Surge Energy (SGY.TO and ZPTAF) Q4 Results - Mar 9

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dan_s
Posts: 34570
Joined: Fri Apr 23, 2010 8:22 am

Surge Energy (SGY.TO and ZPTAF) Q4 Results - Mar 9

Post by dan_s »

Surge's 2022 results were slightly better than my forecast. Surge will be hosting our next Houston luncheon on April 11. For details and to register for the luncheon, go to the EPG website home page.
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SURGE ENERGY: RECORD PERFORMANCE IN 2022 in Canadian dollars
During 2022 Surge delivered a total shareholder return (“TSR”) of 112 percent (share capital appreciation plus dividend),
exceeding the Capped Energy Index TSR by 110 percent.

The Company’s operating and financial results are set forth below:

 delivered record cash flow from operating activities in 2022 of $276.1 million, an increase of 175 percent as
compared to 2021 cash flow from operating activities of $100.5 million;

 increased the Company’s adjusted funds flow (“AFF”) by over 190 percent, from $100.4 million in 2021 to $293.6
million in 2022; < AFF compares to my operating cash flow forecast of $291.4Cdn million.

 achieved average daily production of 21,262 boepd (85 percent liquids) in 2022, a 21 percent increase as compared
to production of 17,642 boepd (84 percent liquids) in 2021; < My 2022 production forecast was 21,233 Boepd with 22,000 Boepd in Q4.

 increased the Company’s cash flow from operating activities per share by 78 percent from $1.83 in 2021 to $3.26
in 2022;

 delivered an increase in operating netbacks of nearly 100 percent, from $21.84 per boe in 2021 to $43.47 per boe
in 2022; < "Netbacks" are operating cash flows per boe of production.

 reinstituted Surge’s annual base cash dividend, as announced on June 15, 2022 at $0.42 per share per year;

 completed the strategic Acquisition of core area, light and medium gravity crude oil production (3,850 boepd; 99
percent oil), with an internally estimated 12 percent decline1, for a net purchase price of $198 million which closed
on December 19, 2022; announced an increase of 14 percent to Surge’s annual base cash dividend, in conjunction
with the closing of the Acquisition, from $0.42 per share per year to $0.48 per share per year – effective February 15, 2023;


 completed a highly successful, upsized, oversubscribed $80 million common share equity offering with a syndicate
of 10 underwriters in conjunction with the Acquisition;

 reported a new Frobisher light oil pool extension discovery at Steelman, Saskatchewan, which added more than 40
highly economic internally estimated locations to Surge’s large light oil drilling location inventory in its SE
Saskatchewan core area; and

 continued to grow the Company’s Sparky core area, increasing Surge’s medium gravity (average 25°API) crude oil
production to more than 10,500 boepd (85 percent liquids) today, up over 775 percent from 1,200 boepd eight years
ago.
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Prior to this announcement my valuation of Surge's common stock was $15.00Cdn or approximately $11.25US per share.
Dan Steffens
Energy Prospectus Group
ChuckGeb
Posts: 959
Joined: Thu Nov 21, 2013 2:46 pm

Re: Surge Energy (SGY.TO and ZPTAF) Q4 Results - Mar 9

Post by ChuckGeb »

I didn't see any info regarding a conference call on their website. Do you have any info regarding it?
dan_s
Posts: 34570
Joined: Fri Apr 23, 2010 8:22 am

Re: Surge Energy (SGY.TO and ZPTAF) Q4 Results - Mar 9

Post by dan_s »

It was not an EPG webinar.

Here is the link. You need to use the passcode below the link to open it.
https://us02web.zoom.us/rec/share/sLfri_ZEZ7MaqI2j5z2pw_SHkm6yej3GSXHVmEdL38eE_srbnzB9FC4tDPwB9kNk.pbwmPrinC0cW4w3E
Passcode: *+sw&RQ5

My updated forecast/valuation model has been posted to the EPG website.
Dan Steffens
Energy Prospectus Group
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