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Surge Energy

TSX:SGY
Snowflake Description

Fair value with imperfect balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
SGY
TSX
CA$79M
Market Cap
  1. Home
  2. CA
  3. Energy
Company description

Surge Energy Inc. explores for, develops, and produces oil and gas in western Canada. The last earnings update was 19 days ago. More info.


Add to Portfolio Compare Print
  • Surge Energy has significant price volatility in the past 3 months.
SGY Share Price and Events
7 Day Returns
7.1%
TSX:SGY
15.2%
CA Oil and Gas
11.4%
CA Market
1 Year Returns
-83%
TSX:SGY
-41.5%
CA Oil and Gas
-22%
CA Market
SGY Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Surge Energy (SGY) 7.1% -73.8% -80.6% -83% -91.3% -92.4%
CA Oil and Gas 15.2% -37.6% -42.4% -41.5% -49.8% -53.6%
CA Market 11.4% -22.2% -23.5% -22% -19.8% -13.3%
1 Year Return vs Industry and Market
  • SGY underperformed the Oil and Gas industry which returned -41.5% over the past year.
  • SGY underperformed the Market in Canada which returned -22% over the past year.
Price Volatility
SGY
Industry
5yr Volatility vs Market

SGY Value

 Is Surge Energy undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Surge Energy to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Surge Energy.

TSX:SGY Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 4 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 12.3%
Perpetual Growth Rate 10-Year CA Government Bond Rate 1.4%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for TSX:SGY
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year CA Govt Bond Rate 1.4%
Equity Risk Premium S&P Global 5.4%
Oil and Gas Unlevered Beta Simply Wall St/ S&P Global 0.83
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.825 (1 + (1- 26.5%) (548.36%))
3.112
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
2
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.44% + (2 * 5.44%)
12.32%

Discounted Cash Flow Calculation for TSX:SGY using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Surge Energy is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

Note: Free cash flow to equity valuations ignore the company's cash or debt.

TSX:SGY DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (CAD, Millions) Source Present Value
Discounted (@ 12.32%)
2020 29.34 Analyst x5 26.12
2021 16.38 Analyst x6 12.99
2022 18.00 Analyst x1 12.70
2023 56.00 Analyst x1 35.19
2024 66.94 Est @ 19.53% 37.44
2025 76.37 Est @ 14.1% 38.04
2026 84.24 Est @ 10.3% 37.35
2027 90.68 Est @ 7.64% 35.80
2028 95.93 Est @ 5.78% 33.72
2029 100.22 Est @ 4.48% 31.36
Present value of next 10 years cash flows CA$300.00
TSX:SGY DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= CA$100.22 × (1 + 1.44%) ÷ (12.32% – 1.44%)
CA$934.45
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= CA$934.45 ÷ (1 + 12.32%)10
CA$292.41
TSX:SGY Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= CA$300.00 + CA$292.41
CA$592.41
Equity Value per Share
(CAD)
= Total value / Shares Outstanding
= CA$592.41 / 335.07
CA$1.77
TSX:SGY Discount to Share Price
Calculation Result
Value per share (CAD) From above. CA$1.77
Current discount Discount to share price of CA$0.23
= -1 x (CA$0.23 - CA$1.77) / CA$1.77
87.3%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Surge Energy is available for.
Intrinsic value
>50%
Share price is CA$0.23 vs Future cash flow value of CA$1.77
Current Discount Checks
For Surge Energy to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Surge Energy's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Surge Energy's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Surge Energy's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Surge Energy's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
TSX:SGY PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-12-31) in CAD CA$-0.50
TSX:SGY Share Price ** TSX (2020-03-27) in CAD CA$0.23
Canada Oil and Gas Industry PE Ratio Median Figure of 55 Publicly-Listed Oil and Gas Companies 6.35x
Canada Market PE Ratio Median Figure of 499 Publicly-Listed Companies 10.74x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Surge Energy.

