I want to stay long based on those projections, but need to understand if they are real or not.
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