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Strategies & Market Trends : Dino's Bar & Grill -- Ignore unavailable to you. Want to Upgrade?

To: Goose94 who wrote (6573)	6/5/2014 2:33:58 PM
From: Goose94	Read Replies (2) \| Respond to of 202901

Surge Energy (SGY-T) June 5, '14 as a result of the accretive Longview acquisition, Surge's Board of Directors has approved an 11 percent increase in the Company's annual dividend from $0.54 per share per year ($0.045 per share per month) to $0.60 per share per year ($0.05 per share per month). In conjunction with the Longview transaction, Surge has appointed Mr. Daryl Gilbert, a current director of Longview, to the Board of Directors of Surge. For the remainder of 2014 Surge will continue to focus growth capital towards its high quality, large OOIP, light and medium gravity crude oil reservoirs. With world crude oil prices well over US $100 per barrel WTI, the low Canadian dollar, low crude oil differentials, increased North American natural gas prices and recovering equity markets, Surge management are very positive about the present industry fundamentals in Canada. We are also excited about Surge's relative positioning in this marketplace. Today, Surge has one of the highest-quality asset bases of any light oil company in Canada, with over 1.9 Billion barrels of OOIP under its ownership and management. Surge has one of the lowest corporate declines in the divco peer group at 22 percent, and the lowest, most sustainable, "all-in" payout ratio at less than 90%. Surge has high, top decile netbacks, and a very low, lean cost structure. The Company has an excellent balance sheet with over $200 million of room on Surge's bank lines. Surge's bank line has now increased to $725 million. Management also has a disciplined hedging strategy designed to protect cash flows for the Company's dividend, and its capital spending program. Surge currently has more than a 10 year, low risk development drilling inventory, together with a suite of excellent waterflood projects. Management's low-risk business model and operating strategy calls for 4% per share annual growth in reserves, production and cashflow, plus a solid, sustainable, increasing dividend which is currently at 8.6% annually. In addition, Surge has a very low "all-in" sustainability ratio, which reduces debt each year and increases net asset value. Management's goal is to deliver a 12 to 14 percent annualized total rate of return - with an increasing, compounding dividend - over the long term.