RE:CASH OUT IN TWO YEARS OR LESS (SGY WILL BE GOING PRIVATEThe next 4 quarters will be money gushers for Surge Energy. They said so, everyone knows it as well. Oil prices are extremely strong and getting stronger. Their hedges will roll over and they'll be able to buy new hedges at higher prices.
140 cash flows coming soon for a 200M + 160M acquisition, therefore 360M company. At which point they will have net debt to cash flow of 0.6 ... just wow.
They are now taking ESG more seriously.
Only downside is a price war with Oil prices going below $40. This would be pressure on the current share price. But the current price gives you the free optionality of above 140M cash flows.