Canada's Surge Energy Q1 petroleum and natural gas revenue falls, posts net loss

SURGE ENERGY

06/05/2026 22:57

Overview

Canada oil producer's Q1 total petroleum and natural gas revenue fell 2% yr/yr as oil sales declined 3%

Adjusted funds flow dropped 11% yr/yr, with company posting a net loss

Outlook

Surge sees 2026 average production at 23,000 boepd (88% liquids)

Company expects 2026 adjusted funds flow of C$315 mln at US$75 WTI

Surge is evaluating expanding its 2026 capital program in 2H/26

Result Drivers

DRILLING AND WATERFLOOD OUTPERFORMANCE - Q1 production exceeded budget guidance , says co, due to better-than-anticipated drilling and waterflood results in Sparky and SE Saskatchewan core areas

CAPITAL EFFICIENCY - Lower capital spending in Q1/26 versus Q1/25 contributed to production outperformance, according to management

Company press release: ID:nCNWg5q93a

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Oil Sales
C$153.19 mln
Q1 Net Income
-C$24.68 mln
Q1 net Capex
C$44.8 mln
Q1 Cash Flow from Operating Activities
C$59.97 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 7 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

The average consensus recommendation for the oil & gas exploration and production peer group is "buy"

Wall Street's median 12-month price target for Surge Energy Inc (Alberta) is C$11.25, about 11.6% above its May 5 closing price of C$10.08

The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 48 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)