Brief summary of SGY's webinar via Adelaide Capital...* Surge Energy is a 25,000 boepd oil & gas producer, 87% weighted to oil.
* They operate in two of the four most economic plays in WCSB.
* They had an extremely exciting 2022 with the drill bit and on the M&A front.
* The company currently pays a $0.48/year dividend (paid monthly) with a well-devised plan to increase returns to shareholders as well as a low decline rate of 23%. They are the only company in their peer group boasting this much leverage to oil in addition to superior asset quality.
* SGY just put out the BEST results in 2022 for independent (Sproule) PDP NAV per share growth for any crude oil (in peer group) divco in Canada.
* Sproule PDP NAV was up 107% per share to $7.28... on this basis, from a 2022 Surge value perspective, Surge is trading at 1.2 times it’s new, independent, Sproule PDP NAV per share. .
* There is an attractive (low) stock market trading multiple currently applied to SGY’s PDP NAV per share (1.2x), combined with Surge’s attractive, peer leading, FCF yield. (FCF takes into account SGY’s high oil netbacks (> $40/boe), low corporate decline (23%), and top tier/quick well payouts (< 10 months) at Sparky & SE Sask.
* Surge Energy stands out as an attractive value proposition amongst it’s Canadian oil peer group. There is also the attractive $0.48 per share annual dividend providing a 5.5% cash yield (paid monthly)... with a very low 65%, all-in payout ratio.
* SGY shareholders get paid an attractive, increasing/compounding, monthly cash dividend, while the market catches up and recognizes Surge’s new 12/31/22 Sproule P+P NAV of $22.37 per share.