TSX:SGY PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= TSX:SGY Share Price ÷ EPS (both in CAD)

= 0.23 ÷ -0.50

-0.45x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Surge Energy is loss making, we can't compare its value to the CA Oil and Gas industry average.
  • Surge Energy is loss making, we can't compare the value of its earnings to the Canada market.
Price based on expected Growth
Does Surge Energy's expected growth come at a high price?
Raw Data
TSX:SGY PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section -0.45x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 4 Analysts
95.7%per year
Canada Oil and Gas Industry PEG Ratio Median Figure of 29 Publicly-Listed Oil and Gas Companies -0.04x
Canada Market PEG Ratio Median Figure of 234 Publicly-Listed Companies 0.69x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to calculate PEG ratio for Surge Energy, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Surge Energy's assets?
Raw Data
TSX:SGY PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-12-31) in CAD CA$2.06
TSX:SGY Share Price * TSX (2020-03-27) in CAD CA$0.23
Canada Oil and Gas Industry PB Ratio Median Figure of 198 Publicly-Listed Oil and Gas Companies 0.38x
Canada Market PB Ratio Median Figure of 2,352 Publicly-Listed Companies 1x
TSX:SGY PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= TSX:SGY Share Price ÷ Book Value per Share (both in CAD)

= 0.23 ÷ 2.06

0.11x

* Primary Listing of Surge Energy.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Surge Energy is good value based on assets compared to the CA Oil and Gas industry average.
X
Value checks
We assess Surge Energy's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Oil and Gas industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Oil and Gas industry average (and greater than 0)? (1 check)
  5. Surge Energy has a total score of 3/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

SGY Future Performance

 How is Surge Energy expected to perform in the next 1 to 3 years based on estimates from 4 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
95.7%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Surge Energy expected to grow at an attractive rate?
  • Unable to compare Surge Energy's earnings growth to the low risk savings rate as it is expected to be loss making during the next 1-3 years.
Growth vs Market Checks
  • Unable to compare Surge Energy's earnings growth to the Canada market average as it is expected to be loss making during the next 1-3 years.
  • Surge Energy's revenues are expected to decrease over the next 1-3 years, this is below the Canada market average.
Annual Growth Rates Comparison
Raw Data
TSX:SGY Future Growth Rates Data Sources
Data Point Source Value (per year)
TSX:SGY Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 4 Analysts 95.7%
TSX:SGY Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 4 Analysts -7.3%
Canada Oil and Gas Industry Earnings Growth Rate Market Cap Weighted Average -3.9%
Canada Oil and Gas Industry Revenue Growth Rate Market Cap Weighted Average 1%
Canada Market Earnings Growth Rate Market Cap Weighted Average 7.7%
Canada Market Revenue Growth Rate Market Cap Weighted Average 3.9%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
TSX:SGY Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 4 Analyst Estimates (S&P Global) See Below
All numbers in CAD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
TSX:SGY Future Estimates Data
Date (Data in CAD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31 168
2022-12-31 131
2021-12-31 306 123 -18 3
2020-12-31 287 116 -30 4
2020-03-28
TSX:SGY Past Financials Data
Date (Data in CAD Millions) Revenue Cash Flow Net Income *
2019-12-31 347 149 -159
2019-09-30 318 142 -97
2019-06-30 311 139 -84
2019-03-31 291 127 -78
2018-12-31 264 122 -72
2018-09-30 275 124 -2
2018-06-30 247 111 -19
2018-03-31 226 102 -15
2017-12-31 213 94 -7
2017-09-30 196 81 -8
2017-06-30 185 75 -4
2017-03-31 169 66 -19

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Surge Energy is not considered high growth as it is expected to be loss making for the next 1-3 years.
  • Surge Energy's revenue is expected to decrease over the next 1-3 years, this is not considered high growth.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
TSX:SGY Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 4 Analyst Estimates (S&P Global) See Below

All data from Surge Energy Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

TSX:SGY Future Estimates Data
Date (Data in CAD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31 0.05 0.05 0.05 1.00
2022-12-31 -0.03 -0.03 -0.03 1.00
2021-12-31 -0.11 0.00 -0.21 5.00
2020-12-31 -0.10 -0.02 -0.16 5.00
2020-03-28
TSX:SGY Past Financials Data
Date (Data in CAD Millions) EPS *
2019-12-31 -0.50
2019-09-30 -0.32
2019-06-30 -0.29
2019-03-31 -0.30
2018-12-31 -0.29
2018-09-30 -0.01
2018-06-30 -0.08
2018-03-31 -0.07
2017-12-31 -0.03
2017-09-30 -0.04
2017-06-30 -0.02
2017-03-31 -0.09

