Surge Energy Inc (Alberta) T.SGY

WCS @ $55+

[senseimike]

last itme WCS traded over $55 this stock was at 5X this price.

[ppp]

They lost 11 dollars a bbl on their hedges in Q1 this is going to be worse in Q2. One of the many reasons this is under performing. These guys got squeezed by the banks causing them to make stupid moves. 

[ariesleaf]

That blunder cost the shareholder's $2.50 or more a share.

[FatherJack]

Yeah but they lived to fight another day. Things were pretty bleak for a while and the hedges provided security for the SGY so I'll cut management some slack  for the hedges.

[ariesleaf]

No Slack for management from me. They should have had a better time frame which is better planning. Please name another peer like SGY in the same boat.

[downtozero]

Probably if you found any other companies that got large BDC loans to avoid bankruptsy, they would also be in the same boat. Give SGY time and they will recover, it's too soon now. Also note that if oil didn't recover before COVID lockdowns ended everywhere, SGY management would have looked like heros with the hedges they put in.  Two strikes being resolved over the next couple of

[ppp]

No slack for management here. The other companies at the bottom of the food chain didn't make it. But looking at 22 these guys are guiding 60 mil FCF so lets say 30 to debt ,30 to share holders. IMO makes it a double from here.

[downtozero]

30 mil back to shareholders would be a 13% divi. Sweet.

[ariesleaf]

Share price at 0.58 we don't need a dividend. What they really should do is buy back shares and cancel them. Doing a better job increasing shareholders value. Not sweet but the right thing to. done

[powpow]

I think all the free cash should be buying the shares. No way drilling is more certain. 

[unc12345]

If there's cash to buy back shares, I'd just prefer a dividend to be reinstated.

[ppp]

Yes they did live to fight another day. The hedges are the banks doing. Management piled on too much debt this caused the chain reaction. Having said that 21 is a wash we all know that. So looking beyond to 22 is when it gets interesting again. To buy or wait is the question.

[ariesleaf]

That's would be great news today, stock price would be $2.95 I'll take it.