Surge Energy Inc (Alberta) T.SGY

Blow out quarterly results! Big day coming tomorrow.

[JohnMayer]

Unreal.... get ready for a big move tomorrow.

Net Income for the QUARTER is $0.85!!! While share price is $0.56?  Is that a typo?

"Based on the above, with oil prices currently trading over US$73 per bbl, the Company now anticipates Surge's exit 2022 net debt to annualized Q4/22 adjusted funds flow2 will be 0.8x at US$70 per bbl, and 0.6x at US$75 WTI per bbl pricing. Additionally, at these price levels, Surge now anticipates generating $110 to $140 million in free cash flow in 2022 alone."

Free cash flow yield is projected to be 37% for 2022.  If this is true, here comes a share buyback and reinstatement of the dividend imo.


https://stockhouse.com/news/press-releases/2021/07/29/surge-energy-inc-announces-second-quarter-financial-operating-results

[Chris007]

the big jump in net income is from asset impairment reversal ($323,640,000) The impairment reversal is a non-cash item...Basically same thing as the CPG, BTE and TVE Q2 results...

[Chris007]

Kind of mind boggling that adjusted funds flow and operating cash flow are crappier in Q2, than Q1, despite much stronger oil prices....ugh

[maramos98]

@Chris007 Significant drop in gas sales from Q1 to Q2

[Chris007]

Indeed...my point is, that this is the first Q2 2021 energy company report, where Q2 (a much stronger price environment), turned out worse than Q1

[downtozero]

If the net income was 307 million but it included an impairment reversal of 323 million, doesn't that mean they actually lost $16M this past quarter? "For the quarter ended June 30, 2021, the Company realized net income of $307.1 million, including a non-cash asset impairment charge reversal of $323.6 million recognized in the period primarily due to an increase in the Sproule

[maramos98]

20+ million loss (unrealized gain) on hedges. It's no secret that 2021 is a lost cause due to hedges. All about 2022 and beyond.

[Chris007]

Yup.... Revenue 44,575,000 Expenses (61,102,000) **once you take out impairment reversal Net loss -16,527,000