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)

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Post by zack50on Jan 27, 2022 7:46pm

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Post# 34369252

"Force a re-rating"

According to data compiled by Bloomberg, Canadian oil & gas companies trade at lower valuations than their US peers... ~16x vs ~21x... and that's after a breakout in 2021.

Eric Nuttall says that Canadian producers can "force a re-rating" of the valuations by using FCF from higher present day commodity prices to aggressively buy back shares and boost dividends. That could get the attention of fund managers who have exited the oil and gas industry due to concerns related to ESG investing strategies.

Hopefully, Surge does one or the other... or both.