RE:Debt is Good! Sgy can make way more money with debt!Debt is only good when it can be used to generate opportunities that will produce revenues well in excess of the cost of the debt. It is also only good when it is kept at levels that do not impede management's abilities to make the best decisions for the business.
We are less than two years away from a time when many of the companies that are currently spinning out great profits almost went under. Most of these companies could have been much more profitable last year but they were instead hampered by hedges they had been forced to put in place by their bankers.
Surge is now spinning out enough cash that it can easily fund its exploration and development program using internal cash flow. It doesn't need to borrow more to maintain (and even grow) production. Meanwhile, those of us who have been investing in this industry for decades know that prices are volatile and can (and most likely will) go down. When that happens, too much debt becomes unsustainable.
Leverage and Debt are useful tools, but it's also important to keep the balance sheet in good condition.