Surge Energy (SGY.TO and ZPTAF) Price Target - Mar 13

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Surge Energy (SGY.TO and ZPTAF) Price Target - Mar 13

Post by dan_s »

SGY closed today at $8.90Cdn today.

Surge Energy (SGY-TSX, C$9.07, Buy; Target C$12.00)
- Surge Announces 4Q22Results, 2022 Year-End Reserves, Operational Update
By analyst Michael Dunn
Surge’s 4Q22 report revealed After Tax Fee Funds Flow (AFFO) and production
that were in line with consensus,
decent recycle ratios on reserve additions, and more strong Frobisher well results
at Steelman. While our go-forward estimates at the current strip are little changed
following this update, our AFFO forecasts for 2023e/2024e are up 23%/10% since
we re-launched coverage with a $10.25/sh target price in January, due to stronger
Canadian dollar realized oil price estimates. We are raising our target price from
$10.25 to $12.00 (4.3x EV/DACF, 10.4x EV/FCFF*, on 2024e on a backwardated oil
strip deck). BUY.

A rising Canadian Dollar could help all of our Canadian upstream companies if you own them in U.S. dollars.
Dan Steffens
Energy Prospectus Group
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