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Surge Energy is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Surge Energy's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Canada market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Canada market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Surge Energy has a total score of 0/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

SGY Past Performance

  How has Surge Energy performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Surge Energy's growth in the last year to its industry (Oil and Gas).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Surge Energy does not make a profit even though their year on year earnings growth rate was positive over the past 5 years.
  • Unable to compare Surge Energy's 1-year earnings growth to the 5-year average as it is not currently profitable.
  • Unable to compare Surge Energy's 1-year growth to the CA Oil and Gas industry average as it is not currently profitable.
Earnings and Revenue History
Surge Energy's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Surge Energy Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

TSX:SGY Past Revenue, Cash Flow and Net Income Data
Date (Data in CAD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-12-31 346.82 -158.66 20.78
2019-09-30 317.78 -97.34 20.65
2019-06-30 310.94 -84.03 19.84
2019-03-31 291.21 -78.41 20.60
2018-12-31 264.16 -71.53 19.99
2018-09-30 274.59 -2.14 19.06
2018-06-30 246.93 -19.36 18.97
2018-03-31 225.77 -15.45 16.63
2017-12-31 213.31 -6.67 15.01
2017-09-30 195.89 -8.41 17.57
2017-06-30 185.28 -4.06 15.91
2017-03-31 168.83 -19.07 18.08
2016-12-31 146.37 -30.42 19.15
2016-09-30 135.35 -80.20 15.64
2016-06-30 133.58 -111.18 14.51
2016-03-31 165.40 -112.87 14.66
2015-12-31 199.81 -213.89 15.61
2015-09-30 251.91 -258.48 13.18
2015-06-30 332.43 -189.00 16.23
2015-03-31 369.95 -141.30 17.67
2014-12-31 398.76 -33.18 17.37
2014-09-30 373.55 73.16 21.84
2014-06-30 326.06 47.82 21.23
2014-03-31 266.69 -5.11 22.75
2013-12-31 222.26 -9.89 22.56
2013-09-30 202.26 -75.23 21.15
2013-06-30 167.15 -85.53 19.14
2013-03-31 160.60 -57.25 14.32

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • It is difficult to establish if Surge Energy has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.
  • It is difficult to establish if Surge Energy has efficiently used its assets last year compared to the CA Oil and Gas industry average (Return on Assets) as it is loss-making.
  • It is difficult to establish if Surge Energy improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.
X
Past performance checks
We assess Surge Energy's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Oil and Gas industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Surge Energy has a total score of 0/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

SGY Health

 How is Surge Energy's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Surge Energy's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Surge Energy's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
  • Surge Energy's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Surge Energy's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is not covered by short term assets, assets are 0.1x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Surge Energy Company Filings, last reported 2 months ago.

TSX:SGY Past Debt and Equity Data
Date (Data in CAD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-12-31 671.31 385.10
2019-09-30 819.44 376.45
2019-06-30 820.88 387.06
2019-03-31 826.85 436.97
2018-12-31 834.49 446.57
2018-09-30 768.81 288.33
2018-06-30 764.91 284.14
2018-03-31 767.13 259.37
2017-12-31 776.15 245.95
2017-09-30 789.66 247.77
2017-06-30 789.17 215.95
2017-03-31 784.77 181.65
2016-12-31 779.18 160.68
2016-09-30 788.52 139.82
2016-06-30 793.29 131.71
2016-03-31 802.37 125.17
2015-12-31 812.14 149.03
2015-09-30 886.81 130.97
2015-06-30 937.24 105.14
2015-03-31 957.36 537.19
2014-12-31 1,075.86 564.26
2014-09-30 1,201.75 453.54
2014-06-30 1,197.98 520.51
2014-03-31 922.11 359.51
2013-12-31 854.19 279.62
2013-09-30 587.55 186.15
2013-06-30 343.69 212.49
2013-03-31 352.50 212.87
  • Surge Energy's level of debt (57.4%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (52.5% vs 57.4% today).
CASH RUNWAY ANALYSIS

