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

To: Goose94 who wrote (73049)	1/25/2020 11:43:07 AM
From: Goose94	Read Replies (3) \| Respond to of 202704

Surge Energy (SGY-T) revisited top pick from Josef Schachter on BNN.ca Market Call Friday Jan 24th @ 1200ET Surge reported Q3/19 production of 21,217 barrels of oil equivalent per day (85 per cent liquids) from four core areas. Book value on Sep. 30 was $2.53 per share. Surge pays a very healthy dividend of $0.10 per share annually, paid monthly. This provides a very healthy yield of 9.3 per cent. We have a one-year stock price target $2.40 per share. Insiders are significant Surge shareholders. The CEO owns 6.1 million shares and has been adding to his position on a regular basis. Surge has a market cap of $350 million (debt of $376 million and equity book value of $819 million). In 2018 when WTI was over US$75, Surge traded at a high of $2.61 per share. We see crude in the latter half of 2020 reaching over US$70, so the $2.40 one-year target is achievable. It is likely in 2021 if we see consistent prices over US$75 that Surge could get board approval to increase the dividend once again. A $0.12 per share dividend (a penny a month) is our expectation. In 2020, we see Surge producing 22,000 boe/d and generating cash flow of $190 million or $0.58 per share. Capital expenditure is forecast at $110 million based upon our price deck forecast with the excess used for the dividend and debt repayment. The dividend payout ratio is a low 17 per cent. We are investors in the stock and plan to add to our holdings when we see the next low-risk energy market “buy” signal.