Surge Energy Inc (Alberta) T.SGY

Re: Debt

[soundandfury]

Especially when there is alternatives to debt........like sell some assets for example.......what is the purpose of holding billions of barrels and 13 years drilling inventory when you owe 320 million in debt? Those assets just sit there and in some cases actually decline in value

[Kontrary]

I would be happier if they would just be an Oil&Gas E&P company and stop making acquisitions. This is what they said they were going to do back in January: Surge's focus in 2021 continues to be on disciplined capital allocation, with cash flow strategically allocated between capital projects, net bank debt1 repayment, and the Company's substantial abandonment and

[sclarda]

Kontrary wrote I would be happier if they would just be an Oil&Gas E&P company and stop making acquisitions. This is what they said they were going to do back in January: Surge's focus in 2021 continues to be on disciplined capital allocation, with cash flow strategically allocated between capital projects, net bank debt1 repayment, and the Company's substantial

[Kontrary]

I'm pretty sure that Management doesn't care what I think, except for the fact that the Market appears to agree with me.  They didn't just issue "more shares", They iincreased the share count by 60% when it was trading at very low prices. Using oost-consolidation numbers, at the end of Q2, Surge had approximately 44.7M shares (post consolidation) shares outstanding

[sclarda]

Kontrary wrote I'm pretty sure that Management doesn't care what I think, except for the fact that the Market appears to agree with me.  They didn't just issue "more shares", They iincreased the share count by 60% when it was trading at very low prices. Using oost-consolidation numbers, at the end of Q2, Surge had approximately 44.7M shares (post consolidation) shares

[geezer21]

"A lot of poster only see the dillution of shares to buy these assets but they dont mention the major amount of extra Free cashflow that these assets will generate." Thank you. Exactly.

[geezer21]

"You are not adding your numbers correctly.   Surge was producing aprox. 15000 barrels per day before the 2 acquistions.  The acquisitions added aprox.  5600 barrels per day of production or aprox. a 37%  production increase and added aprox. $16.5 million in debt.   Surges debt before the acquisitions was aprox. $292 million. 37% of that debt is aprox. $108

[Kontrary]

There's nothing wrong with my numbers. In my last post, I was talking about the dilution to equity, you went in a different direction entirely.  Surge didn't make these acquisitions using debt because they couldn't. No one would lend them the money. Similarly, they couldn't use internal cash flow because they didn't have that either. Instead, all they had was equity

[Baystboy07]

And you wonder why Management should not be sent packing by the Board? Management has run this company into the ground..

[ppp]

First off, nice post. IMO it will depend on how the oil price does over the next few years. the production they bought has very fast payouts. that allows for very fast increases.

[Kontrary]

Just realized that I made a mistake in my 2022 share calculation. Surge had 72.1M shares outstanding as of the end of Q3, but that didn't include the additional 12M shares for the Fire Sky acquisition. Going in to 2022, Surge will have over 84M shares outstanding (more than twice as many as of the end of Q1/21), so if WTI stays at $80 and the rest of the company's expectations are met

[sclarda]

Kontraryn wrote  there's nothing wrong with my numbers. In my last post, I was talking about the dilution to equity, you went in a different direction entirely.  Surge didn't make these acquisitions using debt because they couldn't. No one would lend them the money. Similarly, they couldn't use internal cash flow because they didn't have that either. Instead, all

[Kontrary]

You're quite bitter, aren't you? It seems you believe that people should only comment here if they're going to pump up a stock. I'm not actually "spouting" numbers, I'm analyzing the current situation. Your point that things would look better if it rose to $70-80 a few years ago is irrelevant, not only because it didn't happen but also because the company was

[Baystboy07]

Because he is a paid pumper....the best thing that can happen to us is Surge gets take out in a all stock deal and the entire Managment team and Board is fired...hopefully new owner gets more out of the assets and we have someone competent running the combined entity. 

[sclarda]

Kontrary wrote You're quite bitter, aren't you? It seems you believe that people should only comment here if they're going to pump up a stock. I'm not actually "spouting" numbers, I'm analyzing the current situation. Your point that things would look better if it rose to $70-80 a few years ago is irrelevant, not only because it didn't happen but also because the

[Kontrary]

So you don't hold shares now and (you claim) you've never held shares. Yet you religiously patrol this bulletin board looking for people who have opinions you don't agree with just so that you can dump all over them anonymously. You must have a very rich and rewarding life. Given the tone of your comments, I'm guessing you don't have many friends, so that partially explains why

[sclarda]

Kontrary wrote So you don't hold shares now and (you claim) you've never held shares. Yet you religiously patrol this bulletin board looking for people who have opinions you don't agree with just so that you can dump all over them anonymously. You must have a very rich and rewarding life. Given the tone of your comments, I'm guessing you don't have many friends, so that

[Kontrary]

Sclarda, you just went on ignore, you rude pathetic little man. Feel free to do the same with me.

[sclarda]

Kontrary wrote Sclarda, you just went on ignore, you rude pathetic little man. Feel free to do the same with me. -------------------------------------------------------------- Awh poor little girl got her feewings hurt.  The little baby likes to hand it out but cant take it.  Being ignored by an idiot. Wow you sure showed me.