brokerage

SURGE ENERGY

13/12/2019 18:37

** Canadian oil and gas company's shares  SGY.TO  up ~3% at
C$1.04
    ** SGY looks to spend C$98.5 mln in 2020, significantly down
from its $135 mln capex budget for 2019  urn:newsml:reuters.com:*:nCNWKgYGka
    ** Says spending to be primarily focused on the company's
Sparky core area
    ** Aims to pay down debt by more than C$20 million 
    ** Brokerages say "conservative budget" will strengthen
balance sheet, as the capex is focused on maintaining production
and reducing debt
    ** Eight Capital says 2020 capex that is focused on
maintaining production and paying down debt, is the correct move
for the company
    ** Brokerage Laurentian Bank Securities estimates SGY's
total payout ratio at 88%, suggesting good protection for the 
current dividend
    ** Raymond James says lower than expected capex budget will
reduce overall debt by 6% year-over-year
    ** Average rating on stock is "buy"; their median PT is
C$1.50
    ** Stock has fallen 28.6% YTD

 (Reporting by Arundhati Sarkar in Bengaluru)
 ((Arundhati.Sarkar@thomsonreuters.com; +1 646 223 8780 Ext:
1524; Reuters Messaging:
arundhati.sarkar.thomsonreuters.com@reuters.net))