TSE:SGY

Surge Energy Inc (SGY.TO)

9.94
-0.32 (3.12%)
as of Jul 27, 2026, 8:00:00 pm Market Open.
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Investor Insights
star iconJul 26, 2026, 12:00 am

This summary was created by AI, based on 6 opinions in the last 12 months.

Surge Energy Inc (SGY-T) has received a mix of reviews from various experts in the investment community. The company appears to be well-managed, with strong production results and an attractive dividend yield, often noted between 5.1% and 7.43%. Many analysts highlight the company's solid performance in generating cash flow and its 'under the radar' status due to its small market capitalization, which is viewed as a double-edged sword, attracting both caution and interest. While some appreciate the positive growth potential and stability offered by the dividend, the lack of institutional interest and the size of the company are recurrent themes of concern. Overall, Surge Energy presents a compelling case for small-cap investors seeking income, yet it may struggle to gain broader market traction due to its limited appeal among larger institutional investors.

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Consensus
Mixed
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Valuation
Undervalued
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DON'T BUY
Consolidation of the small and mid-cap names is an important theme. There are better names to own in the space.
COMMENT
There were developments where activists are pressuring banks to no longer lend to energy companies. However, energy is one way for the country to get out of the debt problem and in his opinion this is even more reason to be bullish.
DON'T BUY
Right now, you want to focus on oil over gas, and in the small to mid cap space. He's always struggled with owning this. Highly leveraged. There are better opportunities. It's going to be a laggard. For now, you want to be in name brand companies.
PAST TOP PICK
(A Top Pick Jun 20/19, Down 66%) Of course, have been impacted by oil prices. They continue to pay down debt. Q2 and Q3 will have lower cash flows. It's been beat up and have a slight bounce from the low. He'll buy in Q4 during tax-loss selling. Nothing to move this stock up in the near term, though. It could fall below 30 cents in the next few quarters. Likes the company and its assets.
PAST TOP PICK
(A Top Pick May 24/19, Down 76%) They are producing 20,000 bpd -- 86% oil. The key issue is the balance sheet. They have been paying down debt, but took a large impairment loss that dropped their equity by $591 million. This has left them in a high debt to equity position. They have cut the dividend. He has lowered their target and won't buy more until they knock the debt down substantially. They have shut-in production of 4400 boepd, that is currently uneconomic. His target is $1 per share by Q4.
DON'T BUY
This is a never ever buy for him. They require $48 to keep production flat and pay the dividend. He prefers others.
PAST TOP PICK
(A Top Pick Feb 28/19, Down 23%) The company has come down, but he will continue to hold and will add to his position.
TOP PICK
He likes their dividend model. They are 85% liquids. He thinks they could increase the dividend come 2021. It trades at 2 times cash flow currently. His target is $2.41 per share. Yield 9.62% (Analysts’ price target is $1.58)
SELL

There are other positions where he is more comfortable with management, the assets and the payout ratio. He prefers others. Buy TOG-T or WCP-T in tax loss selling.

PAST TOP PICK
(A Top Pick Dec 17/18, Down 25%) 10% monthly paid dividend. He will be buying more of it. His target is $2.40 on $70 oil. Buy during tax loss season. They paid down a lot of debt. He likes the company and sees it growing nicely in the years ahead. (Analysts’ price target is $1.59)
TOP PICK
A 10% monthly dividend is attractive. They are knocking off the debt. [See his Past Picks for more]. (Analysts’ price target is $1.59)
DON'T BUY
Tax loss sell? He thinks tax loss selling may create a risk that you miss out on the gains. He would stay in the sector, don't move into cannabis or something else. He does not have a lot of confidence with this management team. He sees better alternatives.
DON'T BUY
There are other names he prefers. The market cap has become too low to attract institutional investors. Yield 8.7%
PAST TOP PICK
(A Top Pick Nov 19/18, Down 30%) It is a dividend model and is a great one to buy. Next year it should have the ability to raise the dividend. It is sustainable right now.
TOP PICK
Yield is still north of 8%. He has a $2.40 target. He sees the dividend being raised next year if oil is $70. Insiders are significant shareholders. (Analysts’ price target is $1.78)
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