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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 ROIcrusaderon Jan 05, 2022 10:51am
282 Views
Post# 34285100

RE:RE:RE:Tickling 5.00

RE:RE:RE:Tickling 5.00... but Nuttal is not a fan of SGY or Paul. https://stockchase.com/company/view/3780/SGY-T then again, Nuttal is a bit crafty and won't tip his hand until after he's executed his position. In Dec he tossed 77mil (approx) into a new Baytex position, so who knows, the market has proven me wrong many times before.

Has gone through a couple iterations. Paid down debt through selling assets. If the company cannot return meaningful capital back, there is no catalyst. It is not attractive enough for him.

On the optimistic side, 2022 brings 130-55m ish of FCF, which is nice, but I'm just struggling a little with the second lien 8.85% term debt of 130m taken on in Dec especially when I see other companies securing long term financing at or less than 4%, take WCP for example, at 3.1% https://www.wcap.ca/application/files/2916/3879/0739/WCP_2021_12_06.pdf I know the scale of the debt impacts this, but that's over 5.5% disparity, and WCP is already paying a 3-4% dividend. 

That being said, SGY is definitely getting a late to the party bump as the previous poster mentioned. 
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