Surge Energy Inc

SGY-T

(A Top Pick Dec 17/18, Down 9%) Volumes were not as high as the market was expecting and the share price has stagnated. He still likes this and still calls it a Top Pick. A move to $70 for WTI will create some great capital gains. Yield 7.5%.

He continues to be a fan. They will have strong cash flows. They might even be able to raise the dividend. His target is $3.70 per share. Yield 8.06% (Analysts’ price target is $2.08)

A mid-cap oil producer. They have struggled because they are too small -- energy funds are trading the big boys. Yield 7.0% and the payout ratio is fine. He would not buy it -- there are better options out there.

This is a light medium oil producer. Given the market cap and leverage, he prefers others with a better balance sheet. Would recommend Torque Oil & Gas instead.

It is his dividend play today. It is a cheap stock. There is a dividend of about 7%. His one year target is $3.70. He owns the stock personally. They have a low payout ratio. (Analysts’ price target is $2.13)

Why is it not rising with oil prices? He has heard rumblings the dividend may not be sustainable, but has not evaluated this for himself. From an operations perspective he has done well with them in the past.

He would not own SGY-T. There are other companies that hold better assets and purchase them at better levels. He would choose TOG-T if you are looking for a sustainable yield instead.

85% light oil and 15% natural gas. It is a very low payout ratio. It is a monthly payout of more than 7%. It will be a fabulous rate of return. (Analysts’ price target is $2.15)

A mid-cap producer. They reduced their capital budget yesterday as a reflection on prices. He'd like to see them reduce their debt even more.

He likes the dividend. They postponed a dividend increase late last year on the heels of a recent acquisition. It is too early to know if that decision will change. He is optimistic differentials will help their light oil production. He will continue to hold it. The dividend is sustainable he thinks.

They just made an acquisition to increase their volumes. Book value is twice their stock price. They have a decent balance sheet with a decent, sustainable dividend. (Analysts’ price target is $2.88)

Dividend is almost 6%. They made a recent acquisition and if the price of energy goes back up they can think about a dividend increase. It could be a double or a triple. (Analysts’ price target is $3.35)

We have been in a gas bear market for 4 years. This space has been decimated. It is a medium oil producer in Alberta. They continue to grow but have too much debt. They should be fine when prices recover.

(A Top Pick Sep 21/18, Up 32%) This is a cash flow play. They have positive cash flow. They have strong management and is clearly oversold. They are profitable. He did not expect oil to drop to $59. It is more volatile than the index. It is a safe, risky play.