RE:Just a friendly reminder…There is no excess cash flow at $70 WTI to pay down debt. Q2 is not looking good. If the oil price does not recover this summer, they will likely need to increase debt or issue shares in exchange for some more once in a lifetime properties that can generate some cash flow.
I am betting that the price of oil recovers and they will be able to resume their business plan including more debt repayment soon enough. They need $80 WTI or better before they can start paying down their long term debt any meaningful amount. If the price of oil does not recover to $80, you will likely return to this forum even more frustrated a few months from now.
Check out the Summer 2023 Corporate Presentation for Surge.
https://www.surgeenergy.ca/wp-content/uploads/2023/04/Corporate-Presentation-5-8-23.pdf Things look good at $80 WTI. All of the analysts covering SGY expect good things going forward. Sit back and relax. Pray to the oil gods. Maybe OPEC will announce another production cut this Sunday.