Surge energy - ZPTAF or SGY.to

[sl6886]

All

I had a conversation with the CEO of Hemisphere and I asked him “if not investing in hemisphere, what other company do you like?” He said surge

21500 BOEPD
Targeting .5x debt to cash flow after which time they will be implementing a shareholder plan even more favorable than Devon, who 18 months ago was at the forefront of shareholder value through dividends and variable dividends with modest growth

You should read the corporate presentation on their website- very transparent and extremely clear as to what their priorities are: pay down debt to .55x; then dividends; modest growth ; share buybacks and variable dividends, in that order

I love hemisphere but sold half today and bought this because of management policy and the clear path to free cash flow and dividends within 4 months !!!

Dan, this is one worth looking at

[dan_s]

I met the Surge management team in Denver at an Enercom Conference five years ago. Glad to see them being successful. I will put Surge on my Watch List.
I'm now following over 30 upstream companies. Just hard to take an in depth look at many more.

[Fraser921]

Ty for the tip

[sl6886]

Let me know what you think.

[Fraser921]

Will do, I’ll look at it on Sunday

I was looking at crude prices for q1 and it look like we will avg 93-95 for q1

Wti avg 75 in q 4 so unhedge names will be printing money

Pxd , terminated most of their hedges after blowing 2 billion in 2021. To be fair,
They repaired their balance sheet with 3.2 b cash for Delaware Basin sale to CLR

Pxd is paying out a variable dividend 75 per cent of Fcf. Their dividend is going to be gigantic

I opened a position in that name last week and they will be paying out 22 for the year or more depending on oil prices

My risk tolerance is higher so keep that in mind. I think high oil prices are here as long as team Biden is in charge
Iran lobbed a missle tonight near our installation in Iraq tonight. Maybe that stupid deal will never happen

[Fraser921]

Looks solid but I'd do a watch list for now and see where it settles.
It's been up big time this year so some of the growth is built into the price
I'd nibble on price weakness

The CFO name is DUCS which I like.

About 1/3 rd hedged oily name

[Fraser921]

Sl8886 mention this a number of months ago and I put it on my watch list
On Friday I established a position
It's a cash flow machine mid size, hedges are running off this year (Like AR) but they put on beautiful collars for next year at the high of the market , with the high collar at 138 to 187 per bbl so they left us some running room, Nymex collars as high of 10.62 and not o be overlook interest rate hedges locking in their interest rates in a world of rising interest rates to tame the Biden inflation surge

It's down 29 % from the all time June high but up 121% YTD
Nav is $ 24 / share

Their Financials https://www.surgeenergy.ca/wp-content/u ... -SEDAR.pdf

and this https://www.surgeenergy.ca/wp-content/u ... -SEDAR.pdf

- see page 7

This is latest Enercom presentation last week... worth a watch

https://enercomdenver.com/surge-energy-inc/

The CFO last name is DUCS which I love!

[dan_s]

Surge Energy is on my Watch List and it is likely to be added to the Small-Cap Growth Portfolio in September. I'm just too busy now to focus on it.