RE:Seeking Alpha: SGY Article Graham Grieder's thesis shows pie charts from Surge's Summer 2022 presentation. The new January 2023 Winter presentation that was just released this week shows that the Phase 1, 2, 3 debt targets have all been adjusted upward by $50 million for each target level.
Surge had to take on some new debt to complete their recent acquisition. Adjusting their debt targets upwards makes sense. This should allow them to move from Phase 1 to Phase 2 and from Phase 2 to Phase 3 at approximately the same time as any previous plan might have promised.
If WTI crashes in Q1 and takes SGY down with it to $8.00 or to $7.15 like the lines in Graham's presentation show, I would be looking to buy some more SGY. They just broke out of the bearish downward triangle this week so hopefully it is onward and upwards back towards $14.00 from here.
Most oil companies that survived the Covid era learned a good lesson. Pay down debt and reward shareholders with dividends to keep them happy. SGY is well aligned with this new philosophy. Their long term plan looks good. They have a 10 year inventory of low risk, low cost wells just waiting to be drilled and tied in.