Surge Energy Inc (Alberta) T.SGY

flat production

[kurt73]

What am I missing? Drilling a lot of wells they claim are low decline but production staying around 25,000 boe/d.

[Billybabin61]

They are touting a production increase yoy. Looks like an earnings miss for sure. Not sure how the market will take  this. I agree in that I read alot of positive tones from management in the PR, but don't see it in the numbers. Welcome anyone's thoughts?

[Baystboy07]

I think there is a lot of noise in the numbers...I think the EPS did not take into account the big blow out in WCS differentials. I am still disappointed though with barely any debt paydown.

[PulpCutter]

Paid down $20 million in debt over the quarter, while maintaining the budgeted spending on exploration and development.

[PulpCutter]

Paid down $20 million in debt over the quarter.   I suppose they could have cut the budgeted exploration and development budget, and thus paid down more debt.

[uwebb429]

The low WTI price combined with the high WCS WTI differential killed SGY in Q1. The problem now is the differential has improved but WTI is worse. Cash flow for Q2 might not be much better compared to Q1. Their master plan to pay down debt and raise the dividend later this year is not going to happen at the current prices. Maybe early 2024 if things improve by then. If Sparky and SE Saskatchewan

[Herfa1]

They did an acquisition for 169M + 3M share in december. Normal that the debt increased compared to March 2022 but it is down 20M since december 2022. Share increase is normal with the acquisition. If oil would have not go down that much Surge could have reduced debt for another 10M. I think we woll be ok and it all depends on the fluctuation of oil price.

[Baystboy07]

Page 4 of the financials....the acquisition you refer to closed before year end...there were additional flow through shares issued in Q1...also clear as day only $12 million of debt was paid down...do your research before you comment please. https://www.sedar.com/GetFile.do?lang=EN&docClass=5&issuerNo=00010447&issuerType=03&projectNo=03530122&docId=5414660

[Herfa1]

Ok smarty. I was just referring to their press release in the section Net Debt. According to them it went from 352M to 332M. To me that's 20M. And if oil would have been better, they would have reduced net debt by another 10M. If you're not happy just sell. I just bought again today and will sgain tomorrow if it goes under 8.00$.

[Baystboy07]

press releases are all spin...only reason they paid down debt is they issued flow through shares...which they did not even press release not mention in this earnings release. Amazed you are being a pri&k when I am merely trying to give you a true set of facts...as opposed to Paul who seems to be the ultimate promoter. bets thing that can happen here is Nuttal forces a sale.

[PulpCutter]

Bay Street-   Thanks for the heads-up on this.  I had missed it, and IMO it is highly-relevant.   https://www.mccarthy.ca/en/work/cases/surge-energy-completes-non-brokered-private-placement-flow-through-shares-c1963m  

[PulpCutter]

You're right.  Right there, page 3 of the q1 financial statement. Thanks, again.

[Gabriel]

https://www.tradingview.com/symbols/TSX-SNC/

[Baystboy07]

They were projection 25k with the drilling...seems the numbers are as per what they were saying in the presentations.

[ACESover]

In Q1/23 Surgenergy delivered an increase in production of more than 22 percent compared to Q1/22, with production increasing from 20,550 boepd (85 percent liquids) to a record 25,138 boepd (87 percent liquids) in the current quarter. Surge Energy's December 31, 2023 production exit rate guidance is 25,000 boepd ....production is not staying around 25,000 boepd (Kurt73). It got there in Q1/23

[Baystboy07]

You do realize almost 4000 barrels were acquired and closed in DEC 2022 right?