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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 uwebb429on May 28, 2024 2:04pm
201 Views
Post# 36060772

RE:RE:RE:High Volume

RE:RE:RE:High Volume Everything Eric talks about on national TV is always related to what stocks are in the energy fund he manages.The calls and emails are not random. They are pre-screened so he can talk about as many companies as possible that are in the Ninepoint Energy fund. Companies that are in the fund get promoted on national TV and companies no longer in the fund tend to get bashed. 

I always rate Eric's performance after a show. He gets a 10 out of 10 when he manages to talk about each and every company in the Ninepoint Energy fund. 

https://www.morningstar.com/etfs/neoe/nnrg/portfolio 

Now you can go back and listen to his performance last Thursday and see how well he did. 

https://www.bnnbloomberg.ca/market-call/full-episode-market-call-for-thursday-may-23-2024~2922853

The Ninepoint Energy fund has grown to almost $2 billion dollars. As this fund has grown, Eric has had to move away from small mid size companies like SGY. The fund's performance was not good last year so Eric has been replacing mid cap companies with large cap companies like Cenovus and Tourmaline. It is much easier to move in and out of large companies without getting noticed. When he sold off SGY last fall, the market noticed and SGY's stock price got pounded.  

Just because Eric is not interested in SGY does not mean it is a horrible investment. SGY is having a great day today. SGY pays an almost 7% dividend that is well covered by cash flow and they have enough left over to keep paying down debt. There is lots of room for capital appreciation if the price of oil ever goes back up to $90 or $100 this summer like it might.

SGY is in a phase of low to no growth. Production might even decrease this year if they have sold off some assets to accelerate debt repayment. People looking for high growth energy stocks that are going to go to the moon should look elsewhere. Small retail investors that buy at the right time should do OK. Yesterday or the day before were good times to buy. 
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