Surge Energy Inc (Alberta) T.SGY

Based on oil prices at US $70 WTI...

[zack50]

Just received the following information from Stephanie McNeill, Communications  Analyst with Surge. It's the short version of their latest corporate presentation.
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FIVE KEY REASONS TO OWN SURGE...

Surge has industry leading positive cash flow 'torque' to both rising oil prices and tight Canadian oil price differentials; as well as a very high quality, low cost, low risk, conventional crude oil asset base.

1. The Company has a proven management team with significant insider ownership, and a history of providing investors compelling returns.

2. Crude oil is up >500% in the last 14 months with many large brokerage firms now calling for 80+ WTI oil prices in 2H/2021 and beyond.

3. Surge will deliver >$160 million of adjusted funds flow in 2022 ($0.42 per share), generating $62 million in free cash flow ($0.16 per share), providing an annual free cash flow return of 27% per share.

4. Surge produces medium and light gravity crude oil from elite, large OOIP crude oil assets, with some of the lowest full cycle capital costs in Canada.
 

5. The Company has a dominant position in its core Sparky asset, which is one of the top conventional oil growth plays in all of Canada with a deep, 14 year, low risk, development drilling inventory.

 

 

[downtozero]

This is the same as the May14th presentation (but now 27% instead of 25%). Good to see they're consistent. They should give 1/2 FCF to debt and 1/2 FCF to dividends.

[Kadiddelhopper]

How about using the FCF in totality through to the end of 2nd Qtr. 2022 for Debt reduction. Strike  that committment hard while the economic conditions and Oil Prices are in full advance, and get that Debt down to a pleasing ratio suitable to the Investment Houses and their Analysts, and The Bankers before there is a surge upward in interest costings, likely in 2022.. Propose a reward to

[SkyRanger]

Well Said, Now are they smart enough to do it.   I sure hope so.

[unc12345]

More than almost anything, I'd like to hear some guidance on what the actual plan is.  I'm willing to hang in and have for a long time, but it would be comforting to at least told that dividends are a ways off while we get the debt to a manageable level.

[Divinvestor]

Paul has stated mulitple times that Dividends are a ways off. First priority is debt, second is get Sparky up and running, then dividend. I woulf expect a dividend sometime in 2022 unless we see $80 WTI consistently first.

[Stockhudson]

more important to pay the debt down    my feeling   GLTA