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

  • Whilst loss making Surge Energy has sufficient cash runway for more than 3 years if it maintains the current positive free cash flow level.
  • Whilst loss making Surge Energy has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 23% per year.
X
Financial health checks
We assess Surge Energy's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Surge Energy has a total score of 2/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

SGY Dividends

 What is Surge Energy's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
4.44%
Current annual income from Surge Energy dividends. Estimated to be 19.75% next year.
If you bought CA$2,000 of Surge Energy shares you are expected to receive CA$89 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Surge Energy's pays a higher dividend yield than the bottom 25% of dividend payers in Canada (2.7%).
  • Surge Energy's dividend is below the markets top 25% of dividend payers in Canada (8.48%).
Upcoming dividend payment

Purchase Surge Energy before the 'Ex-dividend' to receive their next dividend payment.

Dividends are usually paid every 3 or 6 months, you can time your share purchase to take advantage of upcoming dividend payments.
Dividend payment calendar
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
TSX:SGY Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 4 Analyst Estimates (S&P Global) See Below
Canada Oil and Gas Industry Average Dividend Yield Market Cap Weighted Average of 37 Stocks 8%
Canada Market Average Dividend Yield Market Cap Weighted Average of 327 Stocks 4.7%
Canada Minimum Threshold Dividend Yield 10th Percentile 1.3%
Canada Bottom 25% Dividend Yield 25th Percentile 2.7%
Canada Top 25% Dividend Yield 75th Percentile 8.5%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

TSX:SGY Future Dividends Estimate Data
Date (Data in CA$) Dividend per Share (annual) Avg. No. Analysts
2023-12-31 0.01 1.00
2022-12-31 0.01 1.00
2021-12-31 0.04 7.00
2020-12-31 0.06 9.00
2020-03-28
TSX:SGY Past Annualized Dividends Data
Date (Data in CA$) Dividend per share (annual) Avg. Yield (%)
2020-03-10 0.010 3.942
2020-02-18 0.100 12.580
2020-01-15 0.100 9.719
2019-12-16 0.100 9.005
2019-11-15 0.100 9.954
2019-09-16 0.100 9.228
2019-08-15 0.100 8.920
2019-06-17 0.100 8.193
2019-04-15 0.100 7.447
2019-03-15 0.100 7.231
2019-02-15 0.100 7.247
2019-01-15 0.100 7.615
2018-12-17 0.100 6.917
2018-11-15 0.100 6.367
2018-10-15 0.100 5.015
2018-09-17 0.100 3.926
2018-08-15 0.100 4.347
2018-07-16 0.100 4.183
2018-06-15 0.100 4.237
2018-05-15 0.095 3.865
2018-04-16 0.095 4.037
2018-03-15 0.095 4.781
2018-02-15 0.095 5.088
2018-01-15 0.095 4.886
2017-12-15 0.095 4.609
2017-11-15 0.095 4.771
2017-10-16 0.095 4.473
2017-09-15 0.095 4.407
2017-08-15 0.095 4.784
2017-07-17 0.095 4.493
2017-06-15 0.095 4.662
2017-05-15 0.095 4.148
2017-04-17 0.085 3.334
2017-03-15 0.085 3.286
2017-02-15 0.085 3.225
2017-01-16 0.075 2.572
2016-12-15 0.075 2.337
2016-11-15 0.075 2.638
2016-09-15 0.075 2.746
2016-08-15 0.075 3.081
2016-07-15 0.075 3.152
2016-06-15 0.075 3.071
2016-05-16 0.075 3.023
2016-04-15 0.075 3.310
2016-03-15 0.150 6.788
2016-02-16 0.150 6.557
2016-01-15 0.150 7.769
2015-12-15 0.150 7.705
2015-11-16 0.150 6.346
2015-10-15 0.300 10.235
2015-09-15 0.300 10.294
2015-08-17 0.300 11.813
2015-07-15 0.300 11.870
2015-06-15 0.300 8.569
2015-05-15 0.300 7.568
2015-04-15 0.300 7.383
2015-02-17 0.300 9.718
2015-01-07 0.300 10.623
2014-12-15 0.600 16.607
2014-11-17 0.600 12.930
2014-10-15 0.600 9.594
2014-09-15 0.600 8.587
2014-08-15 0.600 7.293
2014-07-15 0.600 7.443
2014-06-16 0.600 7.795
2014-05-15 0.540 7.708
2014-04-15 0.540 7.659
2014-02-14 0.540 8.889
2014-01-15 0.520 8.303
2013-12-03 0.520 7.831
2013-11-15 0.500 7.850
2013-10-15 0.420 6.294
2013-09-16 0.420 6.941
2013-08-15 0.420 7.042
2013-06-11 0.400 7.351

