Surge Energy Inc. - SGY

Company Website 

Company Highlights: 

  • Surge is focused on liquids production in two core areas: the Sparky in SE Alberta and SE Saskatchewan (65% of production and 85% of capex).
  • Production in Q2/22 rose to 21,003 (85% liquids) from 15,132 boe/d in Q2/21. Cash flow rose 45% to $76M or $0.91 per share versus $0.17 in Q2/21.
  • SGY plans to keep production flat, paying down debt and increasing shareholder returns. They are now paying a 3.5 cent monthly dividend ($0.42 annually) providing a yield of 5.8%.
  • Surge has 83M shares outstanding and a market capitalization of over $600M. Insiders are material shareholders.
  • We see SGY generating $3.24 in cash flow in 2022. Our Bull Market Peak Target for SGY is $42.50 per share.

Please check the SER Ownership page for full disclosures as we are shareholders of Surge Energy.
 

Paul Colborne
Paul Colborne
President & CEO
Paul Colborne has over 24 years of experience in the oil and gas industry and has been involved in a leadership, executive or director capacity with over 30 oil and gas and energy services companies. Mr. Colborne has successfully grown and, subsequently transitioned, a number of aggressive Canadian junior oil and gas companies into sustainable, modest growth dividend paying companies with excellent results, including: Startech Energy Inc., Crescent Point Energy Trust, and Star Point Energy Trust. At each of these companies, Mr. Colborne contributed to significant shareholder value being created.
Jared Ducs
Jared Ducs
CFO
Jared Ducs is a Chartered Accountant with more than 12 years of accounting and finance experience in the oil and gas industry. Mr. Ducs is a founding member of Surge, having held several progressively senior positions with the Company. Prior to his appointment as Chief Financial Officer, Mr. Ducs held the position of Vice President Finance. Prior to joining Surge, Mr. Ducs was a Senior Associate with Ernst & Young LLP. Mr. Ducs continues to be an active member of the Institute of Chartered Accountants of Alberta (ICAA) and Chartered Professional Accountants of Alberta (CPA Alberta).