SUSTAINABLE CONVENTIONAL RESOURCE COMPANY TSX: SGY NOVEMBER 2019
REASONS TO OWN SURGE TSX: SGY Value based with a strong focus on shareholder returns High quality conventional, large OOIP(1), light/medium gravity crude oil asset base; 85% liquids production; low corporate decline of 23%; Deep…
Q3 2019 HIGHLIGHTS Hitting production targets and reducing net debt Production of 21,217 boepd in Q3/19; represents an increase of 18% over Q3/18; Adjusted funds flow(1) in Q3/19 was 41.5 million, or 0.13 per share; Generated…
CONSISTENT PRODUCTION GROWTH Surge management continues to manage quarterly production growth * Relatively flat Q/Q 74% Production Growth Since Q2 2016 production inclusive of 490 boe/d Q1/19 asset sale 20,000 Production…
OPERATIONS FOCUSED IN 4 CORE AREAS Large OOIP pools in established conventional reservoir trends Greater Sawn: Total: 5,750 boe/d (98% Oil & NGLs) Surge 2019e Average Production Total: 21,500 boe/d (85% Oil & NGLs)…
TARGETING CONVENTIONAL RESERVOIRS Surge focuses on reservoirs at the conventional end of the permeability spectrum Recovery factors, internal rates of return (IRR)(1), decline rate, and profit to investment ratio (PIR)(1) improves…
NET OOIP OF 2.5 BILLION BARRELS Large OOIP, with low recovery factors - focused in conventional reservoirs SGY Net CTD(2) Total Booked Net Total Net drilling Estimated Net Avg. WI Oil Independent Recovery Core Area Formations…
SPARKY A DOMINANT POSITION Applying modern technology to a prolific Western Canadian formation AB SK The Sparky is a well established prolific oil producing formation in Western Canada. Surge holds a dominant land position in the…
SPARKY - A DIVERSIFIED LOW RISK ASSET BASE Over 900 MMbbls of net OOIP and 450 drilling locations 900 MMbbls of net OOIP Wainwright 450 net drilling locations (136 net booked) 160MMbbls OOIP 13 year drilling inventory Silver Lake…
2019 SPARKY DRILLING RESULTS Production results continue to outperform Managements expectations Wainwright Betty Lake Silver Macklin Lakeview Provost 12 Sparky wells drilled and on production to date in 2019.…
GREATER SAWN - CONCENTRATED LIGHT OIL 600 million barrels net OOIP in concentrated Slave Point reservoirs Sawn OOIP of 600 million bbls net of light oil OOIP: 200 MMbbl net (35-42 API). Development inventory of 100 net locations…
VALHALLA STACKED MULTI-ZONE POTENTIAL Multiple large OOIP light oil reservoirs provide a sustainable drilling inventory and production base 200 MMbbls of net combined OOIP on Surges Valhalla lands. Montney Doig wells continue to be…
SHAUNAVON 400 MMbbl net OOIP on Surge lands in the Upper and Lower Shaunavon Total Shaunavon production (Upper & Lower) is 2,300 bopd. Upper Shaunavon net OOIP estimated to be 200 MMbbl. 65 net locations (43 net booked). 9…
CORPORATE SUSTAINABILITY Surge is committed to a strong Environmental, Social, and Governance program (ESG) During the last 5 years Surge has spent over 21 million for the abandonment and reclamation of wells; Surge is committed to…
CORPORATE SUSTAINABILITY Surge is committed to a strong Environmental, Social, and Governance program (ESG) In addition to Surge's extensive annual abandonment and reclamation program, Surge also pays annually into the industry wide…
HIGH QUALITY CRUDE OIL ASSET BASE Positioned for long term sustainability Low base production decline of 23%; high netbacks; excellent capital efficiencies; Sustainable dividend of 0.10 / share annually (dividend yield 9%); 4…
APPENDIX 20 FOOTNOTES INCLUDED IN THE BACK AS ENDNOTES
OIL HEDGING 21 All USD-denominated FOOTNOTES INCLUDED INWTI THE hedges BACK AShave been converted to CAD at a rate of 0.75 USD/CAD for the purposes of this graph. ENDNOTES
RISK MANAGEMENT / HEDGING STRATEGY The Company has an on-going, risk management / hedging program designed to lock in future cash flows to protect the Companys capital program and fund dividends. Below is a list of Surges current hedging…
RISK MANAGEMENT / HEDGING STRATEGY The Company has an on-going, risk management / hedging program designed to lock in future cash flows to protect the Companys capital program and fund dividends. Below is a list of Surges current hedging…
INTEREST RATE HEDGING & CONVERTIBLE DEBENTURE INTEREST RATE HEDGE Notional Amount Surge Type Term Surge Pays Fixed Rate Surge Pays (CAD) Receives Semi-Annual Step Up Beginning at 1.786% Fixed-to-Floating Rate Swap Feb 2018 to Feb…
NET ASSET VALUE High quality conventional reservoirs continue to deliver value Surges 2018 NAV TP TPP Reserve Value NPV10 BT (MM)(1) 1,318 2,054 Undeveloped Land and Seismic (MM)(2) 134 134 Net Debt (MM) (461) (461)…
ANALYST COVERAGE Financial Institution Analyst Email Address Acumen Capital Partners Trevor Reynolds treynoldsacumencapital.com BMO Capital Markets Ray Kwan ray.kwanbmo.com Canaccord Genuity Anthony Petrucci…
CORPORATE PARTNERS Advisors National Bank of Canada Bank of Nova Scotia Canadian Imperial Bank of Commerce Toronto-Dominion Bank Bank of Montreal Bankers Syndicate: ATB Financial HSBC Bank Canada Wells Fargo Goldman Sachs BDC…
NON-GAAP FINANCIAL MEASURES Certain secondary measures in this presentation namely, adjusted funds flow, free adjusted funds flow, all-in payout ratio, and net operating expenses are disclosed for the purpose of providing investors with…
NON-GAAP FINANCIAL MEASURES CONTD All-in Payout Ratio All-in payout ratio is calculated using the sum of total exploration and development capital plus dividends paid divided by cash flow from operating activities. This non-GAAP measure…
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