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Whilst dividend payments have been stable, Surge Energy has been paying a dividend for less than 10 years.
  • Surge Energy has only been paying a dividend for 7 years, and since then dividends per share have fallen.
Current Payout to shareholders
What portion of Surge Energy's earnings are paid to the shareholders as a dividend.
  • The company is paying a dividend however it is incurring a loss.
Future Payout to shareholders
  • The company is expected to pay a dividend in 3 years whilst incurring a loss, therefore the dividend is not expected to be well covered.
X
Income/ dividend checks
We assess Surge Energy's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.3%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Surge Energy afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Surge Energy has a total score of 1/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

SGY Management

 What is the CEO of Surge Energy's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Paul Colborne
COMPENSATION CA$2,092,642
AGE 60
TENURE AS CEO 6.8 years
CEO Bio

Mr. Paul Colborne has been the President and Chief Executive Officer of Surge Energy Inc. since May 08, 2013 and has been Director since April 13, 2010. Mr. Colborne serves as the President at StarValley Oil and Gas Ltd. which he joined in October 2006. Mr. Colborne currently serves on the Board of Directors of Rising Star Resources Ltd. and Red River Oil Inc., two private oil and gas companies. He has over 22 years’ experience in the oil and gas industry experience and his expertise is in law and commercial law, including securities, banking, oil and gas. He served as the Chief Executive Officer at TriStar Oil & Gas Ltd. from January 2006 to August 2006. Mr. Colborne served as the Chief Executive Officer at Mission Oil & Gas Inc. He founded StarPoint Energy Ltd. and served as its President and Chief Executive Officer from September 2003 to January 2006. He founded Crescent Point Energy Corp. and served as its President and Chief Executive Officer from June 2001 to September 2003. From February 1, 2001 to August 1, 2001, Mr. Colborne served as the Chief Executive Officer and Chairman at Impact Energy Inc. From August 1993 to February 2001, he served as the President and Chief Executive Officer at Startech Energy Inc. His career included positions as Corporate Finance and Oil and Gas Lawyer at Wascana Energy Inc. and Husky Oil Ltd. He served as an Associate at Parlee McLaws. Mr. Colborne has been the Chairman of Mission Oil & Gas Inc., from November 11, 2004 to February, 2007. He has been the Chairman of the Board of Zapata Energy Corp. since April 13, 2010. He serves as the Chairman of New Star Energy Ltd. He serves as the Chairman of Crescent Point Resources Inc from 1996 to May, 2013. He served as the Chairman of Surge Energy Inc. since April 13, 2010 until January 2015. He served as the Chairman of Legacy Oil + Gas Inc. from July 20, 2009 to May 28, 2014. He has been a Director of Wild Stream Exploration Inc. since October 6, 2009. He has been a Director of Priviti Capital Corporation since April 13, 2010. He serves as a Director of StarPoint Energy Trust. He serves as Member of Advisory Board at Strive Energy Services Ltd. Mr. Colborne served as a Director of Breaker Energy Ltd. He served as Chairman of Seaview Energy Ltd until December, 2009 and TriStar Oil & Gas Ltd, since November 2005. He served as the Chairman of Seaview Energy Inc. until March 2010. Mr. Colborne served as the Chairman of Crescent Point Energy Corp. and Colonial Industries, Inc. He was Director for Westfire Energy Ltd. He served as a Director of Seaview Energy Inc., since June 15, 2007 until March 2010 and Twin Butte Energy Ltd. from February 28, 2006 to February 18, 2010. He served as an Independent Director of Sikanni Services Ltd., since January 2007. He served as a Director of Crescent Point Energy Corp. from 2003 to June 6, 2013. He served as a Director at Long Run Exploration Ltd. from March 2008 to February 18, 2010. He served as a Director of Cequence Energy Ltd. from July 2009 to May 28, 2013. He served as a Director of StarPoint Energy Ltd. He served as a Director of Enquest Energy Services Corp., from April 29, 2008 to June 10, 2008, Titan Exploration Ltd., since January 13, 2004 and Orleans Energy Ltd., from 2005 to September 17, 2007. Mr. Colborne served as a Director of Red River Oil, Inc., Wild River Resources Ltd., Impact Energy Inc., Canetic Resources Trust and Startech Energy Inc. He served as a Director of Grand Petroleum Inc. from December 31, 2003 to December 2005. Mr. Colborne has authored and presented a number of papers relating to the oil and gas industry, including “Environmental Provisions in the Oil and Gas Purchase and Sale Agreements“ and “Euro-Offerings by Canadian Issuers. Mr. Colborne holds a Bachelors of Laws in 1986 and a Bachelors of Arts in Economics from University of Calgary in 1985.

