Paul Colborne, President and Chief Executive Officer of Surge Energy Inc. (TSX: SGY), presented today at EnerCom’s The Oil & Gas Conference 20®.
Surge Energy Inc. is an oil-weighted production and development company with high quality, large oil in place, crude oil reservoirs. Management is focused on delivering to its shareholders solid per share organic growth, sustainable monthly dividends, and further growth through accretive acquisitions of additional elite oil reservoirs.
In its Q2’15 results, Surge decreased operating expenses per BOE by 15% on a quarter-over-quarter basis and achieved a debt to funds flow ratio of 0.9x. A $430 million sale closed in June and the company has $295 million of unused capacity on its bank lines.
During the company’s breakout session, management was asked the following questions:
- How will you maintain the dividend at the current rate? What makes you think this is the optimal strategy?
- Are there any negative aspects to your share buyback program?
- Are there any political risks that shareholders should understand?
- Can you talk about your core area spacing and permeability?
- What is your capital allocation? What are the chances of Surge making a strategic acquisition?
- What are your well drilling and completion costs?
- What is your perspective on insider ownership?
- How much of your rate of return is included in the share buyback?
- Can you explain why you didn’t just cut the dividend and further increase the share buyback program?
- What is your standard F&D costs and what kind of DD&A goes into these great wells?
- What does your tax situation look like?
