Surge Energy Inc (Alberta) T.SGY

SGY - May 2021 Investors presentation posted

[Windyhill]

https://www.surgeenergy.ca/wp-content/uploads/2021/05/SGYCorpPres-May2021-Final.pdf

[downtozero]

Not a great presentation to get the needed information for a long term investment. It would be nice to see multi-year graphs to show free cash flow, capex and debt reduction projections.

[Chris007]

Definitely a bit strange with the focus almost entirely on 2022...not much in there about guidance for the rest of the current year, other than the fact they budgeted $89m in capex for the year

[pointer]

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[Countrin2tive]

At todays oil prices, I think SGY may well have it's house in order.  however, their emphasis on 2022 in the financials, I think, is because if you check the fresh Company Presentation on the SGY website, there are some unadvantagoius hedges to ride out over the next few quarters.  If the oil prices stay at current levels or above over that time frame, SP of $1 would seem to be cheap

[Chris007]

The lack of growth is definitely a worrying sign. They ended 2019 with production at 20,325 boe/d....now they are guiding for 16,500 boe/d for the next year and a half...after an asset sale and share dillution of almost 11.5%

[Countrin2tive]

I agree Chris, and thanks for pointing this out. I was beginning to think either I had missed something, or was the only one who noticed. When the asset sale was announced my impression was Company was sitting at about 17,500 barrels. My simple math based on what Company released indicated after first Quarter grilling, SGY would wind up at about 18,000. Perhaps they don't have a complete

[Jnasty2pointO]

Does anyone not think this is a massive issue? It goes beyond trying to be cunning in my opinion. No barrels gained noted from both drilling programs 1H and 2H and a ton of cap ex next year with no additional barrels either!! Something is up. Nervous as a planned long term holder.

[pointer]

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[littledave55555]

This is just my opinion .. It cost money to increase barrels of oil... I would rather see them pay down the debt ... lots of companys are doing the same thing... It will make the company strong down the road and better for share holders ...MY OPINION ONLY ... GO SGY GO !!!!!!!