CEO Compensation
  • Paul's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Paul's remuneration is higher than average for companies of similar size in Canada.
Management Team Tenure

Average tenure of the Surge Energy management team in years:

1.6
Average Tenure
  • The average tenure for the Surge Energy management team is less than 2 years, this suggests a new team.
Management Team

Paul Colborne

TITLE
President
COMPENSATION
CA$2M
AGE
60
TENURE
6.8 yrs

Jared Ducs

TITLE
Chief Financial Officer
COMPENSATION
CA$654K
TENURE
1.6 yrs

Murray Bye

TITLE
Chief Operating Officer
COMPENSATION
CA$1M
TENURE
1.6 yrs

Margaret Elekes

TITLE
Senior Vice President of Land & Business Development
COMPENSATION
CA$1M
TENURE
1.6 yrs

Rod Monden

TITLE
Controller
COMPENSATION
CA$565K

Derek Christie

TITLE
Senior Vice President of Geosciences
TENURE
0.3 yrs

Michael Bennett

TITLE
Corporate Secretary
Board of Directors Tenure

Average tenure and age of the Surge Energy board of directors in years:

5.2
Average Tenure
63
Average Age
  • The tenure for the Surge Energy board of directors is about average.
Board of Directors

Jim Pasieka

TITLE
Chairman of the Board
COMPENSATION
CA$158K
AGE
65
TENURE
5.2 yrs

Paul Colborne

TITLE
President
COMPENSATION
CA$2M
AGE
60
TENURE
9.9 yrs

Allison Maher

TITLE
Independent Director
COMPENSATION
CA$99K
TENURE
1.7 yrs

Rob Leach

TITLE
Lead Independent Director
COMPENSATION
CA$133K
AGE
59
TENURE
5.2 yrs

Dan O'Neil

TITLE
Independent Director
COMPENSATION
CA$128K
AGE
63
TENURE
9.9 yrs

Murray Smith

TITLE
Independent Director
COMPENSATION
CA$129K
AGE
69
TENURE
9.8 yrs

Daryl Gilbert

TITLE
Independent Director
COMPENSATION
CA$124K
AGE
67
TENURE
5.8 yrs

Marion Burnyeat

TITLE
Independent Director
COMPENSATION
CA$100K
AGE
50
TENURE
1.7 yrs

Michelle Gramatke

TITLE
Independent Director
TENURE
0.8 yrs
Who owns this company?
Recent Insider Trading
  • More shares have been bought than sold by Surge Energy individual insiders in the past 3 months, but not in substantial volumes.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (CA$) Value (CA$)
17. Mar 20 Buy Robert Leach Individual 17. Mar 20 17. Mar 20 150,000 CA$0.32 CA$48,000
17. Dec 19 Buy Derek Christie Individual 16. Dec 19 16. Dec 19 250,000 CA$1.06 CA$265,000
19. Dec 19 Buy Paul Colborne Individual 15. Nov 19 15. Nov 19 13,787 CA$1.04 CA$14,338
17. Oct 19 Buy Paul Colborne Individual 15. Oct 19 15. Oct 19 16,334 CA$1.15 CA$18,741
23. Sep 19 Buy Paul Colborne Individual 16. Sep 19 16. Sep 19 15,187 CA$1.14 CA$17,362
30. Aug 19 Buy James Pasieka Individual 29. Aug 19 29. Aug 19 350,000 CA$1.25 CA$435,750
23. Aug 19 Buy Paul Colborne Individual 15. Jul 19 15. Aug 19 25,551 CA$1.32 CA$31,483
20. Jun 19 Buy Paul Colborne Individual 17. Jun 19 17. Jun 19 14,427 CA$1.17 CA$16,844
05. Jun 19 Buy Murray Smith Individual 05. Jun 19 05. Jun 19 5,000 CA$1.25 CA$6,250
31. May 19 Buy Murray Smith Individual 31. May 19 31. May 19 3,000 CA$1.26 CA$3,780
17. May 19 Buy Paul Colborne Individual 15. Apr 19 15. May 19 14,288 CA$1.55 CA$19,883
