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.

TSX:SGY - Post by User

Surge Energy Inc (Alberta) > Surge Debt!

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Comment by zack50on Nov 02, 2022 6:05pm

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Post# 35068059

RE:RE:RE:RE:Surge Debt!

Kherson wrote:

zack50 wrote: [quote=Kherson]

Kherson wrote: Paul needs to get our debt below $100 million before he increases dividends.
Kherson

I posted this a month ago and I still believe it. Surge has way too much debt!
Kherson

Well there you go Kherson... I will have to liquidate my assets and throw a sidewalk pizza!

With oil at ~$90US today, Surge is poised to deliver strong operational results in Q4/22 and beyond. They have indciated they will deliver to its stakeholders a combination of:

* Continued net debt repayment
* A sustainable, base monthly dividend
* Share buybacks
* A modest production growth wedge
* Potential for variable or special dividends

Surge reported sales of $179.3-million for Q3, up from $105.1-million. The performance was ahead of expectations of $164-million. Their net income of $78.1-million or 91 cents per share was ahead of expectations of 50 cents per share and compared to net income of $67.6-million or $1.15 a year ago.

Relax and stop complaining about the debt... If you truly believe "that we has shareholders have been played fools", then why do you still hold shares in Surge. As I indicated above, you have an alternative... sell your shares and move on.

Zack50, you should now realize that we shareholders have been played fools!
Kherson
[/quote]
If you truly believe "that we shareholders have been played fools", then why do you still hold shares in Surge. As I indicated above, you have an alternative... sell your shares and move on.

As a long time shareholder, my average share price in SGY is ~$5.73, placing me in a positive position... so I can hardly consider myself to have been played a fool.

Furthermore, I do believe that Surge has finally gotten it right in that they have comitted to a phased in approach with regard to debt payment, the base dividend, future share buybacks and possible special dividends if the price of oil should stay in the vicinity of WTI $90 or more.

If oil dips below the designated WTI $75, I'll reconsider my strategy.

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