Surge Energy (SGY.TO and ZPTAF) Profile - Apr 6

[dan_s]

I just posted my updated profile and forecast/valuation model for Surge Energy to the EPG website.

SGY.TO was trading at $9.35Cdn at the time this was posted. My current valuation is $15.25Cdn.
> The current share price is less than 3X my 2023 operating cash flow per share forecast of $3.14Cdn, which is very close to the consensus per TipRanks.
> Surge is going to report a significant increase in production from Q4 to Q1. Current production is over 25,000 Boepd (84% crude oil, 3% NGLs and 13% natural gas).
> They are also going to report strong well results during Q1. They drilled 17 development wells in Q1 and 14 were completed to sales by 3/31. The other 3 wells should be completed very soon.
> The Company's preliminary production guidance for 2023 was 25,000 Boepd. I expect them to raise guidance when they announce Q1 results.
> Surge pays monthly dividends.
> If their actual results and guidance match my forecast, SGY should get a lot more love from the Wall Street Gang this year.

TipRanks: "Stifel analyst Michael Dunn raised the firm’s price target on Surge Energy to C$12 from C$10.25 and keeps a Buy rating on the shares."

Surge is hosting our Houston luncheon next week (April 12) and yesterday I upgraded the lunch menu to a Texas BBQ Buffet. If you eat meat, this is a luncheon you want to attend. Registration for the luncheon is required. Go to our website to register.

[Fraser921]

Oh my! You Houston members are so lucky!

[allen46]

Would love to attend these luncheons but I live in upstate NY.

[dan_s]

I thank God each day for getting me to Texas. "Life is Sweet in Sugar Land, Texas."

[ChuckGeb]

Colborne and Ducs were impressive today! Great find confidently hitting on all cylinders.

Looking forward to ROK, IPOOF, and KEI.

Canadian companies soaring under the radar.