RE:RE:RE:Investing for Idiots - At $80 SGY Net Asset Value $24 share I'm no company historian stocks123st so I'm not in a position to answer your questions. I've only held a position for a few months and my due diligence was based on last years information plus this years plans and guidance. I modeled projections on various commodity prices and standard industry valuation metrics and saw Surge as having significant upside.
For example at $75 wti, they should generate FFO of 255 million or a little better than $3/share. Using 5x FFO/share puts the implied value at $15.30 Using the $124 Capex for 2022, that leaves Free Cash at 131million or 1.57/share on a stock I bought at roughly $7.75 average and at a commodity price much higher than modeled. Every $5 increase in oil adds about .25/share in free cash. Paul has repeatedly stated that he believes in return of capital and said 5-6% was the target as I recall. They can do 5% dividends with less than half that cash at $75. I know they are assigning a lot of the free cash to debt, $100 million I think, which strengthens the balance sheet and removes an element of risk
I'm optimistic.
Good luck all