17. Apr 19 Buy Robert Leach Individual 17. Apr 19 17. Apr 19 80,000 CA$1.60 CA$127,744
X
Management checks
We assess Surge Energy's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Surge Energy has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

SGY News

Simply Wall St News

Here's Why We're Wary Of Buying Surge Energy Inc.'s (TSE:SGY) For Its Upcoming Dividend

Considering the lack of profitability, we also need to check if the company generated enough cash flow to cover the dividend payment. … If cash earnings don't cover the dividend, the company would have to pay dividends out of cash in the bank, or by borrowing money, neither of which is long-term sustainable. … Our definition of free cash flow excludes cash generated from asset sales, so since Surge Energy is paying out such a high percentage of its cash flow, it might be worth seeing if it sold assets or had similar events that might have led to such a high dividend payment.

Simply Wall St -

Did Surge Energy Inc. (TSE:SGY) Insiders Buy Up More Shares?

TSX:SGY Recent Insider Trading, August 5th 2019 Insiders at Surge Energy Have Bought Stock Recently There was some insider buying at Surge Energy over the last quarter. … Insider Ownership of Surge Energy For a common shareholder, it is worth checking how many shares are held by company insiders. … Our data indicates that Surge Energy insiders own about CA$13m worth of shares (which is 3.3% of the company).

Simply Wall St -

What Kind Of Share Price Volatility Should You Expect For Surge Energy Inc. (TSE:SGY)?

Some investors use beta as a measure of how much a certain stock is impacted by market risk (volatility). … If this beta value holds true in the future, Surge Energy shares are likely to rise more than the market when the market is going up, but fall faster when the market is going down. … What this means for you: Since Surge Energy has a reasonably high beta, it's worth considering why it is so heavily influenced by broader market sentiment.

Simply Wall St -

Is Surge Energy Inc.'s (TSE:SGY) CEO Pay Justified?

View our latest analysis for Surge Energy How Does Paul Colborne's Compensation Compare With Similar Sized Companies? … We think total compensation is more important but we note that the CEO salary is lower, at CA$415k. … Given the total loss of 45% over three years, many shareholders in Surge Energy Inc.

Simply Wall St -

Could Surge Energy Inc.'s (TSE:SGY) Investor Composition Influence The Stock Price?

Institutions will often hold stock in bigger companies, and we expect to see insiders owning a noticeable percentage of the smaller ones. … Companies that used to be publicly owned tend to have lower insider ownership. … Surge Energy is not a large company by global standards.

Simply Wall St -

Have Insiders Been Buying Surge Energy Inc. (TSE:SGY) Shares?

Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price. … In the last twelve months insiders purchased 715k shares for CA$1.5m. … In the last twelve months there was more buying than selling by Surge Energy insiders.

