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Investor Insights

This summary was created by AI, based on 8 opinions in the last 12 months.

The experts' reviews on Surge Energy Inc (SGY-T) depict a company with potential for growth and improvement. They highlight the company's focus on reducing debt, improving drilling efficiencies, and moving towards profitability and scalability. Despite being a smaller player in the Canadian energy space, SGY has shown good cash flow, solid management, and promising drilling results. Overall, the experts see potential for SGY to increase its return of free cash flow to shareholders and expect a rise in share price.

Consensus
Promising
Valuation
Undervalued
Similar
Cenovus Energy, CVE.TO
DON'T BUY
Surge Energy Inc

Not a lot of interest in such a small cap. Very inexpensive, trades at significant discount. Gobs of free cashflow. A challenge to get on investors' radar screen. There needs to be a reason for investors to care. Should merge to gain economies of scale and relevance. Yield is 6.9%, very defendable. Buying back stock.

oil / gas
COMMENT
Surge Energy Inc
Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research

EPS missed estimates of 16c coming in at a loss of 4c. Revenue beat estimates of $157.1M coming in at $158.17M declining 2% year-over-year. Because of depletion and other charges, cash flow is a better metric than earnings for energy producers. SGY had per share cash flow of 62c, down from 64c but certainly better than what the net loss implies. The company also confirmed 2024 production guidance. We think management is fine, however the stock will need commodity prices to pick back up in efforts for a turnaround. Mr. Colborne (CEO) has built and sold several companies within the sector. We would say HOLD for income. The debt reduction is still ontrack to finish by the end of this year while it is cheap and has an attractive yield. Management also seemed positive for on oil prices. But mostly it is valuation: the stock is very cheap on all metrics. 
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oil / gas
SELL
Surge Energy Inc

Nothing to do with balance sheet or management, but it remains too small to be relevant to larger investors. Scale isn't there.

oil / gas
BUY
Surge Energy Inc

The Canadian energy space will do well over time. He isn't long SGY, but likes it.

oil / gas
HOLD
Surge Energy Inc

Levered to oil price. Changed asset base toward profitability and scalability. Needs to improve drilling efficiencies and margins. Good job reducing debt. Probably by early 2024, can move return of free cashflow to shareholders from 25% to 50%. Yields just over 5%. He's focused on bigger players with more consistent dividend payments.

oil / gas
BUY
Surge Energy Inc

Trading at discount to NAV. Out of favor small cap name. TMX completion will benefit company. Benefiting from fish bone drilling technique. New wells paying out in months. At $80 oil, company trading at 3x cash flow yield. Expecting a 40% upside from current share price. 

oil / gas
TOP PICK
Surge Energy Inc

Generating good cash flow that will feed the dividend, share buybacks and production growth. Good managers and positioning. They've had good drilling results. SGY can make money if oil is above $75.

(Analysts’ price target is $12.80)
oil / gas
BUY
Surge Energy Inc

Owns ~9% of company.
Quality company.
Good exposure to "Fish bone" drilling.
Not on institutional investor radar.
Expecting share price to rise to ~$16. 

oil / gas
HOLD
Surge Energy Inc

Good exposure to multi-lateral drilling. So you get better productivity for a slightly higher cost. Excellent results. Assets are very good. Dividend is safe. A patient hold. Upside once mid-caps are in favour again. See his Top Picks.

oil / gas
BUY
Surge Energy Inc
Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research.

EPS of $0.15 missed estimates of $0.1733 and revenues of $152.66M missed estimates of $158.8M. SGY delivered an increase in production of more than 22% over the prior year, and despite a drop in the price of oil, Surge's cash flow from operations increased by 4%. Management noted for its outlook it intends to continue to pay down debts, conduct share buybacks, and the possibility of a special dividend. The results were OK, it has traded sideways for roughly a year, but it is paying a ~6.0% dividend. Like most oil and gas stocks right now, it is trading at a cheap valuation, paying a good dividend, and has a strong balance sheet. We like the company's potential for a special dividend, and it is well-capitalized. If an investor has a positive outlook on the price of oil, we would be comfortable buying here.
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oil / gas
BUY
Surge Energy Inc

Owns 9.9% of company.
Having success on new drilling technique.
Lots of land for future drilling.
Expecting return of capital to shareholders.

oil / gas
BUY
Surge Energy Inc
Recently bought 9.9% of company. Implemented new design on oil well drilling. Quality company with strong prospects. Current share price mis priced. Share price target is $22 in the next 1.5-2 years.
oil / gas
BUY
Surge Energy Inc
Recently invested into the company. Is largest shareholder. Currently trading a ~1.9 cash flow. Expecting large pay down of debt and share buybacks. Planning for a double on the share price.
oil / gas
Unspecified
Surge Energy Inc
A smaller company but nothing wrong with it. Has paid down debt and is paying out an increasing amount of free cash flow.
oil / gas
HOLD
Surge Energy Inc
One of the few small cap energy stocks that doesn't own (hard to buy meaningful positions). Inexpensive stock that is trading at 1.8x cash flow and 35% free cash flow yield. Expecting company to be debt free this time next year. Hold shares if already own them.
oil / gas
Showing 1 to 15 of 243 entries

Surge Energy Inc(SGY-T) Rating

Ranking : 4 out of 5

Bullish - Buy Signals / Votes : 3

Neutral - Hold Signals / Votes : 2

Bearish - Sell Signals / Votes : 2

Total Signals / Votes : 7

Stockchase rating for Surge Energy Inc is calculated according to the stock experts' signals. A high score means experts mostly recommend to buy the stock while a low score means experts mostly recommend to sell the stock.

Surge Energy Inc(SGY-T) Frequently Asked Questions

What is Surge Energy Inc stock symbol?

Surge Energy Inc is a Canadian stock, trading under the symbol SGY-T on the Toronto Stock Exchange (SGY-CT). It is usually referred to as TSX:SGY or SGY-T

Is Surge Energy Inc a buy or a sell?

In the last year, 7 stock analysts published opinions about SGY-T. 3 analysts recommended to BUY the stock. 2 analysts recommended to SELL the stock. The latest stock analyst recommendation is . Read the latest stock experts' ratings for Surge Energy Inc.

Is Surge Energy Inc a good investment or a top pick?

Surge Energy Inc was recommended as a Top Pick by on . Read the latest stock experts ratings for Surge Energy Inc.

Why is Surge Energy Inc stock dropping?

Earnings reports or recent company news can cause the stock price to drop. Read stock experts’ recommendations for help on deciding if you should buy, sell or hold the stock.

Is Surge Energy Inc worth watching?

7 stock analysts on Stockchase covered Surge Energy Inc In the last year. It is a trending stock that is worth watching.

What is Surge Energy Inc stock price?

On 2024-06-18, Surge Energy Inc (SGY-T) stock closed at a price of $6.88.