Research, Charts & Company Announcements
Research Tree provides access to ongoing research coverage, media content and regulatory news on SURGE ENERGY INC. We currently have 31 research reports from 1 professional analysts.
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SURGE ENERGY INC
SURGE ENERGY INC
Surge Increases 2016e Guidance, Provides Preliminary Glimpse into 2017e
07 Sep 16
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 leverage and sustainability profile. We are increasing our target price to $3.25 per share (previously $3.00) and are upgrading the stock to an Outperform ranking.
INCREASES 2016E GUIDANCE, PROVIDES PRELIMINARY GLIMPSE INTO 2017E
06 Sep 16
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
04 Aug 16
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 target price to $3.00 per share (previously $2.75) which leaves implied returns that could soon require an upgrade from our current Market Perform ranking.
2Q16e Quarterly Preview
26 Jul 16
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 reversed into summer, market likely to ignore financials for natural gas producers and look ahead to winter and formalization of sell-side 2018e estimates in coming months. Spot AECO natural gas prices recently crested C$2.60/mcf, and with a reasonable alignment of previously distressed NE BC Stn2 differentials, augmented by a withdrawal expected next week, view the market psyche as constructive and looking ahead, with the analogy that this market is shaping up to mirror 2012 still holding. That said, with crude oil poised to retest support levels, combined with strong stock price performance broadly observed YTD, we would characterize sentiment as slightly pessimistic in the near-term which could reduce or unwind momentum-based investment strategies that have worked thus far in 2016.
Provides Operations Update, Announces Reduction to Bank Line
21 Jul 16
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 review, Surge’s credit facility has been reduced to $250 mm from $400 mm. The Company has more than sufficient capacity to carry out its unchanged 2016 capital program of $55 mm.
30 Nov 16
Abzena (ABZA): Interim results indicate happy customers (BUY) | Horizonte Minerals* (HZM): Fund raise completed (CORP) | SacOil* (SAC): Half-year trading statement (CORP) | Revolution Bars (RBG): New openings (BUY) | Amino Technologies* (AMO): Multi operator FUSION roll out (CORP)
Small Cap Breakfast
29 Nov 16
Asia Pacific Investment Partner - the research-driven emerging and frontier markets real estate development business intends to float on AIM and conduct a placing in December RM Secured Direct Lending - The secured direct lending fund intends to float on the Main Market on 15 December raising up to £100m Diversified Oil & Gas— Schedule One now out. $60m to be raised. Expected admission 6 December. Creo Medical Group —UK based medical device company focused on surgical endoscopy, a recent development in minimally invasive surgery. Admission due 7 December. Fundraising details TBA.
24 Nov 16
Quixant* (QXT): Gaming gains (CORP) | SCISYS* (SSY): Bringing good news from Germany (CORP) | Hayward Tyler Group*: Contract wins (CORP) | Sound Energy (SOU): TE-7 flow rate and fund raise (BUY) | Water Intelligence* (WATR): Growth and improving returns in a defensive market (CORP) | Imaginatik* (IMTK): Interim trading update (CORP)
High grade, low cost gold
28 Nov 16
High grades and low costs mean that, in our view, Scotgold’s Cononish project could generate more than £14m a year in EBITDA. In addition to advancing funding discussions based on the compelling bankable feasibility study mine plan (which at £950/oz gold price and 8% WACC gives a project NPV of £43.0m), the company is exploring optimisation opportunities, as well as the potential for a phased approach requiring lower up front capital. We are resuming coverage with a Buy recommendation and target price of 2.2p