Simply Wall St -

Should You Be Concerned About Surge Energy Inc.'s (TSE:SGY) Historical Volatility?

Beta can be a useful tool to understand how much a stock is influenced by market risk (volatility). … A stock with a beta below one is either less volatile than the market, or more volatile but not corellated with the overall market. … In comparison a stock with a beta of over one tends to be move in a similar direction to the market in the long term, but with greater changes in price.

Simply Wall St -

Is Surge Energy Inc.'s (TSE:SGY) CEO Overpaid Relative To Its Peers?

In 2013 Paul Colborne was appointed CEO of Surge Energy Inc. … This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. … How Does Paul Colborne's Compensation Compare With Similar Sized Companies?

Simply Wall St -

Are Insiders Buying Surge Energy Inc. (TSE:SGY) Stock?

So shareholders might well want to know whether insiders have been buying or selling shares in Surge Energy Inc. … But logic dictates you should pay some attention to whether insiders are buying or selling shares. … In the last twelve months there was more buying than selling by Surge Energy insiders

Simply Wall St -

Is Surge Energy Inc's (TSE:SGY) CEO Pay Justified?

In 2013 Paul Colborne was appointed CEO of Surge Energy Inc (TSE:SGY). … According to our data, Surge Energy Inc has a market capitalization of CA$587m, and pays its CEO total annual compensation worth CA$2m. … It would therefore appear that Surge Energy Inc pays Paul Colborne more than the median CEO remuneration at companies of a similar size, in the same market

Simply Wall St -

SGY Company Info

Description

Surge Energy Inc. explores for, develops, and produces oil and gas in western Canada. The company holds interest in the Greater Sawn Lake assets located in Northern Alberta; Valhalla/Wembley property located in northwestern Alberta; Sparky assets located between Provost and Wainwright in eastern Alberta and western Saskatchewan; and Shaunavon properties located to the southwest of Swift Current, Saskatchewan. It holds an average working interest of approximately 83% in approximately 116,272 net developed acres and approximately 94% in approximately 211,502 net undeveloped acres in Greater Sawn area; approximately 67% in approximately 20,118 net developed acres and approximately 79% in approximately 11,024 net undeveloped acres in Valhalla area; approximately 78% in approximately 71,649 net developed acres and 95% in approximately 68,508 net undeveloped acres in Sparky area; and approximately 64% in approximately 99,435 net developed acres and approximately 47% in approximately 14,632 net undeveloped acres in Edmonton and other minor areas. As of December 31, 2019, it held interests in 357 net oil wells and 12 net gas wells in Greater Sawn area; 75 net oil and 5 net gas wells in Valhalla area; 481 net oil and 25 net gas wells in Sparky area; 193 net oil wells, as well as an average working interest of approximately 100% in approximately 23,409 net developed acres and 13,698 net undeveloped acres in the Shaunavon properties; and 51 net oil wells and 7 net gas wells in Edmonton and other minor areas. The company was formerly known as Zapata Energy Corporation and changed its name to Surge Energy Inc. in June 2010. Surge Energy Inc. was incorporated in 1998 and is headquartered in Calgary, Canada.

Details
Name: Surge Energy Inc.
SGY
Exchange: TSX
Founded: 1998
CA$78,741,195
335,068,916
Website: http://www.surgeenergy.ca
Address: Surge Energy Inc.
2100, 635 – 8th Avenue SW,
Calgary,
Alberta, T2P 3M3,
Canada
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
TSX SGY Common Shares The Toronto Stock Exchange CA CAD 09. Sep 1998
OTCPK ZPTA.F Common Shares Pink Sheets LLC US USD 09. Sep 1998
DB 41Z Common Shares Deutsche Boerse AG DE EUR 09. Sep 1998
Number of employees
Current staff
Staff numbers
76
Surge Energy employees.
Industry
Oil and Gas Exploration and Production
Energy
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2020/03/28 01:12
End of day share price update: 2020/03/27 00:00
Last estimates confirmation: 2020/03/27
Last earnings filing: 2020/03/09
Last earnings reported: 2019/12/31
Last annual earnings reported: 2019/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.