Surge Energy swings to profit in Q2, raises 2025 production guidance

SURGE ENERGY

28/07/2025 22:21

Corrects currency figures to C$ throughout, and removes operating expenses figure in key details

Overview

Surge Energy Q2 production averaged 23,589 boepd

Co reports Q2 net income C$31.91 mln

Company raises average 2025 production guidance to 23,000 boepd, cuts capex by $15 mln

Q2 adjusted funds flow at C$72.8 mln, cash flow from operations C$56.3 mln

Outlook

Surge Energy raises average 2025 production guidance to 23,000 boepd

Company lowers 2025 capital expenditure budget to C$155 mln

Surge forecasts 2025 free cash flow to increase to C$105 mln

Company hedges 8,750 bbl/d of Q3/25 oil production at US$71 WTI

Result Drivers

DRILLING SUCCESS - Strong drilling results in Sparky and SE Saskatchewan core areas drove production outperformance

CAPITAL EFFICIENCIES - Improved capital efficiencies led to a reduction in 2025 capital expenditure estimates by C$15 mln

OPERATING EXPENSES - Net operating expenses decreased by 16% due to successful drilling and operational efficiencies

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Oil Sales
C$137.14 mln
Q2 Net Income
C$31.91 mln
Q2 Capex
C$30.77 mln
Q2 Cash Flow from Operating Activities
C$56.34 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 9 "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$9.00, about 17.8% above its July 28 closing price of C$7.40

The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 8 three months ago

Press Release: ID:nCNWWcKHfa

(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.)