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Surge Energy Inc (Alberta) T.SGY

Alternate Symbol(s):  ZPTAF | T.SGY.DB.B

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

Comment by brewster123on May 05, 2023 11:27am
205 Views
Post# 35433022

RE:Brewster what an utter liar div=18% of free cashflow

RE:Brewster what an utter liar div=18% of free cashflowThat's a quote from the Investor presentation held yesterday.  If that is incorrect, than Surge is lying (whihc I doubt).

"Please join us for Surge Energy’ s Q1 webinar. This will be their first quarter inclusive of the ERF3850 acquisition completed late last year. Surge produces ~25,000boepd,  87% levered to oil in two of the most economic plays in Canada; the Sparky in Alberta and Frobisher and Midale in Saskatchewan. The company boasts a low decline rate of 23% which requires only $175M of capex to remain flat, while expecting cashflow of $335M for 2023. Their $0.48/ year dividend is paid monthly. Given their free cash flow, they will be able to increase their dividend or offer share buy backs as they reach debt repayment milestones."

"All very positive write ups from the street.  Well ahead of Exit production of 25,000 BOEPD.  87% of production levered to oil prices.  WCS diff's have narrowed back to a normalized range of 16% of WTI, which should lead to better pricing subject to WTI. Debt reduction continues and only 18% of FCF is being utilized for their $0.48/year dividend paid monthly.  Join us today to learn more!!!"



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