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.

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Surge Energy Inc (Alberta) > Walking back the numbers

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Post by downtozeroon Jan 17, 2022 6:14pm

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Post# 34326367

Walking back the numbers

Any ideas what has caused the reductions in planned performance? Why does SGY constantly promise better performance in the future, then walks it back to poorer performance when the dates arrive. Even the lower numbers are good, just not as good as earlier promises. Forcasts for 2022 @$75 WTI
Aug 2021: CAPEX=110M, FCF=140M, debt to funds flow 0.6x
Nov 2021: CAPEX=120M, FCF=135M, debt to funds flow 0.6x
Jan 2022: CAPEX=124M, FCF=131M, debt to funds flow 0.75x

CAPEX went up 14M, FCF went down 9M and debt to funds flow worsened by 0.15x. All to meet the same boepd. I can only guess 2021 had higher decline rate than expected and higher debt servicing costs.

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