Announces 2Q19 results, closes ~$29 mm GORR disposition

Surge reported 2Q19 results which were largely in line with expectations, though adjusted funds flow modestly outpaced expectations (Surge $0.16 vs. consensus $0.15/sh), as the company’s impressive $31.42/boe operating netback aided in generating $17.7 mm of FCF in excess of dividends and capex. The company closed a GORR disposition for ~214 boe/d late in the quarter, bringing in net proceeds of $29.1 mm. We were carrying this disposition in our forecast previously, so on that basis, there is li

Reports year-end results, no changes to outlook

Surge reported fourth quarter financial and operating results below forecast (CFPS $0.02 vs. GMPFE at $0.03 and consensus of $0.04). Funds flows were down 81% y/y relative to 4Q17 at $32.2 mm in contrast to this period at $6.2 mm despite a 34% increase in production driven principally by a 37% and 52% reduction in Edmonton Light and WCS benchmark oil prices, respectively.

Posts solid quarter, flexible outlook

Surge reported third quarter financial and operating results that crested our outlook though in line with consensus. We previously outlined the merits of its Mount Bastion Oil & Gas acquisition ($320 mm, +5,500 boe/d) in our prior comment dated September 17th, 2018, which closed October 25th outside of 3Q18.

Closes MBOG acquisition, achieves 2018e exit rate in 3Q18, raises dividend

Surge announced that it has closed its acquisition of Mount Bastion Oil & Gas which we outlined in our prior comment dated September 17th, 2018. Encompassing $145 mm in cash and the issuance of 75.4 mm shares from treasury, the deal is worth ~$300 mm given Surge share price performance since announcement.

$37.2mm acquisition, $44.5 mm convertible debt financing and 3Q17 results

In late October, the company announced a $37.2 mm acquisition in the company’s core Sparky area along with a $44.5 mm convertible debenture financing. We are off restriction following the closing of the convertible debentures. GY acquired 780 boe/d (95% liquids weighted) of low decline (<15%) production offsetting its Eyehill property (see map within comment). The price paid represents a flowing barrel metric of $47,700/boe/d, a reserve value of $9.07/boe (2P) and a P/CF metric of 5.1x. This is

Surge Increases 2016e Guidance, Provides Preliminary Glimpse into 2017e

Surge has increased its 2016e exit production target to 13,500 boe/d in concert with its 2016e budget moving to $66 mm ($55 mm previously). Preliminary plans for 2017e include an $85 mm capital program that is expected to generate average volumes of 13,650 boe/d with an exit rate of 14,100 boe/d, outlining a “return to growth” strategy. With our 2017e volumes and liquids weighting on the rise, paired with cash costs coming down, our cash flow outlook increases 24% alongside an improvement in

INCREASES 2016E GUIDANCE, PROVIDES PRELIMINARY GLIMPSE INTO 2017E

Impact: Slightly positive, as the Company's formal 2016e exit target rate of 13,500 boe/d is up 4% over the prior view, on capital spending that increases by $11 mm to $66 mm. This sets up for positive moves required in our 2017e forecast with Management's preliminary outlook for an $85 mm capital outlay generating average volumes of 13,650 boe/d and an exit rate of 14,150 boe/d.

Announces Second Quarter Results

Surge Energy reported 2Q16 results that were slightly behind on production and well ahead on a cash flow basis due primarily to non-recurring items. Adjusting for these items brings cash flow essentially in line with our estimate. Updating for 2Q16 actuals and making adjustments to our forecast pricing and cost related inputs moving forward, we show our cash flow outlook improving by 21% and 7% in 2016e and 2017e, respectively. With positive moves to our proforma view, we are increasing our targ

2Q16e Quarterly Preview

Some Recovery on Segmented Cash Flow Generation Over Q1 Though Still Down 56% Y/Y. In aggregate, the Intermediate, Mid, and Small Cap groups are expected to generate 2Q16e cash flow of $1,281 mm, $183 mm, and $53 mm, or $1.517 billion in total, that while depressed relative to the same period last year (~$2.647 billion combined), is up 17% sequentially from the prior quarter, largely on the strength of crude oil price recovery in the period. Severely weak natural gas pricing picture markedly rev

Provides Operations Update, Announces Reduction to Bank Line

Surge provided an operations update to the market ahead of its 2Q16 results release. Conditions within the Company’s key operating areas allowed an early start to the drilling program and, as a result, production has crested its exit rate guidance of 13,000 boe/d early. Well costs continue to trend down notably within its core Upper Shaunavon play where recent DC&T costs have dropped 20% from previous guidance and are well below our type curve assumptions. Following a normal course bank line rev

Surge Energy 1Q16 Results In Line, Estimates Up On Improving Crude Price Outlook

Surge’s 1Q16 production and cash flow were in line with our estimates while E&D spending came in below our forecast.

REPORTS 1Q16 RESULTS

Neutral to slightly positive, Surge reported production and cash flow that were in line with our estimates on E&D spending below our forecast.

Intermediates, Mid Caps & Small Caps

With this publication we briefly summarize our projections for 1Q16e quarterly results for the Junior E&P (Intermediate, Mid & Small Cap) segments of our coverage universe

Domestic E&P Statistical Package and FD&A Review

With this publication we highlight various metrics and statistics forthcoming from yearend reserve books for our Domestic E&P coverage universe (Integrateds, Large Cap, Oilsands, Intermediate, Mid Cap, and Small Cap). Similar charts for YE2014 reserves can be found in our Statistical Package dated April 7, 2015.

Cuts Dividend, Increases Capital Spending in 2016

Surge has chosen to cut its monthly dividend by 50%, from $0.0125 per share to $0.00625 per share ($0.075 per share annualized). Implied yield (based on the most recent closing price) is 3.5%. Revised 2016e guidance now portrays a $55 mm capital budget (previously $55 mm) that will target exit 2016e volumes in excess of 13,000 boe/d (76% liquids).Updated FirstEnergy forecast continues to frame challenging sustainability metrics with a 2016 cash use to cash flow of ratio of 213% (267% - forward

Sylvania Platinum - Healthy production recovery

Sylvania delivered a 12% increase in Q125 production compared to Q424 and, with an average platinum group metals (PGM) basket price only slightly down, delivered a 10% increase in revenue. The company is guiding for FY25 production of 73,000–76,000oz. Costs were well controlled with South African rand (ZAR) direct operating costs 3% higher and US dollar costs up 6.5%. Attractive unit cost efficiencies of 5% to 8% were delivered. With results largely in line with our expectations, our forecasts r

SP Angel Morning View: Copper breaches $10,000/t as traders ramp up bullish positions in hopes of China resurgence

Condor Gold* (CNR LN) – Beneficiary of a robust gold price

Hybridan Small Cap Feast - 31 October 2024

** Potential means Intention to Float (ITF) has been announced, or it is a rumour ***Arranged by type of listing and date of announcement ****Alphabetically arranged Share prices and market capitalisations taken from the current price on the day of publication Dish of the day Admissions: None Delistings: Quantum Exponential Group (AQSE: QBIT) has delisted from AQSE What’s baking in the oven? ITF announced:*** Potential** Initial Public Offerings: 17th October 2024: Selkirk Group, a newly incorpo

TENNYSON Morning news – Diversified Energy – Locking in CF via LNG contract & incr. hedges