Premier Oil Assets Driving Free Cash Flow CORPORATE PRESENTATION FALL 2023 / WINTER 2024
Q3/23 Highlights During the quarter Surge: Achieved average production of 24,108 boepd (86% liquids), an increase of 13% over Q3/22; Delivered adjusted funds flow (AFF) of 86.9 million (347.6 million annualized), an increase of 35%…
The Surge Advantage + = + High Operating Netback, Disciplined Capital Proven Track Conventional Assets Allocation Record of Execution Free Cash Flow Light/medium oil weighted asset base Dominant positions in conventional Proven…
New 2022 Reserves On March 8, 2023, SGY announced top tier reserves, F&D, and FD&A results as follows: Reserves Summary and Net Present Value In 2022, Surge delivered: PDP Finding & Development (F&D) cost of 22.08/boe, including Crude…
Net Asset Value Surges independent Sproule PDP NAV per share increased by 107% in 2022 (from 3.51 to 7.28 per share) Surge NAV on YE2022 Sproule Reserves SGY provides an excellent value proposition, trading (average WTI over first 5…
Proven Business Strategy Focused on sustainable returns and enhancing free cash flow Surge executes on a simple, DISCIPLINED CAPITAL ALLOCATION repeatable business strategy: Undertake low cost, low risk Develop high quality,…
Corporate Guidance for 2024 Key Guidance & Assumptions3 US75 WTI 2024 Annualized cash flow from operating activities4 295 MM Focused on returns and 2024 Annualized free cash flow before dividends 105 MM enhancing free cash 2024…
Return of Capital Framework Surge is well positioned to deliver to shareholders a combination of: Share price appreciation (Sproule 25% 25% 2022YE 2P NAV of 22/share); 25% Continued net debt repayment, 50% 50% systematically…
Advantages of Conventional reservoirs offer lower risk, predictable, repeatable development with Conventional opportunity to improve recovery factors Reservoirs Surge proactively targets low risk conventional reservoirs. The Company…
Sparky and SE Saskatchewan Surge offers exposure to two of the top four conventional oil growth plays in Canada
Sparky and SE Saskatchewan provide exceptional 2023 Production economics and a depth 80% Combined Production Weighting by Area Sparky of drilling inventory Weighting (exit 2023) SE Saskatchewan Other Surge Assets Sparky…
Sparky Over 11 Billion Barrel Trend One of Canadas Largest Accumulations of Oil A One-of-a-Kind Lloydminster Position Edmonton Alberta Surge holds a dominant land position and has 60km Saskatchewan drilled 55% of all horizontal…
Long-Term Growth Potential Pad drilling, advanced horizontal multi-stage fracturing technology, and multi-leg horizontal success has unlocked the potential of the Sparky play 1 billion bbls Sparky Core Area Production Growth OOIP net…
SE Saskatchewan Surge Land Midale Subcrop Frobisher Subcrop Leveraging Past Alida Subcrop Ratcliff Subcrop Success Manitoba Saskatchewan Surges operational track record of success in SE Saskatchewan make this an exciting growth…
Key Growth Driver High operating netback light Key Operational Areas oil production and reserves 400 million bbls SE Saskatchewan 7,400 boepd (90% light oil) from low risk, proven Manitoba 600 boepd (99% light oil) conventional…
Committed to Sustainability Focused priorities inform Surges sustainability agenda Sustainability Priorities Sustainability in Action Climate focus: Integrate climate risks and opportunities within In 2022, SGY spent 11.2 million…
Leadership Paul Colborne Jared Ducs Murray Bye Derek Christie Margaret Elekes President & CEO CFO COO Senior VP, Geosciences Senior VP, Land & BD Paul Colborne has over 25 Jared Ducs is a Chartered Murray Bye is a Professional Derek…
Board of Directors Paul Colborne Robert Leach 2,5,6 Board Committees President & CEO Independent Director 1. Chair of the Board 2. Member of the Compensation, Nominating and Allison Maher 4,5 Corporate Governance Committee. Mr.…
Analyst Coverage SGY 12-Month Financial Institution Analyst Email Address Target Price Acumen Capital Partners Trevor Reynolds treynoldsacumencapital.com 13.25 ATB Capital Markets Amir Arif aarifatb.com 13.00 BMO Capital Markets…
Corporate Information TSX First Lien Lending Syndicate SGY.TO National Bank of Canada ATB Financial BDC Capital Auditor Registrar & Transfer Agent Headquarters KPMG LLP Odyssey Trust Surge Energy Inc. Centennial Place, East…
Appendix
Supporting Assets Greater Sawn Concentrated Light Oil Production 600 MMbbls net OOIP in concentrated, conventional Slave Greater Sawn / Carbonates 2,900 boepd Point reefs Valhalla 2,000 boepd Shaunavon 1,150 boepd Minors 300…
Hedging Detail WTI Crude Oil Derivative Contracts Natural Gas Derivative Contracts Swaps Puts Collars SWAPS Collars Average Average Average Average Average Period Volumes Avg. Price Volumes Volumes Bought Bought Put Sold Call…
Hedging Detail Interest Rate & Power Interest Rate Hedges Type Term Notional Amount (CAD) Surge Receives Surge Pays Fixed Rate Surge Pays Fixed-to-Floating Rate Swap July 2019 June 2024 50,000,000 Floating Rate Fixed Rate…
Advisories - Non-GAAP & Other Financial Measures This presentation includes references to non-GAAP and other financial measures used by such, costs may vary between periods. Transaction and other costs represent expenditures Free cash…
Advisories - Non-GAAP & Other Financial Measures All-in Payout Ratio Operating Netback, Operating Netback per boe, and Adjusted Funds Flow per boe All-in payout ratio is a non-GAAP ratio, calculated as expenditures on property, plant,…
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